6-1-2009 11.15 AM EST
Geithner is visiting China to encourage government officials to keep buying US Treasury Bonds .
The tone of the Chinese seems to be that they are caught in a trap and have little or no choice but to keep buying the devalued paper .
Seventeen of 23 Chinese economists polled in connection with Geithner’s visit said holdings of Treasuries are a “great risk” for the nation’s economy.As of March,China held about $768 billion of the flailing Treasury Bonds.Geithner's plan is simple...... he plans to cut the budget shortfall down to 3 percent of gross domestic product.Currently this figures stands at 12.9% of the GDP.White House aides were amazingly silent when asked if Geithner would announce to the Chinese that Bernie Madoff would receive a Presidential pardon and take on the role as the number 2 man at the Treasury Department, and be charge of making sure the Chinese assets were safe and producing exponential returns . Conventional wisdom is that the Chinese might actually think Geithner had MADE OFF with their money, if he announces Bernie's appointment while in mainland China .
Yu Yongding is senior researcher at the government-backed Chinese Academy of Social Sciences and a former central bank adviser.
YU has but one simple request of Geithner.“It will be helpful if Geithner can show us some arithmetic”
Geithner is far from the sharpest tool in Obama's socialist tool shed .Smart money is Las Vegas is betting that Yu Yongding's mastery of CHINESE ARITHMTIC far exceeds Geithners grasp of the much more complex and advanced Chinese variant .Geithner has had problems in the past with the much simpler American Math . It took Geithenr several years , and help from White House lawyers to simply complete his income tax !!!!.Many of the Chinese economist are rumored to be worried about if Getihner will be able to explain inverted bond yields.