Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Geithner Misspeaks
Old 10-18-2010, 09:02 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Geithner Misspeaks

https://news.fidelity.com/news/news....sting.RT&IMG=Y

Geithner vows U.S. will not devalue dollar

REUTERS 48 MINUTES AGO

I am trying to understand this. What does Geithner think is happening at this very moment? USD down, other currencies and gold and silver and oil up. Is this not what devaluation is?

I suppose he has unlimited trust in our stupidity, and maybe he is right to feel this way.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-18-2010, 09:03 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by haha View Post
https://news.fidelity.com/news/news....sting.RT&IMG=Y

Geithner vows U.S. will not devalue dollar

REUTERS 48 MINUTES AGO

I am trying to understand this. What does Geithner think is happening at this very moment? USD down, other currencies and gold and silver and oil up. Is this not what devaluation is?

I suppose he has unlimited trust in our stupidity, and maybe he is right to feel this way.

Ha

Our expectations are much too high for a guy that has trouble paying taxes..........
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-18-2010, 09:03 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
Talking the dollar up is cheaper and easier than making any substantive policy changes that would lead to a stronger dollar.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 10-18-2010, 09:13 PM   #4
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 10,137
Treasury Secretaries are obligated to say they want a strong dollar, regardless of how they really feel. It is part of the job description.

Paulson 2007:

Paulson says strongly committed to strong dollar | Reuters

O'Neill 2001:

Dollar to Remain Strong, Treasury Secretary Says / O'Neill assures G-7 that U.S. economy will thrive in 2nd half of year - SFGate

Rubin 1995:

Dollar Dips As the Peso Falls Again - NYTimes.com
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 10-18-2010, 09:28 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,571
If they want a strong dollar then why do they have a problem with China's (allegedly) undervalued currency?

Sarcasm aside, there are all sorts of reasons why Geithner (and others) need to talk up the dollar:

1. need to sell lots and lots and lots of bonds at very low interest rates - who is going to accept very low yields on an investment and, at the same time, expect the value of that investment to depreciate because of a weak currency?

2. capital flows - if people expect a currency to weaken, a lot of people will act on that belief - by delaying or cancelling inward remittances or sending money offshore - there is no shortage of examples to look at

3. as FUEGO said, talk is cheap - and it has worked so well for Japan
__________________
Budgeting is a skill practised by people who are bad at politics.
traineeinvestor is offline   Reply With Quote
Old 10-18-2010, 11:46 PM   #6
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 939
I learned long ago, as I suspect all on this board have, to judge a person based upon his actions, NOT his words. Especially true with politicians.
__________________
LARS is offline   Reply With Quote
Old 10-19-2010, 12:14 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,571
Quote:
Originally Posted by LARS View Post
Especially true with politicians.
You mean we elected leaders who are "economical with the truth" ?
__________________
Budgeting is a skill practised by people who are bad at politics.
traineeinvestor is offline   Reply With Quote
Old 10-19-2010, 02:08 AM   #8
Dryer sheet wannabe
 
Join Date: Sep 2010
Posts: 15
Quote:
Originally Posted by haha View Post
https://news.fidelity.com/news/news....sting.RT&IMG=Y

Geithner vows U.S. will not devalue dollar

REUTERS 48 MINUTES AGO

I am trying to understand this. What does Geithner think is happening at this very moment? USD down, other currencies and gold and silver and oil up. Is this not what devaluation is?

I suppose he has unlimited trust in our stupidity, and maybe he is right to feel this way.

Ha
He is right. But he's getting wronger every day. More people are understanding how the monetary system works. The internet is amazing.
__________________
EO 11110 is offline   Reply With Quote
Old 10-19-2010, 04:15 AM   #9
Recycles dryer sheets
keegs's Avatar
 
Join Date: Oct 2010
Location: In a van down by the river
Posts: 407
hey...if it helps some single mother in Ohio keep food on the table... I hope he keeps talking..
__________________
keegs is offline   Reply With Quote
Old 10-19-2010, 04:41 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
He is signaling domestically and internationally his postion.... no currency war!


http://finance.fortune.cnn.com/2010/...-currency-war/
__________________
chinaco is offline   Reply With Quote
Old 10-19-2010, 07:08 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
I believe he's referring to technical currency intervention, which we don't engage in (e.g. sell dollars buy Euros for the purpose of affecting exchange rates).

On the bigger picture, most economists think the dollar should, and will eventually, decline to alleviate structural trade imbalances. A big part of the reason it hasn't declined thus far is because the Chinese continue to buy massive amounts of dollars to weaken their own currency, and other Asian nations do similar things to remain competitive with China.

Alternatively, if we want to alleviate the structural trade imbalances while maintaining a "strong dollar" then we'll have to find a way to reduce wages in the U.S. to the point where we're competitive with most of Asia. I'm not aware of anyone who thinks that's a good idea (or even possible, absent policies that force protracted large scale unemployment), although there are plenty of people who argue for a "strong dollar" without discussing all of the implications. Maybe we could start by talking about what "strong dollar" policies we should employ in the face of 10% unemployment and declining inflation . . . raise interest rates, buy dollars and sell Euros (with what, btw)?
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Old 10-19-2010, 08:02 AM   #12
Full time employment: Posting here.
 
Join Date: Nov 2009
Posts: 510
Quote:
Originally Posted by chinaco View Post
He is signaling domestically and internationally his postion.... no currency war!


What exactly is a currency war, anyway? - Fortune Finance

+1 (fairly straight forward - "no currency war")
__________________
fritz is offline   Reply With Quote
Old 10-19-2010, 11:10 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by traineeinvestor View Post
If they want a strong dollar then why do they have a problem with China's (allegedly) undervalued currency?
Why allegedly? Isn't the persistent increase if FX reserves in order to maintain a fixed exchange rate objective evidence of China's efforts to suppress the value of its currency below a market clearing price?
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
The Article MisQuotes geitner
Old 10-19-2010, 11:17 AM   #14
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
The Article MisQuotes geitner

To be fair to Geitner, he didn't say the US will not devalue the dollar.

He said that a strategy of devaluing our currency is not a strategy for prosperity and that we intend to pursue a strong currency policy in our own interests.

He's right on that, in my opinion.
__________________
MasterBlaster is offline   Reply With Quote
Old 10-19-2010, 11:26 AM   #15
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
He's just trying to mollify China, IMO.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is online now   Reply With Quote
Old 10-19-2010, 12:41 PM   #16
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by Gumby View Post
Treasury Secretaries are obligated to say they want a strong dollar, regardless of how they really feel. It is part of the job description.
I think it's been going on since Bretton Woods was a sapling...
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What was your reaction to Chinese students laughing at Geithner? wolfbay FIRE Related Public Policy 0 06-02-2009 06:31 PM
Bill Bennett "Misspeaks" haha Other topics 8 10-04-2005 12:07 PM

 

 
All times are GMT -6. The time now is 06:31 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.