Monday, April 12, 2010

Hu Tells Obama to Take a Hike w/Regard to the Yuan

The next time the U.S. tries to jam currency policy down China's throat, China should tell the U.S. that it is going to take a sabbatical leave from participating in Treasury bond auctions. Rightfully, Hu says that China will determine its currency policy on its own accord:
LOS ANGELES (MarketWatch) -- Chinese President Hu Jintao said Monday that any reform to his nation's currency exchange rate will be based on China's own economic interests, according to a state-media report. Hu's remarks, carried by China's Xinhua news agency, came on the sidelines of the Nuclear Security Summit in Washington D.C., in which Hu met with U.S. counterpart Barack Obama. Xinhua separately reported that Obama said the U.S. respects China's sovereignty in determining its currency policy and hoped a solution could be found through dialogue...LINK
Meanwhile, as reports, Treasury tax withholdings plunge this year vs. last year LINK, and the Treasury is burning through cash like a drunk in Vegas so far during April and added $53 billion in debt so far LINK.  Geithner may break the law to avoid paying his own taxes, but he sure likes spending other people's money!


  1. Well, does the government need tax revenue? At this point the printing press is becoming option number..., well the only option.

  2. LOL. Sad but true. I mentioned to Jesse earlier that the Fed can control the long end of the yield curve if it's willing to monetize a large portion of upcoming Treasury auctions. But that won't help interest rates in the mortgage market unless it's willing to monetize mortgage issuance as well.