Chinese students laugh at Geithner's assurances about Dollar

[Bindare_Dundat]

http://www.reuters.com/article/compa...14475620090601



BEIJING, June 1 (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.

[GigantorX]

http://www.reuters.com/article/compa...14475620090601



BEIJING, June 1 (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.

Don't worry, didn't you hear, the recession is over and everything is back to normal! Strong dollar policy! balanced budgets! Go buy stuff!

And do it quick before the world realizes we are full of shit and will repay them with worthless dollars 50 years from now!

Don't Panic!

[Hugo Chavez]

fuck them,... I'm sure they think they'd have had the best 15 years of their existense just the same without us   Not...  We and we alone made them what they are and why we did that, I have absolutely no idea... my best guess is that the corporations had their way, actually that's what happened.

[Bindare_Dundat]

http://news.yahoo.com/s/ap/20090530/ap_on_go_ca_st_pe/us_geithner_china;_ylt=AmDbAlyjiYRE9lVbr6MnxYN0fNdF

Geithner wields little leverage in China talks

WASHINGTON – Timothy Geithner's first trip to China as treasury secretary comes at a vulnerable time for the Obama administration.

Mired in a brutal recession, the United States needs Beijing to buy more American goods, allow its currency rise and make other moves to narrow an enormous trade gap. The U.S. also needs China's help to confront any military threat from North Korea.

Yet Washington's leverage has waned just as China's power over the U.S. has grown.

China is now America's biggest creditor. As of March, it held $768 billion of Treasury securities — about 10 percent of publicly traded debt.

The U.S. needs China's money to finance U.S. budget deficits, which are soaring as Washington tries to end the recession and bolster the banking system. The administration estimates the budget deficit will hit $1.84 trillion this year. That's four times last year's deficit.

Geithner, who left Saturday for meetings Monday and Tuesday with Chinese leaders, carried an ambitious U.S. goal of persuading the Chinese government to adopt policies that would transform its nation of savers into spenders.[/b]  

[tonymctones]

Don't worry, didn't you hear, the recession is over and everything is back to normal! Strong dollar policy! balanced budgets! Go buy stuff!

And do it quick before the world realizes we are full of shit and will repay them with worthless dollars 50 years from now!

Don't Panic!

hahahah we arent paying those fukers back hahah the jokes on them the idea alone is fuking hillarious we for some reason cant seem to understand that in order to pay bills we have to spend less then we make...

[Straw Man]

they are free to express their opinion

I assume they are active currency traders and are selling dollars

everyone talks their book

the other option is they are just talkers

[Soul Crusher]

they are free to express their opinion

I assume they are active currency traders and are selling dollars

everyone talks their book

the other option is they are just talkers

Geithner is a clown and the Chinese see right through his and Obama's lies and nonsense. 

The only ones who still are still in a fog are the MSM and the liberal voters who refuse to be honest that they got hoodwinked and fooled into voting for someone who they thought would be different than GWB. 

Obama is GWB - but worse.

[shootfighter1]

This is why we must decrease of spending and our deficits.  We cannot be reliant on another country to finance us to this degree.  Very dangerous.

[Soul Crusher]

This is why we must decrease of spending and our deficits.  We cannot be reliant on another country to finance us to this degree.  Very dangerous.

Hah, you are kidding right??

Go look at the CBO budget predicitions based upon Obama's budgets.  Its staggering, even compared to Bush.