Author: chinadaily

Shoud China continue buying US treasuries [Copy link] 中文

Rank: 4

Post time 2009-6-1 12:46:15 |Display all floors
The people of the world has gotten fat and dependent on nothing, but good and rich times.... It is the selfish, self centered and give me more people of the world.......

The kool aid, cookies and pixie dust has finally dried up and reality is now set in, and the world has stopped turning....

I do hope we can all recover as well my friend........ We 'the USA' are the fuel that drives this marble... Still for now anyway....

But, what will it all be worth, if NK, or Iran or Israel launches a missle and it brings on the man made sunshine on every horizon..........

Reality my friend, will the sun come up tomorrow, or will it shine forever when it does.........

Where are, our real values as human beings.......

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Post time 2009-6-1 20:28:08 |Display all floors
Geithner: Global Recession Losing Force
Treasury secretary says the global recession seemed to be losing force but that it will be critical for the United States and China to institute major economic reforms.


Sunday, May 31, 2009

BEIJING -- Treasury Secretary Timothy Geithner said Monday that the global recession seemed to be losing force but that it will be critical for the United States and China to institute major economic reforms to put the world on a more sustained footing.

Geithner said that a successful transition to a more balanced and stable global economy will require substantial changes to economic policy and financial regulation around the world and especially in the world's largest and third largest economies.

"How successful we are in Washington and Beijing will be critically important to the economic fortunes of the rest of the world," Geithner said in a major economic address at Peking University, where he had studied Chinese as a college student more than two decades ago.

The Obama administration's chief economic spokesman was using his first trip to China as treasury secretary to pursue closer economic ties with China, seeking to turn the page on years of acrimony between the two countries over contentious trade issues.

Geithner had told reporters on his way to Beijing that he wanted to foster the same kind of working relationship with China that the United States has enjoyed for decades with major European economic powers.

In his speech, Geithner had extensive praise for the economic transformation China has achieved and avoided emphasizing past trade disputes such as the aggressive campon challenge is to recognize that a more balanced and sustainable global recovery will require changes in the composition of growth in our two economies," Geithner said.

Geithner sought to reassure the Chinese on the issue of getting control of the exploding U.S. budget deficit, which is projected to hit a record $1.84 trillion this year, a fourfold increase from last year's record, reflecting the massive spending to stimulate the economy and stabilize the banking system. China is America's biggest creditor, holding $768 billion in Treasury securities.

Geithner took a number of pointed questions from students, with several of them expressing concern about China's massive holding of U.S. Treasury securities, given the current surge in U.S. budget deficits.

Geithner responded to one question saying: "Chinese financial assets are very safe. We have the deepest, most liquid financial markets in the world."

Asked about the support being provided to General Motors and Chrysler, Geithner said he was "very optimistic" that the government's efforts would help the companies emerge in a stronger position and he said the administration planned for the assistance to be temporary.

"We want to have a quick, clean exit as soon as conditions permit," Geithner told the students.

While not a main focus of Geithner's trip, the U.S. also hopes China will play a positive role in resolving a tense dispute with North Korea over its nuclear weapons program.

Geithner could not escape the fallout from the recession even as he crossed the globe. He took a military aircraft with the latest in communications equipment that allowed him to be in frequent contact with Steven Rattner, head of the administration's auto task force, and Obama economic aide Lawrence Summers, who phoned with updates on the pivotal weekend negotiations with General Motors Corp. to rise in value against the dollar.

American manufacturers see the undervalued yuan as a primary culprit in the soaring trade deficits the United States has with China, deficits that critics contend have played a major role in the loss of millions of American manufacturing jobs.

Geithner struck a positive note on the global economy, noting a number of signs in the United States that the huge plunge in activity that occurred last year when the financial crisis struck with force had started to slow.

"The global recession seems to be losing force.... The financial system is starting to heal," Geithner said.

"These are important signs of stability and assurance that we will succeed in averting financial collapse and global deflation, but they represent only the first steps in laying the foundation for recovery," Geithner said. "The process of repair and adjustment is going to take time."

Geithner said the necessary reforms will include getting the U.S. budget deficit under control once the recovery is firmly in place, something he said the Obama administration was committed to doing. He said China will need to strengthen its social safety net in such areas as pensions and health care so that the Chinese will feel more confident about spending more. That is viewed as critical if China is going to transform from an export-driven economy into one driven more by domestic consumption, a change that Geithner said was essential to assuring balanced world growth in the years ahead.

"Our common challenge is to recognize that a more balanced and sustainable global recovery will require changes and a bed. Most of the time he was either working the phones, huddled with aides or revising the speech he was to give Monday.

China, with 1.3 billion people, ranks as the third largest economy after the U.S. and Japan.

Geithner said China's new status should be recognized with a bigger voice in such institutions as the International Monetary Fund.

In addition to meeting with some of his former professors on Monday, Geithner was scheduled to visit an economist training program set up by his father when the elder Geithner was in charge of Ford Foundation programs in Asia.

China has turned its huge trade surpluses with the U.S. into the largest holdings of Treasury debt, but has raised concerns about America's commitment to deficit reform. Financial markets in recent weeks have sent long-term interest rates higher, a move that some attribute to worries about the U.S. budget deficits.

