Back on October 18th, 2010 Treasury Secretary Timmy Geithner said we would not devalue our currency to gain competitive advantage over other countries:
“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.”
Beside the fact that no country ever admits it will devalue before devaluing, he continued the chant about a strong dollar: “…the United States needed to “work hard to preserve confidence in the strong dollar.”
This week Timmy scared the markets with talk that he might reconsider the role of the USD as a reserve currency.
Geithner just signaled to the world that this administration Washington is “…”quite open” to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.”
Do you realize how terrible this would be for the U.S. if we lost our ability to print dollars to pay our debts?
Timmy clarified his position by hauling out the chant:
“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.
Link:
http://www.movermike.com/
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