US Treasury Secretary Timothy Geithner says he will create conditions for a stronger dollar

Source: Internet
Author: User
Keywords US government fiscal deficit
said the global economic recovery may be repeated many times, the United States is aware of the responsibility of "locomotive"-Bu Xiaoming (Xinhua News Agency), the U.S. Treasury Secretary Timothy said 14th, as Governments on the loss of wealth and public debt surge accustomed to, the global economy on the road to recovery may encounter many circuitous repeated. "The financial crisis undermines the scope and extent of the global economy," Geithner said in a speech on the day in the western city of Jeddah, Saudi Arabia. "He said:" Given the damage to the financial system, the loss of wealth and the necessary adjustments to the world's long-term excessive borrowing, the global economic recovery appears to be a realistic expectation, and the road to recovery will be more than usual highs and lows and a temporary setback.  "The federal government's fiscal deficit for the 2009 fiscal year, which began on October 1, 2008, topped $1 trillion for the first time this June," according to data released by the US Treasury 13th. The White House had previously predicted that the federal budget deficit would reach $1.841 trillion trillion this fiscal year, more than 4 times times the 459 billion dollar shortfall in the previous fiscal year.  The US government deficit could reach $2 trillion trillion this fiscal year, citing economic analysts ' forecasts, the US-Jones cable news agency said. "The United States will need to borrow heavily in the coming months," said Eric Swat, head of asset management at the Rasmala Investment company in the UAE. In addition, with the debate about the status of the dollar's reserve currency, Americans need to convince creditors that the US will assume fiscal responsibility in the medium term.  Geithner's Day in Saudi Arabia tried to resolve the two points of concern for the Gulf States. He says the U.S. government will try to address other long-term issues such as health care and financial regulation while taking measures to rein in borrowing. "America's fiscal path before the financial crisis was unsustainable," he said, "without a credible commitment to tackling the long-term deficit, we will not build a sustainable recovery."  "In the question-and-answer session after the speech, Geithner said the US government would start to cut the deficit after the global economy did survive the crisis."  Geithner also said the United States understands its responsibilities as the "locomotive" of the global economy. "Given the role of the dollar in the international financial system and the important impact of the U.S. economy on the global economic environment, we are fully aware that the United States needs to take a special responsibility," he said. "The U.S. policy is intended to create conditions for a stronger dollar and a more stable international monetary system," he said. "The AP believes that one of the key intentions of Geithner's visit to Saudi Arabia and the United Arab Emirates this week is to show that the US welcomes investment from major oil-producing companies and that the US has a plan to get out of the financial crisis.
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