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Chinese Officials Have Faith In Spain's Financial System

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Reuters link -China/Spain

Chinese officials have faith in Spain's financial system and will continue to take part in government debt auctions, China's Vice Premier Li Keqiang wrote in an editorial in El Pais on Monday.

"China is a responsible, long-term investor in the European financial market and particularly in Spain, and we have confidence in the Spanish financial market, which has meant the acquisition of its public debt, something which we will continue to do in the future," Li wrote.

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More here:

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Situated on opposite ends of the Eurasian continent, China and Spain are geographically apart. But our peoples are close and our economies have much to offer one another. The fine tradition of friendship and exchanges between our two countries dates back a long time ago. Since the establishment of diplomatic relations, China-Spain relations have stood the test of time, and gained increasing popular support. The achievements in bilateral relations are encouraging. Spain has achieved a high level of economic and social development. It leads the world in information, tourism, financial services, renewable energy and modern agriculture. There is much for China to learn from Spain’s development experience and practices. At the same time, China, with its huge population and big market, will bring Spain tremendous business opportunities. Looking ahead, China-Spain cooperation is bound to grow in both width and depth. To divide something by 1.3 billon may be discouraging. But it is definitely encouraging and even exciting to multiply something by 1.3 billion. If each of the 1.3 billion people in China would buy a bottle of olive oil or taste a few glasses of wine, the demand will outrun Spain’s annual supply. And if only a few in every hundred Chinese would travel to Spain every year, no hotel room in Spain will be left vacant. And for Spain’s transport, telecommunications, banking and insurance sectors, some of their biggest future customers would be Chinese. China supports Spain in the series of economic and financial adjustment measures Spain has adopted, and is convinced of the certainty of full recovery of the Spanish economy. China is willing to explore, together with Spain, the positive and effective forms of cooperation. China is a responsible long-term investor, both in the European financial market and in the Spanish financial market. China has confidence in Spain’s financial market. It has purchased Spanish Treasury bonds and will buy still more.

China and Spain have all along been good friends and good partners. During last year’s World Expo in Shanghai, the Spain pavilion was among the most popular. It had attracted over seven million visitors, most of whom ordinary Chinese. More and more people in China want to know Spain better. And we hope, in the second decade of the new century, more Spanish people will turn their friendly eyes to China and become part of the exchanges with China. Together, let’s embrace a brighter future of mankind.

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Technology maybe? If you travel overland from Santander to Gibraltar then you see large numbers of solar power plants which are thinner in the north but are every other mile in Southern Spain. Hell each and every camp site I stopped at in 2007 was solar powered.

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Exactly, they need solvent states to keep buying their tat. They're finished otherwise.

They realise that if Spain sinks it drags down Europe with it. That would bring a swift end to their consumerism from the east.

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Exactly, they need solvent states to keep buying their tat. They're finished otherwise.

They realise that if Spain sinks it drags down Europe with it. That would bring a swift end to their consumerism from the east.

Or they have supported the dollar for long enough and now its time to support the euro. Hedging your bets, and keep the plates spinning.

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Exactly, they need solvent states to keep buying their tat. They're finished otherwise.

They realise that if Spain sinks it drags down Europe with it. That would bring a swift end to their consumerism from the east.

The snake continues to eat its own tail... Trouble is we can carry on like this for years... Extend and pretend...

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Exactly, they need solvent states to keep buying their tat. They're finished otherwise.

They realise that if Spain sinks it drags down Europe with it. That would bring a swift end to their consumerism from the east.

buying debt doesnt make a state solvent.

It makes it less so as interest and inflation will eat into its spending power, which means more debt and more tax on the wealth creators.

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buying debt doesnt make a state solvent.

It makes it less so as interest and inflation will eat into its spending power, which means more debt and more tax on the wealth creators.

No argument here. It's merely China trying to buy time.

Inevitably demand is drying up. As far as China goes the end comes when demand fails to keep enough of their enormous population in a job.

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It leads the world in information, tourism, financial services, renewable energy and modern agriculture.

Hey what's going on. It seems only yesterday that we were being told by our politicians that the UK led in all those things and Spain wasn't even in the picture :lol::lol:

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No argument here. It's merely China trying to buy time.

Inevitably demand is drying up. As far as China goes the end comes when demand fails to keep enough of their enormous population in a job.

thats right. I mean, what does one do with 2 trillion dollars when you already have 5 empty super cities, spend billions on stimulus and stockpiles of rubber dogshit?

best not to leave it in the banking system.

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Its the dawn of a new day. The bond investors flee out of these countries with a herd mentality causing rates to rise and financial pain fo the nation... but a centralized state like China can step in and buy, and drive rates down for these nations. And all of a sudden their financial position looks a lot better.

In a marketplace where each actor is only a tiny percentage of the market, each herd member has to react to the movement of the herd. And there is no one in control of the herd.. like the herd could get spooked and start charging one way or another.

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Hey what's going on. It seems only yesterday that we were being told by our politicians that the UK led in all those things and Spain wasn't even in the picture :lol::lol:

The UK propaganda machine constantly tries to downplay European achievements, possibly in order to hide the fact we're declining so fast. I notice that a new branch of the high speed rail network has recently opened (with high booking rates) between Madrid and Valencia. The French have also put in a high speed link to Figueras (later to Barcelona). I accept there may be good reasons not to invest in high speed rail in the UK, but considering how much we pay for public transport (what I pay for a weekly travel card would give me a month's worth of travel in Madrid) I can't help feeling we're hard done by

France24 - Spain rail link

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Technology maybe? If you travel overland from Santander to Gibraltar then you see large numbers of solar power plants which are thinner in the north but are every other mile in Southern Spain. Hell each and every camp site I stopped at in 2007 was solar powered.

Most of the solar cells would have been made in China, Spain doesn't have any technology to speak of.

I notice that a new branch of the high speed rail network has recently opened (with high booking rates) between Madrid and Valencia.

In effect, Germany, NL and the UK is paying for it. Like the road system

Edited by Peter Hun

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China looking after its own interests, no surprises there. Europe is there largest customer and they want to sell in export markets with a strong currency / demand.

The fundamentals in Spain really speak for themselves though. 20.7% Unemployment, jobs still being cut. Even in manufacturing which is meant to drive the recovery. At Least exports are rising no doubt helped by Germany expanding at a record pace. Domestic demand is very weak.

(http://www.markiteconomics.com/MarkitFiles/Pages/ViewPressRelease.aspx?ID=7410)

0% growth last quarter combined with an aggressive deficit reduction program will likely lead to further recession.

House price statistics seem to be very questionable. There does not appear to be reliable data on prices taking place in private transactions. Estimates seem to be 25-50% from peak, which probably means the banking system is insolvent and a large amount of the home owning population are underwater.

The construction industry has collapsed and there are an estimated 1million unsold properties which should mean there are a serious amount of bad loans being held by whoever financed the construction of this mountain of unsold housing stock. This will likely continue to depress house prices for a significant period of time.

Economic data inconsistencies seem to be widespread, deficit figures between regional and central government, house prices, labour statistics, GDP have all been questioned over the last 12 months. Proper analysis of data does not seem to be taking place. I would be hesitant to trust any of the data given out if I was investing in Spain.

I don’t think the real state of the economy has even begun to emerge yet. The real losses of the property boom seem to be hidden in the hope everything returns to normal. Houses start selling at the supposed market value prices they are on banks books at. I think this will all come out eventually, especially if there is a change of government ( Similar to Greece?).

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  • 309 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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