What would happen if the Secretary of the Treasury of the United States were to announce that the Obama administration was open to seeing a global reserve currency run by the International Monetary Fund? Unfortunately, this isn’t a hypothetical question.
The Micro Effect reports:
US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is “quite open” to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.
The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.
“The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation,” he said.
Mr Geithner later qualified his remarks, insisting that the dollar would remain the “world’s dominant reserve currency … for a long period of time” but the seeds of doubt have been sown.
Is Tim Geithner the worst Secretary of the Treasury in the history of the United States? Corruption and ineptitude are bad enough on their own, but seem fiscally lethal in combination.
Source: TheMicroEffect.com
