Former Assistant Secretary of the Treasury Paul Craig Roberts writes:
Treasury Secretary Geithner is another economic incompetent. He told China that he stood for a “strong dollar,” but that China should let its currency appreciate relative to the dollar, which, of course, would mean a weaker dollar. He simultaneously told China that their investments in US Treasury bonds were safe.
His Chinese university audience, being economically literate, laughed at Geithner.
It apparently did not dawn on the US Treasury Secretary that if Chinese money is rising in value relative to the US dollar, the value of Chinese investments in dollar-denominated US Treasury bonds is falling.
Is it a requirement to be completely oblivious to basic economics to be Treasury Secretary these days?