Mr. Geitner are you really that stupid or do you just pretend to be?

[Statistical]

(Reuters) - Treasury Secretary Timothy Geithner said he was confident that China would see that it is in its own interest to make its currency more flexible, and said global economic recovery "looks quite strong now."

Geithner, in an interview on Tuesday with India's NDTV, said it was "China's choice" whether or not it revalues the yuan.

"As I said before and I'll say it again, but I want to make sure I am repeating myself, I am confident that China will decide it's in their interest to resume the move to a more flexible exchange rate, that they began some years ago and suspended in the midst of the crisis," he said in India's capital.

The United States on Monday reiterated its call for China's currency to be market-based, as lawmakers warned they would act if there was no movement from China on revaluing the yuan.

Geithner's comments came shortly after a Chinese foreign ministry spokeswoman said China never manipulates its currency and that the U.S. trade deficit with China did not depend on the yuan's value.

http://www.reuters.com/article/idUSTRE63524M20100406

Saying it is China's "choice" on if/when/how much to revalue their currency is like saying it is the Mafia choice how much protection money they get to extort.

The Yuan is artificially devalued to half or one third of its true value. This widens the gap between Chinese production costs and rest of world. Thus artificially boosting demand for Chinese goods at the expense of manufacturing around the world AND the Chinese citizens.

The Yuan MUST be allow to float as every other major currency on the planet does. Accepting anything less than that is financial suicide for the United States.




Then he is stupid/naive/two faced enough to say this in closing:

"We're working with countries around the world to make sure there is a level playing field globally so that our companies, as they compete globally, are competing on a fair basis. That's the general imperative and it goes beyond China," he told the TV channel.

:wtf: Really? I mean fucking really? Allow China to artificially keep value of Yuan low and not touching that violating but making it "fair" is an OXYMORON you MORON!

It would be like having two boxers, one gets to bring and use firearms in the ring and the other isn't. However it is going to be a "fair fight". The referees are going to be strict with the rules well except for that "minor one" involving one boxer gunning the other one down. Yup other than that it will be a fair fight.

It is absolutely impossible to EVER under ANY circumstance have fair trade is China can artificially set its exchange rate that it is always the lowest cost option.

[madokie]

1. Did your resume not make it to the Presidents desk?

or are you just sour grapes?

[Statistical]

2. Attack the messenger that is a powerful argument.

You do understand that US manufacturing can never ever under any circumstance compete with China if China can artificially keep the exchange rate of Yuan low?

China has defacto fixed the Yuan at an exchange rate of roughly 8:1.
8 Yuan to the dollar.
Based on PPP Yuan has a value of roughly 2:1 with dollar. We don't know what it would trade at because China refuses to let the currency float but likely it trade "close" to PPP value of the currency.

This means Chinese costs are artificially reduced by 75%.

Say their labor cost of a widget is 80 Yuan = $10 under their currency manipulation. If the currency was revalued to reflect reality the same labor cost would be $40. (80 Yuan @ 2:1 with $). Rising cost of Chinese widget exports by $30. In return Chinese labor would receive 4x the wages. The Yuan amount wouldn't change however the amount of goods they could buy would increase by 300%.

If China were to float the currency (which they are REQUIRED to do under WTO agreements). The manufacturing costs of Chinese goods would quadruple overnight. Also the amount of goods and services (demand for imports) from Chinese Citizens would equally quadruple.

Making ANY OTHER changes in the name of "fair trade" and pretending this intentional, artificial manipulation doesn't exist is like re-arranging deck chairs on the Titanic.

If China doesn't float the Yuan the only option is punitive tariffs. Impose a blanket tariff on all Chinese imports equal to 200% of the difference between Chinese exchange rate and currency value (determined by PPP).

