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10-18-2010, 08:02 PM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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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
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10-18-2010, 08:03 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by haha
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
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Our expectations are much too high for a guy that has trouble paying taxes..........
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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.........:)
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10-18-2010, 08:03 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Talking the dollar up is cheaper and easier than making any substantive policy changes that would lead to a stronger dollar.
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Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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10-18-2010, 08:13 PM
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#4
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Administrator
Join Date: Apr 2006
Posts: 22,973
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__________________
Living an analog life in the Digital Age.
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10-18-2010, 08:28 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
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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
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Budgeting is a skill practised by people who are bad at politics.
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10-18-2010, 10:46 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Oct 2009
Posts: 1,190
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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.
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10-18-2010, 11:14 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
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Quote:
Originally Posted by LARS
Especially true with politicians.
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You mean we elected leaders who are "economical with the truth" ?
__________________
Budgeting is a skill practised by people who are bad at politics.
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10-19-2010, 01:08 AM
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#8
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Dryer sheet wannabe
Join Date: Sep 2010
Posts: 15
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Quote:
Originally Posted by haha
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
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He is right. But he's getting wronger every day. More people are understanding how the monetary system works. The internet is amazing.
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10-19-2010, 03:15 AM
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#9
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Recycles dryer sheets
Join Date: Oct 2010
Location: In a van down by the river
Posts: 407
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hey...if it helps some single mother in Ohio keep food on the table... I hope he keeps talking..
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10-19-2010, 06:08 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Posts: 5,381
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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)?
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Retired early, traveling perpetually.
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10-19-2010, 07:02 AM
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#12
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Full time employment: Posting here.
Join Date: Nov 2009
Posts: 592
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Quote:
Originally Posted by chinaco
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+1 (fairly straight forward - "no currency war")
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10-19-2010, 10:10 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Posts: 5,381
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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?
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Retired early, traveling perpetually.
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The Article MisQuotes geitner
10-19-2010, 10:17 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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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.
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10-19-2010, 10:26 AM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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He's just trying to mollify China, IMO.
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"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)
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10-19-2010, 11:41 AM
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#16
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
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Quote:
Originally Posted by Gumby
Treasury Secretaries are obligated to say they want a strong dollar, regardless of how they really feel. It is part of the job description.
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I think it's been going on since Bretton Woods was a sapling...
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