In today's Wall Street Journal, Review and Outlook section, the Journal states the following: "As if the dollar didn't have enough problems, Timothy Geithner took China's bait yesterday and said he was "quite open" to its suggestion this week to displace the greenback with an "international reserve currency." The dollar promptly fell and stocks followed, before the Treasury Secretary re-emerged to say "the dollar remains the world's dominant reserve currency. I think that's likely to continue for a long time." Please Mr. Geither think before you talk!!!
The Journal continues by stating that the dollar's status as a reserve currency gives the U.S. enormous advantages, and it should be protected ferociously by our public officials. It means we don't have to repay our debts in foreign currency and that our borrowing costs are cheaper. To the extent that the rest of the world follows a dollar standard, it also gives us far greater global sway.
I am so tired of our Fed Chairman and Treasury Secretary acquiescing to the rest of the central bankers of the world. Sirs, the vast majority of U.S. citizens do indeed want a strong currency. So stop the rhetoric and implement policies that do not debase our currency. If that occurs, the dollar will remain as the primary reserve asset.
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