How do these guys say this stuff with straight faces? The value of the American dollar has been destroyed in the last two years, yet Treasury Secretary Timothy Geithner is now defending his “strong dollar policy.”
AFP has the hilarious highlights of the Treasury Secretary’s stand-up routine:
US Treasury Secretary Timothy Geithner vowed Tuesday that the United States would never follow a strategy to weaken the US dollar.”Our policy has been and will always be, as long as I will be in office, that a strong dollar is in the interest of the country,” Geithner said at a New York conference organized by the Council of Foreign Relations.
“We will never embrace a strategy to weaken the dollar.”
It was the first time this year that Geithner had publicly proclaimed a US strong-dollar policy, a mantra of treasury secretaries for more than a decade.
The words “Tim Geithner” and “strong dollar” should never be used in the same sentence.
Tim Geither is to strong dollar as Jeffrey Dahmer is to vegan.
Source: AFP
View Comments (18)
Timmy is a little (OK a lot) confused. He misunderstood the call and thought they said to come up with a dollar poilicy that makes cents.
When talking about the strength of the USD, you can't compare it to gold, silver, or any other commodity. It makes more sense to compare with other currencies.
In the two years that Geithner has been head of the Treasury, on average the USD has been stronger than the Euro, GB Pound, Canadian Dollar, but weaker than the Japanese yen.
http://www.oanda.com/currency/historical-rates/
Why can't I compare the dollar to gold or silver or whatever? If it takes $1500 to buy a ounce of gold compared to $853 in January of 2009 I would call that an erosion of the dollar's buying power.
It is the more accurate measure.
Other currencies' value can be diluted by a prevalent currency (the dollar) -- while the dollar may not suck as much in relation to other currencies, that is more because the dollar is dragging them down than anything else. How many currencies are pegged to the dollar, or base their economic stability on treasury paper with a dollar value? The world may soon find out.
Commodities, OTOH, are closer to a measure of barter value, and less easy to dilute by running printing presses at top speed and borrowing like crazy. There's only so much gold and silver that can be extracted at current rates, and so, yes, the short answer is your gut feel for metals is more on the mark IMO.
Back when silver was just $20, I compared the buying power against when Nixon untied the US currency from metals, and a silver dollar then would buy what $20 silver would in 2010. Inflation is a horrible thing -- that's how the fed steals your savings. They just print enough money to erode its value. Now that silver is around $50, I can only tell you that it will get worse before it gets better, because Barry & Co don't see it as a problem big enough to put down the golf clubs and not rest until they find a solution. And why should they? A nation of poor, uneducated people is easier to govern. Just antagonize them against the "rich", and profit.
Spot on!
You need to re-read those charts, Devil's Advocate. Here are the numbers I got from the currency site to which you linked. It shows that the dollar is, in fact, down versus every one of those currencies:
Canadian Dollar
Jan 26, 2009: 1.22
Today: .9562
Japanese Yen
Jan 26, 2009: .8941
Today: .8241
British Pound
Jan 26, 2009: .7073
Today: .6124
For god's sake, man, we're even down 10% against the rapidly disintegrating Euro.
Euro
Jan 26, 2009: .7676
Today: .6919
And if you compare the dollar to a strong currency from a country with a vibrant economy, the picture is much, much uglier. Here's the Aussie dollar comparison:
Australian Dollar
Jan 26, 2009: 1.5290
Today: .9498
Still think Geithner's doing a good job?
DA shows the economic skill to be on Obama's economic team.
Up is down.
Black is white
Doesn't he look like the little kid, every body hated, who just got his hand caught in the cookie jar and now he's trying to figure out who else he can blame so he doesn't have to take the fall all by himself?
Eddie Haskell
For what it's worth: Tim G's nose = Owen Wilson's...your welcome.
He sure looks like a criminal -- the beady eyes, the shifty look, the pinocchio nose.
I don't even think he's a real boy.
I don't know about anybody else but when the most ideological far left POTUS actually nominated a tax cheat to be SOT, I knew the shit would hit the fan. Silver at $11.80 was not a hard call to make.
OAT, IMHO the Bernake just went off the communist democrat party reservation today. The first ever press conference by a head of fed was to let all know that he was publicly disavowing the Obama regime and it's reign of incompetence.
He was just trying to BS the market. He's in a no-win situation. Our overlords at the FED need a budget deficit. Its part of the mechanism that allows them to function as feudal lords to us serfs.
Did you watch the press conference? He sounded nervous as hell despite having pre-screened questions from the press.
There was probably a jackal with a sniper-rifle at the back of the room ready to turn his head into a fine pink mist if he went off message.
If Bernake did not agree with barry and crew, he can and should resign. Otherwise he's as gulity of destroying this nation as they are.
I hear he's using a new Turbo Tax module called Dollardevaluer.
Liar, liar, pants on fire!
The words liar and tax cheat should be used in conjuncion with his name. This administration is hell bent on destroying every fiber of the United States. Starting with the US Dollar is the best place to begin.
When is someone with in congress going to just look at him and say "Shut up with the lies, tell us the damn truth or we will charge you with lying to congress" That person will have my vote for what ever office they wish to run for.
Strong dollar? What an ass clown.
Look at the price of gold:
$853 - January 20 2009
$1511 - April 27 2011
(btw, ass clown - a skid mark in society's collective underwear. )
Geithner can't even run TurboTax yet he's running the Treasury? Double ass clown.