Article • Dean Baker’s Beat the Press
Fact-based, data-driven research and analysis to advance democratic debate on vital issues shaping people’s lives.
Center for Economic and Policy Research
1611 Connecticut Ave. NW
Suite 400
Washington, DC 20009
Tel: 202-293-5380
Fax: 202-588-1356
https://cepr.net
The WSJ hinted that a negative assessment of United States debt by S&P may lead China to stop buying U.S. government bonds and possibly to even start selling them. If China went this route, it would help to raise the value of the yuan against the dollar, which is exactly the policy that Treasury Secretary Timothy Geithner claims he is urging on China [thanks Allan]. In this sense, the negative report from S&P may be great news for the Obama administration and its efforts to increase U.S. exports.