Monday, January 26, 2009
In this report I explore a troubling (to me) set of statements made by Treasury Secretary nominee Timothy Geithner about China being a “currency manipulator” and the possible impacts of adopting that stance.
I think the worst is yet to come. I think we are only steps away from a major currency and banking crisis. I think that your opportunities to position yourself for that outcome are shrinking rapidly. I say much of this based on the alert I sent out earlier that focused on the troubling stock price performance of the biggest banks that head up the list of those institutions holding the largest derivative positions.
But the rest centers on an especially troubling statement made by the Treasury Secretary nominee, Timothy Geithner, between his confirmation hearings. He said, “President Obama — backed by the conclusions of a broad range of economists — believes that China is manipulating its currency.”