Comments on: Geithner: “Market-oriented exchange rates in line with economic fundamentals will be essential” http://www.creditwritedowns.com/2009/11/geithner-market-oriented-exchange-rates-in-line-with-economic-fundamentals-will-be-essential.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Persian Gulf currency union and the forex risk to nations everywhere | The Big Picture http://www.creditwritedowns.com/2009/11/geithner-market-oriented-exchange-rates-in-line-with-economic-fundamentals-will-be-essential.html#comment-7514 Persian Gulf currency union and the forex risk to nations everywhere | The Big Picture Wed, 16 Dec 2009 18:54:05 +0000 http://www.creditwritedowns.com/2009/11/geithner-market-oriented-exchange-rates-in-line-with-economic-fundamentals-will-be-essential.html#comment-7514 [...] rates via foreign currency pegs are also problematic. Look no further than the escalating tension between China and the U.S. over China’s peg. China is buying up massive amounts of Treasuries, not just because easy money from the Fed [...] [...] rates via foreign currency pegs are also problematic. Look no further than the escalating tension between China and the U.S. over China’s peg. China is buying up massive amounts of Treasuries, not just because easy money from the Fed [...]

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/11/geithner-market-oriented-exchange-rates-in-line-with-economic-fundamentals-will-be-essential.html#comment-57585 Edward Harrison Thu, 12 Nov 2009 19:46:00 +0000 http://www.creditwritedowns.com/2009/11/geithner-market-oriented-exchange-rates-in-line-with-economic-fundamentals-will-be-essential.html#comment-57585 The thing that is going to support a strong dollar is economic policy that normalizes interest rates and keeps down the inflation of base money and its transmission into monetary aggregates. Most of this is controlled by the Federal Reserve. Why does what the Treasury Secretary think about a "strong dollar" have any impact at all. I find it meaningless rhetoric. The thing that is going to support a strong dollar is economic policy that normalizes interest rates and keeps down the inflation of base money and its transmission into monetary aggregates. Most of this is controlled by the Federal Reserve.

Why does what the Treasury Secretary think about a “strong dollar” have any impact at all. I find it meaningless rhetoric.

]]> By: OregonGuy http://www.creditwritedowns.com/2009/11/geithner-market-oriented-exchange-rates-in-line-with-economic-fundamentals-will-be-essential.html#comment-57582 OregonGuy Thu, 12 Nov 2009 19:35:00 +0000 http://www.creditwritedowns.com/2009/11/geithner-market-oriented-exchange-rates-in-line-with-economic-fundamentals-will-be-essential.html#comment-57582 The Chinese, right-wing talk show hosts, and Zero Hedge want a strong dollar. Strange company when you think about it. The discipline to bring the U.S. current account deficit down has to come from somewhere. We've proven over the last 25 years or more that left to our own devices, we'll hollow-out our economy and sell claims against our assets to foreigners in exchange for junk in the aisles of Wal-Mart. This is the first time Geithner has made sense to me since he became Treasury Secretary. That means this "policy" will probably be reversed at the sign of any push-back from our creditors. The Chinese, right-wing talk show hosts, and Zero Hedge want a strong dollar. Strange company when you think about it.

The discipline to bring the U.S. current account deficit down has to come from somewhere. We’ve proven over the last 25 years or more that left to our own devices, we’ll hollow-out our economy and sell claims against our assets to foreigners in exchange for junk in the aisles of Wal-Mart.

This is the first time Geithner has made sense to me since he became Treasury Secretary. That means this “policy” will probably be reversed at the sign of any push-back from our creditors.

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