China State Official Hints Beijing May Bailout Greece

Tyler Durden's picture

On Monday, after Greek PM Alexis Tsipras’ dramatic referendum call sparked a run on Greek ATMs, grocery stores, and gas stations, we did our part to help ameliorate the situation by sending a subtle message to Athens:

Indeed, now may be an opportune time to tap Beijing for a few billion given that China officially launched the AIIB this week. As a reminder, the success of China’s AIIB membership drive was a political disaster for The White House, which expended considerable effort to discourage US allies from supporting the new China-led venture.

As such, it would be difficult to imagine a more fitting pilot program for the world’s newest supranational lender than a rescue package for the birthplace of Western democracy which has been brought to its knees by that most Western of all multilateral institutions, the IMF. 

And while any funding to Greece from China would likely be channeled through the Silk Road fund (at least for now, given that the AIIB is just a few days old, officially), any aid from Xi Jinping’s deep pockets to Athens would represent a spectacular coup on both an economic and political level.

While the world is by now likely incredulous about the prospects for a Greek “Eastern” pivot (around a half dozen Russian headfakes have made us somewhat numb to the idea), Chinese assistance might be more likely than Europe cares to admit. Sputnik News has more:

China may help Greece directly through its new financial instruments, director of the Quantitative Finance Department at China's Institute of Quantitative and Technical Economics told Sputnik China.

 

Goldman Sachs predicted in a report published on Wednesday that in a worst-case scenaria China's exports would decline 2.2 percent as a result of Greece's economic crisis. Other than exports to Greece itself, the crisis could also hurt the economies of nearby countries, where Chinese businessmen have also made considerable investments.

 

"The Greek crisis has an undoubtedly seriously influence on China's trade with Greece and investment into the country. But I think that European countries together with China can help Greece overcome the problems that arose," Fan Mingtao said.

 

"I believe there are two ways to give Greece Chinese aid. First, within the framework of the international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank. China has this ability," Fan added.

And while it's impossible to overstate how hilariously ironic it is that Communist China could be the world's best hope for preventing the birthplace of Western civilization from careening into the Third World, there's a more subtle joke here as well. We'll let readers discern what that joke is with the help of the following graphic:

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SloMoe's picture

Easier to buy some islands, than build more of their own?

Deathrips's picture

Make one condition that the IMF gets nothing! More liquidation of UST.

 

 

RIPS

tc06rtw's picture

 … I always get sick when I mix Greek and Chinese !

macholatte's picture

 

There is always a caveat in Chinese aid and that is relaxed immigration standards.

 

 

ParkAveFlasher's picture

Greece does need more neighborhood massage shops.

kaiserhoff's picture

Let the dragon eat the debt.

  Why not?

Haus-Targaryen's picture

lol oh fuck.  

That was unexpected.  

We just need the Chinese to tell the Greeks "vote no, and we have cash for you."

"Dear Greece, vote "no" take $30 Billion in UST, leave the EUR, but stay in EU and NATO, and every year you vote the way we want you to -- you get another $2 Billion"  

http://www.focus.de/finanzen/videos/vor-einer-eu-vertretung-eu-eurozone-...

On an aside -- you know things in Greece are super fucked up when the Nazis & the Commies want the same thing. 

 

New England Patriot's picture

Washington will let Moscow or Beijing buy Athens over our dead bodies. 

Soul Glow's picture

With heavy trading in the dollar the value is decreasing due to the increase in velocity in the $100T dollar market.

The dollar is run into but then loaned out again by bond desks worldwide.  The game is going into overdrive and the currency market will be folded into itself like a super nova.

The bang will be defeaning.

ZerOhead's picture

Looks to me like the Hegelian dialectic and the "Good" NWO vs. the "Bad" NWO false paradigm is alive and well.

China, Russia and BRICs to the rescue as predicted... then later onward with the IMF-SRD (AKA "the Phoenix")

Even Schaeuble hinted that Greece could vote "No" and still remain in the European Union to make it easier for Greece to exit the currency union (Euro) > http://www.bloomberg.com/news/articles/2015-06-30/schaeuble-said-to-see-...

I think anyone who doesn't have a clue what I am talking about would be wise to take a couple minutes and read some of Brandon Smith's writings.

This a good overview of the situation... > http://www.alt-market.com/articles/2626-the-us-and-eu-will-collapse-rega...

