Chinese Students Laugh at Geithner

The Chinese are very intelligent. They know that it is laughable to think that we are going to make good on the debts we owe them. That's why they are stocking up on gold and buying less of our debt. Just yesterday, Peking University students literally laughed at Geithner when he told them our assets are safe!

"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.

His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home.

Read the rest of the story from Reuters.