BREAKING NEWS: Obama Called Hu And Threw Geithner Under The China Bus.
Got this news from a very close friend of mine who is very high up in the media, very connected, and very reliable. All I can say is that we go way, way back and I trust him implicitly (though he would also not be above feeding me something like this to make a fool out of me so he can laugh about it for years afterward -- perhaps in revenge for the time I .....). My friend got it from someone who my friend swears is very reliable but my friend does not know whether the story is true or not. I have considerably changed the language so as to erase potential identifiers:
On the heels of Treasury Secretary Geithner's apparent designation of China as a currency manipulator at his confirmation hearing last week, President Obama called President Hu over the weekend to try and calm the waters.We at this time have no more information beyond confirmation of the call, but our sources tell us that President Obama did make the call in an effort to let President Hu know that the United States very much hopes to maintain strong positive relations with China and to cooperating with China on the many crises now confronting the world.
Incredible as it may seem we have confirmed that Geithner's language was taken from the Obama Campaign website without anyone, including Geithner himself, having asked the White or State Department whether the electioneering slogans were now governmental policy.
Our sources say President Hu was quite relieved by both the call and the message, and we see "Obama's prompt corrective action to remedy Geithner's misstep as showing "the sophistication of the Obama NSC and economic policy professionals."
During this time of financial crisis, Geithners' currency remarks went right to the heart of Chinese perceptions of how Obama intended to manage the relationship.
Geithner's testimony (he was given 240 written questions in advance) was literally lifted straight from the Obama Campaign website by a Treasury staffer and just fed into Geithner's statement, without any effort made to update or clear the language with the White House or the US State Department.
Word on the DC street is that many are muttering that Geithner should have shown more sense than this since he has been more consistently involved with China on the currency issue for a long time.
Though I make no commitment as to the accuracy of the above, you did hear it here first.
For some history on the Geithner statements regarding China and their impact, check out our previous post, entitled, "Obama And Geithner On China. Election Hangover Or The Way Things Will Be?"
Comments (21)
Read through and enter the discussion by using the form at the enddavesgonechina - January 27, 2009 5:30 PM
It certainly makes sense. Geithner was referring to campaign stuff when he said it, not outlining any kind of actual policy. Geithner gave Schumer what Schumer likes to hear, then Obama called Hu for damage control. This may mean Schumer and Graham won't go on a reunion tour of their hamfisted shuck & jive over currency and trade.
I wouldn't say it shows the Obama administration's sophistication, though. Professionalism, but honestly - this should be the bare minimum standard for an administration. It looks impressive because of the lingering euphoria of seeing the last guy go. This is good news in a "whew, at least he's not that dumb" kinda way.
G.E. Anderson - January 27, 2009 6:19 PM
Thanks for sharing. You must've scooped the whole world on this one!
One possible factor in all of this is that Geithner still wasn't officially Obama's Treasury Secretary. One question I have would be to what degree appointees are in touch with the President prior to their actual confirmation by the Senate. If the answer is "somewhat less than they would be after confirmation" then that MAY explain part of the disconnect.
Another possible explanation is that Geithner and Obama were totally in sync over this. They saw it as helpful for getting Geithner past the committee and his tax indiscretions. All along Obama could have been planning to call China and smooth it over.
Of course, if that's the case, then Obama's got a leak on his hands, and that ain't good either.
Anyway, Geither has now been confirmed. When he speaks, we can only assume it's policy.
Don Clarke - January 27, 2009 6:43 PM
How did the sources know that Hu was "relieved"?
Dan - January 27, 2009 6:48 PM
Don,
Good question. Mind reading maybe?
David Li - January 27, 2009 6:59 PM
Come across a couple related news over the past 24 hours and can't help thinking either all these are a clever good cop/bad cop play by Obama and Clinton or all these are showing Obama's inexperience in foreign policy, especially regarding to China which is a subject he rarely touched during the campaign.
