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China Says It Will Bail Out Insolvent European Countries

Tyler Durden's picture


As expected, China is the new IMF. No surprise there.


All this means is that China will do everything in its power to prevent the ECB from launching an outright unsterilized monetization episode, which will double the amount of importable inflation (plunging EUR) to hit the Chinese domestic economy, and destabilize the already shaky stability, so critical for the Chinese communist party. And since the USD and the CNY are pegged, this has the added benefit of devaluaing the CNY instead even more if not against the USD, then against the CNY, which is now importing European sovereign risk and will continue to do so, until China finds itself in the same lock out as half of Europe currently.

As for the IMF popularity contest, better known as "who is thst most feminine", it has just been relegated into complete historic obscurity and irrelevance. Which is sad because Lagarde may have actually had something worthwhile to contribute. Too bad her organization was just been rendered obsolete.

More empty rhetoric from Wen, courtesy of Reuters:

Chinese Premier Wen Jiabao said on Sunday he had no intention of pursuing a trade surplus and that he wanted balanced, sustainable trade growth for his country.

He was speaking during a tour of MG Motor's Longbridge factory in Birmingham, central England, during a three-day trade and political mission to Britain.

"China has no intention to pursue a trade surplus. What we want is to have balanced and sustainable growth of trade," he told the BBC through an interpreter.

He also said China would lend European countries experiencing trouble borrowing, just as it announced it would do for Hungary earlier this week.

We get it: China will not pursue a trade surplus... It will just happen purely accidentally for the next decade.


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Sun, 06/26/2011 - 14:03 | 1403232 slow_roast
slow_roast's picture

How about some coverage of the upcoming strike in Greece; there is no way that that doesn't turn violent. 

Sun, 06/26/2011 - 14:05 | 1403238 Tyler Durden
Tyler Durden's picture

Pretty sure striking on a Sunday is moot.


Sun, 06/26/2011 - 14:08 | 1403250 slow_roast
slow_roast's picture

I know you guys will cover it when the strikes start on Tuesday, but I'm curious just how large(read violent) these strikes may become as the austerity package is anything but positive and still does nothing to solve the solvency issues within the country.


Surely the populace will get all Egyptian at some point.

Sun, 06/26/2011 - 14:13 | 1403266 markmotive
markmotive's picture

This is EU bailout Part II for China.

They did this about 6 months ago, didn't they?

Sun, 06/26/2011 - 14:29 | 1403301 slow_roast
slow_roast's picture

Economic circle jerking is 21st century math.

Sun, 06/26/2011 - 23:45 | 1404643 Sokhmate
Sokhmate's picture

Aka economic bukkake

Mon, 06/27/2011 - 01:05 | 1404727 66Sexy
66Sexy's picture

Borrow from a toothess global banking organization like the IMF... or borrow from a communist country with military backing and a history of... well... dealing with opposition 'efficiently'.

Tough call (s/off). I wonder if China is 'in' on the global banking conspiracy; by making the act of borrowing created fiat credits from the IMF a much more attractive offer than, say, borrowing from a sovereign global military power.

Sun, 06/26/2011 - 14:32 | 1403303 wanklord
wanklord's picture

China is the indisputable superpower of the 21st Century. The Asian dragon needs to relocate one third of its entire population elsewhere (about 400 million people) , and seems that the North American landmass is a suitable place to do that. They will accomplish this endeavour either by peaceful or coercive means. America will become a protectorate of PRC in the near future - so better start learning Mandarin and/or Cantonese.

Sun, 06/26/2011 - 14:42 | 1403334 Arius
Arius's picture

not so fast ... this country always makes it and it will come back stronger than ever before ...

Sun, 06/26/2011 - 15:03 | 1403369 Ag Star
Ag Star's picture

This country has had many depressions but none like the one coming and no amount of denial is going to change that.  Better take that bag of your head so you can see what's happening,  oh never mind--it's already to late for people like you!

Sun, 06/26/2011 - 15:20 | 1403412 Bindar Dundat
Bindar Dundat's picture

China has NO Territorial ambitions -- full stop.   They think long term and want a world that is stable.  Some of the comments here verge on clinical paranoia.   The Chines are sharp and they want their Country to do well.  Our success is their success.  


It is OK to pick on the banksters but guys give your head a shake....China is part of our solution , not our problem.

Sun, 06/26/2011 - 15:37 | 1403443 King_of_simpletons
King_of_simpletons's picture

PLA propagandist.

Sun, 06/26/2011 - 15:55 | 1403469 magpie
magpie's picture

"The flag follows the trade"

ancient Chinese secret

Sun, 06/26/2011 - 16:11 | 1403498 Oh regional Indian
Oh regional Indian's picture

Well, look at one major move (or is it three). north Dakota has allowed China to Start building a 50 square mile Exclusive economic zone. Google is your friend and a few other states are in the same talks.

Now imagine this:

A broke state (say California), fails to raise debt money/pass budget etc., broke DC can/will do nothing.

In comes China, save California, then Illinois........ 48X50 square miles = 2,500 ish square miles.

i'd research this if I was american or living there. The first state to be bailed out by China (nothing can stop China from buying state/muni debt) will start a chain reaction, which are near impossible to stop.

In one year, Chimerica.



Sun, 06/26/2011 - 16:14 | 1403513 magpie
magpie's picture

But that's ok, if or when free trade turns sour, you will always have something to take from the other guy and swap it back. Keeps everyone polite and stuff...

Sun, 06/26/2011 - 16:46 | 1403553 Oh regional Indian
Oh regional Indian's picture


Sun, 06/26/2011 - 16:31 | 1403535 JLee2027
JLee2027's picture

China isn't "taking over" anything. Stop with the fear mongering.

