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November 12, 2009

Secretary Geithner: ALL IS WELL with the dollar

"It's very important to the United States that we have a strong dollar," Treasury Secretary Timothy Geithner said in Singapore today, keeping a straight face.

Here is our allegory of the day. Kevin Bacon is Treasury Secretary Geithner. The wreckage from the Faber College parade represents the dollar. The berserk crowds fleeing the meltdown are the international investors. See what happens.

Posted by Jay Hancock at 1:14 PM | Permalink | Comments (1)

Comments

I didn't know KB was in that movie. The markets aren't quite there yet, but I see it coming. I've said for some time that the dollar's reserve currency status will not immunize it from a run, but only serve to make it's value chart resemble a drop off a vertical cliff as opposed to a more gradual decent.

Have you considered just what a rock and a hard space our central planners are in given that over half the national debt is financed on one year or less adjustable terms? What's going to happen to those interest payments when rates go up? What are the real alternatives going to be?

Posted by: Josh | November 12, 2009 2:13 PM

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About Jay Hancock

Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.

Follow @jayhancock1 on Twitter