Trichet talks up dollar

trainofthoughts ^ | 092809 | trainofthoughts

[the invisib1e hand]

Sept. 28 (Bloomberg) -- European Central Bank President Jean-Claude Trichet said it is “extremely important” to have a strong U.S. dollar.

[the invisib1e hand]

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[NVDave]

Heh.

A weak dollar means that EU exports to the US, already low, will go lower in volume as the prices of EU goods goes up inside the US.

Trouble is, talk is cheap. “Strong dollar” talk is cheaper yet.

[RexBeach]

“Pardonez-moi, mes amis, I yam talking up zee doller.”

[the invisib1e hand]

it is unthinkable that an administration not to at least promulgate the rhetoric of a strong domestic currency, regardless of its policy intent. this one has not. In fact, Mr. Geithner sent the dollar into a tailspin this spring when he publicly stated, "we'd love a world currency." The sell-off was only curtailed when he recanted his comments in the very same speech.

Obama's own remarks (not to mention his policies) have been categorically bearish for the dollar.

It took a european central banker to say what someone in this administration should have said.

[NVDave]

All true, but the problem is that in Trichet saying it, he casts into sharp contrast the feckless policy of the Obama administration.

If anything, Trichet and Sarkozy have opened people’s eyes in the last week: The emperor has no clothes.