Geithner Said to Push G-7 to Ease Criticism of China

[Coventina]

Source: Bloomberg

March 12 (Bloomberg) -- Treasury Secretary Timothy Geithner pushed Group of Seven officials to soften criticism of China last month, according to a person briefed on the matter, after his accusation that the nation was “manipulating” the yuan strained ties with the U.S.’s second-biggest trading partner.

G-7 finance ministers and central bankers on Feb. 14 welcomed “China’s fiscal measures and continued commitment to move to a more flexible exchange rate.” By contrast, the group in April 2008 pressed for “accelerated appreciation” of the yuan.

Geithner’s behind-the-scenes effort came just weeks after he publicly accused China of “manipulating” its currency during his Senate confirmation hearings, drawing criticism from the Chinese. Donald Straszheim, a former Merrill Lynch & Co. chief economist, said the G-7 shift may signal the U.S. Treasury won’t label China a manipulator in a report due April.

“I would be very surprised if we would bring up the currency manipulator terminology again any time soon,” said Straszhiem, who heads Straszheim Global Advisors Inc. in Los Angeles. “I think it would be a mistake and I don’t think they’ll do that.”



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ajv6m8b7WEy4&refer=home

[marketcrazy1]

1. I guess they realize that if china does not buy our debt

we are screwed, so play nice!!

[Alcibiades]

2. Reminds me of what Secretary Clinton said:

"The Obama administration is absolutely committed to a robust, comprehensive human rights agenda,"

Of course, with Gitmo and everything we have done in the "War on Terror," the US really has no right to lecture China on human rights. In fact, if you consider not being bombed and invaded a human right, then China has had a much better human rights record than the US of late.