Fumble! Geithner speaks, dollar dives

posted at 12:12 pm on March 25, 2009 by Ed Morrissey

The Barack Obama Amateur Hour continues today, with Treasury Secretary Tim “Literally The Only Man Who Can Do The Job” Geithner speaking at the Council of Foreign Relations today.  A panelist asked Geithner about China’s call to move away from the US dollar and to create a new strategic reserve currency based on international organizations.  Geithner said that sounded great, and got the utterly predictable result:

In a blink of an eye, the U.S. dollar has collapsed against the Euro, Japanese Yen and other major currencies. The trigger was comments from Tim Geithner who said that the U.S. is “quite open” to China’s suggestion of moving towards a Special Drawing Right (SDR) linked currency system. If the world adopts the SDR, which was created by the IMF as an international reserve asset, it would mean that countries around the world would need to hold less U.S. dollars. The U.S. is probably open to this suggestion because a weaker dollar is stimulative for the U.S. economy and would relieve the U.S. from having to implement effective monetary policy while balancing the international demand for a reserve currency.

Geithner’s comments indicate that the U.S. is not taking China’s suggestion with a grain of salt and instead is giving it legitimacy. This is extremely important ahead of the G20 meeting. The only question is whether this is another amateur mistake by the new U.S. Treasury Secretary.

Question answered:

The dollar pared losses versus the euro on Wednesday after U.S. Treasury Secretary Timothy Geithner said the dollar was likely to remain the world’s reserve currency for a long time.

The U.S. dollar fell to a session low against the euro after Geithner said he was “quite open” to China’s suggestion of moving toward SDR-linked currency system.

The dollar began regaining some lost ground after the moderator nudged Geithner into a clarification.  Kathy Lien asks whether any grown-ups work in the Obama administration at all:

These contradictory statements are clearly the act of an amateur Treasury Secretary that has been thrust onto the public forum and is struggling with the need to be very particular in his choice of words. Geithner is learning the hard way about the impact that his comments can have on the currency market and despite his attempt to pacify investors, his words have left air of uncertainty in the U.S. dollar.

As if we didn’t already know that from the AIG bonus implosion.  Geithner got a reprieve from talk about his ouster with the warm reception of his toxic-asset plan this week by Wall Street, but this should really be the last straw.  If Geithner is too inexperienced or obtuse to understand that legitimizing a suggestion to move away from the dollar could be harmful to American interests — especially at a time when President Obama needs to sell trillions more in debt — then he’s too stupid by half to hold his present job.

Haven’t we lived with this embarrassment long enough?


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The U.S. is probably open to this suggestion because a weaker dollar is stimulative for the U.S. economy and would relieve the U.S. from having to implement effective monetary policy while balancing the international demand for a reserve currency.

its important to keep this in mind. surely this isnt the only variable that need be considered…but between this and the fact that China’s T-bill holding is what really matters…im not seeing this as a clear cut case of something bad happening.

ernesto on March 25, 2009 at 12:15 PM

Ed, you just don’t appreciate what’s on his plate and how Hamiltonian he is.

/sarc

Pasalubong on March 25, 2009 at 12:15 PM

Geithner must go!

rockmom on March 25, 2009 at 12:16 PM

The CFR wants to destroy the world!!1!1one!!11ty!

lorien1973 on March 25, 2009 at 12:16 PM

Has Obama already used his buses to toss Geithner under?

Maybe Ray Nagin has some buses he’s not using?

originalpechanga on March 25, 2009 at 12:16 PM

The Amateur Hour of this administration is like the Groundhog Day nightmare. It never ends.

petefrt on March 25, 2009 at 12:17 PM

The U.S. wants to weaken its currency, as does every other country. It is a race to the bottom, making gold a good idea.

dedalus on March 25, 2009 at 12:18 PM

Funny how a weak dollar under Bush was bad policy. Under Obama it’s smart.

lorien1973 on March 25, 2009 at 12:18 PM

I think Maxine Waters really messed with Tim’s head yesterday.

myrenovations on March 25, 2009 at 12:18 PM

Your doin’ a heckuva job Timmy!

