China Basher?

Here’s a headline you don’t want to see: “Beijing says 10m Chinese have lost their jobs since [financial] crunch began.”

And here’s a story behind that headline that’s similarly hard to digest. James Pethokoukis of U.S. News & World Report writes:

Timothy Geithner, our probable next treasury secretary, [just took] a swipe at China . . . for manipulating its currency. Now first, Obama should be praying that the current economic slowdown in China doesn't lead to political chaos in the Middle Kingdom. It already appears that economic activity there has fallen off the cliff and unrest is rising. Second, helping shepherd China to being a full-fledged democratic-capitalist nation is what Geithner should be focusing on and talking about.

Here's how JPMorgan Chase economist Jim Glassman puts it: "China isn’t manipulating, it’s managing its currency to manage its way out of poverty. China’s living standard is 10% of the U.S. level. China isn’t taking advantage of the U.S. If China is successful, it will be able to reform its financial sector, eventually float its currency, and create a new market with opportunity for everyone. We should be cheering China’s progress not complaining about its currency. A stable yuan is a means to a better future for China and for the U.S., too."

Amen. In Henry Paulson, we had a Treasury Secretary who, if he didn’t turn out to be “master of the (financial) universe,” did know how to help China. Now comes Geithner.