NO more money timmy boy.................

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Post time 2009-6-2 01:52:36 |Display all floors

geithner reassured china's investment...

i do believe in america, and america has a lots of potentials & opportunities...just let these mishaps pass by then we all resume our normal relationship like the good o'l days  

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Post time 2009-6-2 06:14:57 |Display all floors

"China should NOT continue buying US treasuries."

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Post time 2009-6-2 06:29:18 |Display all floors
But, unless your own people start buying, and producing "all' of your products again, many will be in a bind, a real big bind....

The world needs the USA to get moving again, so the world can start turning again....

FACT!! NO ONE globally is buying ANYTHING, or certainly not enough to reflect we are 'all' out of the mud yet... Because we are all stuck in the mud right now.......

America, helped you to become the great industrial nation you are.. We are the ones that were buying like there was no tomorrow, and do you know, how many of your products I own?!:)

The world still revolves around AMERICA, hate it, like it, or love it.......

I dont want anymore money given to the US... I want US to work it out, or even tough it out, and make it back stronger, even if it takes a little longer...

And with what is going on globally 'the big picture', it is all about priorities and reality about now,and a war wont help anything or anyone, really........

[ Last edited by Eagleclaw1 at 2009-6-1 04:36 PM ]

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Post time 2009-6-2 11:20:48 |Display all floors

Reply #21 totothedog's post

Well, the infantile Amerikan Regime kongfu ensure that all other nations needs to produce a surplus of commodity, commodity produce, engineering exports.

This is due to the dominance of the Korupt Stoopid Anglo Amerikan Dollar!

ha ha ha

Green DRagon
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Post time 2009-6-2 18:09:54 |Display all floors

I am the one vote

I am the one vote who voted "Do not know" and what did the Chinese say, read below:

CHINA> National
Purchases of US bonds likely to continueChina may continue buying US Treasury bonds and other dollar-denominated assets even though US government debt yielded the lowest return in three decades this year and the dollar is under pressure, experts say.

The comments came as US Treasury Secretary Timothy Geithner Monday tried to reassure China that its vast holdings of US financial assets are "very safe", and that Washington is committed to a strong dollar as well as a reduction in the budget deficit.

The US' top finance official also promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules.

Geithner, who is in China on his maiden trip as Treasury Secretary, was speaking at Peking University, where he studied Chinese more than two decades ago.

Zhao Quanhou, a senior researcher with the Ministry of Finance, pointed out that "investing in US Treasury bills is an important component of China's foreign currency reserve investments. This type of investment is comparatively safe as the US financial market is the largest in the world and is highly liquid".

"But the timing of purchases is critical. The government should pay close attention to possible fluctuations in the value of the US assets."

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Gong Liutang, a professor of Guanghua School of Management at Peking University, agreed, saying that China has limited choices for investing, with US-denominated assets still a "priority" considering overall risk and liquidity.

But they pointed out that China might have to adopt a "de-dollar" strategy if the US failed to restructure its economy by increasing the country's savings rate and reducing its current account deficit.

"In that situation, China will have to speed up the yuan's internationalization and realign the portfolio of its foreign reserves," said Sun Lijian, an expert at Fudan University.

China has turned its huge trade surpluses with the US into the world's largest holdings of Treasury debt.

China now holds about $768 billion of Treasuries as of March.

The government and experts have expressed concern that Washington's mushrooming deficit, generated by massive government borrowing to fuel its economic recovery plan, and the ultra-loose monetary policy will undermine both the dollar and US bonds.

As the media predicted, the Geithner avoided emphasizing repeated US calls for revaluation of the yuan in his speech, mentioning briefly that a more flexible exchange rate regime would spur Chinese domestic demand.

Experts said the move showed Washington's "pragmatic" attitude when seeking help from Beijing.

In his speech, Geithner also backed China for more influence in the framing of international policy.

"China is already too important to the global economy not to have a full seat at the international table," he said.

Though he described the recession as still "powerful and dangerous" in much of the world, Geithner said the global recession seems to be "losing force".

"In the US, the pace of decline in economic activity has slowed ... Households are saving more ... Orders for goods and services are somewhat stronger," he said.

Moreover, the US financial system was healing and it now seemed that the world would avoid financial collapse and deflation, he added.

Geithner spent Monday in a flurry of meetings with China's top economic team, including Vice-Premier Wang Qishan and the commerce, finance and banking chiefs.

During his meeting with Wang, his Chinese counterpart at the China-US Strategic and Economic Dialogue (SAED), Geithner discussed details of the upcoming dialogue scheduled this summer in Washington.

The US wants to develop relations with China from a long-term and global perspective and handle major economic issues between the two sides under the framework of the dialogue, Geithner said.

Geithner is due to meet with President Hu Jintao and Premier Wen Jiabao today.

Agencies contributed to the story

Copyright By All rights reserved

US Treasury Secretary Timothy Geithner and Fu Min, his former teacher at Peking University - where he studied Chinese in the 1980s - Monday hold up copies of a photograph of them together then. [Photo by Wang Tiantian/China Daily]

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