Sun, 06/26/2011 - 16:41 | 1403548 Oh regional Indian
Oh regional Indian's picture

Jlee, ND is already a done deal. A Chinese EEZ is considered Chinese territory, like an embassy, without the diplomatic immunity.

Given the shitty state of, well state finances in the US, directly or by proxy, China is in a position to own a lot of non-strategic assets in the US. A lot. Look what the Japs did in the 80's. Only, they were gypped into CRE and golf courses.

Different century. To not consider this possibility would be myopic. My sis is in the US, I have dear friends from coast to coast and everywhere in between, I have no desire for this coming crash to come to pass.

But coming it is. To deny that and all these crazy possibilities that are, well, possible in such to deny the fast crashing vectors of our environment, in every dimension.

I wish you the best.


Sun, 06/26/2011 - 17:43 | 1403644 trav7777
trav7777's picture

Special Economic Zone, and it was Idaho

Sun, 06/26/2011 - 19:07 | 1403805 Oh regional Indian
Oh regional Indian's picture

Thanks Trav, I got a little excited with my very probable thesis, Jlee's dismissal notwithstanding.


Mon, 06/27/2011 - 00:02 | 1404675 Ahmeexnal
Ahmeexnal's picture

Chinese "Special Economic Zone" in Idaho? Why would that be news? There's been many of those in several major cities: NYC, San Francisco, etc.  They're called "Chinatown".

Soon coming to you, a "Chinatown"  right next to every "Main Street".

Mon, 06/27/2011 - 01:13 | 1404747 Cathartes Aura
Cathartes Aura's picture

here's the link again, it's Idaho now, with "delegations" eyeing up Ohio, Pennsylvania & Michigan. . . a bit more in the "update" box:

Hoku Corp., a subsidiary of Tianwei New Energy Holdings Co, a Chinese company, has invested $270 million of the more than $400 million it expects to spend on its Pocatello plant to manufacture polysilicon for the solar market.

All of the polysilicon will be shipped back to China.

The Idaho Regional Center, a company developing the Gold Hill Mine near Placerville and Blackhawk on the River near McCall, has millions of dollars in escrow from Chinese investors awaiting approval of green cards from U.S. Citizenship and Immigration Services.

Once approved, the money will be released and the gold processing plant is expected to go into production, said Sima Muroff, head of the regional center.

Several other regional centers have started in the state. They allow investors a chance to get green cards in exchange for investments of $500,000 to $1 million.

brush up on that Mandarin. . .

Sun, 06/26/2011 - 18:08 | 1403669 snowball777
snowball777's picture

This is my buddy Mr. Wang (no offense)...

Sun, 06/26/2011 - 18:11 | 1403681 JLee2027
JLee2027's picture

Jlee, ND is already a done deal. A Chinese EEZ is considered Chinese territory, like an embassy, without the diplomatic immunity.

Yeah sure buddy, whatever you say ding dong.

Sun, 06/26/2011 - 20:16 | 1403994 gmrpeabody
gmrpeabody's picture

There are a few neighborhoods that I wouldn't recommend you or your Chinese friends try to visit at any time. They may just be biting off more than they can chew by trying to own America. People aren't gonna be in a real good mood if it comes to that. 

Sun, 06/26/2011 - 21:05 | 1404187 smlbizman
smlbizman's picture

yeah, we handled that other immigration  problem so well...

Mon, 06/27/2011 - 01:20 | 1404753 Cathartes Aura
Cathartes Aura's picture

maybe they don't want to "own" amrka, just "rent" it for a while then leave a hella toxic mess when they flit, rather like amrka's corporate fly-by-nights, maquiladoras, and various "special economic zones" in S. Asian countries.

imitation, sincerest flattery and all that.

Mon, 06/27/2011 - 08:51 | 1405037 DosZap
DosZap's picture

China should be FORBIDDEN to OWN property in the USA.


If we are that dumb, I know I am checking out.

Sun, 06/26/2011 - 20:33 | 1404060 Manthong
Manthong's picture

They can have all of Chicago.

Maybe the Red Army can subdue the mobs from the West Side.

But they will have to fight the Mexicans for the rest of the country.

Sun, 06/26/2011 - 21:40 | 1404375 Sunshine n Lollipops
Sunshine n Lollipops's picture

And I hear Detroit is lovely this time of year.

Mon, 06/27/2011 - 00:06 | 1404678 Ahmeexnal
Ahmeexnal's picture

Chinatown in the middle of Philadelphia Badlands?

Sun, 06/26/2011 - 16:05 | 1403497 john39
john39's picture

how many countries has china bombed or invaded recently? how about the U.S.? so who is the real bad actor again?

Sun, 06/26/2011 - 16:07 | 1403488 SMG
SMG's picture

If the current leaders in China do not want a large war.  The Oligarchy will make sure the next leaders who are put into power in China do.  Nothing will depopulate the world faster than an all out World War III killfest.

I love America, but if you fall into the China vs US idea, you are becoming a slave of the Oligarchy. The Oligarch will gladly use you as a slave. They don't care about you and want you dead, you useless eater you, so don't get on their side.

The real war is the Common Person (99% of us in the world) vs the Global Oligarchy (1% of us). The common people can win if enough realize this truth.

Sun, 06/26/2011 - 16:33 | 1403546 Urban Redneck
Urban Redneck's picture

For a country with no territorial ambitions, China has a few too many boundary disputes with its neighbors-

China-South Korea
and of course... the Spratly Island cluster-fuck China-Brunei-Malaysia-Philippines-Taiwan-Vietnam

In fact about the only neighbors China doesn't have territorial disputes with currently are Russia, who is supplying it with energy, and Thailand/Myanmar where all boundary issues have been resolved and trade highway is already under construction.

