Obama: 'I don't support a global currency'

[oldiebutgoodie]

During a live, prime-time press conference at which reporters focused almost exclusively on economic matters, President Barack Obama gave his first public opposition to Russia and China's proposal of a world currency to supplant the dollar.

Mere hours earlier, both Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner said that they would not allow the dollar to be stripped of the premier status, as suggested by the head of China's central bank.

"... The dollar is extraordinarily strong right now," said the president during his prime-time press conference. "The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world, with the most stable political system in the world. So, you don't have to take my word for it.

[...]

Off mic a reporter asked, "What about a global currency?"

"No, I don't support a global currency," said Obama flatly.

"China has long been uneasy about relying on the dollar for the bulk of its trade and to store foreign reserves," noted the Associated Press. "Premier Wen Jiabao publicly appealed to Washington this month to avoid any response to the crisis that might weaken the dollar and the value of Beijing's estimated $1 trillion in Treasuries and other U.S. government debt.

[...]

At a congressional hearing on the financial crisis Tuesday, a US lawmaker asked the two financial chiefs: "Would you categorically renounce the United States moving away from the dollar and going to a global currency as suggested by China?"

Geithner immediately responded, "I would."

"And the chair?" the lawmaker asked, after turning to Fed chairman Bernanke.

"I would also," Bernanke said.

[...]

Australian Prime Minister Kevin Rudd joined the growing debate, offering his country's full support to the US dollar and insisted the topic of a new currency is not on the G20's agenda for this year's meeting

[...]

"'To me it is a case of dream on - it isn't going to happen,' said Mervyn Lewis, a professor of finance at the University of South Australia," the paper reported.

"Professor Lewis said the comments reflected China's frustration that by buying US government bonds, it was having to pay for the US attempt to spend its way out of the financial crisis."

"I think the Prime Minister is incredibly, is A-plus on these issues," Geithner said during the congressional finance hearing on Thursday. "If we did what he advises, we'll all be in a better place."

SOURCE (with video)

So... China wants the U.S. to "globalize" its dollar and use a global dollar based on more diverse economic factors. Our President says, "No way," and resists suggestions to turn our dollar-based economy over to whoever/whatever would be controlling the new globall dollar/economy. Good for him. Selling out will not buy us security or stability, especially if we put our economy in the hands of interests that do not have the USA as their number one priority.

[WhiskeyGirl]

What about Geithner's ideas about a global currency?

Geithner misses lifeline, sinks dollar

But today he sent signals, apparently unwittingly, that the Obama Administration might not be all that into having the dollar as the world's reserve currency, a position that would have placed the administration at odds with its predecessors and remade the world of global currencies.

Geithner was asked about an article by the Chinese finance minister in which the Chinese official suggested the need for a new global currency. Geithner's response seemed to indicate he could live with that.

Here's an excerpt of the exchange:

Q Well, thank you. Wonder if you could comment on two related things.

One, the Chinese government proposal about a global currency; and about the IMF regulations that were -- the new IMF idea about, you know, very general agreements to borrow and having a faster ability to disburse to the (margin ?) markets...

SEC. GEITHNER: On the first question, I haven't read the governor's proposal. He's a remarkably -- a very thoughtful, very careful, distinguished central banker. Generally find him sensible on every issue. But as I understand his proposal, it's a proposal designed to increase the use of the IMF's special drawing rights. And we're actually quite open to that suggestion. But you should think of it as rather evolutionary, building on the current architectures, than -- rather than -- rather than moving us to global monetary union.

So the question and answer session continued. Then, just before it ended, Altman returned to the dollar question. This time he did everything but answer the question himself for Geithner.

MR. ALTMAN: I'd like to ask one final question, in effect, on behalf of the market. It might be useful if you tried to clarify your earlier comment on the reaction to the central bank governor of China's idea, and so let me ask the question this way. Do you see any change over the foreseeable future in the basic role of the dollar as the world's key reserve currency, or the reserve currency?

SEC. GEITHNER: I do not. I think the dollar remains the world's dominant reserve currency. I think that's likely to continue for a long period of time. And as a country, we will do what's necessary to make sure we're sustaining confidence in our financial markets, and in the productive capacity of this economy and in our long-term fundamentals.

MR. ALTMAN: Thank you. I'd like to thank Secretary Geithner.

Those are words of relief from Altman that Geithner finally caught a clue.

Of course, the damage was already done. This is from The Wall Street Journal's MarketBeat blog:

Some have commented that whatever merits Treasury Secretary Tim Geithner may have, public speaking is not one of them. The dollar slumped dramatically against the euro, yen and other currencies after Mr. Geithner Wednesday said the U.S. is "quite open" to a suggestion from Chinese officials of a move to a "Special Drawing Right" linked currency system.

Oy. "Geithner is learning the hard way about the impact that his comments can have on the currency market and despite his attempt to pacify investors, his words have left an air of uncertainty in the U.S. dollar," writes Kathy Lien, director of currency research at Global Forex Trading.

