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China's Wen Offers To Buy Giant Turd From Europe

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http://uk.reuters.com/article/idUKTRE69112E20101002

China offered on Saturday to buy Greek government bonds when the country returns to markets, in a show of support for the country whose debt burden pushed the euro zone into crisis and required an international bailout.

Premier Wen Jiabao made the offer at the start of a two-day visit to Greece, his first stop on a tour of Europe, and also said he wanted to boost shipping and trade ties with Athens, underscoring Beijing's use of economic strength to win friends.

"With its foreign exchange reserve, China has already bought and is holding Greek bonds and will keep a positive stance in participating and buying bonds that Greece will issue," Wen said, speaking through an interpreter.

"China will undertake a great effort to support euro zone countries and Greece to overcome the crisis."

In addition to seeing economic opportunities in Greece, China may calculate its support of a struggling European country will help deflect international criticism of its trade policies and its refusal to let its yuan currency appreciate sharply.

Wen did not specify how much Greek debt China would be willing to buy or which Chinese entities would buy the bonds.

Chinese state entities have been generally conservative about investing in foreign financial markets and the Chinese government faces domestic political criticism over losses incurred by these entities during the global financial crisis.

So they've already lost money on buying turds yet feel buying Greek turds is somehow a good investment. Are the Chinese eying Greek land for a holiday destination of the future for it's workers?

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http://uk.reuters.com/article/idUKTRE69112E20101002

So they've already lost money on buying turds yet feel buying Greek turds is somehow a good investment. Are the Chinese eying Greek land for a holiday destination of the future for it's workers?

Haven't we all gone on holiday and thought "it would be great to buy a place out here"?

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http://uk.reuters.co...E69112E20101002

So they've already lost money on buying turds yet feel buying Greek turds is somehow a good investment. Are the Chinese eying Greek land for a holiday destination of the future for it's workers?

I am beginning to believe that there is a credible implicit ECB guarantee (explicit if you have the right contacts) on _any_ sovereign european bond.

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The EU had better get its debt claim in on the Greek Islands soon because the Chinese will soon have a better claim on them.

And in this global economy there's no reason why Greece shouldn't eventually become a legal part of the Chinese Union i.e. the CU.

Edited by billybong

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I am beginning to believe that there is a credible implicit ECB guarantee (explicit if you have the right contacts) on _any_ sovereign european bond.

It's certainly looking that way.

Or perhaps the Germans have promised to pay up if all else fails.

BMW to become CMW?

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http://uk.reuters.com/article/idUKTRE69112E20101002

So they've already lost money on buying turds yet feel buying Greek turds is somehow a good investment. Are the Chinese eying Greek land for a holiday destination of the future for it's workers?

The Chinese should have been buying up Western land for ages, you cannot inflate away or default on claims to land like you can with turd government IOUs. With their stash they could effectively use the West as their pension scheme and never have to work again, that is the Western dream, right? So why not let the Chinese get in on the action.

Edited by Chef

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:lol:

Same strategy they used to bump the yen. China buys Jbonds, Japs forced to buy dollars 'cause they can't retaliate against the Renminbi.

They're continuing to force their surpluses around the system. Now it's the Europeans under attack who will be forced to displace it buy buying dollars. Merkin needs a get out of jail card piggie default up her sleeve just in case.

China's fast running out of options.

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The EU had better get its debt claim in on the Greek Islands soon because the Chinese will soon have a better claim on them.

And in this global economy there's no reason why Greece shouldn't eventually become a legal part of the Chinese Union i.e. the CU.

China could do with a port in the med.

Plus given a choice between buying greek bonds and continuing to buy American bonds.... what you you do?

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The Chinese are tunnelling under the Earth, and will emerge soon! :blink:

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The Chinese should have been buying up Western land for ages, you cannot inflate away or default on claims to land like you can with turd government IOUs.

Of course you can: any Western government can declare that all foreign ownership of land is prohibited for national security reasons and any land in foreign ownership goes to the state. Of course they'd have to be willing to live with the consequences, but if the Chinese bought up a significant portion of any country you'd soon see popular support for nationalist parties of that kind.

