Mao Money
Considering that his budget proposes a 34% spending increase, our patrons the Chinese, are skeptical that Obama is doing everything he can to reduce the Bush Deficits. Jawboning didn’t get the message across. Neither did harassing the U.S. Navy. So now they propose ditching the dollar in favor of a new world reserve currency backed by the IMF.
Geithner was initially cool with the idea which promptly caused the dollar to drop 1.3%. Drawing on his vast rethinking powers, the Treasury Secretary had the dollar bouncing back 15 minutes later.
More Power
Now that we own AIG and GM the government wants to add to its portfolio. The Washington Post has a good story.
