« Jake DeSantis Letter: "Dear A.I.G., I Quit! " | Main | It Is Such A Simple Question »
March 26, 2009
Geithner 'open' to China proposal and Obama Pushes to Give Treasury More Power
The dollar fell yesterday after Treasury Secretary Timothy Geithner said the U.S. was "open" for a new global currency to replace the dollar.
The dollar fell briefly on Wednesday after US Treasury secretary Tim Geithner said he was open to exploring a Chinese proposal to reduce reliance on the US dollar as the world’s reserve currency.
Geithner 'open' to China proposal
Geithner, at the Council on Foreign Relations, said the U.S. is "open" to a headline-grabbing proposal by the governor of the China's central bank, which was widely reported as being a call for a new global currency to replace the dollar, but which Geithner described as more modest and "evolutionary."
"I haven’t read the governor’s proposal. He’s a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue," Geithner said, saying that however his interpretation of the proposal was to increase the use of International Monetary Fund's special drawing rights -- shares in the body held by its members -- not creating a new currency in the literal sense.
"We’re actually quite open to that suggestion – you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union," he said.
"The only thing concrete I saw was expanding the use of the [special drawing rights]," Geithner said. "Anything he’s thinking about deserves some consideration."
The continued use of the dollar as a reserve currency, he added, "depends..on how effective we are in the United States...at getting our fiscal system back to the point where people judge it as sustainable over time."
President Obama flatly rejected the notion of a new global currency at last night's press conference.
UPDATE: Evidently sensing a gaffe, moderator Roger Altman told Geithner that it would be "useful" to return to the question, and asked if he foresaw a change in the dollar's centrality.
"I do not," Geithner said, adding several forceful promises, including, "We will do what's necessary to say we're sustaining confidence in our financial markets."
After stating, to a courageous Congresswoman, yesterday, that he would NOT support such a plan!
Wild Thing's comment on this part.......
Congresswoman Michelle Bachman was told by Geithner on Tuesday, that he “categorically” rejected the Chinese call for a global currency! So he lied or changed his mind.
At Tuesday's House Financial Services Committee meeting (chaired by bawney frwank), Rep. Michelle Bachmann (R-MN) twice asked little TurboTax Timmy Geithner where in The Constitution it gave him this power he and the Kenyan are seeking.
And twice TurboTax Timmy had no answer. He kept dancing around the questions saying 'Congress did this, blah, blah, Congress did that, blah, blah'. But Rep Bachmann was relentless on the issue of 'THE CONSTITUTION'.
Little Timmy looked like a deer in the headlights. It was like the word 'Constitution' was some obscure word used in ancient Sumeria. It was also clear TurboTax Timmy has no idea of what's IN the Constitution.
Notice how Geithner doesn't have a clue when she asks him about the Constitution!
I went to her US House page.
There's video links on her questioning in the AIG hearings of yesterday. Plus there's a video from a FoxNews interview with her after the hearing.
She is a very smart lady, I have always loved the way she stands up to these people wanting to destroy our country. We need more like her.
There is also this:
Obama Administration Sending Draft Legislation to Hill to Give Treasury More Power
Treasury Secretary Tim Geithner hopes to today send draft legislation of a bill to Capitol Hill that will give him more power to take over large financial institutions in serious trouble. The government currently has this authority with banks, but not with other financial institutions such as bank and thrift holding companies, or with holding companies that control insurance companies, futures commission merchants, and broker-dealers.
The draft legislation will -- likely later today -- be sent to Sen. Chris Dodd, D-Conn., chair of the Senate Banking Committee and Rep. Barney Frank, D-Mass., chair of the House Financial Services Committee.
As written, the bill would give the Treasury Department what's called "resolution authority," granting the U.S. government the authority to put a big financial company into receivership or conservatorship. With that authority, the government can either reorganize or shut down the company -- renegotiating or reneging on contracts (such as retention bonuses for AIG executives), transferring the company's assets and liabilities, and dealing with any derivatives portfolio.
