Posted on 10/19/2010 6:54:22 AM PDT by SeekAndFind
U.S. Treasury Secretary Timothy Geithner vowed on Monday that the United States would not devalue the dollar for export advantage, saying no country could weaken its currency to gain economic health.
"It is not going to happen in this country." Geithner told Silicon Valley business leaders of devaluing the dollar.
Geithner broke his silence on the dollar's protracted slide ahead of this weekend's meeting of finance leaders from the Group of 20 wealthy and emerging nations in South Korea, where rising tensions over Chinese and U.S. currency valuations are expected to take center stage.
"It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity, to (be) competitive," Geithner added. "It is not a viable, feasible strategy and we will not engage in it."
Answering audience questions before the Commonwealth Club of California in Palo Alto, he said the United States needed to "work hard to preserve confidence in the strong dollar."
Geithner, normally reluctant to publicly discuss currency and market movements, has not uttered the so-called "strong dollar mantra" — a refrain he helped create at Treasury in the 1990s — since February.
(Excerpt) Read more at cnbc.com ...
That is kind of silly, all you have to do is look at its value along side the pound or yen. Then, compare its value to the same from various times in the past.
I'd add, though, that there's no reason why you and I couldn't do the same thing.
In fact, I'm doing it right now. Last year I took out a pile of money in my 401(k) account from my U.S. bond fund -- which was earning very little interest. I drew this money out of the 401(k) as a loan with a very low interest rate.
I used this money to help finance a business start-up. The loan is paid back to MYSELF (my own 401k account) -- and the interest is tax-deductible because of what I'm using it for.
Tim Geitner reminds me of Baghdad Bob.
He’s lying. We know he’s lying. He knows we know he’s lying.
And he lies anyway.
However, Tim Geitner is the Secretary of the United States Department of Treasury, not a spokesman for a rapidly failing and soon-to-be vanquished military regime. On second thought, maybe the two aren’t so different: maybe Timmy is just a spokesman for a rapidly failing and soon-to-be vanquished monetary regime.
OTOH, the dollar’s up today and gold is down $30 per ounce.
Every vote for a democrat devalues the dollar a little more.
FUBO
Ummm, print enough dollars out of thin air, and the dollar devalues itself... Guess that's what he means - he won't actually DO IT - it'll just happen... Sounds like a tax cheating excuse...
Ummm, print enough dollars out of thin air, and the dollar devalues itself... Guess that's what he means - he won't actually DO IT - it'll just happen... Sounds like a tax cheating excuse...
Geithner can’t print dollar, it’s Bernanke’s job.
However, he can in effect, cause Bernanke to do it by issuing additional government debt ( AKA US Treasuries ).
The Fed has been buying US treasuries like crazy.
The whole thing looks so funny. What you produce with your left hand, you consume with your right hand.
You're right - it has the feel of check kiting ...
Good One, Timmie, that’s a budding standup routine you got there.
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