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Geithner tells China its dollar assets are safe

Posted By admin On June 1, 2009 @ 9:20 am In Money Watch | Comments Disabled

Glenn Somerville
Reuters [1]
Monday, June 1, 2009

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.

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Geithner tells China its dollar assets are safe 250509BANNER [2]

“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.

Full article here [1]


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URLs in this post:

[1] Reuters: http://www.marketwatch.com/story/jumping-on-the-inflation-train?amp;siteid=rss&SiteId=djm_HAMWRSSCommH

[2] Image: http://prisonplanet.tv/signup.html

[3] “87 Percent of [Chinese] Respondents Believe China’s Dollar-Assets are Unsafe”: http://www.prisonplanet.com/87-percent-of-chinese-respondents-believe-china%e2%80%99s-dollar-assets-are-unsafe.html

[4] Geithner: US Will Curb Deficits, Back Bigger China Role: http://www.prisonplanet.com/geithner-us-will-curb-deficits-back-bigger-china-role.html

[5] Geithner Delays Currency Report, Urges Flexible Yuan for China: http://www.prisonplanet.com/geithner-delays-currency-report-urges-flexible-yuan-for-china.html

[6] Geithner sees dollar’s reign lasting ‘long time’: http://www.prisonplanet.com/geithner-sees-dollars-reign-lasting-long-time.html

[7] Geithner vows U.S. will not devalue dollar: http://www.prisonplanet.com/geithner-vows-u-s-will-not-devalue-dollar.html

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