Lunkinator on March 25, 2009 at 12:19 PM

Haven’t we lived with this embarrassment long enough?

They have barely even started. Pitchfork anyone?

Guardian on March 25, 2009 at 12:19 PM

im not seeing this as a clear cut case of something bad happening.

ernesto on March 25, 2009 at 12:15 PM

Apparently the moderator, Turbo Tax, and currency traders see things more clearly than you do.

But that’s not surprising.

lorien1973 on March 25, 2009 at 12:20 PM

We sure dodged the bullet on Palin, didn’t we? Whew!

Lehosh on March 25, 2009 at 12:20 PM

The Obamatrons are like a case of explosive, bloody projectile vomiting – and not the good kind.

whitetop on March 25, 2009 at 12:21 PM

How earth-shatteringly stoopid can one man be? Dolts like Geithner end up in key government positions when we have a president who’s never held a real job in his life.

OhioCoastie on March 25, 2009 at 12:21 PM

Oh, come on Ed! That’s ridiculous.

For months, every time the Dow drops, the dollar goes up v the euro. Then when the Dow goes up, the dollar goes down. Its just dishonest to associate the dollar with Geithner.

jimmy the notable on March 25, 2009 at 12:21 PM

Words matter because they build a perception. That perception builds or breaks down optimism, courage, resolve, perseverance and adherence to principle. Churchill sustained and built up England with words. So far Barry & Co. are breaking down everything in sight.

This is from that Home Alone article that was in the Headlines last week.

“There is nothing more powerful than inspirational leadership that unleashes principled behavior for a great cause,” said Dov Seidman, the C.E.O. of LRN, which helps companies build ethical cultures, and the author of the book “How.” What makes a company or a government “sustainable,” he added, is not when it adds more coercive rules and regulations to control behaviors. “It is when its employees or citizens are propelled by values and principles to do the right things, no matter how difficult the situation,” said Seidman. “Laws tell you what you can do. Values inspire in you what you should do. It’s a leader’s job to inspire in us those values.”

Right now we have an absence of inspirational leadership.

I don’t know if this is amateur hour or not. Geithner ought to know the effect his words will have. We have a global guy in the WH and he has yet to convince me that he has the best interests of America had heart.

INC on March 25, 2009 at 12:21 PM

There’s such a fine line between doing one’s job and treason.

AubieJon on March 25, 2009 at 12:21 PM

Tank it Geithner! I bought gold.

http://www.monex.com

http://www.kitco.com

Theworldisnotenough on March 25, 2009 at 12:22 PM

The dollar isn’t the only thing crashing:

Call for Help: Postal chief says agency crashing

WASHINGTON – Postmaster General John Potter said Wednesday the financially strapped U.S. Postal Service will run out of money this year without help from Congress

artist on March 25, 2009 at 12:22 PM

If Geithner is too inexperienced or obtuse to understand that legitimizing a suggestion to move away from the dollar could be harmful to American interests — especially at a time when President Obama needs to sell trillions more in debt — then he’s too stupid by half to hold his present job.

Money quote (sorry for the bad pun).

cs89 on March 25, 2009 at 12:22 PM

Now I understand what Dear Leader meant when He read off George Soros’ teleprompter that Geithner was “Literally the only man who can do the job”

The job of trashing the American economy.

rbj on March 25, 2009 at 12:23 PM

lorien1973 on March 25, 2009 at 12:20 PM

ill assume then that you understand all this. how exactly do you take the economic effects of a weaker dollar (which can be quite positive), the effects of the increased planning capability offered by a more stable reserve regime, and the benefits of a western liberal institution at the top of that regime and come up with a “this is very bad” assessment?

ernesto on March 25, 2009 at 12:23 PM

One freaking day without disastrous news from this administration. Is that to much to ask? Just one freaking day.

