Geithner is in Beijing for talks with China’s leadership. He told the press Monday that no one is more concerned about US deficits that President Obama but offered no concrete plans for dealing with their explosive growth.
To sooth Chinese jitters, he’s going to have to offer some spending restraint, something the administration has avoided thus far. Either that, or a shift away from quantitative ease is needed from the Fed. Otherwise, the buck will continue to be pounded in the court of public opinion–particularly Chinese public opinion.
