President Obama held his second prime-time news conference last night, the White House transcript can be found here. The President fielded questions on a wide variety of topics, including his budget and economic recovery plan, health care, race in American politics, and foreign policy. On the topic of foreign policy, I was glad to see that one reporter, Major Garrett of Fox News, specifically asked the President to comment on his view of the U.S. role in the world:
And last point I would make in terms of changing America’s image in the world, Garrett, I — you know, I haven’t looked at the latest polling around the world, but I think — I think it’s fair to say that the response that people have had to our administration and the steps that we’ve taken are ones that are restoring a sense of confidence and the ability of the United States to assert global leadership. That will just strengthen.
Also noteworthy, the President dismissed the Chinese proposal for a new international reserve currency:
As far as confidence in the U.S. economy or the dollar, I would just point out that the dollar is extraordinarily strong right now. And the reason the dollar is strong right now is because investors consider the United States the strongest economy in the world, with the most stable political system in the world. So you don’t have to take my word for it. I think that there is a great deal of confidence that ultimately, although we are going through a rough patch, that the prospects for the world economy are very, very strong.
[…]
Q And the need for a global —
THE PRESIDENT: Excuse me?
Q — the need for a global currency?
THE PRESIDENT: I don’t believe that there’s a need for a global currency.
Though I would have preferred to see a more collaborative tone in his reply (something along the lines of “we will carefully examine the proposal and consult with China and our other trade partners, but we are not enthusiastic about the idea”), I’m encouraged to see that the decline of the dollar as an international standard of trade will not be supported by this administration. In an ideal world, the logic and merits of the Chinese proposal might recommend a closer examination of the idea, but the sad truth is that the U.S. is not in the financial position to embrace that kind of idealism.
Photo: Reuters