US dollar is zero anchor of system – Geithner
Posted by Ivo Cerckel on July 18th, 2009
“It is in the economic interest of the world that we sustain that basic anchor of the system. We will be always committed to a strong dollar,” secretary of the US of A treasury Timothy F. Geithner said last week in the Gulf. (1)
Yes, Mr Geithner, that’s the point.
The question is however, what is the value of that anchor.
The answer is zero.
The dollar has no value whatsoever.
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
NOTE
(1)
Geithner talks reassure funds on US assets
By Nadim Kawach on Saturday, July 18, 2009
http://www.business24-7.ae/Articles/2009/7/Pages/17072009/07182009_69f7c46f9c8940b99dc8a07f2164eeff.aspx
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July 18th, 2009 at 13:58
Relaxed and confident, Timothy Geithner made no mention on Wednesday morning of the speech he gave just a day earlier in Jeddah, Saudi Arabia.
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He smiled warmly at his hostess, Minister of Foreign Trade Shaikha Lubna Al Qasimi and briefed a room full of reporters on his admiration for the UAE’s educational initiatives.
There were no expectant Joint House Committees here. Only reporters who have been told in advance questions would not be allowed.
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Geithner would later tell Al Arabiya the Gulf officials he met expressed “substantial confidence” in the Obama administration’s handling of the global economic crisis and in its ability to bring the budget deficit under control.
Geithner said he saw no threat the Gulf states would unload part of their holdings in US treasuries or look to a reserve currency other than the dollar.
“When the world is more concerned about risk, what generally happens is people want to hold treasuries and you see investments increase in the dollar,” Geithner said. “My view and this is the view I heard expressed here is the dollar…will remain the principal reserve currency.”
(Geithner told Gulf states will not unload dollar
By Ahmed A. Namatalla, Staff Reporter
Published: July 16, 2009, 22:53
http://www.gulfnews.com/business/Banking_and_Finance/10332158.html