Keyser-Soze on March 25, 2009 at 12:23 PM

Somebody please wake me up from this nightmare. Politico has it that Geitner didnt even read the damn thing before sounding agreement to it. My God could this administration be any more ignorant?

canditaylor68 on March 25, 2009 at 12:23 PM

After printing 1 trillion dollars last week, and probably another trillion this week, the dollar is going down anyway.

Once the markets catch up, it is going to get UGGGLLLLYYYY

sonofdy on March 25, 2009 at 12:27 PM

Can we PLEASE go back to not having the bestest, telentedest, and most smarterest people ruin…running our government.

I miss the dumb people so much.

jukin on March 25, 2009 at 12:27 PM

I just wish – PLEASE-OH-PLEASE-OH-PLEASE – that one conservative with some sort of cajones would stand up and say the same sort of things Dan Hannan said to PM Browne.

It’s just our nation that’s burning for crying out loud!

AubieJon on March 25, 2009 at 12:28 PM

Geithner ought to know the effect his words will have. INC on March 25, 2009 at 12:21 PM

Timmuh obviously needs his own Teleprompter to prevent him from saying these stupid things.
TOTTS (Teleprompter of the Treasury Secretary)

Brat on March 25, 2009 at 12:28 PM

The U.S. wants to weaken its currency, as does every other country. It is a race to the bottom, making gold a good idea.

dedalus on March 25, 2009 at 12:18 PM

Not every other country. The EU central bank is resisting money printing to stimulate demand. America and Britain want the world to inflate because they are inflating. When the dollar goes boom the Euro that has not been inflated to the extent that the dollar and the pound will be in much better shape.

Theworldisnotenough on March 25, 2009 at 12:28 PM

Oh, come on Ed! That’s ridiculous.

For months, every time the Dow drops, the dollar goes up v the euro. Then when the Dow goes up, the dollar goes down. Its just dishonest to associate the dollar with Geithner.

jimmy the notable on March 25, 2009 at 12:21 PM

Question the timing!

Geithner speaks – Dow usually drops within minutes

Obama speaks – Dow usually drops within minutes

rockbend on March 25, 2009 at 12:28 PM

As I said in the other thread…

Timmy is just being consistant… doing what he says..

He testified that he wanted to break apart entities that were too big to fail…

It seems he agrees with the Chinese, that the USA fits into this category.

Romeo13 on March 25, 2009 at 12:29 PM

I just wish – PLEASE-OH-PLEASE-OH-PLEASE – that one conservative with some sort of cajones would stand up and say the same sort of things Dan Hannan said to PM Browne.

It’s just our nation that’s burning for crying out loud!

AubieJon on March 25, 2009 at 12:28 PM

That was an awesome bomb. I hope AP or Ed post it. And did you notice Brown laughed at it like Obama laughs? Hmm….

Pasalubong on March 25, 2009 at 12:29 PM

My God could this administration be any more ignorant?

canditaylor68 on March 25, 2009 at 12:23 PM

Yup. But you knew that.

OhioCoastie on March 25, 2009 at 12:29 PM

ill assume then that you understand all this. how exactly do you take the economic effects of a weaker dollar (which can be quite positive), the effects of the increased planning capability offered by a more stable reserve regime, and the benefits of a western liberal institution at the top of that regime and come up with a “this is very bad” assessment?

ernesto on March 25, 2009 at 12:23 PM

You forgot the fact Obama will be borrowing 2 trillion dollars this year while countries, especially China are fleeing the dollar, or presumably would start.

Chuck Schick on March 25, 2009 at 12:29 PM

This is the ‘Pat On the Head’ administration, everything they do seems calculated to have someone else say “oh what a good boy you are”.

Bishop on March 25, 2009 at 12:29 PM

I hate it when a good conversation is going on in the headlines and then it becomes a main post. I always wonder whether I should repeat my headline comment, or just jump in the current post wherever, or what.

BadgerHawk on March 25, 2009 at 12:30 PM

Bill Clinton was more right than he realized. Words do indeed have consequences.

