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Audience Laughs After Geithner Tells China Its Dollar Assets are Safe

with 12 comments

1 Jun 09 | Reuters

U.S. Treasury Secretary Timothy Geithner on Monday reassured the Chinese government that its huge holdings of dollar assets are safe and reaffirmed his faith in a strong U.S. currency.

A major goal of Geithner’s maiden visit to China as Treasury chief is to allay concerns that Washington’s bulging budget deficit and ultra-loose monetary policy will fan inflation, undermining both the dollar and U.S. bonds.

China is the biggest foreign owner of U.S. Treasury bonds. U.S. data shows that it held $768 billion in Treasuries as of March, but some analysts believe China’s total U.S. dollar-denominated investments could be twice as high.

“Chinese assets are very safe,” Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.

His answer drew loud laughter from his student audience, reflecting skepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home. >>>

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Written by Editors

1 June 2009 at 8:52 pm

12 Responses

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  1. [...] Audience Laughs After Geithner Tells China Its Dollar Assets are Safe (1 Jun 09) [...]

  2. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  3. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  4. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  5. [...] University “Chinese assets invested in the United States are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  6. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  7. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  8. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  9. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  10. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]

  11. [...] “Chinese assets [invested in the United States] are very safe.” According to press reports, the students responded with loud laughter. Well they [...]


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