ZerOhead's picture

You're a smart man Dave and that's a great little site.

Actually they can vote "No" and exit the euro into the nascent "Good NWO" right now... or they can vote "Yes" and relinquish all national sovereignty to Brussels in the process and probably still remain in the European Union in both instances.

Either outcome suits the interests of the Globalists equally but I think they will leave and get the IMF-SDR started in earnest. It's getting very late in the old Ponzi that has been wired to blow like WTC's 1,2, 6 and 7.

Publicus's picture

Greece banks will reopen with Yuan + no more tradings with the EU.

MollyHacker's picture

Before this is over there'll be blue helmets and others to loot & destroy Greece.

Crawdaddy's picture

I'm guessing blue helmets are a way to trick eveyone into thinking oppressors are easily recognisable. When the balloon goes up, the TPTB want us to be the last to know it is our friends and nieghbors who are the new enforcer class. The oppressors will look like anyone in town. Hiding in plain site until the tipping point TPTB initiate.

the kings whore's picture

I don't see the Greeks voting to leave the Euro.  If they decide to stay, then Tsipras will have to resign.  The blue helmets will be allowed to stay at home.

Crawdaddy's picture

wired to blow like WTC's 1,2, 6 and 7

Poetic!  That makes me want to learn how to play punk rock just so I can start a band and name it "wired to blow like WTC's"

disabledvet's picture

This all sure looks like a lot of really bad ideas all lumped together near as I can tell.

The USA has like ZERO interests in Europe. So now we're being drawn into Russo/Eurpean War?

And an economic at that???

This sounds like defaults for as far as the eye can see as prices fall everywhere and the bulk of human civilization goes full on "beggar thy neighbor."

Whatever it is it sure looks too late to stop any of it.

"Fukushima" and "Crimea" and now a Chinese equity collapse...these things can be stuck in place for a VERY long time.

No surprise the SpaceX rocket blew I guess...shouldn't be a problem to mint real copper pennies though that's fer sure...

eforce's picture

Over a century ago...

6. The people, under our guidance, have annihilated the aristocracy, who were their one 

And only defense and foster-mother for the sake of their own advantage which is 

Inseparably bound up with the well-being of the people. Nowadays, with the destruction 

Of the aristocracy, the people have fallen into the grips of merciless money-grinding 

Scoundrels who have laid a pitiless and cruel yoke upon the necks of the workers. 

 

7. We appear on the scene as alleged saviours of the worker from this oppression when 

We propose to him to enter the ranks of our fighting forces - socialists, anarchists, 

Communists - to whom we always give support in accordance with an alleged brotherly 

Rule (of the solidarity of all humanity) of our social masonry. The aristocracy, 

Which enjoyed by law the labor of the workers, was interested in seeing that the workers 

Were well fed, healthy, and strong. We are interested in just the opposite - in the 

Diminution, the killing out of the goyim. Our power is in the chronic shortness 

Of food and physical weakness of the worker because by all that this implies he is made 

The slave of our will, and he will not find in his own authorities either strength or energy 

To set against our will. Hunger creates the right of capital to rule the worker more surely 

Than it was given to the aristocracy by the legal authority of kings.

 

8. By want and the envy and hatred which it engenders we shall move the mobs and with 

their hands we shall wipe out all those who hinder us on our way. 

 

(Note: The Protocols is a blatant plagiarism, so "goyim" could easily be replaced by "common man".)

Crtrvlt's picture

indeed very odd on your aside

 

establishment vs not is how it's split

Dubaibanker's picture

I said this here a couple of weeks ago that Russia and/or China will eventually bail out Greece. Russia is physically and politically close (being Leftist like Syriza party) plus has very decent sized reserves and China is the only country who is not bankrupt nor loaded with debt unlike every other nation in the world barring a few oil exporting nations. 

Four chan's picture

joint project for chump change = finger in wests eye

garcam123's picture

Nice Tits.......r they really yours?  Want to rent them?   UMMMMMMMMM

Typical male hung on nips!  Not Japanese!

SMG's picture

Plus Greece is a NATO country, and this would give Russia/China a say in NATO. It would be huge, which is why it probablly won't happen.

Carpenter1's picture

Yep, it'll happen, but not until Greece declares all its debt "odious."

 

 

Tinky's picture

China's not loaded with debt?

