Posted on 03/25/2009 5:41:34 PM PDT by bruinbirdman
US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.
The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.
"The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation," he said.
Mr Geithner later qualified his remarks, insisting that the dollar would remain the "world's dominant reserve currency ... for a long period of time" but the seeds of doubt have been sown.
The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours earlier that there was no threat to the reserve status of the dollar.
"I don't believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world," he said.
The Chinese proposal, outlined this week by central bank governor Zhou Xiaochuan, calls for a "super-sovereign reserve currency" under IMF management, turning the Fund into a sort of world central bank.
The idea is that the IMF should activate its dormant powers to issue Special Drawing Rights. These SDRs would expand their role over time, becoming a "widely-accepted means of payments".
Mr Bloom said that any switch towards use of SDRs has direct implications for the currency markets. At the moment, 65pc of the world's $6.8 trillion stash of foreign reserves
(Excerpt) Read more at telegraph.co.uk ...
A globalist leftwinger is to be expected to want such.
Left hand are you watching the Right hand?
We've handed the keys to drunk teens.
Thanks guys!
This is day 64 of the Comedy Road Show??
Timmah!
But -— why tell Congress that he would NOT support the global currency, and then tell the world that he would?
If we must be ruled by Communists, thank Heaven they are incompetent Communists!
These commies have got to go.
Oh, yeah, we voted for this “change”.
What an ass!!!
Has the GOP said anything? This is another hanging curve ball.
Is this not from the bible.....what chapters???
Get rid of him.
Little Timmy stepped on it again. The Obamacorns really need to keep their mouths shut and let this thing work itself out. Right now, they are really killing us with their incompetence.
These f&*%ing a%$#oles socialist/globalists in power purposely put out the remark, knowing it will cause panic and eternal doubt about the dollar, and then claim they didn't really mean it.
This should be good for a minimum 5% drop in O's poll standings. And it is a 100% accurate rating when it comes to stating that these losers are purposely trying to wreck the US so as to create a New World Order.
Get rid of all these communist bastards. They are ruining our country. Deliberately.
Except for prestige, why is it in our interest for the U.S. Dollar to be the "world reserve currency"?
What they're doing now isn't overreaching - its tumbling headlong towards chaos.
Trial balloon, denial, inch a little closer. Trial balloon, denial, inch closer still.
Clinton was a master at this. These guys are clumsy by comparison. But, they’re slowly achieving their objectives. Well, maybe not so slowly. It just seems like an eternity.
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