Friday, July 10, 2009

The $17 trillion divorce - Hu says bub-bye Barack!

Ironman reminded me about this interesting commentary on Bloomberg:

This $17 Trillion Divorce Won’t Be a Pretty One (by William Pesek):

July 10 (Bloomberg) -- Returning from China last month, U.S. Congressman Mark Kirk had a bearish take on a high-level visit by American officials.

Treasury Secretary
Timothy Geithner claimed the U.S.’s biggest creditor voiced great confidence in its debt. Kirk, an Illinois Republican, came back with the opposite impression.

“China is beginning to cancel Congress’s credit card,” he told Fox News on June 10. It “doesn’t want to lend much more money to the United States and especially is worried about the Fed’s policy of printing money to buy new debt.”

A month later, there’s no doubt about whose assessment was more accurate.

As I suggested a couple days ago, Treasury Secretary Tim Geithner is making himself look like a fool when he speaks about Sino-American relations. He'd be better off just keeping his mouth shut.

I still have no idea why President Obama loves Geithner so much, unless my theory is correct - Obama hasn't a clue about money and banking.

Tim White

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