The World Economic Forum, in Davos Switzerland, began today...
This is usually a huge economist boondoggle, but this year, it has a different look to it. You see, the U.S. boys and girls that normally attend, are missing this year, as they don't want it to look silly after they took bailout, TARP, and any other kind of government handout.
Right out of the starters blocks this morning, we have the economists that did show up in Davos, ripping U.S. Treasury Sec. Geithner,.. The "ripping" centers around the statement that China was "manipulating" their currency and that they should seek to allow the currency to appreciate...
"Allowing the yuan to strengthen would be "economic suicide" amid an economic slump, Stephen Roach, Morgan Stanley's Asia Chairman, told a panel in Davos, Switzerland, today. "I've never seen an economy in recession voluntarily raise their currency. It's horrible advice." (remember, that the renminbi is the official name of the Chinese currency and the yuan is the slang name... It's easier to say, and spell, so the media uses the slang name!
"Shouting from Washington to Beijing is not going to make a difference," said South Africa's Finance Minister Trevor Manuel on the same panel."
And just for the record, ever since Geithner made his call on Monday, the Chinese have basically told him what to do with his thoughts!
The Chinese officials have allowed the renminbi to weaken VS the dollar the last 3 nights! ...
Of course, I prefer the Chinese pushing the renminbi softer, than the alternative of selling their Treasuries!
This from Bill Bonner at Everbank:
" You know what gets my goat about what Geithner said? (it's important to remember that I believe it was Obama's words that Geithner spoke) It's why point the finger at China and not every other country in the world that "fixes", "pegs", and manipulates their currencies? There's a whole laundry list starting with Hong Kong, and ending with Saudi Arabia, with the likes of Japan, Singapore, and the other oil states in between... "