strong dollar policy is BS

former secretary of the treasury paul o’neill says aloud what we all know is true: the stated US “strong dollar” policy is bullshit.

“When I was Secretary of the Treasury I was not supposed to say anything but `strong dollar, strong dollar,”’ O’Neill said today. “I argued then and would argue now that the idea of a strong dollar policy is a vacuous notion.”

The U.S. currency today fell to a record low against the euro, and has declined 15 percent against its European counterpart in the past year.

“The markets actually have control over those relationships. When people say strong dollar, if they don’t mean that `we believe intervention can work and we’re prepared to intervene,’ then `strong dollar’ is ridiculous.”

(via big picture)






2 responses to “strong dollar policy is BS”

  1. Jondi Avatar

    Fluctuation of currency, commodity, etc. values have made me think a lot about wealth … what is it really and where does it come from? There is certainly a great deal of difficult-to-measure wealth in healthy ecosystems that produce food and drinkable water, also in social cooperation and peace, trust in one’s neighbor, etc. Our global economic system that is based on growth and limitless commons is running into hard limits. I think it’s easy to tracing soaring prices to longstanding raiding on the commons. The dollar, the euro, and eventually even gold and oil will lose value against arable land, uncontaminated seafood, water-rich regions, and other things that we (as a species) have taken for granted and managed poorly for decades.

  2. ru Avatar

    from what little I know about economics ( a growing interest of mine) It seems that there may be a certain amount of manipulation happening to justify and gather support for an “Amero” currency and the FTAA via an almost xenophobic propaganda. it would be the only way for us to compete with the “evil euro” which threatens our prosperity and freedom:)

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