The dollar is safe (yeah, right) and Tennessee Ernie Ford makes a comeback! - Chinese Laugh At Geithner's Remarks

Geithner backs strong dlr, says China's assets safe

Sun May 31, 2009 11:57pm EDT

BEIJING, June 1 (Reuters) - U.S. Treasury Secretary Timothy Geithner on Monday reaffirmed his faith in a strong dollar and reassured the Chinese government that its huge holdings of dollar-denominated assets are safe.

"We believe in a strong dollar," Geithner said in a question-and-answer session after a speech to students at Peking University.

A major goal of Geithner's maiden visit to China as Treasury secretary is to allay Beijing's concerns that Washington's mushrooming budget deficit and ultra-loose monetary policy will undermine both the dollar and U.S. bonds. China is the biggest foreign owner of U.S. Treasury bonds.

"Chinese financial assets are very safe," Geithner said. His response drew laughter from the audience. (Reporting by Glenn Somerville; Editing by Alan Wheatley)

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