The real reason for the meeting is two-fold: China is worried about the dollar that Geithner peregrinated to prop up, and the fact that the U.S. is scheduled to default on its obligations later this year.
Now read through all the obfuscatrory MSM bull and see what nuggets you can find:
"Economy, environment to dominate US-China talks; Beijing seeks promises of US market stability" by Don Lee and David Pierson, Los Angeles Times | July 27, 2009
WASHINGTON - The United States and China kick off talks here today that are expected to highlight Beijing’s unease about its massive holdings in federal bonds, Washington’s desire to reduce China’s reliance on exports, and the need for both sides to reach consensus on tackling climate change.
Well, they allude to it; however, the AmeriKan MSM quickly turns the topic to agenda-pushing fart mist.
Secretary of State Hillary Rodham Clinton and Treasury Secretary Timothy F. Geithner will lead the American side in the two-day US-China Strategic and Economic Dialogue. It is the latest in an increasingly high-level series of meetings between the two countries this year that could have significant bearing on the global economy and international environmental policy.
A week after Federal Reserve Chairman Ben S. Bernanke outlined strategies to stave off inflation, Chinese State Councilor Dai Bingguo and Vice Premier Wang Qishan are expected to seek assurances that the dollar will remain strong and thus protect China’s holdings in US treasuries.
“As an important investor, China is deeply concerned about the US economic situation and hopes the US stimulus policy could make effective progress,’’ Zhu Guangyao, China’s assistant finance minister, said at a recent news conference.
Yeah, how come theirs worked and ours didn't?
China’s foreign reserves increased in the second quarter to an all-time high of $2.13 trillion. About 65 percent of that amount is estimated to be in US dollars. The bump has been credited not to a rebound in exports, but to the increased value of China’s nondollar holdings and more incoming investment.
China has attracted more capital because of robust growth in the face of the current global downturn. Massive government stimulus and record bank lending expanded China’s economy by 7.9 percent in the last quarter.
So what happened to you, America?
But although Washington welcomes China’s recent success, there is concern that it cannot be sustained unless Beijing reforms its economy toward more domestic consumption.
Washington is a fine one to talk! They haven't given a f*** about us and still don't!
For years, China’s treasury purchases financed America’s buying binge, which included Chinese exports. Beijing also helped make possible the low interest rates and loose credit that paved the way for the US housing bubble.
They ALSO FUNDED the WARS!
Now that the United States has been hit by the worst economic crisis since the Great Depression, American households are increasing their savings rates. The US trade gap has narrowed to its lowest level since 1999. China can no longer rely on American consumers to buy enough Chinese exports to keep the Asian nation’s economy growing, officials say.
See how the article keeps sliding away from the down dollar? I'm surprised they are even talking about it in the paper, although I suppose that signals that the problems are serious. When you step back and look at it, China called this meeting. Press isn't saying it, but think about it for a minute.
“Our message to the Chinese is going to be, ‘If you want to achieve your growth objectives, you’re going to have to find a different way of doing it than through export-led growth,’ ’’ said a senior Obama administration official briefing reporters about the talks.
As the same administration pontificates to us about exports, free trade, and all that crapola getting our economy rolling. I'm so sick of the lies I don't even want to hear them anymore.
This is not news to Chinese policy makers, who have tried to stimulate consumption through modest healthcare reforms and purchasing programs for autos and household appliances. Creating a social safety net is widely considered to be one of the best ways to make ordinary Chinese secure enough to spend some of their savings.
The Chinese sound just like us!! WTF? I thought they were authoritarian communists, unless we.... uh-oh, Amurkn!
And WTF? I thought the commies had a safety net and health care and all that? Is there no government that can deliver anything tio its citizens in this world?
But countering the progress is the fear of destabilizing unemployment. Beijing will not sacrifice its export sector, because no better alternative has been identified to keep millions of migrant workers employed. To move forward, China will need to modernize its service sector to keep more profits within its borders.
“The export sector still has to rely on [US] companies like
Although leaders on both sides have been stressing the importance of cooperation, Chinese leaders have not been shy lately about expressing concern about the dollar’s dominance. China has introduced about $95 billion in currency swaps with other countries since December and floated the idea of an international currency for trade. The moves signal a sharper tone out of Beijing.
Oh, so NOW, halfway through we get to the MEAT of the MEETING, if you will!!!
And CHINA got stuck in the currency swap s***, too?!!!
Nicholas R. Lardy, a China specialist at the Peterson Institute for International Economics in Washington, said American officials used to lecture the Chinese on how things ought to be and what they should do to open up financial markets. But with US economic power damaged by the financial crisis, Lardy said, the Chinese “are taking a more aggressive posture and are not willing to be lectured to. . . . Now they are emboldened to do some lecturing.’’
And WELL THEY SHOULD!!!
That's one thing most people don't understand about the Chinese: after their empire fell they were treated brutally by western colonizers and imperial powers for centuries. The Chinese are proud people and they have never forgotten that -- nor should they.
Btw, their Holocaust at the hands of the Japanese is down the memory hole, huh?
In recent economic talks, Americans had often focused on the Chinese currency, pressing Beijing to let the undervalued yuan rise against the dollar to reduce the price advantage of Chinese exports and boost sales of US goods to China. The pressure had some success from mid-2005 to mid-2008 as the yuan appreciated. But since then China has held the value of the yuan steady against the dollar.
Still, Lardy doesn’t see US officials pressing the Chinese as hard on this issue as they did before. He said China’s massive holdings of US debt would hang over the dialogue, and noted that US officials had been less critical of China leading up to the talks. “Maybe it’s not in your self-interest to fight your banker,’’ Lardy said, noting that one-fourth of all foreign dollar holdings are in China’s hands. “I think it does give China leverage, even if it’s more political than hard leverage.’’
