Monday, April 5, 2010

Our new boss, China

The Obama administration is delaying the release of a report on whether China manipulates its currency for trade advantages, two weeks before China's president is scheduled to visit Washington.

Treasury Secretary Timothy Geithner says keeping a lid on the April 15 report gives the White House some breathing room to try to convince the Chinese government to voluntarily let its currency go up.

The report was due just days before Chinese President Hu Jintao is scheduled to attend President Obama's nuclear security summit in Washington. Geithner says delaying the report until after Hu's visit will avoid a retaliatory response from Beijing.

Translation: China holds our mortgage, we need another advance, and therefore we can't anger them.

For as long as we're running trillion plus dollar deficits, we work for China.

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