[Marxism] Geithner to Reassure China U.S. Will Control Deficits

["Politicus E." <epoliticus@xxxxxxxxx>]

I found this Bloomberg article to be amusing & illuminating.
epoliticus

***

Treasury Secretary Timothy Geithner arrived in Beijing with a pledge
that the Obama administration will control its borrowing as he sought
to reassure China its holdings of U.S. government debt are safe.

“No one is going to be more concerned about future deficits than we
are,” Geithner told reporters on the way to two days of meetings that
start today in China’s capital.

Geithner will meet with Premier Wen Jiabao, who in March called for
the U.S. to “guarantee the safety of China’s assets.” China is the
largest foreign holder of U.S. government debt, which so far this year
has handed investors the worst loss since at least 1977 on forecasts
for ballooning federal budget deficits.

“I hope Geithner’s visit can soothe our nerves,” said Yu Yongding, a
senior researcher at the government-backed Chinese Academy of Social
Sciences and a former central bank adviser. “The Chinese public is
worried about the safety of its foreign- exchange reserves,” Yu said
in an e-mail.

Investor concern about a record American budget deficit helped send
yields on the benchmark 10-year Treasury note to 3.74 percent on May
27, the highest level since mid-November. The 10-year note yield ended
last week at 3.46 percent, little changed from a week earlier.

China held about $768 billion of Treasuries as of March, according to
U.S. government data.

[...]

***

Source:
<http://www.bloomberg.com/apps/news?pid=20601087&sid=afg8MXnVGSGo&refer=home>

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