morph366

Economic Talks with China: Not Likely to Accomplish Much

"The U.S. could offset these purchases by taxing dollar-yuan conversions but has failed to act."

Unfortunately the dependency on capital flows has compromised the negotiating ability of any US president.

The good news is that it is not in China's long term interest to keep piling up Treasuries to keep its currency low if the US consumer is buying fewer of their goods.

The bad news is that China appears to be switching its overseas investment appetite to new pastures and purchasing strategic assets that are not necessarily dollar based.

China at the G8 (Or, What Happens When Your Banker Says No)

Re cautiousInvestor
"there is a beautiful irony in China lecturing us on spending while their lending is spilling into Macau casinos and the Shanghai stock market."

Sure sign that the baton is passing - emulation is the sincerest form of flattery etc.

Mr. Geithner Goes to China

"The Chinese have played up these fears by speaking obliquely on the desirability of a non-dollar international reserve currency – this is a pipedream"
Simon - you may be right to call it only a pipedream in a relatively orderly world of diplomatic nudges and polite negotiations but if the financial crisis was to enter a new phase based on real fears for the safety of dollar denominated paper, then push will come to shove will come to panic.
It seems that nothing is really addressed by financial policymakers until it goes beyond critical and the same could well be true of the perceived need for a new global reserve currency.
Increasingly we have to think the unthinkable.

Global Markets in Review: Stocks Higher on a Stimulus and a Prayer

Nice point about how the charts for the Baltic Dry Index and the yields on 10 year Treasuries are moving in harmony. A double edged sword for the economic recovery as it gets under way.