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Haven't we all gone on holiday and thought "it would be great to buy a place out here"?

Not when I went to Greece I didn't. If its holiday homes they are after Chinese need to lift there aspirations a bit and consider lending money to Tuscany or California. I'd pay to watch Chinese logic meet Italian bureaucracy in a fight over (say) planning permission.

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Not when I went to Greece I didn't. If its holiday homes they are after Chinese need to lift there aspirations a bit and consider lending money to Tuscany or California. I'd pay to watch Chinese logic meet Italian bureaucracy in a fight over (say) planning permission.

I was thinking less holiday homes, more islands. Once the Greeks are herded off (apart from the waiters of course) the Chinese would have a nice little holiday retreat.

I don't see why they couldn't do the same in California of course. No need for austerity in China!

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From Yahoo Finance

http://finance.yahoo.com/news/Greece-woos-China-Arab-apf-3463736339.html?x=0

ATHENS, Greece (AP) -- Chinese shipping and transport giant Cosco Group said Friday it is looking to expand its operations in Greece, whose cash-strapped government has turned east and south in search of elusive foreign investments.

Cosco president Wei Jiafu said the group was interested in participating in a freight and logistics center due to be built at Thriasio, west of Athens, and operated on a 40-year concession.

The Chinese company already operates two container terminals at Greece's largest port of Piraeus, near Thriasio, on a 35-year concession worth $1 billion that was finalized last year.

Wei's remarks were met with relief in Athens Friday, as Prime Minister George Papandreou ended an intensive weeklong series of trips and meetings to seek investment from China as well as companies from Turkey and Arab countries.

Greece came to the brink of bankruptcy this month, before receiving rescue loans from European countries and the International Monetary Fund that allowed it to refinance debts.

"I believe (Greece) will overcome its problems shortly," Wei said after meeting Papandreou in Athens.

Last week, Greece and longtime regional foe Turkey signed a series of economic cooperation agreements -- including the key tourism sector -- during a visit to Athens by Turkish Prime Minister Recep Tayyip Erdogan. The large Turkish government delegation was accompanied by about 100 businessmen.

Papandreou also met Friday with the prime minister of oil-rich Libya, Baghdadi Mahmudi, and on Thursday held talks with Arab businessmen and officials in Beirut, Lebanon.

"Making cuts will not go far enough to deal with our fiscal problems," Papandreou told parliament Friday. "What is needed is growth ... You can see the tremendous effort we are making to attract productive investment."

Greece's national debt -- already more than euro300 billion ($375 billion) -- is due to increase to 133 percent of Gross Domestic Product this year, maintaining concern among countries that use the euro.

The Finance Ministry on Friday said the country has beaten targets to reduce its budget deficit so far this year.

It said the January-April budget shortfall was euro6.31 billion ($7.77 billion), compared with euro10.79 billion in 2009 -- a 41.5 percent reduction that bettered the target set by the government of 35.1 percent.

Greece's strict adherence to budget targets and its harsh austerity program were set as conditions to winning a euro110 billion three-year rescue loan package from other European Union countries and the IMF.

Edited by izzy

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This denial of a denial type story amused me and put me in mind of this thread...

France Said Not to Have Held Secret Currency Talks With China

October 02, 2010, 2:09 PM EDT

More From Businessweek

* Abramovich’s Company Asks Ireland to Honor Bank Debt

* IMF Urges Ukraine to Avoid Paying Cash to Settle Gas-Trade Debt

* China Edges Closer to Becoming Currency King: Riccardo Barbieri

* French Workers Protest for Third Day Over Higher Retirement Age

* China to Buy Greek Bonds, Support Shipping, Wen Says

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By Francois de Beaupuy

Oct. 2 (Bloomberg) -- France has not held secret talks on currency coordination with China, a French government official familiar with the matter said, denying a report in today’s Financial Times.

President Nicolas Sarkozy will become chairman of the Group of 20 forum in November and is preparing for that role now, said the person, who declined to be identified because he wasn’t authorized to comment publicly.