- U.S. [Clinton] to broaden dialogue with China
http://www.washingtontimes.com/news/2009/jan/28/clinton-signals-china-policy-shift-beyond-treasury/
- James Fallows on China, Chinese and Obama
http://www.onpointradio.org/shows/2009/01/fallows-on-china-and-america-now/
Tim Johnson - January 27, 2009 7:58 PM
I believe the source of this is the Nelson Report, an inside-the-beltway newsletter in Washington that usually has quite good sources on U.S. policy issues related to Asia. There is reason to be skeptical, though. No mention at all in Chinese press.
Hunxuer - January 27, 2009 8:35 PM
"Sources say Hu was relieved because he was able to run his fingers through his normally perfectly coiffed and waxed, helmet-like hair."
Dominic Meagher - January 27, 2009 9:31 PM
Source is definitely the Nelson Report.
Nelson is highly reliable and has very good access political and business high fliers in the US, China, Japan and Korea. There would be few sources more reliable for this sort of information.
I think your headline misses the point that Nelson was making. This isn't a case of Obama throwing Geithner under the "China Bus" at all. If that were the case, Obama would have made a public repudiation.
Rather, Geithner ballsed it up and Obama had to cover for him. A personal call to Hu letting him know the situation is about the best and most savvy thing he could've done. It lets the Chinese leadership know that Obama intends to treat the relationship with sensitivity and understands the concern from the Chinese point of view.
Geithner absolutely should've been more careful in this since it sparked a big row for no reason.
Incidentally the legal implications of citing China for currency manipulation are completely insignificant in the US. A formal citing wouldn't require any change in the relationship. This whole thing is a storm in a tea cup.
Most of what everyone is reading about the Obama administration's approach to China is pure speculation. So far, Obama's phone call this morning is the most important thing he's done in relation to China.
gregorylent - January 28, 2009 4:41 AM
this is the only source for this story world-wide ...
so i don't believe it
Ron - January 28, 2009 6:56 AM
BREAKING NEWS: Lawyer hates off-colored leader and doesn't agree with said freely elected lawyer.
C'mon Dan.....this post is a he said, they said, I hope they (didn't say) post............
Facts are facts...........
Hope you had a good New Year in Seattle.........
Dan - January 28, 2009 10:59 AM
Ron,
You are dead wrong on all counts:
1. I am shocked that you would refer to our President (or anyone else for that matter) as "off-colored."
2. I am hurt that you imply that I do not like Obama because of his color. That is complete bullshit without any basis whatsoever.
3. I absolutely do not hate President Obama.
4. I think President Obama has, for the most part, done a fine job so far.
5. Had you actually read what I have written on the whole Geithner issue and if you had read what other people have been writing on the whole Geithner issue and if you had the ability to analyze the whole situation, you would realize that this post is actually quite complimentary of President Obama. It compliments him for his quickly and appropriately tamping down on an unnecessary mini-crisis.
I would love for you to respond, after which point there is a 99% chance I will block your sorry a-- from making future comments, simply because doing that will give me great pleasure ....
Sol Rosenberg - January 28, 2009 12:01 PM
"And at the end of the call, Obama reminded Hu that the now is great time to stock up on US Treasury debt, so he should come on over and bid while the deals are hot."
Sam - January 28, 2009 3:36 PM
I'd like to believe it's a good cop/bad cop thing, but that sounds just a bit too perfect. More likely Geithner got out ahead and Obama had to pull him back. Not quite under the bus, though...
hanxuejia - January 28, 2009 4:27 PM
Very interesting. Might be idle speculation but I see the fact that the Chinese official response came over a weekend, and not much made of it at Davos, is some conscious effort to contain it. To have a yet-to-be confirmed cabinet level official criticize China, and then have a higher level official apologize is giving the face China wants.
Damjan - January 28, 2009 9:33 PM
President Obama: Hey HU, this is Obama, what's up?
President HU: Hey Obama, nothin' much, just enjoying some down time.
President Obama: That's great. Really fantastic HU. Are you drinking plenty of warm fluids? I heard its been cold over in Beijing recently.
