Wednesday, March 25, 2009

Geithner open to Global Currency Idea

Speaking at the infamous Council on Foreign Relations, Treasury Secretary Timothy Geithner said he was open to the idea of a new global currency replacing the dollar. The most recent stab at the new currency was put forth by the governor of China's Central Bank. Geithner calls the governor "a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue." Really? Please continue Mr. Secretary. "We’re actually quite open to that suggestion – you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union," he said.
"The only thing concrete I saw was expanding the use of the [special drawing rights]," Geithner said. "Anything he’s thinking about deserves some consideration."

So, if the Chinese Central Bank suggests it, Mr. Geithner is all for it. That is not what POTUS said last night at his press conference. The big TV told him to say that he rejects a call for a new global currency. I think they are just throwing it against the wall, you know, to see if it will stick. Good cop, bad cop routine, maybe. It won't be long till the old media is calling for a new currency as well. Stay tuned.