25th
A technocrat does not a (Press) Secretary make…
From Bloomberg:
Geithner was asked at a Council on Foreign Relations event in New York about People’s Bank of China Governor Zhou Xiaochuan’s call for a new international reserve currency. He said while he had not read Zhou’s proposal, he understood it as a plan “designed to increase the use of the IMF’s special drawing rights. And we’re actually quite open to that.”
The dollar slid as much as 1.3 percent against the euro within 10 minutes of news accounts of Geithner’s remarks.
… sparking Free Exchange to be less than droll: “Sometimes, world leaders should just shut up.”
Working at Treasury is about figuring out the most efficient, equitable, and logistically feasible implementation of programs. Being the Treasury Secretary is about something rather different; say, not dignifying ideas that — while in the good liberal economist and disinterested policy analyst’s mind are well worth consideration — will send ADD-riddled traders into a speculation-induced frenzy.
This occurrence should most certainly give pause to all those nationalization-fans out there gleefully expounding earlier this week, “Look! Geithner’s pulling a classic bait-and-switch! ‘Oh, crap, asset buy-backs didn’t work. Hey Voinovich, don’t say I didn’t try.’ Magnificent!”
Somehow I’m less than confident right now in this Machiavelli-meets-CJ Craig portrait of Mr. Geithner.
And say what you will about Hank Paulson — and much can and has been said — but the man knew how to speak at length without actually saying anything. And, oh, the gesticulation. I can’t help but ponder if this is the quality observers are referring to while they debase this Treasury’s lack of “Wall Street experience.”
