Mr Geithner, in China on his first visit as US Treasury Secretary,
reiterated that US would cut its huge fiscal deficits
Timothy Geithner moved today to reassure the Chinese Government that its
huge holdings of dollar assets were safe as he reaffirmed his faith in a
strong US currency.
Mr Geithner, in China on his first visit as US Treasury Secretary, sought to
allay concerns that Washington’s growing budget deficit would fan inflation
which, in turn, would undermine the dollar and US bonds.
“Chinese assets are very safe,” Mr Geithner said, answering a question after
his opening address at Peking University this morning.
His answer was greeted with laughter by the students, who question the
wisdom of China spending huge amounts of money on US bonds instead of
improving domestic living standards.
Hummm. Sound familiar?
The Selling(out) of America