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Geithner Kowtows To Communist China

From a bemused Reuters:

Geithner tells China its dollar assets are safe

By Glenn Somerville

BEIJING (Reuters) – U.S. Treasury Secretary Timothy Geithner on Monday reassured the Chinese government that its huge holdings of dollar assets are safe and reaffirmed his faith in a strong U.S. currency.

A major goal of Geithner’s maiden visit to China as Treasury chief is to allay concerns that Washington’s bulging budget deficit and ultra-loose monetary policy will fan inflation, undermining both the dollar and U.S. bonds.

China is the biggest foreign owner of U.S. Treasury bonds. U.S. data shows that it held $768 billion in Treasuries as of March, but some analysts believe China’s total U.S. dollar-denominated investments could be twice as high.

"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.

His answer drew loud laughter from his student audience, reflecting skepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home…

In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.

"We have the deepest and most liquid markets for risk-free assets in the world. We’re committed to bring our fiscal deficits down over time to a sustainable level.

"We believe in a strong dollar … and we’re going to make sure that we repair and reform the financial system so that we sustain confidence," he said.

Geithner also offered strong backing for a bigger Chinese role in international policymaking.

"China is already too important to the global economy not to have a full seat at the international table," he said

Geithner said there could be no return to business as usual either for the United States or China: both must change their growth strategies as U.S. consumers pay down debt after years of living beyond their means

Geithner said a more flexible exchange-rate regime for the yuan, which would almost certainly see the value of the Chinese currency rise against the dollar, was particularly important because it would spur more Chinese demand…

Geithner offered U.S. backing for a higher-profile role for China in running global institutions including the IMF — a controversial proposition since it raises the sensitive issue of reducing Europe’s voting share in the global lender.

"The United States will fully support having China play a role in the principal cooperative arrangements that help shape the international system, a role that is commensurate with China’s importance in the global economy," he said

What a disgraceful display.

And speaking of which, look at how our media masters are spinning this:

A major goal of Geithner’s maiden visit to China as Treasury chief is to allay concerns that Washington’s bulging budget deficit and ultra-loose monetary policy will fan inflation, undermining both the dollar and U.S. bonds.

China is worried that the US will just print more money and pay back its debts in worthless currency.

And they are right to worry. It’s happened before.

It’s what Germany tried to do after it was saddled with WWI debt by the Treaty Of Versailles.

And look how well that turned out.

Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing… We’re committed to bring our fiscal deficits down over time to a sustainable level.

No wonder the audience laughed.

"The United States will fully support having China play a role in the principal cooperative arrangements that help shape the international system, a role that is commensurate with China’s importance in the global economy."

And this is part of the price we are going to have to pay. In fact, it is probably just a down payment. (Taiwan is probably next.)

But what is there to worry about?

The Communist Chinese have always been open and honest and fair players

This article was posted by Steve on Monday, June 1st, 2009. Comments are currently closed.

13 Responses to “Geithner Kowtows To Communist China”

  1. pdsand says:

    Well if Geithner said it, if I were China I’d have a firesale.

  2. proreason says:

    Here’s the rationale…….becoming subservient to China only makes the world safer.

    And here’s the truth……..they deliberately prefer being subservient rather than allowing american achievers to continue prospering. Because when the people prosper, our masters iron rule can be challenged.

    • Liberals Demise says:

      I wouldn’t let this tax dodger watch a little kids piggy bank for 2 seconds.
      Barry should have sent Sheriff Joe over to start the talks off with a joke!

  3. Reality Bytes says:

    What a Plick!

  4. catie says:

    If it wasn’t so tragic, it would be funny.

  5. Reality Bytes says:

    Come on. It was a little funny. Remember, the difference between a conservative & a liberal is conservatives can laugh at adversity while liberals exploit it.

  6. JohnMG says:

    Nice picture, Tim. But are you developing a Pinochio problem?

    …..”His answer drew loud laughter from his student audience…..”

    The Chinese, ever polite, thought he was telling a joke. They don’t realize (yet) that he’s a bald-faced liar. Obama will throw Geithner under the bus just as soon as this China mission blows up in his face like a huge stink-bomb. I can’t wait.

    • Reality Bytes says:

      “Hi, I’m Tim. And if you’re like me you probably suffer from E.D. Economic Dysfunction. But now there’s a cure and it comes in a bill! For just 11.8 trillion dollars, you can pretend to be stimulated just like me.”

      Side effects may cause total economic collapse, loss of sovereignty & blurred vision trying to pass for Asian while being smuggled into the PRC as cheap slave labor. If you reelect your president or liberal congressman, don’t call a doctor, call a phychiatrist!

    • Liberals Demise says:

      You take plastic, right?

    • Reality Bytes says:

      Plastic?! That would be another department sir.

  7. canary says:

    Hilary, Pelosi was just there last week! Now Geithner being laughed at by Chinese school students. Should have made a phone call, or sent a DVD.

  8. TwilightZoned says:

    “His answer drew loud laughter from his student audience,…”

    Amazing how even Chinese students know what a bozo Geithner is and half of America doesn’t.
    Too bad Oblabla’s narcissism gets in the way of him seeing this is laughing in his face also.

    “…possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.”

    Did he check with his boss on that? Oh, wait. I keep forgetting one must remember to understand it is the opposite with “the one’s” words, which I’m sure Geithner was repeating. No wonder people were laughing. The Chinese figured it out too.

  9. Confucius says:

    It’ll be interesting to see which lying socialist government screws the other first.


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