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View Diary: Wherein "Bernanke Cuts Geithner Off at the Knees" (161 comments)

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  •  not sure it's knee cutting Geithner (5+ / 0-)

    I'd think it would be strengthening his hand.

    The rest of the world would love a strong dollar (especially Germany) so they can export their way out of their own recession. Of course they're complaining. But so what?

    China complaining that a devalued dollar means China's dollar-pegged currency gets inflation? That's China's own damn fault for pegging the dollar. Krugman has been increasingly shrill about China's currency manipulation. If the Chinese worry about inflation: stop pegging your currency to the dollar.

    So Geithner takes a bit of guff from the finance ministers. I'm sure he doesn't care in the least.

    •  Geither (0+ / 0-)

      went to China to argue that they needed to lower their currency.  He got nowhere.

      You can argue this accomplishes the same thing as he was asking.

      The bitter truth of deep inequality has been disguised by an era of cheap imported goods and the anyone-can-make-it celebrity myth - Polly Toynbee

      by fladem on Sun Nov 07, 2010 at 03:03:48 AM PST

      [ Parent ]

      •  Does that mean (4+ / 0-)
        Recommended by:
        ferg, Mnemosyne, pkbarbiedoll, Bob Guyer

        that the timing of QE2 isn't so suspect, after all?  Is QE2 a cudgel to get China and others to agree on methods for reining in trade imbalances if Bernanke will agree to back off? Are Geithner and Bernanke still really working in tandem?

        So many questions.  This stuff makes my head hurt!

        What you believe determines what you can observe. Einstein

        by dharmafarmer on Sun Nov 07, 2010 at 06:24:03 AM PST

        [ Parent ]

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