This story is replete with irony. Obama’s Secretary of Treasury nominee, for New York Federal Reserve Chair and tax cheat Tim Geithner, has gone on the record accusing China of manipulating its currency and not doing enough to stem their own economic slowdown. Geithner further criticized China for failing to pass a stimulus package like the United States has done (shamefully).
Where to start? Well, someone should inform Geithner (and the Washington Post) that when government intrudes in private economic affairs it amounts to the manipulation of currency. That our currency “floats” and is not fixed like China’s is secondary; our government, through the Federal Reserve and re-distributionist, manipulates our currency daily.
Fiscal policy and monetary policy, particularly when abused by bankrupt governments to “combat” economic downturns, affect the money supply, and, by definition, manipulate our currency.
In case Geithner forgot, China is a Communist nation. The party controls industry already, through official intimidation. Having no need to seize further power, then, China can take a relatively laissez-faire policy towards her economy, as it is most expedient towards recovery.
The United States government has traditionally been limited in the private sector. Geithner’s “critical” comments should be seen for what they are: justification for another, future power grab.