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Realistbear

Why Are China Bailing Out The E U?

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http://www.telegraph.co.uk/finance/china-business/8258348/Europe-fears-motives-of-Chinese-super-creditor.html

Europe fears motives of Chinese super-creditor
The EU authorities fear that China's purpose in buying eurozone debt may be double-edged, intended to push up the euro exchange rate against the yuan and gain advantage for exports..../
The exact role of China is unclear. Chinese vice-premier
Li Keqiang promised to buy Spanish debt
during a visit to Madrid last week, reportedly up to €6bn (£5bn).
China was the secret buyer in a private placement of €1.1bn of Portuguese debt last week
, according to the Wall Street Journal. Finance minister Fernando Teixeira dos Santos said China "may well have been" a key buyer in this week's debt auction.
..../

:D:D:D

Classic Wal*mart strategy applied by the US for the past number of years. Price 'em out of the bidding.

Edited by Realistbear

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Yep.

China's rigged it's currency by using pseudo-dollars so wants/needs a strong Euro.

They are so setting themselves up for a kicking and it ain't going to be pretty when it comes.

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The sums involved here are too small to be classified as a "bail-out". More the case that China's betting that Spain (and Portugal to a lesser degree) is getting their deficits down and will be able to pay back the loan/interest. So they see it as a nice little earner... Having said that, maybe they'd earn more putting their money into Facebook? ;)

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Well, it looks like the Euro is about to fall 300/400+ points against USD, from my amateur trading eye (head and shoulders, after a steep rise, peaking at a 6 week resistance point, against the long term trend), so I'm not convinced it's working (I could be very wrong on the trade though!).

Many of these sort of articles just seem like noise.

Edited by Traktion

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Well, it looks like the Euro is about to fall 300/400+ points against USD, from my amateur trading eye (head and shoulders, after a steep rise, peaking at a 6 week resistance point, against the long term trend), so I'm not convinced it's working (I could be very wrong on the trade though!).

Many of these sort of articles just seem like noise.

The pound has been on rocket fuel for the past few days in the wake of very negatiove fundamentals (trade deficit record, houses down, job losses).

Not sure what is driving it as the US is rebounding slightly and the Eurozone is still extremely shaky. Stocks flying whihc suggests appetitie for risk is still strong.

1.40 range for Cable soon methinks.

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The pound has been on rocket fuel for the past few days in the wake of very negatiove fundamentals (trade deficit record, houses down, job losses).

Not sure what is driving it as the US is rebounding slightly and the Eurozone is still extremely shaky. Stocks flying whihc suggests appetitie for risk is still strong.

1.40 range for Cable soon methinks.

I would probably agree, but the technicals don't look quite as strong - there was a big step change in 2008 and since then, it seems to have bobbed about in the 1.4/1.6 range. It's hard to know what the overall trend is and it's very much hovering between support and resistance levels. However, the EUR/USD is flashing red though, IMO.

(P.S. Disclaimer: I'm a newbie, part time, day trader, so don't rely on anything I say! :P It's a new sport I've taken up for 2011.)

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china has trillions in foreign currency reserves.

they can either loan the money back out and earn interest on it i.e keep it as savings.

or they can spend it.

what would you like them to invest their euros in? european property?

Edited by mfp123

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The sums involved here are too small to be classified as a "bail-out".

The US national debt probably increased by more than $5bn in the time it took China to fill out the paperwork on this deal.

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  • 284 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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