HU: Yeah, I've been having a fair amount of tea recently. Thank you for asking...
[silence ensues as HU searches for what to say]
HU:I've heard it's been cold in D.C. as well.
Obama: Sure! Yeah, absolutely! Listen...about D.C. being cold...that thing the other day, about the currency manipuwatzyamacallit, that's not what America is about. Change, hope, sacrifice, basketball, Obama Girl, Angelina and Brad Pitt, Groundhogs Day the movie, Youtube,Titanic,McDonalds, that's America. But currency manipasomethingorother, not us...
[silence resumes as Obama waits for a reply]
Obama: Made in China is awesome
[silence]
Obama: I couldn't care less about Melanine!
[silence]
Obama: I mean, who DOESN'T produce pollution. Am I right?
[silence]
Obama: ...so we cool HU? HU you there?
HU: huh, what..oh...sorry...i wasnt paying attention...im watching Red Cliff 2 on DVD...advanced, legal copy...100% legal, great stuff this movie...
Obama: Good stuff Im sure.
HU: Indeed, yeah..but look O-B, we cool, alright? Not an issue, Ill get my people to take care of the papers tonight. Cool?
Obama: Alright HU, glad to hear that, glad, glad, glad. Talk to you soon then, I gotta go do some stuff. Lets get tea and smoke a cigarette soon, we can talk Treasury Bonds.
HU: Great - treasury bonds, talk, cigarette, soon - got it. Look forward to it. I'm hanging up now O-B.
Obama: Me too HU, talk to you later.
HU: OK, Guan le.
Obama: Guan le, that's awesome. see you later.
HU: Uh
Obama: Uh
HU:Uh Uh
Obama: UhUhUh
HU: Hao le
Obama: Hao le. Arrivederci!
HU:zai jian
Obama: uh
HU: Uh uh
Obama: Bye
{*click}
Obama: You there...HU...HU...
(Aide can be hear in background): I think he hung up OB
Obama: oh, ok.
{*click}
WEI - January 29, 2009 6:45 AM
Alternate possible version of the conversation between Obama and Hu:
http://hk.youtube.com/watch?v=sShMA85pv8M
Rhodo Zeb - January 29, 2009 7:17 AM
Interesting story. I moved the ball forward by fact-checking it on my site here: http://www.gongshangfa.com/2009/01/29/i-stand-corrected/
Greg - January 29, 2009 5:55 PM
@ Dam jan
Nice fantasy. Be sure to get some oxygen quickly.
Joe R. - January 30, 2009 5:22 AM
Throwing people under the bus is an Obama specialty; so far he's done it to a few advisers, his grandmother and his preacher at least. My money's on Rahm Emanuel to be the first administration member to actually receive the treatment, although Joe Biden will be the first person Obama fantasizes about throwing.
Markus - February 1, 2009 11:33 PM
Premier Wen has confirmed that President Obama and President Hu have talked over the phone. From the FT:
"Mr Wen confirmed for the first time that Barack Obama, US president, had spoken to Hu Jintao, his Chinese counterpart, “the day before yesterday”, following comments by Tim Geithner, US Treasury secretary, that China was “manipulating” the value of its currency against the US dollar."
http://www.ft.com/cms/s/0/c3959018-f092-11dd-972c-0000779fd2ac.html
James G - February 3, 2009 5:14 AM
Joe R, how did Obama throw his grandmother under the bus? And his Preacher?
As far as I can tell, "throwing someone under the bus" suggests that they have done nothing wrong but been ostracized anyway. With his scandalous "sermons" Rev. Wright was due for a bit of sharp scrutiny. And people join and leave churches all the time for a variety of reasons; Obama has gone on the become the POTUS but he was, at tht times still just one member of what is a mega-church.
I for one liked hearing his frank talk about his family member's shortcomings. It isn't like he doesn't serve up any of his own.
"Thrown under the bus" might better apply to Hillary Clinton, or the Mormon candidate, one of whom was subject to some treacherous sexism by members of her own party, and the other who was demonized for his religion.