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O'Neill: Strong Dollar Policy Is 'Vacuous Notion'

Former U.S. Treasury Secretary Paul O'Neill discusses the U.S. economy and global financial markets, the performance of the U.S. dollar versus other currencies, and the Federal Reserve's response to the mortgage and credit crisis.

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Former Treasury Secretary Paul O'Neill"

The "strong dollar'' policy that he and every other Treasury chief since 1995 endorsed is "a vacuous notion.''

"It implies in it that somehow we have the ability to manage the relationship between the value of the U.S. dollar and other currencies around the world,'' O'Neill, now a special adviser to Blackstone Group LP, today said in an interview with Bloomberg Television.

O'Neill roiled currency markets when he was in office from 2001 to 2002, at one point with comments in an interview with a German newspaper that the U.S. pursued a policy of a strong economy, rather than currency. The current Treasury Secretary, Henry Paulson, has repeatedly stated that he is a "very strong'' supporter of the "strong dollar'' policy.

"When I was Secretary of the Treasury I was not supposed to say anything but 'strong dollar, strong dollar,''' O'Neill said today. "I argued then and would argue now that the idea of a strong dollar policy is a vacuous notion.''

The U.S. currency today fell to a record low against the euro, and has declined 15 percent against its European counterpart in the past year.

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Sources:
O'Neill Says U.S. `Strong Dollar' Policy Is `Vacuous Notion'
Rhonda Schaffler and John Brinsley
Bloomberg, April 16 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ackYQhodd4Nk

O'Neill Says Strong Dollar Policy Is `Vacuous Notion'
Bloomberg, April 16 2008
http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vwyrSX9M2QsQ.asf

Thursday, April 17, 2008 | 03:30 AM | Permalink | Comments (21) | TrackBack (0)
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Comments

Never has an opinion of mine been so re-inforced over and over as the one that CNBC overall is a horrible network. The piece they did today, allowing Jack Welch back on, after criticizing Immelt for his "screw up" yesterday, to totally retract it...then have Kernan fawn all over him and thank him for setting the record straight...I literally want to throw up. This is pathetic on so many levels, not the least of which he is lying to our faces and GE owns the damn network.

I take solace that, if I'm right about where this economy and market is headed, this station will help cripple GE even more.

Posted by: Steve Barry | Apr 17, 2008 7:12:32 AM