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Weak dollar not at odds with
policy: ex-US official
Reuters
Monday, March 31, 2008
The dollar is likely to remain under pressure for the next few
months at least, but its weakness is not inconsistent with the
Bush administration's strong dollar policy, former U.S. Treasury
undersecretary Tim Adams said on Monday.
"A strong dollar policy is a pledge by the United States
not to use the dollar as a tool to gain competitive advantage
in global markets. So it's not inconsistent," Adams, who
was the Treasury's top international official until last summer,
told a conference in Hong Kong.
The dollar has plumbed record lows against the euro as the U.S.
credit crunch has worsened.
This has prompted some commentators, including Mohamed El-Erian,
co-chief executive officer of Pimco, the world's biggest bond
fund, to call for concerted central bank intervention to stabilize
the currency and steady global markets.
(Article continues below)
Steve Hanke, an economics professor at Johns Hopkins University
in the United States, agreed that international action, as well
as expansionary fiscal policy in Japan and Europe, was needed
to help put a floor under the dollar.
Countries including China and Middle East nations that have large
holdings of dollars in their reserves should pledge not to talk
about diversifying their portfolios while action is being taken
to stabilize the U.S. currency, Hanke told the conference.
Gulf countries in addition should stop talking about de-pegging
their currencies from the dollar.
"It's unproductive and creates a great deal of short-term
volatility in the dollar," he told the Credit Suisse Asian
investment conference.
Full
article here.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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