Bachmann No. 1 defender of the dollar
Rep. Michele Bachmann wears many hats: foreign correspondent, leader of the 'armed and dangerous', tax expert, and of course world's greatest mom. Now we can add 'dollar defender' to the list.
In the latest bill distracting from some of the more pressing and serious issues on the table, Bachmann introduced a bill that ensures that the dollar will never disappear. Because it was totally going to happen any day now.
In response to suggestions by China, Russia, and other countries around the world calling on the International Monetary Fund to explore a multi-national currency, U.S. Representative Michele Bachmann (MN-6) has introduced a resolution that would bar the dollar from being replaced by any foreign currency.
"Yesterday, during a Financial Services Committee hearing, I asked Secretary Geithner if he would denounce efforts to move towards a global currency and he answered unequivocally that he would," said Bachmann. "And President Obama gave the nation the same assurances. But just a day later, Secretary Geithner has left the option on the table. I want to know which it is. The American people deserve to know."
The concern spurred from a story out of China as dollar cash reserves are looking shaky. The reserves are the main point , not a literal international currency you'd be carrying in your pocket and using at the grocery store.
From the Associated Press:
To better insulate countries from the ills of one country or one currency, Zhou said the IMF should create a "reserve currency" based on shares in the body held by its 185 member nations, known as special drawing rights, or SDRs. He said it also should be used for trade, pricing commodities and accounting, not just government finance.
President Barack Obama described China's proposal as unnecessary during a prime-time news conference Tuesday.
"I don't believe that there's a need for a global currency," Obama said.
Bachmann questioned U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke earlier that day during the congressional hearing, asking them if they would "categorically renounce the United States moving away from the dollar and going to a global currency." Both said yes.
Later, Geithner talked more about the issue, says Politico.
"I haven't read the governor's proposal. He's a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue," Geithner said, saying that however his interpretation of the proposal was to increase the use of International Monetary Fund's special drawing rights -- shares in the body held by its members -- not creating a new currency in the literal sense.
"We're actually quite open to that suggestion - you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union," he said.
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