I’m so glad to hear that China’s financial situation with American money is safe! Whew. I was really worried about that.
U.S. Treasury Secretary Timothy Geithner on Monday reaffirmed his faith in a strong dollar and reassured the Chinese government that its huge holdings of dollar-denominated assets are safe.
"We believe in a strong dollar," Geithner said in a question-and-answer session after a speech to students at Peking University.
A major goal of Geithner’s maiden visit to China as Treasury secretary is to allay Beijing’s concerns that Washington’s mushrooming budget deficit and ultra-loose monetary policy will undermine both the dollar and U.S. bonds. China is the biggest foreign owner of U.S. Treasury bonds.
"Chinese financial assets are very safe," Geithner said. His response drew laughter from the audience.
I guess it is important to keep the communists safe considering we will be communistic as soon as Obama can arrange it.
Hat Tip: Kristi
I think it’s a relief — if China thinks their money isn’t safe then they’ll pull it out. Which would basically devastate the US economy. One of the main reasons China WOULDN’T pull their money out JUST to devastate the US economy is that, in doing so, they would devalue their own investments and lose money in the process — but if they think that their investments are in danger, there’s less incentive for them to keep their money where it is. It’s a bit like, if China starts the ball rolling, then China gets hurt; but if China is getting hurt anyway, it might decide to roll along with the ball.
Would have been good to keep some of this in mind when we were borrowing borrowing borrowing from China — the debt the US government owes to China more than tripled between 2000 and 2005.
Alexandra –
You nailed it. We are at the mercy in China – so much so we are now kissing their booty’s. It’s really pathetic. We are at the mercy of a communistic country with one of the worst human rights violating record for developed countries.
Yep… and since China is the only country that could STOP the N korea nut…. we cant demand anything fom China.. they own us and we need more of their money.
Scary