Geithner 'open' to China proposal

[longhorn_92]

http://www.youtube.com/watch?v=ds_qGXbxK-4" onclick="window.open(this.href);return false;

Geithner, at the Council on Foreign Relations, said the U.S. is "open" to a headline-grabbing proposal by the governor of the China's central bank, which was widely reported as being a call for a new global currency to replace the dollar, but which Geithner described as more modest and "evolutionary."

"I haven’t read the governor’s proposal. He’s a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue," Geithner said, saying that however his interpretation of the proposal was to increase the use of International Monetary Fund's special drawing rights -- shares in the body held by its members -- not creating a new currency in the literal sense.

"We’re actually quite open to that suggestion – you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union," he said.

"The only thing concrete I saw was expanding the use of the [special drawing rights]," Geithner said. "Anything he’s thinking about deserves some consideration."

The continued use of the dollar as a reserve currency, he added, "depends..on how effective we are in the United States...at getting our fiscal system back to the point where people judge it as sustainable over time."

President Obama flatly rejected the notion of a new global currency at last night's press conference.

UPDATE: Evidently sensing a gaffe, moderator Roger Altman told Geithner that it would be "useful" to return to the question, and asked if he foresaw a change in the dollar's centrality.

"I do not," Geithner said, adding several forceful promises, including, "We will do what's necessary to say we're sustaining confidence in our financial markets."


What is America becoming????

[Mike1951]

This idiot is TRYING to lose his job!!!

[bdickens]

The whole administration needs to loose their jobs. I wonder if we can have a recall election.

[stevie_d_64]

November 2010 folks...

Better yet, we need to send a signal this year...The local elections this November...

This is the right way to do it...

[MTICop]

You would think he would consult his party line prior to making these statements. Obama stated in his televised press conference the other night that he was NOT in favor. Someone's either lieing or they don't talk prior to making these comments.

Of course both of those can be true. It is politics.

[GrillKing]

I wouldn't expect too much from someone who can't do his taxes using Turbo Tax.

[GrillKing]

Other than manage the IRS. Or US Monetary systems oversight.

[centex aggie]

Geithner, Holder, Clinton and BHO can really and will eff this country up. we have to rise up in opposition, it's our DUTY