RIYADH/LONDON (Reuters) - Treasury Secretary Timothy Geithner will seek to reassure Gulf Arab states this week that U.S. dollar assets they hold in large quantities remain a strong investment.
A recent decline in Saudi foreign assets shows the purchase of U.S. treasuries by Washington's Gulf allies, five having currencies pegged to the dollar, at levels seen in the past decades should no longer be taken for granted.
Geithner, offering assurances on the United States' ability to pull out of recession, is combining a visit to Saudi Arabia and the United Arab Emirates, the Arab world's largest and second-largest economies, with a trip to Europe.
With people questioning the solvency of the United States courtesy of Obama's fiscal policies this can end badly, for all of us. Do you think people will laugh in Giethner's face again?
Thanks again for the news about the retreating dollar!
ReplyDeleteI've been watching Giethner flying around and telling everyone how the dollar is going to remain strong. Here's a novel idea: Create and follow a policy that makes and ensures the dollar's value.
I know. I'm talking crazy.
The first step we should take in reforming monetary policy, which still no mainstream media talks about, is to Audit the Federal Reserve. Hr1207 has a majority of co-sponsors in the House, but the sister bill, S.604 only has about 4 co-sponsors. GET ON THOSE PHONES AND TELL YOUR SENATOR TO SUPPORT S.604. Central Economic Planning, Paper standards, artificial interest rates do Not Work.
ReplyDeletegeneration,
ReplyDeletecrazy talk indeed!