Because No Matter How Bad it is for the United States, It is Good for the Bankers

Timothy Geithner has reiterated his support for Bob Rubin's strong dollar policy:

"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."

Answering audience questions before the Commonwealth Club of California in Palo Alto, he said the United States needed to "work hard to preserve confidence in the strong dollar."

The dollar is overvalued, particularly with regard to the Chinese Yuan, and it has been for years.

It's been overvalued, because it makes the US position as a reserve currency more secure, which means more people paying American bankers to hold their money, even as it increases exports and decreases imports, harming the rest of the country.

Once again, when Timothy Geithner has to choose between the country and the banks, he chooses the banks.