- Dec 2006
- FEMA Region 10
Geithner's Goal: Rebalanced World Economy
Treasury Secretary Timothy Geithner said he would use weekend meetings of G-20 finance ministers to advance efforts to "rebalance" the world economy so it is less reliant on U.S. consumers, to move toward establishing "norms" on exchange-rate policy, and to persuade others the U.S. doesn't aim to devalue its way to prosperity.
On currencies, Mr. Geithner said, "We would like countries to move toward a set of norms on exchange-rate policy."
U.S. officials say conditions aren't ripe for a global accord on currencies like the 1985 Plaza accord to push the dollar down. The goal, another senior Treasury official told reporters, is an agreement to "pursue a cooperative approach" that would, even without explicit pledges, lead China and smaller countries in its shadow to let their exchange rates appreciate.
Translated....Don't expect shit from the US middle class cause we broke its back, but we are going to have the SDR as the world reserve currency, and raise taxes to support it.In a second group, he put "emerging economies with flexible exchange rates that intervene or impose taxes to try to reduce the risks of significant overvaluation, of bubbles and of inflationary pressures." The U.S. isn't objecting to such efforts.