In testimoney to the House Financial Services. Fed Chairman Bernanke was asked if he believed in a 'Global Reserve Dollar' with the IMF while abandoning the USA Dollar. He stated, "No." but with hesitation. US Secretary to the Treasury when asked the same question stated, "No." but later stated he would engage such a discussion.
Bernanke Admits Ignorance, Fires Back At Inquisitor (click here)
1:30 P.M. UPDATED
In testimony that just wrapped up before the House Financial Services committee, Fed Chairman Ben Bernanke said he still doesn't know why regulators weren't prepared for last year's financial sector collapse.
It was under simple-yet-probing question from Rep. Joe Baca (D-Calif.) that Bernanke made the surprising admission.
Bernanke was repeating his case for larger, more comprehensive regulation to try to prevent another systemic failure of the sort that AIG caused.
"We weren't prepared for that," he said, adding that there were large, unregulated gaps in the system.
"Why weren't we prepared if we knew there were loopholes?" Baca asked.
"I don't know the answer to that," Bernanke admitted....
President Obama has stated as recently as last night he does not believe in a Global Currency and the USA Dollar was strong. It WAS strong until Mr. Geithner stated to 'play' with the 'idea' of establishing a global currency.
I don't trust them. I trust the President and have believed in his faith in Timothy Geithner, however, there is a limit and when the USA Treasury Secretary starts his own campaign of 'entertaining' ideas that cost a delicate currency market to spasm, there is simply too much hubris and not enough restraint and dare I say, "Good Judgement."
I believe Chairman Bernanke made his best reasons for relieving him of his position known when he openly admitted, "I don't know the answer to that." It is called negligence and the security of our country was riding on him KNOWING exactly that. There was no secret, from as early as 2007, that the stock market slide was occurring and there was anticipated fiscal trouble by the then Secretary Paulson. What does Bernanke mean, "I don't know the answer to that."? Was he on leave of absence or just as Paulson was in leave of his senses.
US dollar hit by US Treasury chief's comments (click here)
Posted: 26 March 2009 0553 hrs
...The Chinese central banker had suggested the IMF's Special Drawing Rights, a currency basket comprising dollars, euros, sterling and yen, could serve as a super-sovereign reserve currency, saying it would not be easily influenced by the policies of individual countries.
When asked to comment at the forum, Geithner said, "I haven't read the governor proposal ... As I understand his proposal, it is a proposal designed to increase the use of IMF special drawing rights, and we are actually quite open to that suggestion."
The dollar plunged against the euro, yen and other major currencies as Geithner had raised the prospect of the United States embracing an SDR-linked currency system, traders said.
But in an apparent damage control move, Geithner said later at the forum that "the dollar remains the world's standard reserve currency," and added, "I think that's likely to continue for a long period of time." "As a country, we will do as necessary to make sure that we are sustaining confidence in our financial markets" and economy," he said. "Geithner was quick to mitigate impact from the comments after reaffirming the US dollar's place as the world's reserve currency for a long time to come," said Joel Kruger of Forex Capital Markets.
Still, Geithner's "contradictory" comments indicated the United States was "not taking China's suggestion with a grain of salt and instead is giving it legitimacy," said Kathy Lien of Global Forex Trading....
