Geithner Says Strong Dollar ‘Very Important’ to U.S.

The very least these imbeciles could do is not insult our intelligence with such drivel.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6MX.KRaiD18&pos=5

Geithner Says Strong Dollar ‘Very Important’ to U.S. (Update2)
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By Rebecca Christie

Nov. 11 (Bloomberg) -- U.S. Treasury Secretary Timothy Geithner said a strong dollar is in the nation’s interest and the government recognizes the importance it plays in the global financial system.

“I believe deeply that it’s very important to the United States, to the economic health of the United States, that we maintain a strong dollar,” Geithner told reporters in Tokyo today.

The greenback’s slide against global currencies from the yen to the euro has bolstered speculation among investors that it is losing its status as the world’s dominant currency. Geithner reiterated that the U.S. will tackle its swelling fiscal deficit once a recovery in the world’s largest economy takes hold.

“Because of the important role the dollar plays in the international financial system, we bear a special responsibility for trying to make sure that we are implementing policies in the United States that will sustain confidence” for investors around the world, he said.

The dollar fell to a 15-month low versus major counterparts today as growing industrial production and retail sales in China boosted demand for higher-yielding assets. Record low U.S. interest rates are funding global “carry trades” and the dollar is still overvalued, the International Monetary Fund said last week.

Geithner said U.S. efforts to boost exports aren’t in conflict with the “strong-dollar” policy. “I don’t think there’s any contradiction between the policies,” he said.

‘Sustainable Balance’

He reiterated that the U.S. pledges, once the recovery strengthens, “we’re going to bring our fiscal position back to a sustainable balance.” He also said he welcomes China’s move to make its currency flexible over time.

Geithner is in Tokyo meeting with government officials including Prime Minister Yukio Hatoyama on his way to an Asia- Pacific Economic Cooperation gathering in Singapore.

The dollar was at $1.4982 per euro at 12:55 p.m. in Tokyo from $1.4993 in New York yesterday, when it touched $1.5020, the lowest since Oct. 26. The yen rose to 89.56 per dollar from 89.81 and earlier reached 89.47, the highest since Nov. 2.

The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners, touched 74.889 today, the lowest level since August 2008.

Geithner said it’s too soon for officials around the world to stop efforts to stimulate their economies.

“It’s, I think, too early on a global basis to see people shift to restraint,” Geithner said. He said countries will need to provide ongoing “carefully designed” assistance to their economies and financial systems until the recovery is on firmer footing.

Still, he said, emerging signs of growth will allow for some shifts. “The mix of policy’s going to change a little bit going forward.”

To contact the reporter on this story: Rebecca Christie in Tokyo rchristie4@bloomberg.net
Last Updated: November 10, 2009 23:19 EST

 

I think we can all agree on that. It's amazing the lack of respect our politicians (I'll put timmy in that category) have for their employers (we the people).

 

LMAO!

Worthless jawboning.

 

OK, I am going to go out on a limb here...I am beginning to think this f'ing moron thinks he is serous...which is WAY more serious than thinking he is lying to us, but knowing the truth! I mean I am beginning to think that Timmy G. thinks he is implementing the best policies for a strong dollar - very scary!

-gastropod

 

Just out of curiousity, since so many people on the boards bitch about a low USD, what specifically would you do to increase the value? Without derailing the economy, of course. I hear a lot of complaints but very few solutions...

 

The economy has already derailed.

Question is - when do we take our medicine - today or tomorrow? Which is likely to be worse - taking medicine today, or holding off and taking it tomorrow?

 

OK derailed even more so than now...

 

Looks hopeless.

Maybe start with Geithner and remove the whole cabal. That would be a start.

No confidence=shitty currency.

 

Can anyone think of a catalyst that might stop the USD nosedive?

 

Can anyone think of a catalyst that might stop the USD nosedive.

steal the printing presses.