Dollar Plunges on Paulson Appointment

Financial Times ^ | May 30, 2006 | Steve Johnson

[OB1kNOb]

The US dollar fell sharply on Tuesday as Hank Paulson, Goldman Sachs’ chief executive, was named as the new US Treasury secretary, replacing the increasingly pressurised John Snow.

Mr Paulson has extensive links with China and some saw him as potentially better equipped than his predecessor to encourage Beijing, and the wider emerging Asian bloc, to allow a faster appreciation of the renminbi in order to help reduce global economic imbalances.....

[OB1kNOb]

I'm interested in FReepers thoughts on this issue. Thanks. - OB1

[Last Dakotan]

How much did the Yuan appreciate? /sarcasm

[the invisib1e hand]

the subject was broached elsewhere.

low dollar is a temporary plus, and probably a foregone conclusion, perhaps inevitable.

as far as paulson goes, well, it's only right, as GS rules the world.

[Texas_Jarhead]

Paulson's eco ties and activism are cause for me to pause. I need to learn more about him.

[groanup]

I'm interested in FReepers thoughts on this issue. Thanks. - OB1

Buy it on rumor, sell it on news. We've go a loooong way to go before any policy changes are implemented and/or China decides they'll sell out to a Wall Streeter just because he knows somebody in Beijing. A lot can change on world currency markets between now and when this guys takes the seat.

[GSlob]

"I'm interested in FReepers thoughts on this issue."
As it was said once, "no matter whose derriere is filling the chair, the chair is always filled by a derriere".

[stands2reason]

All I know is if the dollar drops, prices go up.

Hello, inflation.

[hsalaw]

the increasingly pressurised John Snow

"increasingly pressurised"? What is the guy, a tire or something?

[Iam1ru1-2]

He's also a member of the Clinton Global Initiative.

[RegulatorCountry]

"the increasingly pressurised John Snow"

Inflated?

[Uncle Hal]

I read some place on the Internet today that Paulson has some views that should concern conservatives. One that I remember is that he agrees with the Kyoto accords and is sympathetic to Gore's views on global warming. If true this is going to hurt Bush's already shaky standing with the GOP base.

[ruschpa]

Any of you guys watch Lou Dobbs this evening?

The reporter Kitty Pilgrim absolutely slammed the admin. on picking Paulson basically saying that Bush has again failed the middle class by picking another millionare. She basically claimed the middle class is being consistantly failed by this admin., the economy is going in the tank, etc...

[Paleo Conservative]

[roverman2K6]

Millionaires know about money, what a dumb chic
Are we supposed to give this job to some homie to "keep it real" no you give it to someone who knows what they are doing

[sinkspur]

The reporter Kitty Pilgrim absolutely slammed the admin. on picking Paulson basically saying that Bush has again failed the middle class by picking another millionare. She basically claimed the middle class is being consistantly failed by this admin., the economy is going in the tank, etc...

So Pilgrim believes that Bush should have picked a guy who is only mediocre with money to run Treasury, rather than a guy who has proved that he is good with money?

5.3% growth is hardly "going in the tank."

Dobbs proves, once again, that his hour-long rant is nothing but a vendetta against the Bush administration.

[Paleo Conservative]

The reporter Kitty Pilgrim absolutely slammed the admin. on picking Paulson basically saying that Bush has again failed the middle class by picking another millionare

How many treasury secretaries haven't been millionaires?

[OpusatFR]

The fox is guarding the henhouse now.

[RegulatorCountry]

"How many treasury secretaries haven't been millionaires?"

I've been told never to trust a skinny chef. The same logic applies to a lack of wealth and treasury secretaries, I'd imagine, even though Paulson sounds a little sketchy at the moment.

[OldFriend]

Guess the President should have chosen a welfare recipient as head of Treasury.

[p. henry]

Right. As the dollar weakens, the Fed will keep raising rates to support what is left of the dollar and quell the inflation to which you refer. That will deflate demand for real estate and other interest rate sensitive items, which will ultimately lead to slower growth or a recession.