.....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 scepticism 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.
The Beijing-based Global Times greeted Geithner by publishing a survey of Chinese economists who called big holdings of U.S. debt “risky.”
Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised “very disciplined” future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.
“We have the deepest and most liquid markets for risk-free assets in the world. We’re committed to bring our fiscal deficits down over time to a sustainable level.
“We believe in a strong dollar ... and we’re going to make sure that we repair and reform the financial system so that we sustain confidence,” he said.
“We believe in a strong dollar ... and we’re going to make sure that we repair and reform the financial system so that we sustain confidence,” he said.
The dollar is headed for .62 from .78...:
http://www.marketoracle.co.uk/Article12442.html
All accurate graphs...scroll down to the sixth one...
No repair or reform is possible by this administration which is continunig and deepening in a more calamatous fashion the policies of the last one.