Sun, 06/26/2011 - 17:07 | 1403594 Oh regional Indian
Oh regional Indian's picture

hmmmmmmmmmmmmmmmmmmmm...... good eye...


Sun, 06/26/2011 - 17:14 | 1403602 DeadFred
DeadFred's picture

The Amur valley border with the Soviet Union was a long-time war zone and we shouldn't forget Tibet. They're still digesting that "no territorial ambitions". I guess he's right though, we should SO trust them to fair and helpful.

Sun, 06/26/2011 - 21:47 | 1404372 i-dog
i-dog's picture

Border disputes are a completely different issue than marching off on imperial expansionist wars against whole neighbouring countries -- or remote countries (like the US).

China has a perceived [by it] right to re-claim certain areas that were taken from it by other imperial or secessionist powers in the past.

Taiwan: Was part of Imperial China (as a prefecture of Fujian Province) for hundreds of years - after being taken from the freaking Dutch colonists by a Chinese emperor - then ceded to Japan in 1895 by the Ching (ie. occupying Mongol) Chinese emperor. When Japan lost it at the end of WWII, the American-backed Chiang Kai-Shek set up a nationalist Chinese government in exile (and martial law) there to attempt to militarily re-take the whole of Communist China. Chiang was not Taiwanese!

India: The only part of India that China wants back is a small section of Kashmir that was carved out by the British as part of Lord Louis Battenberg's random determination of the borders of India and Pakistan when the British scurried out of India in 1948. The borders of Kashmir have been in dispute ever since between India, Pakistan and China and are almost the sole cause of the ongoing hostilities, as well, between India and Pakistan.

Japan: China and Japan have disputes over a few small islands lying between them ... not over whole countries. I can't be bothered looking up the history of ownership over them now.

Vietnam: This one is a little more complicated -- because the North Vietnamese are historically ethnic Han Chinese while the South Vietnamese are from an older Indian ethnic background (as are the Thais, Burmese, Malays, Indonesians, etc). This always made a mockery of the contrived Vietnam War of "re-unification" -- since Vietnam had essentially been two separate countries for almost all of the previous thousand years.

Korea: I'm not aware of any Chinese attempt to take over South Korea -- other than supporting North Korea in its attempt to re-unite the country back into a single Korea. This is no different than America supporting South Korea in its attempt to re-unite Korea back into a single Korea. Hypocrisy abounds!

Bhutan: From Wiki: "Bhutan’s border with China is largely not demarcated and thus disputed in some places. Approximately 269 square kilometers remain under discussion between China and Bhutan.[23]". That's not imperialist aggression!

Tibet: Tibet was originally settled by Han Chinese about 3,000 years ago! China therefore considers it part of its "territority" (though, over the last 1,400 years, there have been many changes of hands between China and various independent "kingdoms" of Tibet).

Sun, 06/26/2011 - 23:05 | 1404570 Great Dane
Great Dane's picture

Reclaim?!  Umm Germany tried to reclaim their Sudatenland and areas poland had possession of, and we wonder why Germans were called invaders, when they were doing that 'reclaiming' thing.

Mon, 06/27/2011 - 04:31 | 1404842 Urban Redneck
Urban Redneck's picture

China's maritime boundary disputes are all about increasing China's territorial waters, which both the Chinese NOCs and western oil companies believe there is oil beneath.  Lawyers are less expensive than Tomahawk missiles and don't generate the bad press.  During the previous centuries imperialist-colonialist-mercantilist land grabs for access to resources there was no offshore oil drilling.  

So China's border disputes are the same as the marching off on imperial expansionist wars against remote countries (like the US), the only difference is the Chinese are using a 21st century model that leverages "globalization" while the US is still using the 19th century military model.


Mon, 06/27/2011 - 06:26 | 1404891 i-dog
i-dog's picture

China has known of, and exercised dominion over, the Spratly Islands (which are off the coast of North Vietnam, see above) for well over 2,000 years. It's not only, but also, about oil.

Mon, 06/27/2011 - 09:01 | 1405056 DosZap
DosZap's picture

China has no right to retake property lost in past wars.

If they start the colonialism routine, they can prepare to become Great Britain Deaux.

WE have learned, since we have not won a war since Vietnam,that it is impossible to carry on multiple fronts, and start civil wars and expect anything except Extended forever never ending wars...............

China is huge, China has power, but we did too.

For all the fiepower and manower we have used, we have damn little to show for it, except a lot of debt, and dead soldiers.

For what?.

If China wants to depopulate by starting wars have at it.

They will relearn the lessons we have already failed to learn.

Screwing w/nuclear states will bring on major problems for them.

I do not care how many troops their armies have.You cannot win in a nuclear exchange.

Sun, 06/26/2011 - 22:33 | 1404503 bakken
bakken's picture

@UR  Don't forget the massive water confiscation in Asia.  China will appropriate the Mekong (I fought there, the Delta was actually beautifull minus the gunfire! ) and the Brahmaputra river flows as well as water flow from a number of medium sized asian rivers.  Pakistan (and India), Bengal, BanglaDesh, Viet Nam, Thailand, Cambodia, Laos will all have reduced water flow and much lower resource levels  thanks to the Chinese. The Chinese love to build dams and  only a few have collapsed recently.  The Chinese haven't made any real joint-use agreements on this massive water diversion from other Asian countries.

Well, they control the headwaters, so they will probably take most of the water, wildlfe and minerals..  Little Asian pipsqueaks are supposed to be reassured by Chinese promises to be fair!  hahahahah.  Wars???  No way.  They can simply cause periodic floods and droughts to bring the reluctant countries to heel. 

