The new currency war: Greenspan v. Geithner

It’s ironic that Greenspan, no stranger to pumping the money supply, has become the voice of reason.

In Thursday’s Financial Times, he observed that the U.S. government is deliberately “pursuing a policy of currency weakening.” This happens to be true, but it’s not exactly the right message for President Obama and Mr. Geithner to be carrying into a G20 meeting, where a bunch of countries are infuriated over the U.S. currency-depreciating measures, better known as monetary stimulus.

Geithner's official response followed in the footsteps of his predecessors.

“We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy,” Mr. Geithner declared in response.

Source: theglobeandmail.com