Yesterday, we had some questionable reporting on US Treasury Secretary Geithner’s comments on the US dollar. Geithner was commenting on a Chinese proposal to develop a new world reserve currency. Appearing in Congress on Tuesday, Geithner said he didn’t think it was a good idea to replace the US dollar as a reserve currency. Both Ben Bernanke and Barack Obama said the same thing. Yesterday, Geithner said he was quite open to China’s suggestion of moving toward a SDR-linked currency system. He added that the dollar’s role in global financial system depends on establishing sustainable fiscal position.

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