Benevolent leadership of the Chinese Guiding Lights (older Mao Thought slogan)  will cause rice to grow in Viet Nam even without water(more Miraculous Mao thought. Hey it is coming back into style!)

Sun, 06/26/2011 - 17:02 | 1403593 DeadFred
DeadFred's picture

No <sarc> so I have to ask what you're smoking. You know this because of their wonderful peaceful history since 1949? Maybe you know because of your inside position in the politburo? Those guys have a LONG history of imperialism that was put on hold only when European imperialism had a temporary upper hand. Lol, I hope I just missed your sarcasm.

Sun, 06/26/2011 - 19:47 | 1403907 Kayman
Kayman's picture

Bindar Dundat

China has NO Territorial ambitions -- full stop

I guess Tibet, Mongolia, Siberia, Taiwan, Vietnam and the South China sea are the "tiny" exceptions to your blunderbuss.

Loosen your cloth and let the blood flow to your brain.

China is a Frankenstein monster created by  Chinese Wallmart, Clinton (see contributors to the foundation), and GE. Of course, there are many other myopic culprit's, too numerous to name.

Sun, 06/26/2011 - 20:58 | 1404173 exiledbear
exiledbear's picture

China is out to screw the world. They're not too particular about who they're screwing, the U.S. happened to be stupid and easy to screw, that's all. But they'll happily bend the E.U. over and give them a jolly good rogering too.

Maybe the current political leadership in China doesn't have territorial ambitions, but politics tends to change when real crisis hits.


However. I think it's way too "expensive" to relocate Chinese citizens to N. America. The Pacific is a huge ocean, it requires ships or airplanes. However to relocate to Europe or Russia, why that just involves a train ride. All the tracks were built long ago.


All abooooooaaaaarrrrd! Or however you say it in Mandarin...

Mon, 06/27/2011 - 01:29 | 1404761 Cathartes Aura
Cathartes Aura's picture

However. I think it's way too "expensive" to relocate Chinese citizens to N. America

tell that to Vancouver, BC - and the increasing periphery!

Mon, 06/27/2011 - 07:37 | 1404939 Léonard
Léonard's picture

China has NO Territorial ambitions

How do you know ?

China would be stupid to not add new territories with that much power. They already took Tibet and the Piraeus in Greece.

Sun, 06/26/2011 - 16:44 | 1403550 Freddie
Freddie's picture

Nah.  The place is filled with too many Hope & Change arse *****ers - many are on ZH.

The masses are easily controlled and brainwashed by Bilderberger/Rothschild TV.  If you watch - you are helping them. The masses have done nothing about the Atzalan - Reconquista Mexicali drug lord invasions.   The funny bit with that is they are doing ethnic cleansing of blacks in California in the drug trade and in Calif cities.  Even African Americans in So Cal have said as much.  Hope & Change.

Sun, 06/26/2011 - 17:14 | 1403604 Orly
Orly's picture

They have been saying as much since at least the early seventies.  Never heard stories of putting saltpeter in their Nehi soda?  Why would the CIA run drugs and guns into the inner cities?
And the great and benevolent Bill Gates has donated billions from his own pocket to fund African vaccination plans...

I do hope the world catches on to this before too much longer...

Speaking of drugs, why is it suddenly okay to smoke pot?  Anyone with any conspiracy theory ideas on that one would be most welcome.


Sun, 06/26/2011 - 18:12 | 1403682 snowball777
snowball777's picture

Potassium nitrate can cause gastroenteritis, high blood pressure, anemia, kidney disease, and has a depressive effect on the heart. Not only would you not be able to "get it up", you wouldn't be able to get up.

Sun, 06/26/2011 - 18:48 | 1403753 geminiRX
geminiRX's picture

It's ok to smoke pot because it will be an easy source of tax dollars soon

Sun, 06/26/2011 - 20:26 | 1404034 gmrpeabody
gmrpeabody's picture

Well, let's see.

They can keep most of the sheep in line with fast food and quality network television. Don't forget beer and sports to keep those guys on the farm. A little legal pot goes a long way towards soothing the rest.

Now then..., who isn't happy?

Sun, 06/26/2011 - 20:32 | 1404048 Bringin It
Bringin It's picture

Speaking of drugs, why is it suddenly okay to smoke pot?

Hi Orly - 2 things, 1) the people need to chill as their situation becomes appearent.  Stoned people are complacent if they can keep getting stoned.  Work ethic diminishes, affecting profits, but no worries when there are no jobs and 2) To reduce the mindwarp when the Zoloft can no longer make it to the distribution points/pharmacy/Walmart.

I agree it's interesting how the laws are relaxed as the water starts to boil around the frog.

Mon, 06/27/2011 - 01:48 | 1404771 Cathartes Aura
Cathartes Aura's picture

apparently, marijuana "lowers testosterone" (phytoestrogens), which would no doubt be of interest to those on a population reduction kick. . .


Sun, 06/26/2011 - 22:53 | 1404544 Prometheus418
Prometheus418's picture

It'd be really hard to fight a revolution when stoned.

Sun, 06/26/2011 - 23:11 | 1404587 Great Dane
Great Dane's picture

1) the PTB have taken the jobs and credit, so your health is going to cost you next.  frankenfoods and radioactive fallout will need nice soothing weed in a few years time.


Also, guys re-watch that movie (on-you-tube) called the handmaids tale.  notice the all-seeing eye flag and radioactive fallout storyline, drop the relegion however and subsitute for gloabal socialism or something.


also, notice Wall street and the bid digital clock behind sheen  9:11:43. hmmm?  (43rd prez.)