Bigfoot on March 25, 2009 at 12:30 PM

“Words matter”, or something.

innominatus on March 25, 2009 at 12:30 PM

The U.S. is probably open to this suggestion because a weaker dollar is stimulative for the U.S. economy and would relieve the U.S. from having to implement effective monetary policy while balancing the international demand for a reserve currency.

Ed, how can you include this in your quote and then just ignore it? It explicitly says that the dollar weakening might be good, and might be part of the government’s plan.

Maybe you disagree that it’s good (though I can’t imagine that any of us here is expert enough to know), but why would you spend the entire post talking about how Geithner doesn’t understand the effect of his words when that effect is mentioned in what you cited as a possible part of the government’s strategy?

tneloms on March 25, 2009 at 12:30 PM

“W” is looking smarter every day!

Star20 on March 25, 2009 at 12:31 PM

One freaking day without disastrous news from this administration. Is that to much to ask? Just one freaking day.

Keyser-Soze on March 25, 2009 at 12:23 PM

My thoughts EXACTLY.

How can they be this inept? I’m not one for conspiracies, but I swear it seems they want to drive us all crazy.

{{{returns tinfoil hat to its’ special place}}}

tru2tx on March 25, 2009 at 12:33 PM

Funny how a weak dollar under Bush was bad policy. Under Obama it’s smart.

lorien1973 on March 25, 2009 at 12:18 PM

I think it’s always bad policy.

BadgerHawk on March 25, 2009 at 12:33 PM

ernesto on March 25, 2009 at 12:23 PM

I think Geitner, for once, is being remarkably honest here.

He knows that their plan to buy debt with other debt can either work or fail miserably. It sounds like he’s anticipating it will fail miserably; which will weaken the dollar significantly. This is a smart bet; given that it’s never worked in the past, to my knowledge

The real question you should be asking is – if Geitner is expecting it to fail, why is he proceeding along this line of thought.

If the dollar tanks (which it will) and you like this weak dollar policy (which, admittedly, has its uses in some areas) your going to see less people wanting to buy our debt. Which makes this deficit and debt unsustainable.

So if you expect failure, certainly peg it to a stronger piece of currency. That is, unless you like have control over your financial future.

lorien1973 on March 25, 2009 at 12:33 PM

BadgerHawk on March 25, 2009 at 12:30 PM

I agree. I sometimes repeat or sometimes combine my comments from the Headlines.

INC on March 25, 2009 at 12:33 PM

So far, the only investments worth holding during the Obama era seem to be gold and oil.

blue13326 on March 25, 2009 at 12:34 PM

Chuck Schick on March 25, 2009 at 12:29 PM

Yep.

The job of the U.S. Treasury Secretary is to look after the interests of the U.S. economy. Global implications have to be taken into account, but they should be a secondary consideration for him.

Would the world prefer an internationalist “basket” SDR? Probably. The question is, are the Chinese (and European, etc.) going to be looking at national or international interests first?

They’ll take care of their own nation first.

Timmy should do the same.

cs89 on March 25, 2009 at 12:35 PM

What would it take to make them (Obama and crew) just keep their mouths shut?!

cibolo on March 25, 2009 at 12:35 PM

BadgerHawk on March 25, 2009 at 12:33 PM

It has its uses. A weak dollar helps exports. It helps tourism, brings jobs, etc.

But since we have so much foreign debt, it encourages people to dump that for a stronger currency.

As well. As with everything. There is a balance that needs to be struck.

Geitner is starting from a point of weakness right now. And, as in poker, that’s a losing hand every time.

lorien1973 on March 25, 2009 at 12:35 PM

Instead of sending tea bags to the WH, I think we need to send muzzles.

becki51758 on March 25, 2009 at 12:35 PM

One freaking day without disastrous news from this administration. Is that to much to ask? Just one freaking day.

Keyser-Soze on March 25, 2009 at 12:23 PM

My thoughts EXACTLY.

How can they be this inept? I’m not one for conspiracies, but I swear it seems they want to drive us all crazy.

