Monday, January 26, 2009

Dangerous New Phase of Financial Crisis (1)

For no particularly good reason, Tim Geithner on Friday in his confirmation hearing set off after China, declaring it a currency manipulator in decidedly undiplomatic language.

China is a major trading partner and a principal creditor of the United States. At a time of financial stress maybe a little more delicacy is called for in this key relationship. Or if not, then batten down for capital flight and a dollar crisis.

FT reports China hits back in kind, says of Geithner: "This is a sign of his immaturity and his inability to do such an important job."

Not a good start. Not change I can believe in.

Just sayin'.

1 comment:

  1. I expect currency manipulation was a very well thought out and calculated remark that was bounced off a lot of people before hand.

    why he made the remark - i don't have the answer, but i'm not of the view of immaturity. any thoughts on why he made this mark was made?

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