Yeah, the REAL LEVERAGE rest with the FED!!!!
Is that why you aren't fighting them, America? Happy paying usurious rates and being cleaned out and ripped off at the same time?
Analysts say China has no real alternative to parking most of its foreign reserves in dollars.
Actually, they do; that's why they are trying to move off the dollar as a reserve currency and floated the international idea. I guess you can't get away from the globalists no matter where you turn, huh?
Its holdings in federal securities have risen 58 percent in the past 12 months. So long as Beijing wants to keep the yuan from naturally appreciating by being traded on the open market, it will need to rid itself of the greenbacks that keep piling up.
And that is not good for US, America. Think of it as dollars flooding the market: all of a sudden, your dollar is worth a lot less -- and its not the reserve currency so your exchange rate is going to bottom out.
Say hello to the Amero, America!
Your saving solution, as presented by the globalist government you hate.
This latest summit also is occurring at a time when both sides have been trading barbs over protectionism.
I knew there had to be a war angle in here somewhere.
The United States wants China to sign a World Trade Organization pact to open up government projects to foreign businesses. China wants the United States to share more green technology. Both countries view innovation in cutting emissions as a major growth market.
“This can clearly be a win-win situation,’’ said He of the Chinese Academy of Social Sciences. “But if they only focus on their own interests, it will turn to lose-lose.’’
Yup:
"Green Stimulus Money Costs More Jobs Than It Creates, Study Shows
Every “green job” created with government money in Spain over the last eight years came at the cost of 2.2 regular jobs, and only one in 10 of the newly created green jobs became a permanent job, says a new study released this month. The study draws parallels with the green jobs programs of the Obama administration. President Obama, in fact, has used Spain’s green initiative as a blueprint for how the United States should use federal funds to stimulate the economy. Obama's economic stimulus package,which Congress passed in February, allocates billions of dollars to the green jobs industry."
I have often noticed the disparity between the TENS of THOUSANDS of JOBS we are SHEDDING in the state with the GREEN PROMISE of HUNDREDS in return!!!
The two sides still appear to be at loggerheads on what to do about climate change. China recently surpassed the United States as the world’s chief polluter, but together, the two countries are responsible for 42 percent of emissions. A climate change bill calling for caps on pollution has stalled in the Senate, probably awaiting sign of a similar commitment on the part of Beijing....
So now the legislation -- as ghastly as it is -- is being held up because of the Chinese?
The globalist vermin that pose as congresspeople really aren't working for you at all, are they, 'murkns?
--more--"
Okay, let's see if the dollar gets emphasis in the follow-up piece (notice again how the last article moved right away from it again?).
"Obama cites shared role for China; High-level confab stresses nations’ common interests" by Glenn Kessler, The Washington Post | July 28, 2009
WASHINGTON - President Obama opened a high-level meeting with Chinese officials yesterday declaring the United States and China share a joint responsibility for the 21st century and should strive to cooperate on key issues such as climate change, nuclear proliferation, transnational threats, and the world economy.
“The pursuit of power among nations must no longer be seen as a zero-sum game,’’ he said at a meeting at the Ronald Reagan building co-chaired by Secretary of State Hillary Rodham Clinton and Treasury Secretary Timothy Geithner. “Progress - including security - must be shared.’’
China has sent about 200 top officials to Washington for the two days of talks -- an elevated version of a dialogue that started in the Bush administration.
So, a) this was REALLY CHINA'S CALL (thus the title of the post), and b) SO MUCH for CHANGE in AmeriKa!!!
Obama laid out an ambitious agenda, calling for a “future when our nations are partners out of necessity, but also out of opportunity.’’
He just stinks of globalist rhetoric, doesn't he?
State Councilor Dai Bingguo, speaking at the opening of the meeting, said that the two countries are separated by huge differences in culture, ideology, and social systems but that the economic crisis demonstrated “we are actually all in the same big boat....’’
Yeah, the Chinese actually care more about what their people think than the AmeriKan government. They may screw 'em the same, but they are more sensitive to unrest and disharmony. The government here doesn't give a shit.
Of course, the globalist boat awaits.
As China’s economy has boomed, so has its international clout. With the revenue generated by huge trade surpluses with the United States - and policies that keep its currency artificially low - Beijing is the largest single investor in US Treasury bonds. That $1.5 trillion stake means China is critical to Obama’s efforts to boost the US economy through deficit spending, though Chinese officials have expressed worry that the value of their holdings will fall if the US deficit is not brought under control.
Okay, so again, the MSM is alluding to the problem of the dollar's drop.
Let's see if they veer away again.
Geithner, addressing the meeting, stressed the administration is “committed to taking the necessary measures to bring our fiscal deficits down to a more sustainable level once recovery is firmly established.’’ He also praised Chinese leaders for their efforts to boost domestic consumption, which he said “will be a huge contribution to our global challenge in bringing about a more rapid but more balanced and sustainable global recovery.’’
???
Neither Obama nor Geithner publicly touched on the sensitive issue of China’s firm grip on the value of the yuan. But Obama notably devoted a few paragraphs of his remarks to gently prod on China’s human rights record. “We also strongly believe that the religion and culture of all peoples must be respected and protected, and that all people should be free to speak their minds,’’ he said.
Oh, THAT'S RICH!!!!
See: Obama Seeks to Banish Blogs
Hating the Senate--more--"
Do you think they covered the meeting corrctly?
If so, it would be the only thing they have the last five years.
