View Full Version : U.S. Treasury Secretary Tim Geithner holds off on China currency report

04-04-2010, 11:29 AM
By the CNN Wire Staff

* U.S. Treasury Secretary Tim Geithner holds off on China currency report
* Critics argue China keeps currency low, hurting American businesses
* Geithner admits China has maintained an "inflexible exchange rate"

Can you believe this? The Chinese aren't playing fair.:rolleyes:
Washington (CNN) -- U.S. Treasury Secretary Tim Geithner has delayed a scheduled April 15 report to Congress that many lawmakers had hoped would publicly admonish China for allegedly manipulating its currency to the detriment of the United States.

Geithner, explaining the delay in a statement Saturday, said a series of upcoming meetings, including among officials of the Group of 20 financially influential countries, and with China -- are "the best avenue for advancing U.S. interests at this time."

Lawmakers from both parties have called on the Obama administration to speak out against China's refusal to let its currency appreciate.

China has kept its yuan about 6.83 to the dollar for almost two years. Many U.S. economists say the currency is undervalued by as much as 40 percent.

Keeping its currency low makes China's goods cheaper on the world market and more likely to be purchased by other countries. But, analysts say, it hurts American businesses, which cannot then compete.

Some analysts have argued that it is costing the United States 1.5 million jobs and impeding the country's economic recovery.

"Everyone knows China is manipulating the value of its currency to gain an unfair advantage in international trade," said Iowa Sen. Chuck Grassley, adding he was disappointed in the Treasury secretary's decision.

"If we want the Chinese to take us seriously, we need to be willing to say so in public," said Grassley, the ranking Republican member of the Senate Finance Committee. "The past few years have proven that denying the problem doesn't solve anything."

Chinese officials have insisted the United States is using Beijing as a scapegoat for its own economic problems.

"The Chinese government will not succumb to foreign pressure to adjust our exchange rates," said Zhong Shan, vice minister of commerce, late last month.

Premier Wen Jiabao has been equally stern in his response.

"We oppose the practice of finger-pointing among countries or strong-arm measures to force other countries to appreciate currencies," he told reporters last month.

In his statement, Geithner acknowledged China has maintained an "inflexible exchange rate."

"A move by China to a more market-oriented exchange rate will make an essential contribution to global rebalancing," he said.

Sander Levin, chairman of the House Ways and Means Committee, said the delay was meant to see if the international community can address the issue in the coming months.

"If the multilateral effort does not result in China's making significant changes, the administration and Congress will have no choice but to take appropriate action," said Levin, a Democratic lawmaker from Michigan.


04-04-2010, 12:13 PM
Best for the admin not to aggravate the ones who own us.
I'm sure Turbo-Tax Geithner wants the Chinese to buy a whole lot more of our debt so Obama and the Dems can keep racking it up.

An ancillary effect of the report is to cause people to revisit the U.S. debt issue vis-a-vis the Chinese and that is something this admin definitely doesn't want.

04-04-2010, 12:19 PM
I wonder what Sander Levin means by "the administration and congress will have no choice but to take appropriate action"? What action? China can tell us to go pound sand. They own us, with all the money we owe them. It's almost to the point that except for the food grown here & energy produced here, can't buy anything that isn't made in china. And as for devaluating their currancy, what do they think our government has been doing to ours for the last 60+ years?

04-04-2010, 02:37 PM
' agree with the above posts, it might not be too smart to get tough with the landlord. China has already threatened to put us in a lot of hurt financially if we are not very respectful. they could afford to just dump those bonds cheap. Those goons in Washincrime have sold lots of this country to people who didnt think to well of us to begin with to finance programs that are going to hurt us in the long run. NICE MESS!