Sarkozy in August reiterated a call to overhaul the global monetary system, saying discussions on currencies should be open to countries beyond the Group of Seven leading industrial nations, including China, and urging enhanced international coordination and global governance.

The French president cited the possibility of expanding access to the International Monetary Fund’s special drawing rights, the institution’s unit of account based on a basket of currencies, to “reinforce the stability” of the monetary system.

Since G-20 leaders began holding summits in November 2008, they have pledged not to raise or impose trade barriers, seeking to avoid the type of protectionist measures that crippled the global economy in the 1930s.

The G-20 pledged in April 2009 in London to “refrain from competitive devaluation” of their currencies, and the leaders said at their last gathering in Toronto in June that “market- oriented exchange rates that reflect underlying economic fundamentals contribute to global economic stability.”

Yuan

China has incurred international criticism for limiting gains in its exchange rate. The yuan has risen about 2 percent versus the dollar since the People’s Bank of China in June pledged greater flexibility in the currency after pegging it around 6.83 for two years.

The G-20 includes the world’s biggest developed and emerging-market nations, from China, Brazil, Russia and India to the U.S., Japan, Germany, France and the U.K. Its finance ministers meet in Korea on Oct. 21-23 ahead of the summit of leaders in Seoul on Nov. 11-12. The topic of currencies will also likely be discussed when finance chiefs gather in Washington in the coming week for the annual meetings of the IMF and World Bank.

--Editor: Dick Schumacher.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net.

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net.

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Of course you can: any Western government can declare that all foreign ownership of land is prohibited for national security reasons and any land in foreign ownership goes to the state. Of course they'd have to be willing to live with the consequences, but if the Chinese bought up a significant portion of any country you'd soon see popular support for nationalist parties of that kind.

Yes the government could go down this road but it would horrify the landed elite who effectively run this country. How would it look to homeowners, farmers and landed toffs if the government implemented Mugabe style land grabs? They'd always be concerned that they'd be next so would be reluctant to open that particular Pandora's box.

No I can't see that policy gaining any traction in Britain, it would be too close to the bone for the VIs.

Edited by Chef

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http://www.bbc.co.uk/news/business-11462016

Chinese Premier Wen Jiabao says his country will continue to support both the euro and European government bonds.

"I have made clear that China supports a stable euro," he said.

He also promised not to cut China's investment in European bonds, despite the recent crisis which has weakened the value of many such bonds.

Mr Wen is visiting Greece, the worst-hit of the 27-nation European Union. He has promised to buy Greek government bonds the next time they went on sale.

China has said it needs to diversify its foreign currency holdings and has bought Spanish government bonds.

Later in the week, the Chinese leader will attend an EU-China, where the subject of the yuan is almost certain to come up.

Artificially low

China is accused of keeping its currency artificially low against other world currencies, particularly the dollar- which makes Chinese goods cheaper on world markets, and non-Chinese goods more expensive within the country.

That argument is hottest in the US, where the House of Representatives has backed legislation that in theory paves the way for trade sanctions on China.

Mr Wen urged the EU to recognise China as a market economy, something that would make it less vulnerable to anti-dumping charges under World Trade Organization rules.

He added that despite its growth China remained an emerging economy: "Per capita GDP is just one eighth of Greece's and the percentage of population below the poverty line is three times that of Greece. China continues to be an emerging country."

Slightly more on this from the BBC.

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http://uk.reuters.com/article/idUKTRE69112E20101002

So they've already lost money on buying turds yet feel buying Greek turds is somehow a good investment. Are the Chinese eying Greek land for a holiday destination of the future for it's workers?

I can see this happening.

the chinese do seem somewhat wary of having an overbearing germany at the helm of the EU.Maybe they've seen what rape and pillage by stealth has been going on,and are taking out an insurance policy against total hegemony.

I guess the "multi-polar" world is a bit less cut and dried than the architects imagined.

Edited by oracle

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China looking after.. China. They need a strong Euro so Europeans can buy lots of nice Chinese exports. Can you imagine how much less purchasing power the periphery of Europe would have outside of the Euro. 30-50% less at least I would think. They Need to keep the Chinese working or they may turn on the government.

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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