October 15, 2009
Obama China Currency Flip Flop
During the 2008 Presidential campaign candidate Obama agreed many times with American industry groups and unions that Beijing "manipulated" its currency. Perhaps not understanding the impact of the "M" word in USA-China relations Obama's Treasury Secretary Tim Geithner also said as much in his confirmation hearings. But as so often happens when candidates come to power the complexities and realities of China relations compel an about-face.
Today the US Dept. of the Treasury released its semiannual Report to Congress on International and Exchange Rate Policies with the decision that China does not "manipulate" its currency. With somewhat contorted logic Treasury says that since the renminbi remains stable against the dollar it follows the movement of the dollar against other currencies although it is still "undervalued." The report revealed that China is anticipated to account for 2/3 of global growth in 2010. The reaction of Congress awaits....
Labels: currencies, foreign relations, forex, geithner, obama, treasury
September 16, 2009
China US Treasuries Over $800 Billion
Despite all the heated rhetoric this year from Beijing, China's holdings of US Treasuries rose to $800.5 billion (US dollars) in July. China remains the single largest creditor for the USA....
Labels: dollar, forex, treasury
August 06, 2009
TIPS, Gold for China Reserve Mix
The USA Treasury will sell $75 billion in bonds next week and has promised to include more TIPS or Treasury Inflation Protected Securities. Speculation is that Beijing requested (demanded?) more TIPS in the mix of sales although Treasury refuses to comment when pressed as to whether China was behind the new emphasis on longer term TIPS including the possibility of 30 year bonds.
Meanwhile gold output rose over 13% in China for the 1st Half of 2009 to 146.5 tons. It is widely believed that Beijing buys most if not all domestic gold production. That leaves open speculation that Chinese gold reserves have grown by over 146 tons already this year....
Labels: financial news, gold, treasury
July 20, 2009
Shanghai Bubbly
Beijing's decision to uncork the IPO genie may be hindering the sale of short term debt. Three times in the past 2 weeks or so China's Finance Ministry has failed to sell all its 6-months bills despite higher yields. The Wall Street Journal rightly, I think, attributes the auction shortfalls to IPO frenzy. What remains to be seen is whether renewed excitement in Shanghai shares will inflate another bubble. Already the Shanghai Composite is back up above 3,000 for the first time in over a year....
Labels: chinese stocks, treasury, yuan
June 01, 2009
In Beijing Geithner Offers "Mutual Respect"
Speaking at Peking University today US Treasury Secretary Geither said " the United States will fully support having China play a role in the principal cooperative arrangements that help shape the international system" in a "spirit of mutual respect." Geither had praise for Beijing's quick actions during the Panic of '08 but otherwise gave no specifics and no insight into how US demands for Renminbi currency reform will be addressed. Also today Treasury announced the appointment of two new point persons for China: David Loevinger as "Executive Secretary and Senior Coordinator for China Affairs" in Washington and the appropriately named David Dollar as "Economic and Financial Emissary to China" in Beijing....
Labels: foreign relations, geithner, panic of 2008, renminbi, treasury
May 27, 2009
Geithner To Beijing
The US Department of the Treasury (a former employer of this author) confirmed today that Treasury Secretary Timothy Geithner will be in Beijing this Saturday and meet with Chinese President Hu Jintao, PM Wen Jiabao, and other senior officials. Geithner will visit prestigious Peking University where he was once a student and discuss USA-China cooperation on global climate change. This is yet more evidence of the new approach in US relations under the Obama administration to find common ground on energy security through environmental issues....
Labels: geithner, hu jintao, treasury
November 21, 2008
Obama Picks China Hand for Treasury
Well, it may be a stretch to call Tim Geithner, current President of the Federal Reserve Bank of New York, a "China Hand" but he did study Chinese in university (Dartmouth) and study abroad at Peking University. So Geithner lived in Beijing and has experienced China first hand.
Of course, one can argue that Beijing is hardly "China" and Geithner was there back in the 80s before Deng Xiaoping solidified control and the bourgeoisie won China back.
Nevertheless, first hand China knowledge is very important as the USA and China continue their odd economic convergence. Equally important is Geithner's personal background.
His father, Peter Geithner, is advisor to the Asia Center at Harvard, a member of the uber-influential National Committee on US-China Relations, on the board at Peking University, and formerly of the Rockefeller and Ford Foundations. Tim Geithner, like Obama and Hank Paulson, is a member of the Council on Foreign Relations.
Labels: china policy, treasury
June 17, 2008
Paulson: China and USA to Maintain "Global Economic System"
The 4th Strategic Economic Dialogue bilateral talks between China and the United States are underway in Annapolis, Maryland.
The Chinese delegation is emphasizing joint cooperation on energy and the environment stressing that the world's number 1 and 2 oil importers have much to gain by working together.
Treasury Secretary Hank Paulson said that both nations are responsible for "maintaining a stable, secure and prosperous global economic system."
It is only a matter of time before China becomes an issue in the Presidential elections. Will the strategic dialogue fall victim to politics by year's end?
Labels: china, chinese trade, paulson, strategic dialogue, treasury
Subscribe to Posts [Atom]
