Geithner “open” to China’s monetary proposals

Posted on March 25, 2009


Secretary Timothy Geithner, speaking at a forum at the Council on Foreign Relations, today said he was “open” to a proposal by the governor of China’s central bank reforming world monetary policy. The Chinese proposal was seen by many as a call to adopt a world currency, but Geithner noted the only concrete proposal was a modification of the IMF’s drawing rights, and said the governor, a man he obviously respects, deserves to be considered whenever he offers ideas. I can somewhat appreciate that sentiment, but the talk still sent the value of the dollar down even as Geithner tried to reassure that the dollar would remain the world’s reserve currency for some time.

Conspiracy theorists are going to have a field day with the remarks, and it doesn’t help that another Obama economic advisor, Austin Goolsbee couldn’t bring himself to rule out a currency change. President Obama last night said a global currency was out of the question, and on this issue, I take him at his word. Being willing to submitting America to a one-world government isn’t something I’m willing to ascribe to him just yet, as such a move would be earth-shattering and disastrous.

No, the loose talk merely speaks more to the incompetence of Geithner. Speculation like this in an open forum is going to do nothing but hurt the value of the dollar, and the Secretary of the Treasury should never be in a position to cause harm to the dollar this way. I almost feel bad for the guy, as between the tax scandals, the AIG bonuses, and being massively understaffed, and now this gaffe, Geithner just can’t seem to catch a break or get it right. Unfortunately, he’s sitting in one of the most important national positions, and this nation can’t afford mistakes like these.

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