{{{returns tinfoil hat to its’ special place}}}

tru2tx on March 25, 2009 at 12:33 PM

I am feeling a lot less alone.

Cindy Munford on March 25, 2009 at 12:35 PM

This prick is supposed to be supporting the US not dragging it down. Then again he works for the Worldly One.

Geithner – the only person in America who could do the job.

I would like to know who made money on the dollar today.

davod on March 25, 2009 at 12:36 PM

Soros is shorting the dollar. He’s getting the ultimate “insider information” FROM THE Fing TREASURY DEPARTMENT AND THE PRESIDENT!!!!!!!!!!!! Jesus H.

marklmail on March 25, 2009 at 12:36 PM

I don’t know if this is amateur hour or not. Geithner ought to know the effect his words will have. We have a global guy in the WH and he has yet to convince me that he has the best interests of America had heart.

INC on March 25, 2009 at 12:21 PM

I don’t think it’s amateur hour, I think they know exactly what they’re doing and this is just another part of the plan to take this country to their knee’s. Geithner’s not going anywhere, he’s just another dumb stooge brought to you by George Soros.

I’ve never been much with conspiracy theories, but I’m starting to really buy into the theory that this is nothing more than a manufactured crisis. It just all happened to fast.

Knucklehead on March 25, 2009 at 12:38 PM

I saw this on FBN this morning, LIVE! I am terrified as to what they are going to agree to at the G20. Putin has been pushing this as well, and we all saw how Obama caved like a cheap suit when the Russians gave us the international sign to get lost regarding dealing with Iran and not setting up the missile defense shields. Add pressure from the Chinese and a total lack of competency from the POTUS all the way to Commerce Secretary, and the word fear just does not quite seem to cover what most Americans are feeling out here across the fruited plains. Are they smoking weed in Washington on Wednesday party nights?

When the French and Chinese are telling us NOT to spend so much money, and are worried about the strength of the dollar- you know we are traveling down the wrong road!

Wonder just what Dear Leader is going to agree to during the G20? Wonder if TOTUS could take his place and represent the U.S. instead? Here is hoping there are lots of leaks so we know in advance just how far De One sold us out. At first all these blunders were like something out of a SNL skit. It is not funny any more! Geithner needs to go ASAP!

freeus on March 25, 2009 at 12:38 PM

Oh, come on Ed! That’s ridiculous.

For months, every time the Dow drops, the dollar goes up v the euro. Then when the Dow goes up, the dollar goes down. Its just dishonest to associate the dollar with Geithner.

jimmy the notable on March 25, 2009 at 12:21 PM

Hope you were kidding. Look at currency charts at the time Geitner said that. I was trading. Gaps, whipsaws all over the place until he recanted.

What Geitner says does affect the markets. Same with Bernanke, all other Cenral Bankers. Bottom line is that Geitner is a clown along with nearly every other member of this administration.

Cody1991 on March 25, 2009 at 12:38 PM

Shut up, Tim. Just SHUT UP.

patriette on March 25, 2009 at 12:38 PM

Ed,
You can’t be so naive as to think he accidentally used the term “quite open” to a gradual transition away from the dollar.

That’s diplomatic speak for “We’re enthusiastic to the point that I’m even going to say “quite open” right now in public. But we need to take it slow for obvious reasons, so of course I’m going to backtrack when the dollar tanks.”

The contingency plan has always been to gradually transition foreign dollar holdings to Special Drawing Rights, just as he said, ever since it was obvious our debt was unsustainable and the dollar would eventually hit the wall.

econavenger on March 25, 2009 at 12:40 PM

Maybe you disagree that it’s good (though I can’t imagine that any of us here is expert enough to know), but why would you spend the entire post talking about how Geithner doesn’t understand the effect of his words when that effect is mentioned in what you cited as a possible part of the government’s strategy?

tneloms on March 25, 2009 at 12:30 PM

Indeed, perhaps a weak dollar is part of his strategy. But then maybe he shouldn’t have told Congress under oath that he supports a strong dollar.

