Morning:
10°c
Alarm at Barack Obama attack on China
23 Jan 2009
President Barack Obama has accused Beijing of manipulating its currency, raising fears he could try to make China the scapegoat for America's own financial crisis, putting at risk a vital source of funding for his country's deep problems.
Timothy Geithner, Obama's choice as Treasury Secretary, said the President believes China is "manipulating" its currency, the yuan, and should "adopt a more aggressive stimulus package".
Geithner's words alarmed investors in Treasury bonds - a vital source of funding for Obama's ambitious spending plans. Many fear the tough talk could lead to a fall in demand for Treasuries from China.
China has already announced a four trillion yuan (£425.31 billion) spending plan to invest in infrastructure and try to get its economy going again.
Its leaders are facing severe pressure amid an unexpectedly fast slowdown in their country's growth and a collapse in exports.
Reader views (5)
In my opinion President Obama is well placed at this time in history to forge solid friendship with the East And Russia.
- swiftavenger, sydney australia, 25/01/2009 03:00
Report abuse
I don't believe what I am hearing and reading. These western countries have been dominating the world with all kinds of manipulation and used the worst tactics.
Now that somebody has 2 Trillions can't use it to have their own way of running the world? This is hypocrisy. I guess it is perfectly OK for the western society for Israel to bomb 20000 buildings, injure 6000 people and kill 1000+ people mostly innocent civilians in the name of fighting terrorism. What a terrible form of hypocrisy these societies practice?
- kanan krishnan, mountain view, 24/01/2009 03:14
Report abuse
Here we go-foot in mouth on only Day 2.
- Harvey Lawrence, london, 23/01/2009 15:50
Report abuse
But China is manipulating its currency... why else would they have 2tn dollars of CB reserves? No country should be accumulating reserves like this! If they let their currency float then the RMB would appreciate and the surplus would evaporate. I think Bush was too silly to understand anything, and back when Greenspan was talking about global imbalances in 2003 was the right time to address this issue. The WTO should also be ashamed they didnt act sooner. In my view, their failure has now become a reason to attack the very foundations of their existence.
- Harvey, Barbados, 23/01/2009 14:23
Report abuse
Well Obama had better be careful as China holds the largest amount of US Treasury Bills outside of the US, any major diversification into Euros Yen Swiss Francs or even poonds (per Brooown poonds) and you'll see one hell of a down swing on the dollar
- Wallytrader, London, 23/01/2009 12:53
Report abuse
