You’re a Loon, Ms. Bachmann, You Know That, Don’t You?

The Madwoman of Minnesota is flaunting her madness again:

The madness continues as Michele Bachmann introduces legislation that “would bar the dollar from being replaced by any foreign currency.”

What the Chinese were proposing, of course, was to replace the dollar as the world’s reserve currency. I would take the view that a move away from near-exclusive reliance on the dollar is probably inevitable irrespective of what we do. But whether or not you agree with me about that, this isn’t something congress can ban—it’s a decision by foreign countries about what they do with their reserves.

This all got started when Bachmann went ballistic after China announced a proposal to replace the U.S. dollar as the preferred global currency, and Tim Geithner initially appeared to be suggesting it was a good idea:

The thing is, though, is that Geithner has already clarified that he doesn’t foresee a change in the dollar’s centrality. And Obama himself flatly declared that he’s not open to such a change at his presser the other night.

Undeterred, Bachmann has even “introduced a resolution that would bar the dollar from being replaced by any foreign currency,” as her release puts it.

It appears Bachmann may have thought that Geithner was talking about being open to a change in U.S. currency, rather than the world’s reserve currency, which is what the China proposal was about. And as Matthew Yglesias notes, foreign countries partake in decisions about the world reserve currency.

So is Bachmann proposing legislation that would ban foreign countries from doing this? Can Congress really legislate the behavior of foreign countries?

No, it turns out. I checked in with Bachmann’s spokesperson, Debbee Keller, who reassures that this is only about American currency.

“She’s talking about the United States,” Keller said. “This legislation would ensure that the U.S. dollar remain the currency of the United States.” Of course, no one had been discussing any change in U.S. currency in the first place….

3 Responses to “You’re a Loon, Ms. Bachmann, You Know That, Don’t You?”

  1. Chief says:

    Well, she IS a member of the “Party of No.”

  2. BVasvary says:

    I’m dreaming of Palin/Bachmann 2012. Anyone else?

  3. Kathy says:

    Ohmygod, that would be beyond awesome. 🙂

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