In his confirmation hearing with the Senate Finance Committee, Treasury Secretary Nominee Tim Geithner said that a “strong dollar is in America’s National Interest.”

amerpundit on March 25, 2009 at 12:40 PM

I’m sure the Chinese can get us some awesomely awesome gongs.

Christien on March 25, 2009 at 12:40 PM

It has its uses. A weak dollar helps exports. It helps tourism, brings jobs, etc.

But since we have so much foreign debt, it encourages people to dump that for a stronger currency.

lorien1973 on March 25, 2009 at 12:35 PM

I’m aware of the benefits. But I don’t think the benefits come close to outweighing the costs. Oil alone should make us want a strong dollar, given the countries that those dollars typically go to. Plus, as you mentioned, the weaker the dollar gets the more unsustainable our debt becomes.

Long term I’d like to see us strengthen the dollar big time.

BadgerHawk on March 25, 2009 at 12:41 PM

Geithner needs to go. He is a tax cheat who managed to get away with something that would put ordinary Americans in jail. The filthy liar should be leading the charge by asking for Geithner’s resignation.

But that isn’t how things work in the most corrupt Presidential administration ever. Obama needs to be removed from office as quickly as necessary by any means necessary.

highhopes on March 25, 2009 at 12:42 PM

Ernesto:

Why would you believe that an international body associated with the UN or any of its institutions provide a stable financial planning environment? If the reserve, dubbed SDR, is efficiently managed it would be no different then the classic gold standard. Historically, the gold standard had a built in deflationary bias and it was the gold standard that forced the Federal Reserve to tighten money in 1931, precipitating the collapse of the banking system.

The only way other then a gold standard that a “world” reserve system could be created is if some other nation would step in as the reserve currency country. No other nation can fill that role right now. Maybe China can in fifty years. The downside for any country willing to fulfill the role as key currency provider is that it must continually run trade deficits to insure that there is enough international liquidity to support growth and trade.

The only reason to entertain the idea of ending the dollar as the international reserve currency is to allow us to inflate away our national debt. If you want the United States to be Argentina then this is a splendid idea.

jerryofva on March 25, 2009 at 12:42 PM

I really wonder how punch-drunk Precedent Uh-Ohbama defines “uniquely qualified for the job“.

Maybe Soros told him to hire Geithner?

ornery_independent on March 25, 2009 at 12:43 PM

This is what happens when people elect a celebrity as President instead of someone who’s qualified for the job. An unqualified conservative would be bad enough, but an unqualified liberal/socialist is a recipe for disaster.

Does anyone think that the same grammar school antics would be going on if Romney had been elected?

orlandocajun on March 25, 2009 at 12:45 PM

tru2tx on March 25, 2009 at 12:33 PM

Cindy Munford on March 25, 2009 at 12:35 PM

When we get shipped to the reeducation camp, You watch my back, I’ll watch yours. Deal?

Keyser-Soze on March 25, 2009 at 12:45 PM

What makes you think it was a fumble?

Maxx on March 25, 2009 at 12:46 PM

They have to be doing this on purpose. There’s no way anyone is this stupid.

Grayson on March 25, 2009 at 12:46 PM

I dont know. I was starting to have sympathy for him when he was “grilled” by maxine waters!!!!(HAHA)

tottoritodd on March 25, 2009 at 12:47 PM

Geithner Obama must go!

rockmom on March 25, 2009 at 12:16 PM

Fixed it for you.

johnsteele on March 25, 2009 at 12:48 PM

Clarifying what I said above, I think Barry is a committed globalist with radical Leftist ideas and policies. He is committed to pushing them through come hell or high water, regardless of consequences.

I do not think he is especially brilliant (we’d have seen some school transcripts and some articles from that Harvard Law Review if he were). Nor has he ever shown that he a a great leader or executive in the true sense of the word: someone who can inspire others to greatness and find those who are adept and knowledgeable to whom he can delegate tasks and responsibility.

