Geithner 'open' to China proposal of replacing dollar with 'GLOBAL' currency

[briann]

Not making this up...


http://www.politico.com/blogs/bensmith/0309/Geithner_open_to_China_proposal.html?showall


Geithner, at the Council on Foreign Relations, said the U.S. is "open" to a headline-grabbing proposal by the governor of the China's central bank, which was widely reported as being a call for a new global currency to replace the dollar, but which Geithner described as more modest and "evolutionary."

"I haven’t read the governor’s proposal. He’s a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue," Geithner said, saying that however his interpretation of the proposal was to increase the use of International Monetary Fund's special drawing rights -- shares in the body held by its members -- not creating a new currency in the literal sense.

"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."

The continued use of the dollar as a reserve currency, he added, "depends..on how effective we are in the United States...at getting our fiscal system back to the point where people judge it as sustainable over time."

President Obama flatly rejected the notion of a new global currency at last night's press conference.

UPDATE: Evidently sensing a gaffe, moderator Roger Altman told Geithner that it would be "useful" to return to the question, and asked if he foresaw a change in the dollar's centrality.

"I do not," Geithner said, adding several forceful promises, including, "We will do what's necessary to say we're sustaining confidence in our financial markets."

[cjd]

The shvartza president and Geithner have a real dog and pony show going on. The shvartza president wants America in a global currency more then anything and he is doing everything he can to devalue the dollar causing it to become unusable. He knows if he comes out in favor of something like this it might be the very thing that causes people to rear up against his policies. He is letting Geithner pave the way couching the bad news in we will have to see and ifs while the head  monkey pretends to be against it. I am sure they will wait until the dollar is worth about 2 cents before they decide to implement something like this which will really destroy any financial stability people have left.

[Ulli]

How would work this new international currency exactly?

It is a shopping cart currency like the Euro?

[briann]

How would work this new international currency exactly?

It is a shopping cart currency like the Euro?

I'd assume so.  this just shows you how much control China has.  And the more debt they have of ours, the more they control us.  And if we become bankrupt, well... use your imagination.

[Nadav]

China is just flexing it's muscle a bit. They won't dump the dollar. China depends on these cheap goods our businesses buy up. They are not stupid.

Edit:

Another thing I would like to add; China buys up all these treasury bonds to sustain our economy. They need our high consumption for their products. Without us they would have a really hard time......

[briann]

China is just flexing it's muscle a bit. They won't dump the dollar. China depends on these cheap goods our businesses buy up. They are not stupid.

Edit:

Another thing I would like to add; China buys up all these treasury bonds to sustain our economy. They need our high consumption for their products. Without us they would have a really hard time......

Thats not true.  China WILL dump the dollar IF we start to cause additional unnecessary inflation.   China will have no choice, since they can't continue to devalue their currency (to emulate our inflation) without their public getting very angry.  The least they will do is change the peg ratio a couple of times... but if it continues to become a problem they WILL dump our currency.  Trust me... their is a reason why so many countries have stopped pegging....  eventually it starts to cause problems.

You are right... they DONT want to see the U.S. go bankrupt.. and this is WHY they are warning Obama to stop borrowing so much.  This is like a bank warning one of its borrowers to stop running up so much credit because they may put the bank in additional risk.  And as the borrower gets riskier and risker... the banks has to take more and more drastic measures..... and this global currency idea is one of them.

[TheCoon]

He should be arrested for treason and executed.

[IsraelForever]

As soon as word got out that that idiot Geithner had made that remark, the stock market started tanking.  I just couldn't believe it and I still can't believe it -- that the Secretary of the Treasury would have made such a dumb remark.  He really must be stupid or retarded.  So then someone else had to smooth things over by saying that Geithner didn't really mean it.  Geither, who is supposed to be "irreplaceable", made a total fool of himself with that remark.  I really fear that the election of Obamanation will have proved to be the downfall of our once great country.  And with idiots like Geithner (who is most certainly not Jewish despite what some people think), this country doesn't need enemies from without.