Financial Strategies for US-China Relations

What sort of a financial deal should Obama be seeking to strike

when he travels to China next month?

No, I think this would be the time, because you really need to bring

China into the creation of a new, uh, um,

uh, uh, world order, financial world order.

So I think you need a, a new

world order that

China has to be part

of the process of creating it, and they have to buy

in, they have to own it. And I think this would be a more

stable one, where, where, uh, uh,

you would have a coordinated, uh, policies.

Given this continued weakness in the US economy, are people

right to start to be concerned about the dollar?

A, a, a, an orderly decline of the dollar is

actually, uh, desirable. A decline in the value of

the dollar is necessary in order, uh,

to, uh, compensate for the fact that

the US economy will remain rather

weak. China will emerge as the

motor replacing the US consumer.

So there would be a slow, uh,

um, decline in the value of the dollar, a, a managed,

uh, decline.