US Secretary of State Hillary Clinton Sunday urged China to keep buying US debt as she wrapped up her first overseas trip, Breitbart reports.
"By continuing to support American Treasury instruments the Chinese are recognising our interconnection. We are truly going to rise or fall together," Clinton said at the US embassy here.
This, by the way, is the exact opposite of what Treasury Secretary Geithner said was U.S policy, during his confirmation hearings, where he called for China to stop propping up the dollar (which would mean less purchases of Treasury securities).
Is Hillary striking off on her own? Unlikely.
More than anything, it's another example of Geithner being in over his head.
Somewhere between 5% and 10% of the market decline since the Obama Administration has taken over has to be the blamed directly on Geithner.
As for China, it is the top holder of US Treasury bills, with 696.2 billion dollars worth of the securities at the end of December.
According to Bretbart, while taping an interview on a Chinese talk show, Hillary focused on the need for China to help finance the massive 787-billion-dollar US economic stimulus plan by continuing to buy US Treasuries.
"Because our economies are so intertwined the Chinese know that in order to start exporting again to its biggest market, the United States had to take some very drastic measures with this stimulus package," Clinton said.
"We have to incur more debt. It would not be in China's interest if we were unable to get our economy moving again."
Clinton added: "The US needs the investment in Treasury bonds to shore up its economy to continue to buy Chinese products."
Hillary said on Saturday after meetings with China's leaders that Beijing was still confident in US Treasury bonds and expressed Washington's appreciation for the investments.
Wait for the Treasury bubble to burst, then we will see how happy China is with ts Treasury portfolio.
I've stopped accepting any dollar bill signed by Henry Paulson. And I will not accept any signed by Geithner when they start flying off the printing presses.
ReplyDeleteThat leaves notes signed by John Snow or before.
May Paulson's and Geithner's names live on in infamy. And may the notes they conjured into existence and signed with their names be recognized as the fraudulent trash that they are.