Say what again?

Dubaibanker's picture

Yep! You may be surprised but the Govt has over USD 4 trilion in reserves.....and have bought almost every single asset in the world over the last 5-10 years that has come to the market at distress prices yet are able to bail out Greece....Russia...Portugal...what not. Don't forget AMC theatres or Waldorf Astoria or JPM HQ or Motorola or Volvo or Peugeot....so yeah..they have enough cash!

With these asset purchases, they have started new revenue streams.

They have margin debt ONLY in stocks...but with 90 million stock trading accounts ONLY investing so far...this margin debt will keep rising....because it is backed by solid cash generating and profitable companies.

They have almost no debt issues in real estate because it is very typical of the Chinese not to buy anything on debt especially in real estate.

Their oil companies, banks and other large companies are not riddled with debt unlike every other nation from Japan to US and everyone in between! Guess what, silly Americans sent billions to China by buying their Alibaba stock to help them, as if they needed more money!

Funny Americans, I tell you! Don't have money to eat yet keep sending billions to China! :)

Pretty sure you did not thunk of that!

Four chan's picture

maybe "black china" is more appropriate than red. 

Almost Solvent's picture

Heard the same thing about Japan in the 1980s - they are going to buy the world.

 

And the Greeks don't have the ability to pay this back - so it's a circle jerk where China gives Greece the cash to payoff EU & IMF.

 

Now China 'owns' Greece' - but how to profit? Naval bases? Free immigation for a few million Chinese?

 

And - the U.S. always has at least $1 MORE USD than anyone else (crtl P and all that MAD scenarios)

 

GoD- when does Judgment Day arrive? Why have you foresaken us to these fucking money-changers?

Dubaibanker's picture

Because it's a zero sum game....money flows like water...wherever there is growth.

The money from bankrupt countries has moved to Asia...what can I say?

They are productive (as in producing more than a decade ago), are thrifty people and good savers, are consuming more than ever before....it is a natural cycle...someone on this planet has to be doing well....if it's an entire nation..so be it!

I talked about Japan a few months ago...why it is not the same as China....cannot find the link in my prior comments...and cannot be bothered to type out all 8 points again...Japan of the 80's and China of today are like chalk and cheese....that's all I can say..there is simply no comparison.

China will take over the world for good....Japan was always subservient to the US and continues to be so until this day, especially after being bombed by the Yankees!

Not Too Important's picture

"GoD- when does Judgment Day arrive? Why have you foresaken us to these fucking money-changers?"

The First Judgement Day occured on 3/11/11, when Fukushima blew up. 3 massive cores blown sky-high, along with their Spent Fuel Pools, and the rest of all the nuclear fuel on site burned in the following weeks.

The melted cores are now well below any containment, with a fresh water river flowing over them and into the Pacific Ocean. The Northern Pacific Ocean is, for all intents and purposes, dead. Fish are dying all the way down to the southern tip of Chile. Those cores will increase in temperature for 250,000 years, what's been thrown into the jetstream and dispersed around the world will be lethal for a billion years.

And Fukushima is only the beginning. There are more facilities in Japan on the coastline that have been rocked by further earthquakes and are in grave danger of losing power to the cooling systems - more explosions and fires.

Most nuclear power plants around the world are now well past their expiration dates, and complete engineering failure to atmosphere is only a short matter of time.

There is no escape, this massive global distribution of plutonium and enriched uranium will slowly - and painfully - kill all life on Earth, and in its' seas.

No one said Judgement Day would be over quick. We are only at the beginning of a billion year long, horrific Hell on Earth, courtesy of the psychopaths at the top of the Pyramid.

Judgement Day has already come, and there will be more - every time a nuclear power plant explodes.

God is pissed, and is going to cook us all off slowly.

Yen Cross's picture

 China DOES NOT have $usd 4 trillion in F/X reserves. I repect your analytics and posts, but that figure is factually incorrect.

 At best China has 2.8-3.2 trillion $usd "equivalent" in F/X reserves. China is struggling with F/X outflows, and has been for 2-3 years.

bid the soldiers shoot's picture

 

Right.  

I read months ago it was down to under $2 trillion.

They've been selling into the strong dollar.

But not so much as to drive down the price of high flying buck.

Dubaibanker's picture

Hey Yen,

Thanks for your comments.

