Jean-Claude Trichet is president of the European Central Bank.

Martin Wolf is associate editor and chief economics commentator at the Financial Times.

Timothy F. Geithner is secretary of the US of A treasury.

Trichet said last week:
As regards your question on the dollar and the euro, I would say that where the FLOATING CURRENCIES, the major floating currencies, are concerned, we, the Governing Council of the ECB, believe that excess volatility and disorderly movements in exchange rates have adverse implications for economic and for financial stability. And, as you know, we are in agreement in this respect on both sides of the Atlantic (1)

Wolf wrote this week that in a FLOATING exchange-rate regime, RESERVE accumulations are UNNECESSARY. (2)

Geithner’s institution this week toughened its language on China in its semi-annual report on exchange rate policies. While acknowledging that Beijing had been important in steadying the global economy, it said recent moves to accumulate more foreign exchange RESERVES “risk unwinding some of the progress made in reducing imbalances”. (3)

It’s up to my dear readers to connect the dots.

Got gold?

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Introductory statement with the Q&A
Jean-Claude Trichet, President of the ECB,
Lucas Papademos, Vice President of the ECB,
Mario Draghi, Governor of the Banca D’Italia
Venice, 8 October 2009
http://www.ecb.int/press/pressconf/2009/html/is091008.en.html

(2)
The rumours of the dollar’s death are much exaggerated
By Martin Wolf
Published: October 13 2009 22:17 | Last updated: October 13 2009 22:17
http://www.ft.com/cms/s/0/9165b8b0-b82a-11de-8ca9-00144feab49a.html

(3)
US hardens stance on renminbi rigidity
By Sarah O’Connor in Washington
Published: October 16 2009 01:21 | Last updated: October 16 2009 01:21
http://www.ft.com/cms/s/7b301ff2-b9e4-11de-a747-00144feab49a,s01=1.html