MercoPress. South Atlantic News Agency
Geithner committed to keep the US dollar as a reserve currency
US needs to control inflation and finances in order said the Treasury Secretary United States Treasury Secretary Timothy Geithner said the dollar's role as a reserve currency carries special responsibilities, including the need to control inflation and get the nation's finances in order. In an interview on CNBC television, Geithner was asked about the dollar's recent decline and what the Treasury was doing to guard its value.
“The dollar's role in the system confers special obligations and responsibility on us as a country,” he said.
“It is very important that Americans understand that we need to do everything possible to sustain confidence in our ability to keep inflation low and stable over time and to make sure we're getting our fiscal house in order.”
Geithner said that developments over the past year, when many investors put their money into US Treasury securities and the dollar rose at times, showed there was a great deal of confidence in US economic management.
”The world wanted to be in (US) treasuries, in the safest and most liquid markets, and you saw the dollar rose when people were most concerned about the future of the world,“ he said.
”That is a very important thing. It's not something you can count on. It's something we can understand, and we can continue to foster, and we're going to that,” Geithner added.
CNBC ran a portion of an interview conducted with Geithner on Thursday on its website and was to show the full interview later on Friday.
US needs to control inflation and finances in order said the Treasury Secretary
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Read all commentsOne thing is what Geithner must officially say and another thing is the truth of the situation. The U.S. deficit will probably be between 12 - 15% in the next 12 months, as most of the developed economies in Europe. Trust in the U.S. Dollar has not only waned but even reached a point of no return. Furthermore, the Obama Administration cannot wade through the war expense mire the Bush Administration left behind without suffering a weak Dollar. Thus, a strong Euro is the only solution other than falling in the hands of the Chinese Yuan. Developed democracies cannot risk being at the mercy of an ever-growing Chinese economy in the hands of liberalised communist policies. China still has a long way to go before it can be considered a full-pledged democratic regime.
Oct 19th, 2009 - 06:29 pm 0http://fernandofusterfabra.wordpress.com/
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