China buys Europe

Presumably to put it on the mantelpiece next to America.

The head of the eurozone's bailout fund is beginning attempts to persuade China to invest in a scheme to help rescue member countries facing debt crises.

After meeting Chinese leaders, Klaus Regling said there were no formal negotiations and would be no deal now.

It is thought China may pay about 70bn euros ($100bn) into the fund, which is expected to be boosted to 1tn euros.

Apparently China may consider pitching into the EU bailout because a further European recession would have a knock on effect on Chinese trade exports, affecting Chinese jobs and possibly necessitating a further propping up of China's banking system.

I'll have to say that all this international financial wrangling is a bit heady for a simple blogger like myself.

Certain countries are facing default because they borrowed money that never existed and don't have the money to pay it back. Unless other countries with no money give money that doesn't exist to these countries, all of Europe faces recession. If that happens, Europeans cannot continue spending money they don't have on Chinese products. The Chinese therefore, decide to lend money they don't have to the Europeans so they can buy Chinese stuff with the non existent money?

When the time comes, who will bail out China? Mars?


microdave said...

Bucko said...