America vetoes G7's dollar alert

[GRG55]

From the weekend UK Telegraph...

America vetoes G7's dollar alert

Edmund Conway In Washington

Last Updated: 12:10am BST 21/10/2007

European finance ministers this weekend failed in their bid to slap down the United States for allowing the dollar to plunge to record lows against the euro.

US Treasury Secretary Hank Paulson vetoed French, Italian and German proposals to use the final statement from the Group of Seven (G7) finance ministers meeting to warn of the problems that are facing Europe due to the falling dollar.

The US currency plunged to a record low against the euro of $1.4319 on Friday, amid market turmoil and falls in share prices around the world...

...Paulson repeated the long-held US mantra that "a strong dollar is in our nation's interests and currency values should be determined in a competitive marketplace."

French finance minister Christine Lagarde said: "I hope the market will hear him. That's not the case today. I hope it changes." ...

Link:
http://www.telegraph.co.uk/money/main.jhtml;jsessionid=JBOSKEYGGTSIXQFIQMFCFF4AVCBQ YIV0?xml=/money/2007/10/21/cng7121.xml

[Tulpen]

"...Paulson repeated the long-held US mantra that "a strong dollar is in our nation's interests and currency values should be determined in a competitive marketplace."

French finance minister Christine Lagarde said: "I hope the market will hear him. That's not the case today. I hope it changes." ... "

I do not understand that reaction from Lagarde at all? Anyone understands this?

[metalman]

"...Paulson repeated the long-held US mantra that "a strong dollar is in our nation's interests and currency values should be determined in a competitive marketplace."

French finance minister Christine Lagarde said: "I hope the market will hear him. That's not the case today. I hope it changes." ... "

I do not understand that reaction from Lagarde at all? Anyone understands this?

he's saying "bullshit". that's always been france's thing. france forced the usa off the gold standard. i read they'll force the world off the treasury dollar standard here something like six years ago. true to form.

[GRG55]

"...Paulson repeated the long-held US mantra that "a strong dollar is in our nation's interests and currency values should be determined in a competitive marketplace."

French finance minister Christine Lagarde said: "I hope the market will hear him. That's not the case today. I hope it changes." ... "

I do not understand that reaction from Lagarde at all? Anyone understands this?

This was during the G7 finance summit. At the time the Euro/US$ exchange rate was already under pressure pushing the Euro up, and the French had been publicly trying to pressure Trichet and the ECB governors to ease interest rates and bring the Euro down (a position that the Germans promptly slammed by pointing out Eurozone inflation was above target and a rate cut was hardly appropriate in that circumstance).

The French came to the G7 hoping for an agreement for coordinated action to support the US$. They didn't get it, nor did they get any support from the likes of Canada, the ECB or BoE (at least not publicly). In the wake of yet another "strong dollar, let the competitive marketplace set the exchange" comment by Paulson, Lagarde was reduced to this statement more or less pleading for the "market" to hurry up and start creating a "strong(er) dollar".

Wonder how many shrimp and rubber chickens were consumed at this soiree? Gawd I'd love to have a job like that, just for a few weeks... :D

[FRED]

This was during the G7 finance summit. At the time the Euro/US$ exchange rate was already under pressure pushing the Euro up, and the French had been publicly trying to pressure Trichet and the ECB governors to ease interest rates and bring the Euro down (a position that the Germans promptly slammed by pointing out Eurozone inflation was above target and a rate cut was hardly appropriate in that circumstance).

The French came to the G7 hoping for an agreement for coordinated action to support the US$. They didn't get it, nor did they get any support from the likes of Canada, the ECB or BoE (at least not publicly). In the wake of yet another "strong dollar, let the competitive marketplace set the exchange" comment by Paulson, Lagarde was reduced to this statement more or less pleading for the "market" to hurry up and start creating a "strong(er) dollar".

Wonder how many shrimp and rubber chickens were consumed at this soiree? Gawd I'd love to have a job like that, just for a few weeks... :D

Sneak preview of image for Monday's News:

http://www.itulip.com/images/Sarkozydollars.jpg

[GRG55]

Sneak preview of image for Monday's News:

http://www.itulip.com/images/Sarkozydollars.jpg



LOL. And maybe use the larger denominations to light the occasional Gitane...