Sun, 06/26/2011 - 14:57 | 1403362 dwdollar
dwdollar's picture

They should have been demanding payment in gold years ago.  Instead they're doubling (tripling, quadrupling, who's counting anymore?) down on debt that is obviously not payable. 

They're not that bright.

Sun, 06/26/2011 - 15:17 | 1403406 malikai
malikai's picture

Pump & Dump. Just like earlier this year. Next on the subject will be Tyler posting some bloomberg charts showing massive unloading of Euros into a (temporary) sellers market thanks to this latest dose of hopium. Wash, rinse, lather, rinse, repeat.

Sun, 06/26/2011 - 17:23 | 1403615 trav7777
trav7777's picture

so they will empty out the cities they have that actually have people in them?

There is no 21st century superpower unless they invent fusion and monopolize it.

A superpower isn't famous for counterfeit Louis Vuitton and other consumer merchandise as a major export.

Sun, 06/26/2011 - 17:24 | 1403616 Kayman
Kayman's picture

Sino Forest is a microcosm of the host country- China. Fraud, illusion and theft on a micro and macro scale.

"The Asian dragon needs to relocate one third of its entire population elsewhere ".

It would be cheaper to lease Siberia from Putin.

Europe has never been kind to visible minorities.

Sun, 06/26/2011 - 18:36 | 1403726 snowball777
snowball777's picture a microcosm of the global ponzi.


Sun, 06/26/2011 - 19:00 | 1403777 Saxxon
Saxxon's picture

Wanklord; Africa, Myanmar and SE Asia will serve as the breadbasket and colonization will go there if anywhere.  Very remote scenario in any event and the U.S. is under no duress that way.

Cantonese is peculiar to Hong Kong and generally Guandong Province; Mandarin is the national language.

Sun, 06/26/2011 - 14:14 | 1403271 Ahmeexnal
Ahmeexnal's picture was only a matter of time:

yomomma so poor, she's european and gotta be bailed out by a chinese



Sun, 06/26/2011 - 14:52 | 1403353 10kby2k
10kby2k's picture

Europe subservient to Chinese.  Learn Mandarin.

Sun, 06/26/2011 - 15:05 | 1403379 Bob
Bob's picture

Hell, you gotta wonder why they wouldn't "loan" the PIIGS US Treasuries for them to then present as collateral for more "private" and other loans. Win-win?

Sun, 06/26/2011 - 16:38 | 1403549 Urban Redneck
Urban Redneck's picture

Like Timothy F. Geithner, Secretary of the Treasury of the United States of America, who learned Mandarin, and who even lowly Chinese school children feel is worthy of ridicule to his face?

Sun, 06/26/2011 - 18:41 | 1403731 snowball777
snowball777's picture

Euro-momma so poor, she went to a chinese massage parlor and had to give a handjob.

Sun, 06/26/2011 - 18:39 | 1403736 Orly
Orly's picture

Euro-momma so poor, her doorbell says, "Ding."

Sun, 06/26/2011 - 18:46 | 1403749 snowball777
snowball777's picture

Aw, at least get it right...

Euro-momma so poor, when I ring your doorbell, she says, "Ching?".

Sun, 06/26/2011 - 20:20 | 1404006 Ahmeexnal
Ahmeexnal's picture

Euro-momma so poor, when the garbage truck comes around, she runs with an empty can to get it REFILLED.

Sun, 06/26/2011 - 14:28 | 1403308 CrashisOptimistic
CrashisOptimistic's picture

People walking in the street does not affect banking bonuses.

Bullets lodging inside skulls, otoh, is bad for business, and change would then occur.

Not until.

Sun, 06/26/2011 - 16:52 | 1403562 Freddie
Freddie's picture

You are talking about the bilderberger's puppets.  Until you get to the ringleaders - nothing changes.  How many wars have they started?  In WW2 - 30 million died.  The ringleaders were nevr touched.  They were behind the US Civil War and many others.

They looted the Soviet Union of gold, diamonds et al as Stalin murdered tens of millions for a certain european banking family of satan.

Sun, 06/26/2011 - 17:23 | 1403614 scatterbrains
scatterbrains's picture

speaking of things Satanic.....


Sun, 06/26/2011 - 14:46 | 1403347 10kby2k
10kby2k's picture

Most of the strikers would use one of their 90 sick leave days to stay home and watch footy.

Sun, 06/26/2011 - 18:51 | 1403752 snowball777
snowball777's picture

And if the footy players are the strikers?

Sun, 06/26/2011 - 15:27 | 1403422 Yen Cross
Yen Cross's picture

 lack of Liquidity and all!  Good bet!

Sun, 06/26/2011 - 19:36 | 1403875 Roger Knights
Roger Knights's picture

"Pretty sure striking on a Sunday is moot."

Never on Sunday, sever on Monday.

Sun, 06/26/2011 - 20:26 | 1404033 Republi-Ken
Republi-Ken's picture

NEVER ON SUNDAY....or do it greek style.

Sun, 06/26/2011 - 14:04 | 1403235 DoChenRollingBearing
DoChenRollingBearing's picture

I do not think this little exercise is going to work out well for the Chinese.  The only way I see that is does, is if China gets a lot of Europe's gold.

Like that's going to happen.

Sun, 06/26/2011 - 14:06 | 1403240 Ahmeexnal
Ahmeexnal's picture

no shiny stuff? how about settling debt with pink stuff?

Sun, 06/26/2011 - 14:17 | 1403279 Bay of Pigs
Bay of Pigs's picture

Gold swaps are hidden from public view. You can better believe China is demanding something tangible in return.

How they get their hands on the physical gold is another story. 

