Geithner Discusses Policies, Dollar's Strength In NYC

Photograph of Treasury Secretary Geithner at the Council on Foreign Relations by Mark Lennihan/AP

Treasury Secretary Timothy Geithner gave a few details about the Treasury's draft bill giving it "unprecedented emergency powers to wind down faltering nonbank firms such as American International Group Inc.," the Wall Street Journal reports.

A new "resolution authority" would be funded through the FDIC (though not from the Depositer's Insurance Fund—perhaps another fee); Geithner said, "Our plan will give the government the tools to limit the risk-taking at firms that could set off cascading damage." Dealbook says that if Congress passes the measure, "it would represent one of the biggest permanent expansions of federal regulatory power in decades."

Another topic was the dollar: Geithner said, "The dollar remains the world's dominant reserve currency. I think that's likely to continue for a long period of time... as a country we will do what is necessary to make sure we are sustaining confidence [in our financial markets and economy, and that will support the dollar]." Clusterstock was unimpressed, "Rather than a statement of economic policy, it's more like a patriotism litmus test... But seriously, when the government tells us that our biggest worry is falling prices, what does that mean? They don't want the dollar to be strong, they want the dollar to be weak. That's why Ben Bernanke is printing up $1 trillion more of it. When Geithner complains that China is manipulating currency, his complaint is that they're making the dollar too strong." (The dollar has been see-sawing lately.)

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By Jen Chung in News on March 25, 2009 2:47 PM

Comments [rss]

inoyourider

#8 As soon as the rest of the country does.

Past Taliban

"The dollar remains the world's dominant reserve currency. I think that's likely to continue for a long period of time... "

I sincerely doubt that another 15 minutes constitutes "a long period of time".

ides_of_march

I must be an optimist, I was going to say 20.

Shinobi Shaw

#9 Geithner is open to a Global Currency, even though Obama said there was no need for it.

http://www.reuters.com/article/hotStocksNews/idUSTRE52N14920090325?rpc=401&

ides_of_march

If Geithner's intention is to collapse the dollar (treason) so a global currency can be imposed (I believe this is the case), then Geithner is doing a simply fabulous job.

Obama has racked up more debt in 2 months than all the presidents from George Washington to George W. Bush combined.

Anyone with a shred of economic literacy knows this is pure insanity.

Shinobi Shaw

#7 Obama works for the off-shore bankers, I don't see that happening anytime soon.

#6 step out of the Left-Right paradigm fraud.

Felix Hoenikker

Still no word of resurrecting Glass-Steagall.

inoyourider

Funny how the republicans cry foul when the gov't wants to step on the rights of business but looks the other way when Bush and his boys strip the rights of individuals.

jpeditor

"but looks the other way when Bush and his boys strip the rights of individuals."

Really? Which rights of American individuals did "Bush and his boys" strip while they prevented any futher attacks on America after 9/11?

Did they stop hundreds of thousands of you numbskulls from marching in support of jihadists and against our troops?

Or did they simply make it too difficult for you to call in targets for Osama?