He is quite devious and is a Manchurian candidate, not in the sense that he was brainwashed, but in the sense that he has been built up into a package image and carried to political success by the Chicago machine. His minions are proficient in political destruction and rahmming (misspelling intentional) through their Leftist policies.

To what extent is Geithner’s gaffe intentional or just plain stupid? For me, this conjecture is becoming pretty much moot because the consequences are the same.

INC on March 25, 2009 at 12:48 PM

We’ll be lucky to be a Banana Republic in 4 years……

All Hail

dmann on March 25, 2009 at 12:49 PM

Good God. Once again I ask – is there anyone in charge in Washington? ‘Cause it sure as hell isn’t either Giggles or TIMMAH.

crazy_legs on March 25, 2009 at 12:49 PM

tottoritodd on March 25, 2009 at 12:47 PM

That was funny. “My CEO?”

cs89 on March 25, 2009 at 12:50 PM

So far, the only investments worth holding during the Obama era seem to be gold and oil.

blue13326 on March 25, 2009 at 12:34 PM

Don’t forget natural gas and platinum.

Maxx on March 25, 2009 at 12:51 PM

Geithner isn’t going anywhere, because if he was out, then Obama would have 0 of 18 Treasury appointments, rather than 1 of 18.

phelps on March 25, 2009 at 12:51 PM

Adults are in charge.

getalife on March 25, 2009 at 10:54 AM

Del Dolemonte on March 25, 2009 at 12:51 PM

Hopey Changey!!!

D2Boston on March 25, 2009 at 12:52 PM

getalife gets her/his/their talking points from HQ in 5…4…3…2…

bluelightbrigade on March 25, 2009 at 12:52 PM

And as to the internationalist implications of an SDR reserve currency…

All I can say is “Oil for Food” scandal.

Does anybody think there wouldn’t be corruption, or several thumbs on the scale?

cs89 on March 25, 2009 at 12:53 PM

Del Dolemonte on March 25, 2009 at 12:51 PM

Mission Accomplished – getalife 3/23/09

lorien1973 on March 25, 2009 at 12:54 PM

The Obama administration has dropped the term “terrorist attacks” and now refers to “man made disasters.”

Same could be said OF his administration.

Star20 on March 25, 2009 at 12:54 PM

Haven’t we lived with this embarrassment long enough?

Barry’s approval numbers don’t seem to be dropping, I guess we wait and see. Ninety-Four months is an awfully long time to waste.

Mark30339 on March 25, 2009 at 12:55 PM

I don’t think it’s amateur hour, I think they know exactly what they’re doing and this is just another part of the plan to take this country to their knee’s. Geithner’s not going anywhere, he’s just another dumb stooge brought to you by George Soros.

I’ve never been much with conspiracy theories, but I’m starting to really buy into the theory that this is nothing more than a manufactured crisis. It just all happened to fast.

Knucklehead on March 25, 2009 at 12:38 PM

BINGO

johnsteele on March 25, 2009 at 12:55 PM

Every so often the truth slips out … It’s become obvious that it’s all aplan to take down America — Run by Obama-Soros.

tarpon on March 25, 2009 at 12:56 PM

Funny how the article neglects to quantify the “collapse.” It was less than 1% (versus the Yen, at least; other currencies were similar), but within a few hours, it was back within 0.2% of where it had been just before the “collapse,” which was 0.2% above where it was just a few hours earlier. Yes, the graph looks scary…. until you start reading the numbers associated with it. This was only a blip, so let’s not pretend otherwise.

calbear on March 25, 2009 at 12:57 PM

When we get shipped to the reeducation camp, You watch my back, I’ll watch yours. Deal?

Keyser-Soze on March 25, 2009 at 12:45 PM

You’ve got a deal!

tru2tx on March 25, 2009 at 12:57 PM

Not every other country. The EU central bank is resisting money printing to stimulate demand. America and Britain want the world to inflate because they are inflating. When the dollar goes boom the Euro that has not been inflated to the extent that the dollar and the pound will be in much better shape.

