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 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.
Geithner, let me reiterate, is worthy of your contempt. He is both irresponsibly batty and tyrannically arrogant having the proper relationship between citizens and the government completely backward in his mind. He thinks you work for the government, not the other way around. Do we have to get Clint Eastwood to explain it to him?