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Secretary Geithner vows not to devalue dollar

Original post made on Oct 19, 2010

America must invest in infrastructure and education to spur economic recovery, but it will not devalue its currency to gain a competitive advantage over other nations, U.S. Treasury Secretary Timothy Geithner told an audience in Palo Alto Monday afternoon.

Read the full story here Web Link posted Tuesday, October 19, 2010, 10:48 AM

Comments (5)

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Posted by Angela Hey
a resident of another community
on Oct 19, 2010 at 2:50 pm

Reminds me of Britain's Prime Minister Harold Wilson "the pound in your pocket will not be devalued" - then it promptly was devalued. Lady Thatcher recalls in her autobiography that governments have two instruments of monetary policy - interest rate and exchange rate.

Some policy person will devalue the dollar eventually - it's only a matter of time - and hike interest rates to attract outside investors in the US.

Web Link

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Posted by John W
a resident of Sylvan Park
on Oct 19, 2010 at 3:19 pm

Geithner's statement is totally contradictory to the Fed's much-stated objective of creating 2% monetary inflation per year, or in other words, a 2% annual devaluation of the dollar.

By the government's own calculations, today's dollar has only 4% of the purchasing power of a 1913 dollar, the year that the Fed was created. I think it's worse. The 1.5-oz. "nickel candy bars" that I bought when growing just 50 years ago now costs 89 cents -- almost a dollar. Gold was $35/oz. and is now almost 40 times that price.

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Posted by Thom
a resident of Jackson Park
on Oct 19, 2010 at 5:11 pm

I don't know how anyone can be surprised by anything this administration is doing. Look at those at the top. Hard to not laugh when you see things like this and things from his boss telling us the economy is back.

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Posted by Andrew
a resident of Old Mountain View
on Oct 20, 2010 at 7:27 am

Tim: "Okay, we won't start devaluing starting now."

Few minutes later...

Tim: "...I mean starting now! Wait wait I mean..."

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Posted by Old Ben
a resident of Shoreline West
on Oct 20, 2010 at 12:19 pm

Another shill from Goldman Sachs. You can tell when they're lying: their lips are moving.

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