Here is proof that the USD 4 trillion number is indeed correct and that too from St Louis Fed. https://research.stlouisfed.org/fred2/series/TRESEGCNM052N

And you must account for dollar movement. Yuan has held steady over the last year while most currencies like that of Nigeria, Brazil, Russia, South Africa have got decimated. While Malaysia, Mexico, Australia, Canada, Europe are reeling under serious declines.

This does not include gold, therefore, these articles are to be added on top of the USD 4 trillion: 

Central Bank Gold Buying Soars To Near A 50-Year High

http://www.gold-eagle.com/article/central-bank-gold-buying-soars-near-50...

China's central bank may have secretly bought 300t of gold this year

http://www.mining.com/chinas-central-bank-may-have-secretly-bought-300t-...

China Says To Help Qatar Central Bank Buy Chinese Bonds

http://gulfbusiness.com/2014/04/china-says-help-qatar-central-bank-buy-c...

Chinese central bank has 2% of Mediobanca

http://www.ansa.it/english/news/business/2014/10/21/chinese-central-bank...

China central bank buys 2 percent of Italy's Eni, Enel

 In my view, there are no real outflows out of China. Whatever outlfows are there causing movement in the reserves etc, are going to invest overseas into distressed assets which will generate nice cash flows and superlative returns in the next decade. Rather, thanks to the anti corruption drive, money has stopped flowing outward as much in the last year. Most of the 'outflows' are basically currency adjustment due to the 'strong' dollar since most assets are denominated in USD (but marked to market in yuan) but that is changing too.

US Treasuries have been sold in the last 1-2 years, help to Portugal, Qatar, Russia, Argentina, Venezuela, all of Africa etc been provided and yuan demand has been created with over 60 countries adding it to their reserves already. Once IMF includes yuan in SDR and MSCI announces addition of China later in 2015, things will look at a lot different by next year for the Chinese economy. 

China has just allowed all foreigners who have stayed in China for more than 4 years to be allowed to get 'immigration' status and be same like Chinese which will provide some more demand for real estate as well as add to the permanent talent pool.

 I would ask you to provide me some data for your statements on outflows and actual reserves and a clarification on your comment that my information is indeed accurate and not 'factually incorrect'.

biggestbrother's picture

How much do they pay you for trolling on behalf of the PROC?  ITs simpley not true what you say.  And its not true that Han are a superior race. 

Dubaibanker's picture

You been here 6 weeks and you already trolling...? 

Peek inside your conscience and tell us which Godforsaken Govt you work and get paid from? (Is it CIA or Mossad?) Yes...you just have 2 options....ok...I will throw in a third...NSA? maybe a fourth...MI6?

Trust me, your job is not worth the paper it's written on! Brain dead one at that! Seeking just money and no conscience or ability to think independently any more! Yes, money does that to people - it makes them like you! Do you remember ANYTHING they taught you in school? Assuming you went to one....

Wonder how you look at your near and dear ones when you go back home? Do you want to kill them too?

Herodotus's picture

Do they have all-you-can-eat Chinese buffets there?  Those are always popular.  Put one in every Greek town.

daveO's picture

They'll be hooked faster than you can say monosodium glutamate! Paid back quick.

Mountainview's picture

Don't insult the Chinese, they are bailing out your country! (wherever you are).

Mountainview's picture

and the Saudis too, but they are tamed by Uncle Sam.

11b40's picture

The Chinese would be a big improvement over the immigrants currently pouring into Europe.

Closet Boy's picture

As well, they are very fond to export their slave labor abroad.  You boys been out to W. Africa lately?

JLO's picture

P.I.G.S. wrapped in WONTONS. Must be good

silvermail's picture

IMF - is the only financial instrument the US authorities over the rest of the world and nothing more.
IMF - a subsidiary of the Federal Reserve. I mean that the IMF - is the tool of international influence in the mechanism of the world financial dictatorship of the Fed.

Bush Baby's picture

One problem with the new bail out rumor - China is not stupid.

 

Babaloo's picture

Yeah right - I'll give anyone here 3 to 1 that China doesn't send one red cent to Greece.

wendigo's picture

I'll take it. Stakes: 1 silver eagle. 

Proofreder's picture

Me too

What's a one ounce Eagle worth in Yen - or is it Yuan ??

Still around $25 on eBay.