Where have we heard this before? Geithner is once again claiming China and the United States could cooperate, this time by giving away more of American advanced technology. Firstly, Geithner mentions China's currency manipulation.
China still closely manages the level of its exchange rate and restricts the ability of capital to move in and out of the country.
These policies have the effect of keeping the Chinese currency substantially undervalued.
They also impose substantial costs on other emerging economies that run more flexible exchanges rates, and as a result have experienced a substantial loss of competitiveness against China.
This is not a tenable policy for China or for the world economy.
Yet in the same speech, Treasury Secretary Geithner seems to imply U.S. companies, technologies are on the table as a bargaining chip to get China to re-evaluate their Yuan:
To all the China-lovers out there, I hope the Chinese people can achieve a high quality of life. I want everyone to achieve a high quality of life and that includes my fellow Americans who have been sold down the river by the greedy plutocrats who have been backing China's government's greedy policies and practices that put the Chinese elite above the rest of the world — typical greedy creeps. Change China. Change America.
All the left-wing handwringing over some plans by US politicians to take back some of the evil undercutting of America's hardworking poor is misguided. The Washington Consensus gave away the shop without demanding high worker rights, environmental standards, safety standards, etc., on the part of those allowed to dump cheap and often dangerous products into the US stripping the workers in the US of their hard fought gains against criminally greedy ownership and management.
Figure it out. Figure out who the enemy of the Chinese people and the American people is. It's not the common people in either country. The common people in both countries could work to free the common people in both countries if they all hold out for the same thing at the same time: decent treatment — treatment that is as good as the greedy, violent, coercive, lying elitists have granted themselves at the direct and hugely negative expense of everyone else.