Explore Monex
U.S. Budget Deficit
July 16, 2009

Have Fed and Treasury actions helped or hurt the economy and health of the dollar?

Deficits Debt

“Treasury Secretary Timothy Geithner said there are ‘durable’ signs that financial markets are on the mend, while repeating that the U.S. must not withdraw its stimulus measures before an economic recovery is entrenched.

‘We’re seeing durable signs of greater confidence’ in markets, Geithner said in an interview with Bloomberg Television during a visit to Paris today. At the same time, he warned that withdrawing stimulus too soon would ‘weaken the basic fabric of the economy,’ and ‘that’s not something we can afford to do.’

Geithner’s remarks reflect an economy that’s showing signs of pulling out of its deepest recession in half a century, with at the same time little momentum for a recovery. The Treasury chief stressed today that the Obama administration’s efforts are focused on restoring the U.S. to a path of growth, then reining in budget deficits later to buttress the value of the dollar.

In a later Internet chat with Les Echos newspaper today, the Treasury chief said “the dollar’s role in the international financial system places special responsibilities on the United States -- to sustain confidence in our financial system, to bring our fiscal deficits down when recovery is in place, and to preserve the Fed’s strong record of price stability.”

A Treasury report today showed foreign investors sold a net $22.6 billion of Treasuries in May, the most since November. Japan and Russia cut their holdings of U.S. debt even as China -- whose foreign-exchange reserves have now surpassed a record $2 trillion -- enlarged its portfolio.”

*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

See What Investors are Saying About Monex

Thank You!
Want your kit sooner?
Faster delivery is available by phone.
Get Your Free Report

A Better Future
with Precious Metals

  • All form fields are required

  • Privacy Policy
  • This field is for validation purposes and should be left unchanged.
Download Your Report