"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Thursday, November 11, 2010

The US "Strong Dollar" Policy

Timothy Geithner seeks to calm the rest of the G20 and the world with a comment that the US will not weaken the dollar to spur growth.  He says this with a straight face:

And Neil Mellor, currency strategist at BNY Mellon, with a more logical observation on what is actually going on: "There is this mismatch with the policy in the US that is in place, and the strong dollar.  We can not have a strong dollar while US monetary policy is so lax..."

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