China Offers to Bail Out EU

[Dusty]

http://www.dailymail.co.uk/news/arti...n-nations.html

China has said it is willing to bail out debt-ridden countries in the euro zone using its $2.7trillion overseas investment fund.
In a fresh humiliation for Europe, Foreign Ministry spokesman Jiang Yu said it was one of the most important areas for China's foreign exchange investments.
The country has already approached struggling European countries with financial aid, including offering to buy Greece's debt in October and promising to buy $4billion of Portuguese government debt.
'To have any discernible effect China will have to buy a lot more than 5billion euros if they expect to have any impact on the negative sentiment surrounding Europe,' said Michael Hewson, currency analyst at CMC Markets.
China's astonishing economic growth has put it on track to overtake America as the world's economic powerhouse within two years, a recent report claimed.
But experts believed still be some years before America's leadership role is really challenged - largely because Beijing has given no indication it is ready to take on the responsibility of shepherding the world' economy.

This foray into the future of the euro could be a signal from Beijing that it is ready to change that perception.

The euro rose temporarily on the news of China's support - but was sinking again this morning to a three-week low against the dollar.
Protest: Strikers carrying placards demonstrate outside the Greek Parliament in Athens. Greece is among a number of EU countries struggling financially
The single currency earlier fell to around $1.3050, below its 200-day moving average currently located at


Read more: http://www.dailymail.co.uk/news/arti...#ixzz18xev9ziH

[ZonieDiver]

Why do I get the impression that China is acting like "Mr. Potter" in It's A Wonderful Life?

[mojaveman]

They already own a big part of us, why not some of Europe too?

[Green Light]

Originally Posted by mojaveman

They already own a big part of us, why not some of Europe too?

Yeah, that's true. But what a bad investment! They're going to be like a real estate investor on the east coast, circa 2007. Lots o paper, little value.

When the economy makes the BIG correction, they'll have nothing but 2,000,000,000 people without jobs or food.

This also ties in directly with the UN lifting sanctions on Iraq this week.

Spain, Italy, Germany who have made large investments into the region, and us, our 3 Trillion. Nothing like getting paid twice.

[Dusty]

Originally Posted by Green Light

Yeah, that's true. But what a bad investment! They're going to be like a real estate investor on the east coast, circa 2007. Lots o paper, little value.

When the economy makes the BIG correction, they'll have nothing but 2,000,000,000 people without jobs or food.

Our resources would be the gold ring.

[GratefulCitizen]

Some signs of fear are creeping into the Chinese economy.
The effects of interest rate hikes will continue to be interesting.

Guess it's not quite so easy to centrally manage an economy of a billion free-willed human beings.
Side note: for those who own gold, it might be time to sell.

http://online.wsj.com/article/BT-CO-...27-701424.html

[steel71]

And who really controls China? I don't think that American and European corporations would move their industrial and manufacturing complex to a land of Marxist heathens unless they were assured they had absolute control of its leaders. I think that's just common sense, but it's not something you'll read in the NY Times.