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Secretary Geithner Due For Currency Talks In Beijing

April 12, 2010 by  

Secretary Geithner due for currency talks in Beijing As the dispute continues between the United States and China over the latter’s alleged attempts to keep its currency undervalued, Treasury Secretary Timothy Geithner will visit Beijing April 8 for talks with the Chinese vice premier for economic affairs.

Although details of the talks have not been released, media reports suggests the meeting with Wang Qishan will focus on settling the currency dispute, which has threatened to overshadow economic cooperation between the two countries.

The U.S. government has complained that the artificially low exchange rate is giving China’s exporters an unfair advantage and has led a huge trade surplus with the U.S. In fact, some lawmakers have called for the imposition of punitive tariffs on Chinese imports, if Beijing fails to make the yuan more flexible.

However, not everyone is happy with the administration’s approach. For example, the National Inflation Association (NIA) recently said that America should not "upset" China, since the domestic consumption has been made possible by China’s weak currency that has artificially boosted the dollar’s value. NIA experts have expressed their fear that the appreciation of the yuan would lead to a hyperinflation in the U.S.

"It’s absurd for Congress to say they are going to penalize China, when China has the power to make the U.S. dollar collapse overnight," NIA has said. ADNFCR-1961-ID-19711452-ADNFCR

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  • Claire

    This is all we need. Geithner in talks with China??!! He can’t even speak here in America let alone do any talking in China. I have heard him before and I have had a heck of a time trying to decipher what he is saying. Sorry folks, I just do not have any faith (trust) in this person.
    Where is everybody?? I don’t like being the first comment.

  • Palin12

    I should have saved one of my posts from yesterday for this column:
    It has been reported if Geithner steps down as head of Treasury due to tax issues, Pres Obama’s next choice for Treasury Secretary is Wesley Snipes.

    • Claire

      Palin12—surely you jest?

      • Palin12

        yes just a joke :-)

        • Claire

          Hey, I am to the point where nothing surprises me anymore. Snipes made all that money and now he is in deep doodoo with the IRS.
          He’s was trying to keep up with Rangel.

  • s c

    Remember that Geithner was just another Fed stooge before he sold himself to the Obummer regime. I can’t imagine traveling the world to placate people who couldn’t care less what happens to America.
    Assuming that Geithner has a functioning conscience, he should make it a habit to travel by ship. It’s much cheaper. Then, if nothing else, no one could accuse him of leaving huge, Obummer-style carbon footprints around the world in vain attempts to cowtow to the Chinese.
    As the Chinese might say, “Geithner has no face (or backbone or character) to save.” Like boss, like flunky, eh?

    • Claire

      sc– I keep thinking ” a person is judged by the company they keep.” And once a person has lost their “good reputation” they can never get it back. But then again, maybe they didn’t have a good reputation to begin with. This is the problem with this guy.

  • http://swisssolution.webs.com JR

    The current administration has already added over 1 trillion in new money into circulation. This is roughly equal to the total amount of money in circulation. History tells us that new money added to circulation takes about 2 years to work its way into the system and manifest its inflationary effects (the banks are still sitting on piles of the bailout money), so we have some time. Be aware, a TRILLION is a lot of money. How can we not have hyperinflation??

    Once high rates of inflation are apparent, foreign governments will see the value of their US bonds falling and will probably begin dumping their holdings of dollars, thus accelerating hyperinflation. Once the cost of everything is skyrocketing, the government will not be able to collect taxes fast enough, and it will have to resort to printing even more money (as happened in Germany about 100 years ago when 99% of their government spending was with printed money and only 1% from tax receipts) further speeding up the hyperinflationary death spiral.

    What seems to matter as far as initiating hyperinflation appears to be when government deficit spending via printing money increases to about 1/3rd of revenue. When a country crosses this line, hyperinflation starts sometime in the future, but nobody really knows how long in the future. The USA just crossed this line for the 1st time.

    Inflation, or in a severe case, hyperinflation, is a local event; it does not affect currencies in foreign countries, and may even help their stock markets via shifting purchasing power to unaffected countries. It will be very bad for anyone who is not prepared.

    If you have access to your foreign money in a foreign country, you are safe from hyperinflation, as well as bank failures that may result. In today’s world, Swiss banks can issue debit or credit cards that are good just about everywhere, so yo can still spend as you need to. The money you spend via debit or credit card would not be converted into the depreciating currency until the instant that the sale takes place.

    • James

      JR, you are quite right, inflation is build into the federal reserve system, the rate of inflation has been posted every month since the Federal Reserve Act of 1913 was enacted. During that period, the dollar has lost over 95% of its value. (Treasury Secretary Geithner’s trip to China is an attempt to tempt China into the same financial trap.) With $1.5 trillion annual deficits, for the next ten years, the dollar is doomed. They know that, and the Amero currency for all of North America is waiting in the wings for that to happen.

  • http://ordy@fedtel./net Eric g

    So this would be a planed change , we wanted change . I havent noticed so much inflation , in 1867 67, 68 or 1869 barley was about a dollar a bushel, now I suppose its up to over two dollars a bushel. That makes inflation almost nil if your a barley beer drinker . Now gold is another story as it was about $20 dlloar a once and now over a thousand . But who needs gold if you have plenty of barley

    • ted crawford

      you will eric, you very definately WILL!!

  • American Liberal

    Dow is over 11,000… Economys picking up……keep the Republicans and fake conservatives as far away as possible…. Their record speaks for itself…..

    • James

      American L., the Dow is up because foreigners are dumping their dollar-reserves into our stock market, America is for sale.

  • Phyllis

    Geithner? Talking about money? The greatest tax cheat of the century. Kind of an oxymoron, or maybe just moron. What can I say? He drank the kool-aid.

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