Bob Harris, EI's Senior Consultant to the General Secretary, shares information and commentary on the impact of the financial crisis on education funding, and how education can be part of the solution.
Returning to the last Wednesday’s item about massive imbalances leading up to the financial crisis (http://fundingeducation.blogspot.com/2009/05/startling-revelation-what-imf-and.html), it is interesting to read reports of US Treasury Secretary Timothy Geithner’s visit to China this week.
Reuters pointed out yesterday that China is the biggest foreign owner of US Treasury bonds. US data shows that it held $768 billion in Treasuries as of March, but some analysts believe China’s total US dollar-denominated investments could be twice as high. Now Geithner is on a mission to reassure China that its massive investments in US dollars are safe. Students at Beijing University, where Geithner studied Chinese in the 1980s, were not convinced as they greeted his assurances with loud laughter.
China is demanding a bigger role at the IMF, and in international policy making in finance, and Geithner gave public backing to that. Both the US and the Chinese officials know that today’s huge global imbalances are unsustainable. That means that even if the current crisis can be overcome within the next two years, major structural changes in the system are inevitable. This is called paradigm change.
And remember that the impact on employment and public services including education will linger well after recovery begins – see: Is economic recovery on the way? http://www.ei-ie.org/handsup/en/article_detail.php?id=140).
Source: Reuters, Global Unions Washington Office
Reuters pointed out yesterday that China is the biggest foreign owner of US Treasury bonds. US data shows that it held $768 billion in Treasuries as of March, but some analysts believe China’s total US dollar-denominated investments could be twice as high. Now Geithner is on a mission to reassure China that its massive investments in US dollars are safe. Students at Beijing University, where Geithner studied Chinese in the 1980s, were not convinced as they greeted his assurances with loud laughter.
China is demanding a bigger role at the IMF, and in international policy making in finance, and Geithner gave public backing to that. Both the US and the Chinese officials know that today’s huge global imbalances are unsustainable. That means that even if the current crisis can be overcome within the next two years, major structural changes in the system are inevitable. This is called paradigm change.
And remember that the impact on employment and public services including education will linger well after recovery begins – see: Is economic recovery on the way? http://www.ei-ie.org/handsup/en/article_detail.php?id=140).
Source: Reuters, Global Unions Washington Office
Education International 2009
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