One possible sticking point: President Obama and Secretary Geithner are seeking sole authority be given to the executive branch to put these companies into conservatorship or receivership. The legislation as written would give the decision making power to the Treasury Secretary and the chair of the Federal Deposit Insurance Corporation (FDIC), though the decision would be "informed" by the advice of the chair of the Federal Reserve Board and any other relevant regulatory agency.
Wild Thing's comment.........
Lord, please help us.
Another BAD idea! Reasonably smart people, with reasonably smart advisers would come to the right conclusion at least some of the time. The fact that Obama and his team are soooooo wrong about everything makes me believe that it has to be on purpose. He's getting the results he wants. He's not "wrong" -- he's evil.
This is all being done on purpose. Bring down the dollar, bring down America. It’s the only logical conclusion we can draw, it’s purposeful. Nothing else works. They are not all stupid people. I also think this is why there are so many treasury job turn downs. The candidates see what’s going on and want to have nothing to do with it.
We have to figure out a way to fight back, and turn despair into Action it’s not over yet. I keep writing to the politicans that have been taking somewhat of a stand to encourage them and be supportive of them. They need to know we see what is happening and don't like what is happening, and fear for our country.
And regarding the last article in this post, where they want the Treasury to have more pwoer, for those of us in America that have read the Constitution noting all legislation must originate in the congress.
Judge Napolitano said on Fox yesterday that this is not Constitutional and that Congress does not have the power to legislate this.
....Thank you Richard for sending this article to me.
Posted by Wild Thing at March 26, 2009 05:55 AM
Comments
I wish these "experts" would keep their mouths shut, so that the market doesn't take a dive every 5 minutes.
Too bad most people have no idea what The Constitution says ~ and apparently this pertains to alot of the elected folk.
Soros is gleeful - and that's never a good thing.
Posted by: yankeemom at March 26, 2009 08:56 AM
Geithner hasn't a clue. Except he sees this as a way to finace the current growing debt of the United States. China has been financing us by buying our T-bills and are worried they are buying junk bonds. The switch to a global currency would keep the Chinese for a while anyway interested in buying our debt.
What happens when we lose our dollar ? It is already dropped 30% thanks to obama's policies of unbridled spending and they are printing paper that is virtually useless.
Personally I think this is obama's plan all along. A move toward a global economy, and world government.
Posted by: Mark at March 26, 2009 08:58 AM
Globalists have been moving America toward socialism for decades. Now, destroying the dollar as the reserve currency of the world is a fast track toward both globalization and socialism. The way this is being done is unconstitutional, but these politicians and their lackeys don't care. Obama and his merry band have accomplished a lot in a mere two months to destroy the American Republic we knew. I don't know if Geithner is a fool or a tool or both.
Congresswoman Bachmann is very impressive. She is one of the few Repubs that will take a firm stand on conservative values. I hope there is a higher office awaiting her in the future.
Posted by: TomR at March 26, 2009 11:19 AM
Yankeemom, I agree, everytime they talk the market reacts in the negative.
Posted by: Wild Thing at March 26, 2009 06:27 PM
Mark, I agree, I think that is Obama's goal too.
And Geithner sat there and lied through his teeth. He knew he was considering global currency. What gets me too is how he like most of these dems on power lie and don't even care if we know they are saying lies.
Posted by: Wild Thing at March 26, 2009 06:53 PM
Tom, your so right, and yes I am very impressed with Congresswoman Bachmann. So far she has never let up, always been right there working very hard at getting to the truth.
Posted by: Wild Thing at March 26, 2009 06:55 PM
America will need a new currency before Geithner and the politicians are finished expanding the debt and destroying the dollar but the solution is a gold backed currency free of government manipulation. The Campaign to Cancel the Washington National Debt by 12/21/2012 through constitutional amendment begins. See our facebook page at http://www.facebook.com/group.php?gid=67594690498&ref=ts
We are also planning to have a booth at FreedomFest 2009, the world’s largest gathering of free minds! July 9–11 http://www.freedomfest.com in Las Vegas. Ron
Posted by: Ron at March 27, 2009 06:24 AM
The problem is not that the treasury and government don't have enough power, it is that they have to much.
Posted by: Bob A at March 27, 2009 06:59 AM
