This week in The Institutional Risk Analyst, we take a look at the latest week of inaction and indecision on the part of the leaders of the G-10 nations. Never has doing absolutely nothing taken so much time and garnered so much market and media attention. If the nothing doing dance by Barack Obama, Nicholas Sarkozy and Angela Merkel reaches a much higher frequency, life as we know if is definitely going to change big time. And that change may include altering the international role of the dollar, a change regarding which neither Congress nor the American people have been consulted.
The reason for the inaction in Washington, needless to say, has to do with the vacuum surrounding President Obama, a lack of political substance which stems from the continuing influence, nay hegemony, of former Citigroup Chairmen Robert Rubin and his minions. Older more experienced Rubin operatives such as Larry Summers have already abandoned the sinking ship, but Treasury Secretary Timothy Geithner remains, we are told, until Rubin gives him permission to leave the table.
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