Geithner frees up to sell reassuring debt

Economic recovery cuts fiscal deficit control inflation U.S. Treasury Secretary Timothy Geithner ended his first trip to China 2nd.　　During his three-day trip, he explained the current state and prospects of the US economy, the shrinking of the US government's huge fiscal deficit, the important role of Sino-US cooperation in the global economic recovery and the development of clean energy, and once again stressed that a strong dollar policy would not change and that buying US Treasuries was "very The US economy is on the rebound recently as the dollar continues to weaken. As of 1st, the dollar index fell to 78.80, hitting its lowest point in 5 months. While commodity prices rose sharply in the same period, the Reuters/Jeffrey Futures Price Index (reuters-jefferies CRB index), which tracked 19 commodity futures prices, rose 13% in May, the biggest one-month gain in 34 years.　　The market's performance has raised fears of a possible contraction in China's investment in billions of dollars in assets. Before Geithner, it was widely speculated that it would take this opportunity to reassure China's big pie. On the plane to China, Geithner said to the accompanying reporters, "the U.S. economy is recovering, please reassure China." Geithner said the U.S. economic sector has seen "preliminary signs of improvement". The pace of economic activity has slowed, consumer confidence has improved and consumption has begun to recover. Meanwhile, house prices are slowing, inventories of unsold homes have fallen sharply and orders for goods and services have been upgraded. "The United States has an obligation to take all possible positive measures to resolve the current crisis." "But the huge fiscal deficit is the problem the Obama administration has to face." Earlier, Standard Poole downgraded the UK's credit rating outlook on financial issues, compared with the UK, where the US fiscal deficit was more than the GDP.　　The fiscal deficit is expected to hit a record $1.84 trillion trillion in fiscal year 2009, accounting for 13% of GDP. In this respect, Geithner repeatedly stressed that the United States will reduce the fiscal deficit as soon as possible in the medium term to achieve "sustainable development level." He pointed out that the high fiscal deficit is only a temporary phenomenon in order to deal with the current financial and economic crisis, which China should understand. "In fact, I find that China is confident in the strength, resilience and kinetic energy of the U.S. economy and a reasonable confidence." I think China has a detailed understanding of what the United States is doing and its importance to the United States, to China and to the world. "Confidence in the Fed's control of inflation in March, the Federal Reserve announced the purchase of $300 billion trillion in US Treasuries, triggering a market shock and exacerbating fears of a global scale of possible inflation."　　In an interview with reporters 2nd, Geithner said the Fed did not make debt monetization by buying US Treasuries, and its cooperation with other central banks to ensure that the global money markets had sufficient capital helped stabilise the crisis. Mr Geithner praised Federal Reserve Chairman Ben Bernanke for his "admirable performance in dealing with the worst financial crisis in decades". He also put inflation on the FedThe rate of stability to maintain low confidence. "I am fully confident that you, too, should be confident that Bernanke has the faith and ability to overcome this crisis and to ensure that future inflation in the United States remains low and stable." From May 26 to 28th, the US Treasury issued a total of $100 billion trillion in government debt. Goldman Sachs expected the US government to issue about $3.5 trillion trillion in treasury bonds by the end of the September fiscal year. According to the Fed's official website, the Fed will buy US Treasuries four times in the next two weeks, much more frequently than in May.　　Lou Brien, marketing strategist at DRW Holdings in Chicago, said the Fed should announce that it would buy government bonds as needed to revive the economy, and that the 300 billion dollar scale was just the beginning. Mr Geithner said demand for US Treasuries remained strong.　　The United States has the most in-depth and liquid bond market in the world, and we will do everything we can to maintain confidence in US and other countries ' financial markets. China-US cooperation is a vital issue throughout Mr Geithner's visit, emphasizing China-US cooperation.　　He said that a successful transition to a more balanced and stable global economy requires drastic changes in economic policy and financial regulation in the world, and that some of the most important parts of these changes will have to be carried out in the US and China. In Mr Geithner's view, the global economy is now experiencing the most challenging pressures of the past years, and the combined efforts of the two sides and the strong policy actions taken by the world's major economies have helped to slow the pace of economic deterioration, repair the financial system and boost confidence. The resolution, which was formed at the 20 summit in London in early April, was partly determined by the policy actions already being taken by China and the United States, G20 said. The International Monetary Fund will closely monitor the commitments made at the G20 summit, "so that we will be able to assess together when the group of 20 leaders meet again in the United States this fall." "June 2, U.S. President Special Representative, Treasury Secretary Timothy Geithner (right second) in the Beijing Capital Museum and the United States to strengthen clean energy cooperation to address climate change issues." Xinhua News agency Photo Media focus on Geithner's trip to Beijing the Financial Times: the US must increase savings Mr Geithner pointed out that China needs to change its economic model to change its reliance on exports.　　This means that before the crisis, China's products were flooded with American stores, and Chinese savings financed US spending; in the future, the US must save more, and China must create more domestic demand.　　But it's not easy.　　If China stops financing the US deficit, or if American consumers stop spending too quickly, the crisis will enter a darker chapter. Today's global economy is a multilateral relationship, and all nations must dance together.