The gruff, irascible Paul Volcker doesn’t dance around the Chinese idea of an international currency the way that Geithner did. He forcefully says the idea is not practical. Full stop. Perhaps the Secretary will take a page out of Volcker’s book rather than his more professorial employer…
Volcker, showing he’s no economic diplomat, says “China didn’t have to buy all those dollars”and that they contributed to the problem. That said, he understands why the dollar-centric global monetary system is restive.
EUR/USD is at 1.3548.
