CORRECTED-Pressure from Congress presses yuan point-Geithner
(Corrects headline to say pressure from Congress, not China)
WASHINGTON Jan 18 (Reuters) - U.S. lawmakers' pressure on China to allow a faster rise in its yuan currency helps hammer home the point that Americans are upset with Beijing's policies, U.S. Treasury Secretary Timothy Geithner said on Tuesday.
"I actually think it's helpful for China to understand this is a big issue for Americans, just like it's a big issue for all of China's trading partners, so in that sense it's helpful, yes," Geithner said in an interview with National Public Radio when asked whether pressure from Congress was helpful.
Chinese President Hu Jintao arrived in the United States on Tuesday for a four-day state visit. For details, see [ID:nTOE70H01T]
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The United States’ trade gap is the proverbial “leak-in the-dike” with its de-simulative effect on our recovery. In November 2003, Warren Buffett in his Fortune, Squanderville versus Thriftville article recommended that America adopt a balanced trade model. The fact that advice advocating balance and sustainability, from a sage the caliber of Warren Buffett, could be virtually ignored for over seven years is unfathomable. Media coverage that China has kept it currency undervalued is a gross understatement, it has actually been keeping the U.S. dollar over-valued; which adversely affects all U.S. trade with all U.S. trading partners, not just trade with China. Until action is taken on Buffett’s or a similar balanced trade model, by the powers that be, America will continue to squander time, treasure and talent in pursuit of an illusionary recovery.
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