Posted on 03/25/2009 4:47:57 PM PDT by xmission
The U.S. dollar slid against the euro Wednesday after U.S. Treasury Secretary Timothy Geithner expressed openness to expanded use of an IMF currency basket even as he said the greenback would remain the world's reserve currency for a long time.
Investors initially interpreted his remarks as negative for the dollar, sending it to a session low against the euro.
China's central bank governor said earlier this month said the world should consider the special drawing right (SDR), a basket of dollars, euros, sterling and yen, as a super-sovereign reserve currency.
Geithner, responding to a question at a Council of Foreign Relations event in New York, said he had not read the Chinese proposal but added, "as I understand it, it's a proposal designed to increase the use of the IMF's Special Drawing Rights. I am actually quite open to that suggestion.''
Analysts said the initial gyrations in the dollar were a mistake.
The market took Geithner's willingness to consider the SDR currency issue as a negative sign for the dollar, said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in a note to clients. "This is most likely mistaken. Geithner admits to not having read China's proposal.''
Chandler said President Barack Obama's recent comments about the dollar being fundamentally strong and there being no need of another reserve currency, is more of the underlying signal.
Obama said in a prime-time televised news conference on Tuesday: "I don't believe that there's a need for a global currency'', and noted that the dollar was "extraordinarily strong right now."
(Excerpt) Read more at cnbc.com ...
The dollar is a floating abstraction created by a bankrupt government supported only by legislation and the confidence of a brainwashed population.
Paul Van Eeden
he was raised abroad by professional parents.
he’s what’s known as a “3rd world kid.”
consequently, he has no american identity.
I’d agree with that, but I still don’t like what the bastards are up to.
Pretty obvious tho ain’t it? Not even trying to hide it anymore... he had to know opening his big mouth would devalue the dollar instantly,..
He is Eddie Haskell trying to charm Wally’s parents
I think the world is onto him
Between this, and monetizing the debt, I think they want the dollar to hit hyperinflation.
Well, that makes me feel better about being broke. LOL
I listen to a fair amount of talk radio and all these O supports keep calling and say we need to give him more time and a break.
The meek are trying to inherit the earth. By making it the dark ages again. People that have never started anything, built anything, work hard for anything are now controlling us that do - how the hell did we get here.
Look what he’s done in two months. These are massive life changing mistakes. Our country will cease to exist as the country we have known if this goes on much longer.
That article about the BIS is looking more credible everyday.
ditto to that.
Every time of these phonies speak, I lose money. Make that we ALL lose money.
U.S. Treachery Secretary Timothy “TurboTax” Geithner, boy wunderkind.
Amen. Same here.
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