Secretary for the U.S.-China Relationship

Hank Paulson has apparently concluded that as Treasury Secretary

1. Given the White House he has to deal with, he can do nothing to undo the disastrous fiscal policies of the Bush administration.
2. Given the White House he has to deal with, he can do nothing to bring the resources devoted to entitlement programs into long-run balance with the spending plans of the programs.
3. He can do a lot of good by strengthening America's relationship with China.

So he appears to have decided to be Secretary of the U.S.-China Relationship. It's an honorable job, and one well worth his considerable talents. Let's hope he can be effective and not be undermined by the White House.

Felix Salmon writes:

RGE - Bush's Treasury Secretary Taken Seriously: Hank Paulson seems to be getting off to a reasonably good start as Treasury Secretary. The NYT thinks he's being tough on China, the FT thinks he's soft-pedaling, but both take him very seriously -- as does Brad Setser. It seems as though Paulson has already done what many people thought impossible: regained the respect that Treasury Secretaries used to have in the Clinton years. Not that Setser can't resist getting in a little jab at the end:

I was struck by the irony of the United States -- and particularly the Bush Administration -- emphasizing how important it is that all countries live up to their international responsibilities. That was how Paulson framed US demands for economic reform -- China needs to live up to its global responsibilities.

And Paulson noted: "Global economic leadership also brings with it responsibilities that go beyond the economic area, including international laws and conventions."

Wasn't the Bush Administration elected, in part, to make sure that the United States own policies -- including its economic policies -- weren't subject to any global tests?

But on this subject, I suspect that Paulson is closer to arch-rival Jon Corzine than he is to George Bush. His trick will be to persuade us that's true without actually violating the party line and saying it explicitly.

The guy does need all the help he can get.