Monday, June 01, 2009

Geithner chats with his boss

Treasury Secretary Tim Geithner will be having a sitdown with his boss.

From Bloomberg News:

June 2 (Bloomberg) -- China’s former central bank adviser Yu Yongding will meet Treasury Secretary Timothy Geithner today and tell him the U.S. shouldn’t be complacent about China continuing to buy Treasuries.

“I wish to tell the U.S. government: ‘Don’t be complacent and think there isn’t any alternative for China to buy your bills and bonds’,’’ Yu said in an interview yesterday. “The euro is an alternative. And there are lots of raw materials we can still buy.’’ Yu is scheduled to meet Geithner at the Grand Hyatt Hotel in Beijing today.

China is the biggest foreign holder of U.S. Treasuries with $768 billion at the end of the first quarter. Premier Wen Jiabao in March called for the U.S. “to guarantee the safety of China’s assets” and central bank Governor Zhou Xiaochuan has proposed a new global currency to reduce reliance on the dollar.

Bub-bye US Dollar! It was nice knowin' ya.

In fact, I've never known anything besides our fake money fiat money. Nixon officially destroyed our money left the gold standard in 1971. I was born in 1972. So I'm kinda wondering why our founding fathers fought for all those constitutional guarantees, such as:

The Congress shall have Power... To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures (US Constitution, Article I, Section 8)

Oh well. The horse may have already been outta the stable though by the time I was born.

Tim White

No comments: