Posted on 06/01/2009 10:50:52 AM PDT by balls
BEIJING -- 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 scepticism 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.
The Beijing-based Global Times greeted Geithner by publishing a survey of Chinese economists who called big holdings of U.S. debt "risky."
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.
(Excerpt) Read more at gold-speculator.com ...
Men of vision would be encouraging China to spend the money on American goods and service to improve their country’s lot.
“The Chinese arent stupid.”
Not only that, the Chinese have the “American work ethic”. The Chinese people ARE paying attention, and are motivated.
There are very dark days ahead for America.
Like a child caught with jelly all over his face, maintaining that he was not the one the opened the jar.
These criminals are responsible for destroying the American dollar. Now they are assuring us and the world that it is healthy. Obama and Geithner are accomplices to the theft of the value of the U.S. money supply.
That they are accomplices is evident for they are in cover up and join the party mode; not expose and correct mode.
Obama is a cheap Chicago thief. His minions are chosen for their singular incompetence and their unequaled untrustworthiness in any matters financial.
And all who follow them are like them.
Is this the Hope and Change you wanted.
Well, there are certainly no such folks in the Obummer administration.
Wonder if he contributed towards the lower tax receipts the gov’t collected so far this year.
So Geithner violated American standards of trustworthiness, and also violated Chinese standards of trustworthiness.
Do you know how HARD that is? Everything is counterfeit, there is no accountability, and AVERAGE lies probably do not amuse rank-and-file Chinese.
He has become an uncommon liar IN CHINA.
I just added that one to my collection.
One thing to remember - Chinese in no way have bought into, or even understand, American political-correctness or political double-speak. So in that sense, they see things very clearly and simply - will their country get their money back?
“Meanwhile the vllage idiots - aka members of Congress, believe every word he says.”
Naw... those soul-less pigs in Congress only triangulate. Obama is an American rock star, so they are trying to ride his coat tails. If Obama’s numbers were to drop, (not likely given the MSM and the idiot electorate), the knives would come out.
The pigs in Congress believe in one thing... re-election.
I assure you, our dollar is strong!
Ping me if you find the video.
I believe in getting an A+ in my exam and being healthy, but I’m not going to study or exercise
I'm skeptical about that. How high would interest rates have to be to justify an investment where you get paid off with Monopoly money?
Wouldn't they get an even greater return than those high interest rates if they invest in hard assets instead? Valued in dollars, the price of gold, oil, etc will go up significantly as the dollar shrinks.
Timmy’s talk ain’t playing well over there either, huh?
The hard truth is if the Chinese ever withdrew enough assets from us to destabilize our economy we'd have to quit buying all that stuff they make, which would tank their economy. They're trapped.
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