Reuters reports this morning that Treasury Secretary Tim Geitner told an audience of the Commonwealth Club of California in Palo Alto, "It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity, to (be) competitive," Geithner added. "It is not a viable, feasible strategy and we will not engage in it."
These remarks come ahead of this weekend's G20 meeting in South Korea. China this morning raised its base lending rate 25 bps to try to curb lending and also perhaps to make a symbolic gesture re: the 'weak' remnimbi ahead of the G20.
Elsewhere this morning, various news agenies are reporting that Brazil has backed out of this weekend's G20 meeting, and tried to offset the rally in the real on Monday by raising taxes for foreigners buying local bonds to 6% from 4%.
Reuters also reports that, "Argentina's Minister of Economy and Public Finance Amado Boudou on Monday called on developed nations to focus on creating jobs rather than actions that weaken their currencies, saying a "true currency war" was underway."
Dow is down 150 pts after first 30 mins of trading. Sub-11,000. While I hate to say it, this sell-off should probably be bought. After all, its POMO tomorrow.
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