Crush Liberalism

Turbo Tax Timmy crushes the dollar by opening his cakehole

You’re doing a heckuva job, Brownie Timmy.  No wonder B.O. has supreme confidence in you!  Details:

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.”

…

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.” …

Predictable effect:

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.

D’oh!  Well, it least it was an isolated dollar-related incident from the already bumbling administration.  Yeah, isolated:

But Geithner wasn’t the only top Obama adviser who refused to rule out a transition to a global currency. White House economic adviser Austan Goolsbee said much the same thing yesterday afternoon in an interview with CNN’s Wolf Blitzer. Although he characterized such a change as “unlikely,” Goolsbee twice declined to rule out such a global currency despite being pressed by Blitzer.

And this dude wants greater control over the financial systems?  No thanks!  How much longer are we stuck with this economic illiterate tax cheat for Treasury Secretary?

Hopenchange…pfffft!

March 26, 2009 Posted by crushliberalism | economic ignorance, Obama, Tim Geithner | 3 Comments