Chinese Laugh at Geithner When He Says Investment in US Debt "Safe"

Well you can't really blame our Chinese slumlords for being a bit sketchy about giving us more money to live beyond our means. From BBC:

Ahead of meetings with President Hu Jintao and Premier Wen Jiabao, he said the US and China must work together to fix the global economic system.

Mr Geithner said the US would move swiftly to get its debt under control.

In a speech at Beijing University at the start of his two-day visit, Mr Geithner reassured his Chinese hosts that they need not worry about the estimated $770bn (£475bn) they have invested in US treasuries, a class of US government debt.

"Chinese financial assets are very safe," he said, drawing laughter from the audience.

Yup, with this and the GM bankruptcy, the economic good news just keeps on coming. On a totally related note, Paul Krugman has an article today about how Reagan caused massive consumer and government debt. Although, he seems totally cool with it when a Democrat runs up massive government debt. Go figure.