What Geithner Negotiated For on Trip to China

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This article clams that our Treasury Secretary has not left the bed in which he slept when he was President the NY Fed and reported to his Board, which was populated by Wall Street bankers. He asked China to open up its market to our financial services industry so that they could sell insurance, underwrite bond issues and sell mutual funds. The implication of the article, is that in return he did not put pressure on China to appreciate its currency against the dollar. A lower valued dollar would enable us to sell more tradable manufactured products to China. It would also make the imports of US products manufactured in China more expensive and encourage them to be made in the US. If this article is correct it spells out our industrial policy. We are willing to give up manufacturing in order to achieve global dominance in financial services. That is, we will be more of a Wall Street economy and less of a Main Street economy. In return, China will continue to fund US deficits which are partly the result of our trade deficit with China.