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2010-02-05

Is Geithner joking or confused?

Comments on “US sees China moving on currency despite rhetoric”, Reuters, 5/02/2010, http://www.businessspectator.com.au/bs.nsf/Article/WRAPUP-3-China-hits-back-at-Obama-over-currency-cr-2CBBZ?OpenDocument

Do people see the contradictory in Geithner's statements in the following two paragraphs?
He (Geithner) said correcting currency misalignments was a key part of US efforts to get the world economy growing on strong consumption and domestic demand, and "not on the basis of an investment-led, export-heavy model again."
"And that requires a level playing field for American exporters generally and we're going to work very hard to encourage those changes," Mr Geithner added.
He is talking about consumption model in the first para, but in the second para he is talking about US exports.
But seriously, what is wrong with "an investment-led, export-heavy model"? If a country needs to invest more, is it wrong to have more investment? Why export heavy is problematic, if import is also heavy? That just means more trade, more international exchange. What is wrong with that?
No wonder the US has been in trouble economically, one only needs to look at its Treasury Secretary, or the quality of that person.
What countries can avoid economic problems if you have such a person in charge of the economy?
What a shame!

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