Sun, 06/26/2011 - 15:46 | 1403451 macholatte
macholatte's picture

You can better believe China is demanding something tangible in return.

there's lots of stuff besides PM's like...... farm land, claims to natural resources in Africa & South America, crepes and cognac, yogurt, ball bearings, nuclear reactors, sports cars, shoes, roquefort and Bordeaux, stainless steel, spaghetti and the Riviera.

Sun, 06/26/2011 - 16:54 | 1403567 Bay of Pigs
Bay of Pigs's picture

Of course there is. I wasn't implying otherwise, just commenting on their gold reserves.

Sun, 06/26/2011 - 17:23 | 1403610 macholatte
macholatte's picture

and I was agreeing with you..... It would be silly to believe that a Chinese cargo plane flew over the EU and simply dropped a gazillion space bucks without first getting some kind of security for it, even if that security is not necessarily a physical commodity. Sometimes a promise to pay leads to greater things. For example, easy immigration for Chinese which leads to de facto colonization of Europe. You know, eat the body from the inside and stuff like that.

Sun, 06/26/2011 - 21:28 | 1404344 trav7777
trav7777's picture

The chinese aren't master fucking planners.  JFC, during Japan's ascent, at least their brands were known for something.  Name me one Chinese brand.

All this asian supremacy bullshit you idiots spout...colonization of europe??  WTF for, to collect welfare?

I thought china was the future; why the hell would they want to migrate to europe, the freakin weather?

Sun, 06/26/2011 - 14:20 | 1403273 Libertarian777
Libertarian777's picture

Or silver. The Chinese love silver. Remember how the opium war got started?

Sun, 06/26/2011 - 16:13 | 1403510 SMG
SMG's picture

This is truly desperation. Look at SHIBOR.  No way this can last.  Crash is probably coming soon.

Sun, 06/26/2011 - 14:27 | 1403237 Ahmeexnal
Ahmeexnal's picture

chinese sugar daddy for all euroladies!

oh, the irony. the latest craze in cosmetic surgery to break out in western nations: slanty eye surgery.  you could not make this up no matter how hard you tried!

all you need is a hollywood big shit blond&blue-eyed actor/actress to debut on the silver3Dscreens with slant eyes for this to go viral.

whiggers are so last century. it's whinese age now!

Sun, 06/26/2011 - 15:52 | 1403455 macholatte
macholatte's picture

no "H" in Wigger


Snoop dog - Wigout

Sun, 06/26/2011 - 18:34 | 1403722 Ahmeexnal
Ahmeexnal's picture

Seems like in proper british english they do use the "H":

Just as they add the "U" in colour.

Sun, 06/26/2011 - 18:44 | 1403741 snowball777
snowball777's picture

We are now in the "de-bling-ification" stage.

Sun, 06/26/2011 - 17:01 | 1403538 Orly
Orly's picture


I like it.




Sun, 06/26/2011 - 18:55 | 1403766 geminiRX
geminiRX's picture

Lady gaga would probably be a good catalyst

Sun, 06/26/2011 - 14:07 | 1403247 Kayman
Kayman's picture

China is always ready to offer Vendor Financing for their junk.  And loves tweaking the Western nose.

What price revolution ?  That is the financing limit for China.

Sun, 06/26/2011 - 14:11 | 1403264 Ahmeexnal
Ahmeexnal's picture


tweaking the Western nose


How many Wall Street cokeheads are aware they are snorting melamine-diluted shit?

That would explain their full-retard attitude towards...everything.

Sun, 06/26/2011 - 14:46 | 1403336 nevadan
nevadan's picture

Vendor financing was my first thought.  They own us, next up is Europe.

Sun, 06/26/2011 - 15:51 | 1403461 Kayman
Kayman's picture

Wen was interviewed while touring a British MG car assembly plant; naturally assembling "made in China" parts.

Altruism is not the China hand.

Sun, 06/26/2011 - 14:06 | 1403255 Mae Kadoodie
Mae Kadoodie's picture

Now that is what I call a "happy ending".

Sun, 06/26/2011 - 14:14 | 1403262 The Axe
The Axe's picture

Happy ending always cost extra..

Sun, 06/26/2011 - 14:12 | 1403257 Rynak
Rynak's picture

...and will continue to do so, until China finds itself in the same lock out as half of Europe currently.

Does anyone with any significant political/economic/financial power, even bother to think long- or even just midterm anymore? Or is that genius now in the hands of the few unknown countries how bet on "the last will be the first"?

Sun, 06/26/2011 - 14:15 | 1403258 plocequ1
plocequ1's picture

Emperor Joseph II speaks..  "Well, There it is."

Sun, 06/26/2011 - 14:14 | 1403260 markmotive
markmotive's picture

And I, for one, welcome our new Chinese overlords

Sun, 06/26/2011 - 14:16 | 1403275 topcallingtroll
topcallingtroll's picture

This might be the sign to go long the market for a while.

Sun, 06/26/2011 - 14:29 | 1403309 AmCockerSpaniel
AmCockerSpaniel's picture
Do not under estimate the value countries like China put on honor. They are not quite like US. They really mean what they say. The key word here is "pursue". On a time long lone ago, we too talked softly. But, carried a big stick. Now; We are know for fraud/ lying.
Sun, 06/26/2011 - 16:49 | 1403565 Urban Redneck
Urban Redneck's picture

Honor to a Chinaman is like CDS to Banker, the counter-party determines its worth when things go south.


The world stage, however, when the ruling elite are on display, would outweigh what otherwise would be deemed an inferior counter-party.  However, that is relatively small subset of the business conducted with China, reverse-merger fraud, poisonous pet food, et. al will suffice on a daily basis as a good yardstick by which to measure honor.

