Tuesday, June 2, 2009

Laughter, the Worst Medicine

When they start laughing, your leverage, your prestige, your negotiating position - it all goes to hell. Oh yeah, and when make obvious lies to people who can actually do math (non-Americans), expect to be laughed at:

Geithner tells China its dollar assets are safe
By Glenn Somerville
BEIJING, June 1 (Reuters) - U.S. Treasury Secretary Timothy Geithner on Monday reassured the Chinese government that its huge holdings of dollar assets are safe and reaffirmed his faith in a strong U.S. currency.

A major goal of Geithner's maiden visit to China as Treasury chief is to allay concerns that Washington's bulging budget deficit and ultra-loose monetary policy will fan inflation, undermining both the dollar and U.S. bonds...

..."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...

My country has come to this. Begging and lying to the Chinese. Ugh.

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