Thursday, November 18, 2004

A few gems from US Treasury Secretary John Snow:
"Why do I support a strong dollar policy?" he responded. "The answer is because it is our policy."

. . .

He dismissed suggestions that Asian central banks may reduce their holdings of Treasury securities.

"Our debt markets are the deepest, broadest and most liquid anywhere," he said. "We are readily able to market U.S. Treasuries."
The November sale of $51bn in debt seemed heavily reliant on foreign central banks, but the Treasury's own data shows waning official interest in federal debt. The two weakest months of the year for net foreign central bank purchases of US treasuries occurred in July and September. Moreover, private foreign capital has purchased just net $4.8bn in the last two months after averaging $38.1bn every two months from January through July.

One hopes John Snow isn't doing a Baghdad Bob impression.


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