Gee, where to begin.
Another treasury pick jumps ship. From Michelle Malkin…
Frank Brosens, a hedge fund manager who was Treasury Secretary Timothy Geithner’s choice to run the office overseeing the $700 billion bank bailout program, withdrew his name from consideration.
Gee, Geithner may never fill positions in his office. Just how hard is he to work for.
Then on the China’s call to move away from the US dollar, Geithner opens his mouth and the dow falls. From FX360 …
In a blink of an eye, the U.S. dollar has collapsed against the Euro, Japanese Yen and other major currencies. The trigger was comments from Tim Geithner who said that the U.S. is “quite open” to China’s suggestion of moving towards a Special Drawing Right (SDR) linked currency system. If the world adopts the SDR, which was created by the IMF as an international reserve asset, it would mean that countries around the world would need to hold less U.S. dollars. The U.S. is probably open to this suggestion because a weaker dollar is stimulative for the U.S. economy and would relieve the U.S. from having to implement effective monetary policy while balancing the international demand for a reserve currency.
Updated - A few minutes after saying the U.S. is open to an SDR linked currency, Geithner clarified his comments by saying that there is “no change in dollar as world’s reserve currency and likely to remain so for long time.” In our alert, we said that the dollar would rebound if he attempts to clarify his comments. These contradictory statements are clearly the act of an amateur Treasury Secretary that has been thrust onto the public forum and is struggling with the need to be very particular in his choice of words. Geithner is learning the hard way about the impact that his comments can have on the currency market and despite his attempt to pacify investors, his words have left air of uncertainty in the U.S. dollar.
Amateur is right. Geithner couldn’t get his on taxes right, so what makes anyone think he can handle ours?
Also see Hot Air, The American Pundit, Frugal Cafe.
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