Author: chinadaily

Shoud China continue buying US treasuries [Copy link] 中文

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Post time 2009-6-3 18:43:23 |Display all floors

Geithner's message was unequivocal

CHINA> National
Geithner: US committed to less deficitWatch us and watch what we do - in staging a strong recovery and controlling the rising deficit.

That was the bullish riposte from US Treasury Secretary Timothy Geithner to Chinese skeptics during an interview with China Daily Tuesday.

His message: The United States will spawn a strong recovery, control the rising budget deficit, and thereby protect the value of dollar-denominated assets of investors.

To Chinese economists still not convinced, Geithner's message was unequivocal: "We are absolutely committed to doing that, and I am completely confident that we will be able to do it."

Replying to pointed questions on the ballooning US budget deficit and the safety of Chinese investments, he said: "As soon as we lay a foundation for recovery, we are going to bring down, unwind, reverse through these exceptional measures we have taken in the financial sector to repair the system and make sure credit is flowing again.

"We have the deepest, most liquid markets for Treasury securities in the world, and we are going to do everything we need to do to make sure we sustain confidence in the United States and around the world in the strength of our economy and financial system."

The US government deficit is projected to reach $1.75 trillion in the year ending Sept 30 from last year's $455 billion, according to the Congressional Budget Office. The Obama administration aims to narrow the gap to about 3 percent of gross domestic product by the end of its four-year term from a projected 12.9 percent this year.

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On his first trip to China after being appointed the Treasury secretary in the thick of a staggering global financial crisis, Geithner appeared to have won some backing from China, with top leaders saying the two countries have set a good example in working together toward a quick recovery of the global economy.

"I think partly because of the strength of the actions put in place by your government and by President (Barack) Obama we're starting to see some early signs of stabilization and recovery in the global economy," Geithner told President Hu Jintao Tuesday.

Premier Wen Jiabao was quoted in a statement released by the Foreign Ministry as saying that "the foremost task for both countries is to work more closely to address the global economic crisis, oppose protectionism in trade and investment, promote reform in the international financial system, and tighten oversight of international reserve currency so as to ensure the stability and growth of China, the US and the world."

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One point that can be drawn at this time is this a new administration in Washington and they can try "deliver the 'package' where the last administration could not" .   And the second point is the market in Wall street just hasn't gotten over 9,000pts.DOW.

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Post time 2009-6-3 22:00:45 |Display all floors

aint NO stoppin us now...

buy what you really can and treasure it wisely...investing in some national commonities is truly wise for the future  

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Post time 2009-6-4 00:32:35 |Display all floors

Reply #1 chinadaily's post

This US Debt Clock tells all. The 1.3 billion Chinese will like to be told the one good reason why China

should continue buying US T-Bonds.


                    DUMP THE US$!  DUMP THE US$ !   DUMP THE US$ !

[ Last edited by sansukong at 2009-6-5 07:08 PM ]

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Post time 2009-6-4 11:23:42 |Display all floors
well ,it is a complicated issue, however, for my perspective, china would the US treasury bond whatever the  the demeaning of US monetary value .China has spent more than fifty years to enhancing its world status since the etablishment of the Republic of China. retrospecting to the past, china mainly catering on polictical status improvement and right now when the financial crisis is spreading around, purchasing US dollars is a more efficient way to improve its global status economically. china not only further the strategic partnership with the US, moreover, increasingly consentration on the relationship with many developed counties like Britain, Russia, Australia and so on.
maybe someone think china would pay a lot on this action and ii think this worrying is out of reach because china is one of the countries suffering the least impact by the slum.  the chinese enterprises national owned or privated experience a significant reforming when only the efficient companys can stand on their on feet in front of this economic disaster. meanwhile ,with the help of goverment, china economic framework is significant changing, reforming from labor accumulation to tech-type.
it is popular currently that chinese companies take incorporation or etablishment of new companies abroad, which witnesses a truely reforming development serving as a great power around the world.

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Post time 2009-6-4 12:27:39 |Display all floors

I do not think china should buy any more US treasuries .   China should use the money to accelerate building the economy and to modernise the military.

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Post time 2009-6-4 15:24:14 |Display all floors
Originally posted by buick67 at 2009-6-4 12:27

I do not think china should buy any more US treasuries .   China should use the money to accelerate building the economy and to modernise the military.

Hello Dear


We shld SCARE the world like NK/Iran did
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2009-6-4 15:50:31 |Display all floors

DO NOT BUY them pls la

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