Theworldisnotenough on March 25, 2009 at 12:28 PM

Maybe, but Trichet pursued a strong Euro with high interest rates during 2007 and 2008 and really hurt the export businesses in Europe. U.S. GDP growth would have gone negative sooner than it had, except strong exports driven by the weak dollar. Trichet lowered rates, but probably too late for the Euro economy.

In the past year, the Euro has gone from $1.57 to $1.36, even as the U.S. has printed and borrowed money like never before.

dedalus on March 25, 2009 at 1:00 PM

I think it’s always bad policy.

BadgerHawk on March 25, 2009 at 12:33 PM

I’m not sure why you think that: perhaps a currency that is incorrectly valued is a problem because it improperly punishes either exporters or importers (depending on the direction of the “error”).

A strong dollar makes imports cheaper, but domestic products relatively more expensive, and thus puts domestic manufacturers at a cost disadvantage, consequently contributing to unemployment. A weak dollar makes makes our exports abroad more cost-competitive, helping employment, but costs consumers who buy imported items. With efficient currency markets, the dollar, by definition, is “correctly” priced, reflecting, in a sense, the aggregate value of our economic output.

The currency is just the denominator of our standard of living; we would be well advised to place more focus on improving the numerator.

mr.blacksheep on March 25, 2009 at 1:00 PM

lorien
del

Bush depression saved.

This guy is addressing problems in his first 50 days that have not been addreseed in the last 50 years.

Get out of his way and follow his leadership.

He is on a roll.

getalife on March 12, 2009 at 8:17 PM

BadgerHawk on March 25, 2009 at 1:00 PM

mr.blacksheep on March 25, 2009 at 1:00 PM

Yep. Well put.

dedalus on March 25, 2009 at 1:02 PM

Yes, the graph looks scary…. until you start reading the numbers associated with it. This was only a blip, so let’s not pretend otherwise.

calbear on March 25, 2009 at 12:57 PM

“Looks” scary? It is scary when one considers the amount of money involved. Even if that matters little to you or you don’t understand currency markets, it isn’t wise to underestimate the damage Geitner is doing.

Cody1991 on March 25, 2009 at 1:02 PM

The fiasco that is the Bed Crapper in Chief’s “administration” strikes again.

Seriously, they would have done just as good of a job by picking a random homeless shelter and hiring whomever was bedding down for the night.

Worthless and corrupt incompetents, today’s Democrat Party.

NoDonkey on March 25, 2009 at 1:03 PM

mr.blacksheep on March 25, 2009 at 1:00 PM

I realize the benefits of a weak dollar, as I mentioned above, I just don’t think they outweight all the negatives. And I don’t want some freakishly strong dollar, I’d just like to see it get near par with the Euro.

BadgerHawk on March 25, 2009 at 1:03 PM

When I was growing up there was this often used expression about American money, it was:

“Sound as a dollar”

We sure don’t hear that expression anymore, do we?

I was a kid of about 8 years old when the mint stopped making the dimes, quarters and half-dollars out of pure silver. Even as an eight year old I knew that was a very bad idea. I even remember the excuse the government gave us at the time for doing it. It was to make our money “more flexible.” Well it sure did that. Oh, how we as a nation have been led down the primrose path.

Maxx on March 25, 2009 at 1:06 PM

And if we didn’t have to import so much of our energy from hostile parts of the world I wouldn’t mind as much.

BadgerHawk on March 25, 2009 at 1:06 PM

BadgerHawk on March 25, 2009 at 1:03 PM

That’s all the EU really wants, too.

lorien1973 on March 25, 2009 at 1:06 PM

Barry’s approval numbers don’t seem to be dropping, I guess we wait and see. Ninety-Four months is an awfully long time to waste.

Mark30339 on March 25, 2009 at 12:55 PM

Actually, the new C-BS “poll” that has his job approval at 64% was busted yesterday for being dishonest. To get that result they had to sample almost 35% more Democrats than Republicans.

Del Dolemonte on March 25, 2009 at 1:07 PM

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