Reuters top ten news stories delivered to your inbox each day.
You are here:
Business & Finance
The Great Debate
Do More With Reuters
Make Reuters My Homepage
Support (Customer Zone)
About Thomson Reuters
Geithner tells China its dollar assets are safe
Mon Jun 1, 2009 2:05am EDT
Email | Print |
| Reprints | Single Page
By Glenn Somerville
BEIJING (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.
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.
The Beijing-based Global Times greeted Geithner by publishing a survey of Chinese economists who called big holdings of U.S. debt "risky."
Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.
"We have the deepest and most liquid markets for risk-free assets in the world. We're committed to bring our fiscal deficits down over time to a sustainable level.
"We believe in a strong dollar ... and we're going to make sure that we repair and reform the financial system so that we sustain confidence," he said.
Geithner also offered strong backing for a bigger Chinese role in international policymaking.
"China is already too important to the global economy not to have a full seat at the international table," he said.
ECONOMY LOOKING UP
Geithner, who is due to meet President Hu Jintao and Premier Wen Jiabao during two days of talks, described the recession as still "powerful and dangerous" in much of the world.
Recent signs of improvement were not enough to change an International Monetary Fund prediction that world output would shrink this year for the first time in 60 years. And credit was likely to be tight for some time, Geithner said.
But he added: "The global recession seems to be losing force." Continued...
View article on single page
Bomb in Baghdad market kills 4 and wounds 13
Afghanistan and Pakistan
Fighting the Taliban
A growing insurgency in Afghanistan is also spreading deep into Pakistan, making both countries crucial to U.S. war efforts in the region. Full Coverage
More International News
Pakistanis secure Swat town, clash in other areas
Rebel Georgian region holds election, tension builds
Six killed when Abbas forces hit Hamas in West Bank
Cracks show in Bulgaria's Muslim ethnic model
Iran defuses homemade bomb on plane: report
More International News...
Featured Broker sponsored link
A selection of our best photos from the past 24 hours. Slideshow
Most Popular on Reuters
Federal Reserve puzzled by yield curve steepening
Kansas abortion doctor shot to death at church
North Korea may launch long-range missile in weeks: report | Video
GM to file for bankruptcy, Chrysler sale cleared
RPT-WRAPUP 1-GM to file for bankruptcy, Chrysler sale cleared
"Twilight" sweeps MTV Awards
INSTANT VIEW: GM to file bankruptcy Monday
Geithner says U.S. will cut deficits, but GM bill grows
Hedge funds worried Obama moves could backfire
Japan's Nikkei up after news GM to go bankrupt
Most Popular Articles RSS Feed
West Bank fighting kills six
Colombian politician kidnapped
Police detain anti-Putin protesters
Suu Kyi trial internal affair.
Dozens dead in China pit blast
China's smoking habit hard to kick
Prince Harry takes NY by storm
Hot date for Obama
U.S. 'opposes' nuclear North Korea
Pakistan army "recaptures" main town
Most Popular Videos RSS Feed
The Great Debate
Fearing the supermen of Guantanamo
The language used in the debate over plans to close the detention center has taken on a surreal quality and convey the impression that Guantanamo detainees will wander the streets, shopping for sandals and guns. Commentary
Follow Bernd Debusmann on Twitter
We want to hear from you
Join the Reuters Consumer Insight Panel and help us get to know you better
Please take a moment to complete our survey
Help and Contact Us |
Advertise With Us |
Site Index |
Thomson Reuters Corporate:
Professional Products |
Professional Products Support |
About Thomson Reuters |
Latin America |
United Kingdom |
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.