Bond Peddler Geithner

Last week, I anticipated Treasury Secretary Tim Geithner's bond-selling trip (or perhaps more appropriately, begging mission) to China. He will have the unenviable task of trying to convince Chinese leaders that they should continue to buy US Treasury bonds, even while he, Bernanke, Obama et al, continue to trash the dollar. My prediction: one lie begets another lie.

Mr. Geithner will reassure the Chinese leadership that US Treasuries are still safe, and that US leaders are committed to reducing our national debt and curtailing our deficits. Sounds good and well, but actions speak louder than words.

In turn, the Chinese will respectfully nod their heads in agreement, all the while stockpiling their reserves with hard assets like commodities, precious metals, energy, and base metals--in a diversification away from dollar-denominated assets.

Good luck, Tim--you're going to need it.