Busted: Bankers and The Global Economy

March 30, 2011

U.S. Geithner Shocks Global Markets by Supporting International Currency

Filed under: business, central bank, corporatism, economy, federal reserve, inflation, politics — digitaleconomy @ 6:49 am

devalued dollarThe plight of the dollar and recent national inflation is making the United States quite shaky for a long-term economic recovery. The powers that be haven’t helped matters. Recently, economic adviser Timothy Geithner has been suggesting that a global currency sponsored by the IMF is desirable. This earth shaking statement caused the dollar to plunge instantly against the euro, yen, and sterling as the comments flashed across trading screens. The fact that anyone of importance is considering dumbing down the dollar is causing great fear and not a little doubt. The mainstream media in the United States has tried to quiet the news by keeping it out of the news.

Barack Obama, in a prime-time press conference on March 25, had at first ignored a question about the subject and, when it was put to him responded tersely: “I don’t believe that there’s a need for a global currency.”

Mr Geithner later qualified his remarks, insisting that the dollar would remain the “world’s dominant reserve currency … for a long period of time” but the seeds of doubt have been sown.

The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours that there is no threat to the reserve status of the dollar.

“I don’t believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world”

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