What is China going to do? Complain to the WTO when they are in violation of WTO guidelines of free exchange of currencies? :rofl:

[madokie]

4. i am reacting to your constantly bashing of anything this admistration tries to do

I wonder sometimes why you bother at all. Nothing personal mind you as I and you don't know each other, if we did maybe things would be different as maybe I'd understand you better. I go now to leave you with your tub of sour grapes

[Statistical]

6. LOL. Bashing.

Just 10 minutes ago I posted a positive article on Obama limiting scenarios where nuclear weapons can be used.

I don't feel the need to bash or cheerlead. I simply know the fact is fair trade is impossible unless China floats their currency as every other WTO nation is required to do so.

If Geitner doesn't want to upset China then fine but don't insult the intelligence of readers by saying you are "working towards fair trade" while at the same time allowing China to undermine any potential fair trade by artificially setting their prices ALWAYS below anyone else.

To pretend fair trade is possible when one side can artificially manipulate their exchange rate so they always "win" is simply stupid. So either Geitner is stupid (which I doubt) or pretending to be (pretending we can have "fair trade" when China gets to artificially set prices).

[laughingliberal]

7. Oh, come now. You've messed up a perfectly good slam. nt

[Bluenorthwest]

11. How ironic. You are reacting to a post other than this one

and claiming it is not personal, it is just about other things the poster has said. Not one word of response to what he is saying here. That IS personal. As is the language about sour grapes, and your claim that you wonder why the poster bothers. All of that is nothing but personal. You should at least be honest about that.

[Raineyb]

12. It doesn't look as if the administration is TRYING to do anything. At least not

vis a vis our owners.

[laughingliberal]

8. ...and a very popular argument around here. nt

[Greyhound]

16. Is there nothing you people won't try to excuse?

We've fallen through the looking-glass into Opposite-bush-World. "Whatever is done is just fine 'cause it's our guy doing it now".
:wow:

[erpowers]

3. Too Relaxed

It seems what some people say about the Obama Administration is accurate. Members of this administration seem to be too relaxed. They really do not want push people, groups, and businesses too far. They would just prefer to hope that others would realize that certain things should be done and then do them.

[Johonny]

5. what would you do different?

Seems like Geithner is doing about all that's in HIS power right there. Are you for Bush diplomacy where you bomb them a few times then dictate your terms. Obama administration is trying to work with the Chinese. Sans open combat, repeated diplomacy and Congressional threats seems like a good plan to me. If you want blood, vote for the other party.

[Statistical]

9. No. You kinda jumped from one extreme to the other.

I am not even saying Geitner *should* do anything.

However to sit there and say
a) China should be allowed to fairly value their currency "when they feel like it"
AND AT THE SAME TIME
b) I am working for fair trade (when fair trade is impossible as long as China devalues their currency).

is the height of hypocrisy. Fair trade is impossible without FAIR TRADE of currency. It is a critical component. Essentially the Chinese govt has a massive defacto subsidy on every single thing produced in China for export. The worst part is this subsidy is paid directly by the prosperity of Chinese workers. So it really is a lose-lose. Lose for Chinese citizens and Lose for American manufacturing.

I mean the dichotomy is insane. People flip out when Goldman Sachs manipulates markets for profit.
The Chinese govt makes Goldman look like a two bit thug. Their manipulation is worth trillions (stolen from American companies & American workers).

There are things the US can legally do. We could put tariff on Chinese goods equal to value of difference between China artificial peg (8:1) and the true value of their currency (2:1). Of course China will protest this to the WTO but it at least brings this issue into the open. Pretending it isn't a issue is just stupid.

[fishbulb703]

10. "Allow China".... lol nt

[grahamhgreen]

13. US out of all "free trade" rip-off schemes.

[branders seine]

14. he's a front man for the worst criminals in the history of earth.

his only PR trick is to spew nonsense faster than anyone else in the room. It works because no journalist and no politician knows shit, plus they all work for the same criminals anyway, so he gets away with it.

[Mike 03]

15. I'm one of the few who has complete trust in Timothy Geithner.

I wish you could at least spell his name correctly.

Go to CSPAN video archive and watch his testimony before the morons who represent us. He has been very clear about his stance, and it makes obvious sense.