Obama may choose to speak softly on currency issues
Apr 01, 2010 | 07:47 AM
| Kevin Foster
When Leo Gerard starts praising Ronald Reagan, you know the world is changing.
Gerard, the United Steelworkers union president best known for his tough support of workers' rights, and Reagan, the darling of the Republican right, would normally make unlikely bedfellows. But on one issue—the need to defend the U.S. economy from the impact of an undervalued foreign currency—Gerard seems to have more in common with Reagan than with the current President.
It was Reagan who took action in 1985 to depreciate the dollar vs. the Japanese yen—or, as Gerard put it at a recent conference, "called (Japan) in and said it was unacceptable" for them to continue to maintain the yen at an artificially weak level, so boosting their exports and swelling the U.S. current account deficit. The resulting deal, most economists agree, helped pull the U.S. economy out of recession.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.