China tells Paulson it's poor and poses no threat

[rodeodance]

Source: ap



China tells Paulson it's poor and poses no threat

By David Lawder 2 hours, 10 minutes agohttp://news.yahoo.com/s/nm/20070731/pl_nm/usa_china_paulson_dc

BEIJING (Reuters) - China on Tuesday deflected U.S. pressure for a faster rise in the yuan and bolder economic reforms by telling visiting Treasury Secretary Henry Paulson that it is still poor and poses no threat to anyone.


Paulson's visit coincides with a drive by U.S. lawmakers, frustrated by America's record trade deficit with China, to press Beijing upon pain of sanctions to allow open markets to set the yuan's value.

Vice Premier Wu Yi said at the start of her talks with Paulson that she was happy he had first visited poor Qinghai province in western China and had seen for himself the big difference with rich cities such as Beijing and Shanghai.

"In making this contrast, you can understand -- who could China threaten? China still has areas as developmentally backward as Qinghai," Wu told Paulson while reporters were in the room.

Read more: http://news.yahoo.com/s/nm/20070731/pl_nm/usa_china_paulson_dc

[Ian David]

1. American penis so big... n/t

[proReality]

2. Push to raise value for yuan in order to lower value of U.S. dollar.

Our corporate-government has some really nasty plans for us.

[ohio2007]

3. doing that would make the current Chinese holdings worthless ! They risked investing in america

They let the market float their currency, their investments become a burden.WHo will buy our debt at penny's of the Chinese original dollars ?

[David__77]

4. SANCTIONS to enforce a free floating currency?

That is insane. Before Bretton Woods was scrapped in the early 70's, I believe a free floating currency was unheard of. And not thirty-some years ago, the US is trying to enforce it as mandatory. Control over monetary policy is a sovereign national right. I guess the US has a sovereign right to cut off trade with China, but I think at this point it would hurt the US more than China.