China's Laughing

I might as well link to Mish again, since he's got the important parts up.

Yu Yongding, is a former advisor to China's central bank. He publicly asked Tim Geithner if he could see his math on the idiotic lies that the Fed and Gubmint have been spouting about how they'll lower the deficit and keep the dollar strong.

He then called the US, "the world’s biggest junk investor" and then said the Fed has dropped “tons of money from the sky since the subprime crisis.”

When Geither spoke at Peking University (I'm surprised it would still be called Peking U), he assured the crowd of students that Chinese assets (those billions, if not trillions of dollars invested in US treasuries and such) were very safe, the auditorium of students broke out in laughter.

China isn't full of idiots. Sure, they may be sequestered, blocked from free information, and under government control, but they aren't all uneducated country bumpkins. And they've got the best bullshit training in the world dealing with their government... you think Geithner can convince them that a single turd coming from his hole is gold?

China also dumped some big money in stimulus packages. You know where it went? Manufacturing and industry. They showed growth last month. Sure, it's artificial, but it's more useful than bailing out banks.

They're starting to realize they have the power in this partnership now. Others will smell the sick economic carcass of Uncle Sam too. Then things will get... interesting. Or maybe your leaders can get their heads out of their asses and do something useful for a change.