When is the new global currency expected to arrive?  With the dollar at all time lows, is that a bad or a good thing for Americans?   

http://www.swamppolitics.com/news/politics/blog/2009/03/geithner_was_having_a_good_wee.html

jmho

[WhiskeyGirl]

Echos of Obama and "it's not perfect" -

The urgent task of re-inflating the global economy has to be carried out mainly by the IMF, "imperfect and beleaguered as it is, because it is the only institutionavailable," Soros said.

But a systemic solution was readily available in the form of special drawing rights (SDRs), an international reserve asset created by the IMF in 1969 that has the potential to act as a super-sovereign reserve currency.

Soros also warned that if the United States failed to live up to its responsibility in helping solve the global crisis, "we shall cease to be the dominant financial power."

http://www.easybourse.com/bourse-actualite/marches/soros-g20-a-make-or-break-event-for-markets-640530

The US is bankrupt.  We are no longer a financial power and going deeper in debt every day due to the Obama administration's spending.  The highway to hell...Route 666.

jmho

[LouiseVargas]

I am so ticked off that my TV died on March 7, 2009. I thought the cable box was not communicating with the TV so the cable tech came over and he declared my TV dead. 


I have never been without a TV. I have FOX news on all the time. I'm a news junkie. I used to hear the voices of FOX news in my head when I went to sleep and when I left the house. 


I have missed all the important speeches and news on TV. It is definitely not the same getting news on the computer. I'm working on getting a new TV ... it will be a large screen plasma TV, a Panasonic Viera. Then I expect to be able keep up the news more efficiently and better equipped to comment on things such as your posts.
   

[WidgetTheMidget]

I am so ticked off that my TV died on March 7, 2009. I thought the cable box was not communicating with the TV so the cable tech came over and he declared my TV dead. 


I have never been without a TV. I have FOX news on all the time. I'm a news junkie. I used to hear the voices of FOX news in my head when I went to sleep and when I left the house. 


I have missed all the important speeches and news on TV. It is definitely not the same getting news on the computer. I'm working on getting a new TV ... it will be a large screen plasma TV, a Panasonic Viera. Then I expect to be able keep up the news more efficiently and better equipped to comment on things such as your posts.
   

Hello Louise ...............

Your Better Off Without A TV ..........

All It Does Is Give You Acid Indigestion ..........

It Looks Like The U.S. Is Trying To Break The Worlds Economies ........

Selling $675 Trillion In Credit Derivatives To Europe , Russia , China , Japan

Seems To Have Brought The Rich To Their Knees ....

If Banks & Companies Like AIG Sold Off Their Toxic Assets Abroad...

Wheres The $675 Trillion Of Foreign Investments..

We Are Being Hoodwinked Again ..........

[WidgetTheMidget]

Almost 2 Years Ago I Told All My Monkeys Friends ...........

That We Were Heading Into A Deep Recession ........

Due To Excess Credit ..........I Hope They Listened

Barney Frank & Chris Dodd Should Be Hung ..........

What Oversight Commitee ?

[crazybabyborg]

Almost 2 Years Ago I Told All My Monkeys Friends ...........

That We Were Heading Into A Deep Recession ........

Due To Excess Credit ..........I Hope They Listened

Barney Frank & Chris Dodd Should Be Hung ..........

What Oversight Commitee ?

Hi Widget!!! Long time no see and it's wonderful to see you now!!! I agree with you 100% about Dodd and Frank. I posted this in a seperate thread, but it seems to be right on point here so I'm bumping it.   

<a href="http://www.youtube.com/v/pGJbL-9nTBc&amp;hl=en&amp;fs=1" target="_blank">http://www.youtube.com/v/pGJbL-9nTBc&amp;hl=en&amp;fs=1</a>

[WidgetTheMidget]

Almost 2 Years Ago I Told All My Monkeys Friends ...........

That We Were Heading Into A Deep Recession ........

Due To Excess Credit ..........I Hope They Listened

Barney Frank & Chris Dodd Should Be Hung ..........

What Oversight Commitee ?

Hi Widget!!! Long time no see and it's wonderful to see you now!!! I agree with you 100% about Dodd and Frank. I posted this in a seperate thread, but it seems to be right on point here so I'm bumping it.   

<a href="http://www.youtube.com/v/pGJbL-9nTBc&amp;hl=en&amp;fs=1" target="_blank">http://www.youtube.com/v/pGJbL-9nTBc&amp;hl=en&amp;fs=1</a>

Hi CBB .............

Is Obama Just Part Of The New World Order Plan ...........

Or Is He Part Of The Plan To Break The Emerging Markets In Europe ...

The US Govt Are Very Smart .... And Underhanded .............

Our Voice Is Never Heard Cause Our Reps Always Have Their Own Agendas

Fear Seems To Pushing Our Every Move In This Time In Life ....

Brought On By Govt Taking Our MOney & Spending It Foolishly ....

Why Give GM A Penny ... They Were Destined To Go Bust ....

So Why The Bailout Money ....

GM Credit
GE Credit
AIG
Fannie Mae
Freddie Mac

And A Thousand More Sold Their Derivatives For $675 Trillion

So Wheres Th Money ...... All Investors In These Derivatives Are From

The Other Side Of The Pond ......

PURA VIDA