Geitner wastes no time in PO'ing the Chinese (debt, sell, interest) - Economics - City-Data Forum

Woof · 01-22-2009, 11:22 PM

Geithner Warning on Yuan May Renew U.S.-China Tension (Update2)

By Mark Drajem and Rebecca Christie

Jan. 23 (Bloomberg) -- Timothy Geithner’s warning that President Barack Obama believes China is “manipulating” its currency may trigger renewed tensions between two of the world’s three biggest economies.

Geithner, Obama’s nominee for Treasury secretary, also told senators the administration will press China to “adopt a more aggressive stimulus package” to boost its domestic economy. The remarks on manipulation were a shift from President George W. Bush’s team, which stopped short of using the term in criticizing China’s exchange-rate management.

“The signal this sends is not good” for ties between the two nations, said Charles Freeman, a fellow at the Center for Strategic and International Studies and former top trade negotiator for China at the U.S. Trade Representative’s office. “It opens a Pandora’s box. We need the Chinese to hold onto their Treasury and agency debt.” ....... (article continued at Bloomberg.com: Worldwide )

cdelena · 01-23-2009, 12:29 AM

As soon as I saw the report I knew it is just as smart as the 'narco state' comment by another new cabinet member. Do these people practice foot in mouth behavior? Gives Biden some cover.

tallrick · 01-23-2009, 12:41 AM

Wouldn't it be great if China starts dumping T bills? Then how high would the interest rate have to go to attract other buyers? Keep stirring the fire ant pile!

Huckleberry3911948 · 01-23-2009, 12:44 AM

we owe them a lota money. not good.

Moose Whisperer · 01-23-2009, 12:55 AM

I thought we were all going to just get along now.

Dwatted Wabbit · 01-23-2009, 01:09 AM

Quote:

Originally Posted by Moose Whisperer

I thought we were all going to just get along now.

Unfortunately Rodney King was not on the ballot.
Methinks he's at least as schmart as either of the two "main party" candidates.

jimmyP · 01-23-2009, 05:15 AM

For once somebody spoke the truth. china is a currency manipulator. And they won't start dumping treasuries because they have too many. If they dump some the value of the rest will collapse.

China also has more non tariff barriers than any nation and deserve to be called out.

Icy Tea · 01-23-2009, 06:54 AM

All part of their master plan to take America down. OR... Obama is going to keep following whoever wants to hurt China( and Russia) via oil prices and trade. These people are not stupid. Crazy, arrogant, maniacal, yes, but not stupid.

RedNC · 01-23-2009, 07:53 AM

I say let them dump every one of them. Cash it all in. Get the pain over and America can start the process of rebuilding the middle class with the manufacturing jobs that are making China so strong.
The US needs to stop all trade with China and bring all those jobs back to the US.
China can sell their crap to the rest of the world and the US can once again rebuild it’s self into the kind of economy we can be proud of. The kind of economy that builds things that the rest of the world envy’s. The kind of economy that my father enjoyed, not this paper pushing “service economy” BS!

GregW · 01-23-2009, 12:03 PM

About time somebody called China's bluff. if they devalue the US Treasury bills it will be good for us and a disaster for them.

As far as the economy is concerned we have to figure out how to transition from the absurd FIRE economy back to an industrial economy financed by saving and investment not by rampant self sustaining debt.