Tim Geithner today:
“I have enormous respect for Greenspan, had the privilege of working with him for a long period of years but that’s not an accurate description of either the Fed’s policies or our policies,”
“We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy.”Greenspan had just said like it is, and like the rest of the world sees it.
"America is also pursuing a policy of currency weakening. The suppression of the renminbi and the recent weakening of the dollar are, of necessity, producing firming exchange rates in the rest of the world to, as they see it, the rest of the world’s competitive disadvantage. Something has to give in this arena of zero-consolidated current account balances".