Sun, 06/26/2011 - 18:19 | 1403685 AmCockerSpaniel
AmCockerSpaniel's picture

Did not some of the ones responsible for the fraud in China (pet foods), pay for that with their lives? Now just what have our banks paid for all they have done? We give tens of billions in bonus to ours.

Sun, 06/26/2011 - 21:36 | 1404356 trav7777
trav7777's picture

dude, there are frickin chinese fraud stocks crashing DAILY.

What the fuck are you people SMOKING that you think china is about HONOR?

They freaking are known for STEALING intellectual property and COUNTERFEITING luxury brands and everything else they can get their hands on.

Mon, 06/27/2011 - 04:42 | 1404844 malikai
malikai's picture

They freaking are known for STEALING intellectual property and COUNTERFEITING luxury brands and everything else they can get their hands on.

...just like the good ol' USA back in the 1800s and early 1900s.

Sun, 06/26/2011 - 22:00 | 1404427 stev3e
stev3e's picture

>>Do not under estimate the value countries like China put on honor.<<


This is a joke right?

Sun, 06/26/2011 - 21:07 | 1404194 exiledbear
exiledbear's picture

And I can tell, you've never worked for the Chinese. Coz if you had, you wouldn't welcome them anywhere you live.


Sun, 06/26/2011 - 14:17 | 1403267 topcallingtroll
topcallingtroll's picture

I will believe it when I see the amount and terms of finance

Sun, 06/26/2011 - 15:33 | 1403425 Yen Cross
Yen Cross's picture

 +1 good point TCT!    Yen

Sun, 06/26/2011 - 14:13 | 1403268 delivered
delivered's picture

DIP financing being offered by China, that's all. I have little doubt that China will be receiving some type of direct or indirect benefits and/or collateral in exchange for these hand outs. But why not as China can move some of its US debt in a relatively strong market (based on recent action in USDs and USTs), diversify further into Europe (and strenghten market ties), and fuel its PR efforts of being a world economic leader/resource (than an evil market manipulator). The best (and cheapest) time to take market share is when the competition is at its weakest so with the stronger European countries balking at further bailouts (e.g., Germany), Japan focused on rebuilding, the Middle East in complete turmoil, and the US in no political or financial position to support the type of financial bailouts required, the discount window is wide open. But for the European countries taking these handouts, just remember one thing. There is no such thing as a free lunch.



Sun, 06/26/2011 - 15:57 | 1403474 Kayman
Kayman's picture

"There is no such thing as a free lunch"

You, sir, are no modern day Keynesian.

Sun, 06/26/2011 - 14:14 | 1403269 Arrowflinger
Arrowflinger's picture

Vendor Financing to deadbeat customers? The Chinese leadership must have all gotten Ivy League PhD's.

Sun, 06/26/2011 - 14:17 | 1403280 Ahmeexnal
Ahmeexnal's picture

China has just bought themselves slaves for what....worthless printed-out-of-thin-air paper.

They won without firing a single shot.

Sun, 06/26/2011 - 15:36 | 1403436 malikai
malikai's picture

Nobody has won anything until real wealth has been transferred.

Sun, 06/26/2011 - 15:59 | 1403483 Kayman
Kayman's picture

They are trying to curry favor from a bunch of dead-beat nations.  So who is the smart one here ?

Sun, 06/26/2011 - 14:18 | 1403272 Sean7k
Sean7k's picture

The Chinese are merely following the golden rule: he that has the gold, makes the rules. Europe will either default or regret taking the money. 

Of course, if we assume that China is a part of the global elite, then they are merely taking the role of the US after WWI, when we bailed out and funded European deficits. It's all a game and the Europeans are managing it. I wonder why the Rothschilds are so invisible? Yet their muddy hands are all over the machinations of the bankster Elite.

The only solution is to not play. They need us to surrender our production and wealth for their fiat funny money. Which is the greatest crime, to violate a law intended to enslave or to support and strengthen the powers that enslave you with it?

Sun, 06/26/2011 - 14:26 | 1403294 PY-129-20
PY-129-20's picture

1:he that has the gold, makes the rules...

According to ARTE Février-2011 (Le Dessous des cartes):

1st: USA ----------- 8134 t
2nd:Germany------- 3402 t
3rd: IWF------------- 2827 t
4th: Italy-------------2452 t
5th: France---------- 2435 t
6th: China------------1054 t

Sun, 06/26/2011 - 15:19 | 1403340 Bay of Pigs
Bay of Pigs's picture

These figures are meaningless.

Gold swaps and leases are the reason why. No way the USA has that much gold unencumbered anymore. Or Germany, who's gold is sitting in NYC.

That hearing last week proved beyond a shadow of a doubt that even the UST has no idea what is going on behind the scenes with the the US gold horde and the IMF. If they do know, Thorson certainly wasn't telling anyone what the story is. 

Sun, 06/26/2011 - 14:47 | 1403348 mt paul
mt paul's picture

8134 t

of gold foil covered chocolate bars..

Sun, 06/26/2011 - 16:51 | 1403570 Freddie
Freddie's picture


Willy Wonka's golden ticker.  Fort Knox is filled with tungsten core, gold plated monopoly gold..

Sun, 06/26/2011 - 14:59 | 1403364 carbonmutant
carbonmutant's picture

Somewhere in that pile is a motherload of titanium...

Sun, 06/26/2011 - 22:03 | 1404438 stev3e
stev3e's picture

>> he that has the gold, makes the rules<<

until the other guy sends in the Marines.

Sun, 06/26/2011 - 14:22 | 1403282 ISEEIT
ISEEIT's picture

Pssst... EUR 1.50 and obammu 012. Inside scoop, so keep it low kay? China has their backs.

