GEITHNER TRIES HIS HAND AT COMEDY
It is time to review the month end US Dollar Index values for June. Each time I examine these figures I am reminded that Timothy Geithner said in May 2009 that he "backs a strong dollar and that Chinese assets are very safe". Recall as well that the Chinese students in attendance laughed. (Reuters)
Below is our US Dollar Index value chart which captures monthly closing prices. I use this chart to see if Timmy was serious about backing that "Strong Dollar".
TRANSITORY DOLLAR INFLATION
Hmmmm, while there have been a few surges, there really isn't much of a direction change here at all. Perhaps those Chinese students were quite discerning and couldn't hide their disbelief when being lied to. On May 29th, 2009 the US Dollar Index closed at $79.43. As of June 30th 2011 we are now at $74.47. I guess our belief in a strong dollar policy was only "transitory" as well. Perhaps the Treasury Secretary may go pro as a comedian once the debt ceiling negotiation farce has been completed.