Sun, 06/26/2011 - 14:45 | 1403326 magpie
magpie's picture

yup, that's all there is to it...but EuroPOMO will come anyway - where's the EFSF going to get half a trillion ?

Sun, 06/26/2011 - 14:30 | 1403311 CrashisOptimistic
CrashisOptimistic's picture

Why would China not buy bonds from Euro countries.

As long as they get the prevailing market interest rate, what's the big deal?

Sun, 06/26/2011 - 14:31 | 1403313 Atomizer
Atomizer's picture

Have to appreciate the WSJ comments. Poor J6P learning about (2+2 =5) fuzzy math bit.

Banks Reach Deal on Capital Buffer

Sun, 06/26/2011 - 14:36 | 1403319 zorba THE GREEK
zorba THE GREEK's picture

 USA 8134ton

 I know someone who was in Fort Knox, he says vaults are empty.  

 If Europe borrows money from China, they won't want to default.

 China will sent 1billion collection agents and they won't be coming

 back empty handed. Who is going to stop them.

Sun, 06/26/2011 - 16:55 | 1403577 Crab Cake
Crab Cake's picture

Who is going to stop them? What a goofy question. We live in a nuclear age as far as true national brinksmanship is concerned. There is a gentleman known as ICBM that renders conventional warfare... smaller; no matter whether a force of several hundred million is even theoretically possible from a force projection/economy standpoint.

MAD has been on the table since Korea in the 50's, for any state that has the means. Nobody wins a global atomic knife fight. My guess, sometime in the next ten years or so, some nukes are going to get lobbed when somebody finally gets the bills dropped on them economically.

Sun, 06/26/2011 - 16:57 | 1403578 Crab Cake
Crab Cake's picture


Sun, 06/26/2011 - 22:24 | 1404492 jonytk
jonytk's picture

I think the ECB won't have any problem printing some Eurs and sending it to china, it's the way the US did it, exported all the inflation to china i mean. "brilliant"

Sun, 06/26/2011 - 14:46 | 1403333 meatball
meatball's picture

So problem solved? With A bailing out B, and C bailing out A, things will never crash then, or am I missing something?

Sun, 06/26/2011 - 15:03 | 1403370 carbonmutant
carbonmutant's picture

This goes to show how desperate China is for an alternative currency to the $Dollar.

They're trying to bailout a culture of corruption with no hope of getting paid back.

Sun, 06/26/2011 - 15:46 | 1403454 kaiserhoff
kaiserhoff's picture

The greater fool theory goes global.  LOL

Sun, 06/26/2011 - 17:00 | 1403586 Freddie
Freddie's picture

European culture of corruption is worse than Chicago Hope & Change Democreep culture of corruption or Chi-Com corruption aka Sino Forest ?

The ChiComs will have strings attached.

Sun, 06/26/2011 - 21:34 | 1404363 trav7777
trav7777's picture

China IS a culture of corruption.

Sun, 06/26/2011 - 14:47 | 1403337 Atomizer
Atomizer's picture

Leave no pixie dust, skittle, unicorn, and Basel III behind.

Sun, 06/26/2011 - 14:44 | 1403339 LRC Fan
LRC Fan's picture

Anyone remember this one:

If you owe the bank $100,000 then that's your problem

If you owe the bank $1,000,000,000 then that's their problem.

Updated versions for 2011:

If you owe China $1,000,000,000,000 then we can print some more

If you owe China $1,000,000,000,000 and they demand gold/silver... then you're fucked. 


If JP Morgan needs some silver from the Comex they can print some more

If you want delivery of your silver from the Comex...will you be so kind to take this fiat instead? 

Sun, 06/26/2011 - 14:44 | 1403341 mt paul
mt paul's picture

china has the right idea ..get rid of dollars

lend euroland all the worthless dollars they want

get repaid in something of value, land, food ,goodwill ect..

thinking this 30 mil barrel of oil that obama released from SPR

goes right to china as interest payment ...hush money sans dollar

is a sorrie state of affairs when your creditors want payment 

in a currency other that the one you print more fantasy fiat 

next month another 30 mil barrels to china ..?


Sun, 06/26/2011 - 14:53 | 1403354 Yen Cross
Yen Cross's picture

 @2 Trillion worth of Italy, is on the BLOCK!  Payment via EURos only!

Sun, 06/26/2011 - 14:54 | 1403355 snowball777
snowball777's picture

As for the IMF popularity contest, better known as "who is thst most feminine",


I thought you meant the drag queen pageant that is the Eurozone for a second.

Sun, 06/26/2011 - 14:56 | 1403360 Yen Cross
Yen Cross's picture

 I stand corrected 777. it/s nice to have your [intelligence]    Yen...


   Please tell me Angela isn't the answer? And that Aussie phone book "Comes to Mind"



Sun, 06/26/2011 - 15:12 | 1403391 snowball777
snowball777's picture

Thankfully, Frau Merkel was disqualified for lack of balls (how fitting)...can't speak for Dame Edna's stance on the Euro, but I hear her house is "still on the market" (sorry, was that your bubble, mate?) and digging up coal for the juggernaut has gotten dicey what with mother nature popping off and the like.


Sun, 06/26/2011 - 15:21 | 1403407 Yen Cross
Yen Cross's picture

 Infinity.  yen

Sun, 06/26/2011 - 14:54 | 1403357 apberusdisvet
apberusdisvet's picture

Hmmm.  I wonder what the supporting collateral will be?

Sun, 06/26/2011 - 14:56 | 1403359 carbonmutant
carbonmutant's picture

Better them than US....

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