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China Gives Up On Europe, Will Target Africa Instead

Tyler Durden's picture


That China has finally given up on Europe is no news (granted, however, it will make it more complicated for various European newspaper to make up articles alleging China will bail out Europe now that this is no longer the case): after all even the Norwegian sovereign wealth fund has finally learned its lesson, and having been burned enough times, has made it quite clear it will have nothing to do with Europe's insolvent periphery. China, which has already lost enough money on Europe, has now decided to do the same. From Bloomberg: "China Investment Corp. has stopped buying European government debt because of an economic crisis on the continent, though it continues to look for new investments there, said CIC President Gao Xiqing. “What is happening in Europe right now is of course of concern,” Gao said yesterday in an interview in Addis Ababa, Ethiopia, during the World Economic Forum on Africa. “We still have our people looking at opportunities in Europe, even though we don’t want to buy any government bonds.” Sorry Europe: you had your chance. As for where China will invest its capital in the future? Why the one continent so far untouched by globalization, and which has the most debt capacity of all...

Yes, Africa:

The Chinese sovereign wealth fund would “love” to boost investments in Africa, Gao said. The company is limited in how much it can invest in Africa because the projects are not large enough to fit its investment criteria, he said.


The fund is boosting investments outside of China as it seeks to increase returns on the nation’s foreign currency reserves and secure commodity supplies. The Chinese government injected about $50 billion this year in the sovereign wealth fund, Gao said. The government has not made a decision on whether to regularly inject capital into the company, he said.


“Right now, we are busy enough, so we don’t worry terribly about recapitalization,” he said. “In the long run, we should do something about it.”

And where the big money is heading, Goldman can't be far behind. Sure enough, as recently as a month ago, the firm released the following 32 page mangum opus setting the stage for the Second Congress of Berlin:

In the early 1990s, few European or American companies would have been quizzed on their strategies for China or Asia. Now it's often the first item on the agenda. Our investigation in this edition is into Africa, and it might provoke déjà vu: is now the time for multi-nationals to be investing in Africa? In short, our conclusion is yes. Africa's exceptionally robust growth over the last decade is probably understated (informal parts of economies are very big), but not being able to measure this growth precisely shouldn't detract from Africa?s potential, which is about much more than resources as it evolves and climbs the consumption, urbanisation and perhaps industrialisation curves that the BRICs have climbed. We believe meaningful opportunities for western consumer companies exist as Africa?s household consumption grow s rapidly (it is already greater than some of the BRICs) and that failure to invest now will see others rush in. Capital flows and trade flows into Africa are a microcosm of the changing world, with the BRICs already there, notably in commodities. We have interviews with investors and Standard Bank and Tiger Brands that paint a picture of rapid and misunderstood change, and pieces from our consumer staples, mining and insurance analysts that reinforce this

Now all that remains is for Jim O'Neill to replace BRICS with SCRAMBLE (Sudan, Congo, Rwanda, Algeria, Mali, Botswana, Libya and Ethiopia) and the next great resource grab arena will be all too clear.

Because make no mistake: this is all about resources. Europe has none left, nor does it have any assets anymore. Which means it is time for a new playground, lots of new debt and debt slaves, and in 20 years: another continent stripped of everything valuable but at least with 200% debt/GDP as far as the eye can see..

Full must read report on Africa from Goldman Sachs:



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Thu, 05/10/2012 - 10:21 | 2413026 Jason T
Jason T's picture

one of my Chinese stocks holdings, when I met with the CFO and CEO and asked about them exporting their products they said S. Africa was  a market they were testing out and looking to export to.  

The West is done for.  Hopeless debt basket case.

Thu, 05/10/2012 - 10:22 | 2413031 maxmad
maxmad's picture

Dollar is officially no longer the World's Reserve Currency!  It is Charmin!

Thu, 05/10/2012 - 10:26 | 2413045 redpill
redpill's picture

Where is Wadiya on that map??

Thu, 05/10/2012 - 10:32 | 2413066 Aziz
Aziz's picture

Wadiya is Washington D.C.

Thu, 05/10/2012 - 10:41 | 2413094 MillionDollarBonus_
MillionDollarBonus_'s picture

Anti-inflation libertarians often criticize President Robert Gabriel Mugabe for his expansive fiscal policy and the Zimbabwean Central Bank's generous monetary policy. But the fact is, Zimbabwe has gone through a painful but necessary transition to a more equal society. As an avid marxist, President Mugabe understood the need for a more equal Zimbabwe, where the greedy and racist farmers and white industrialists gave a fair share of their property to the state. Now that the painful transition is over, this country is beginning to thrive, much to the dismay of whiny libertarians and doomer Austrians.

Thu, 05/10/2012 - 10:49 | 2413113 battle axe
battle axe's picture

OK MDB, you have  gone  from funny to just plain nutty......

Thu, 05/10/2012 - 10:53 | 2413125 Freddie
Freddie's picture

Mugabe's doppleganger is in the White Hut.  Plenty of dicks posting here voted for him.

China's "investment" in Africa is to loot and plunder natural resources and labor.  The Africans will learn.  The westerners were slightly better.  The stupid west imported third world illegals and "asylum seekers" and have lost their countries do to the threat of racism.  The stigma of racism did more to destroy the west than 20 panzer divisions.


Thu, 05/10/2012 - 13:19 | 2413761 Joseph Jones
Joseph Jones's picture

Would you be so kind as to more thoroughly clarify your last two sentences?  Thanks.   

Thu, 05/10/2012 - 14:12 | 2413987 AnAnonymous
AnAnonymous's picture

Made me laugh.

Learn what? They have already gone through the clutches of US citizens. They know by now.

Imported third world illegals? A large number of them were imported legally.

And second, human beings follow the resources. As one transports resources from A to B, people follow.

It is been that way for millenia now.

And the chinese really need to up their game to match the slightly better achieved by US citizens. Once again, they are laggin behind, and one could wonder if they are able to achieve US citizen status...

Thu, 05/10/2012 - 16:36 | 2414539 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

And the chinese really need to up their game to match the slightly better achieved by US citizens.

Thus the testing grounds of Tibet, Mongolia, and Nepal for Chinese citizenism citizens to practice imposing slavery. This is rehearsal for Chinese citizenism blobbing up in Africa.

Once again, they are laggin behind, and one could wonder if they are able to achieve US citizen status...

Perhaps more weirdo ideas like life extension capsules filled with dried, powdered remains of human babies and fetuses will catch up Chinese citizenism to surpass US citizen status.

In Chinese citizenism, baby powder means powdered baby.


Thu, 05/10/2012 - 10:52 | 2413132 battle axe
battle axe's picture

OK MDB, you have  gone  from funny to just plain nutty......

Thu, 05/10/2012 - 11:12 | 2413216 Reptil
Reptil's picture


Thu, 05/10/2012 - 11:31 | 2413284 Elwood P Suggins
Elwood P Suggins's picture

How much do you have invested there?

Thu, 05/10/2012 - 11:56 | 2413431 marathonman
marathonman's picture

This is one of the most ridiculous comments I've read on ZeroHedge and I've seen some doozies.  Right, all we need to do is to take the land of the white guys, give it to the thugs and cronies of the murderer in charge, let the people starve from lack of food, and hyperinflate the currency because the policies were such an economic disaster.  Sounds like great policy MDB.  You enjoy BHO - he is the American Mugabe.  We'll see how popular the program is here.

Thu, 05/10/2012 - 12:07 | 2413485 Sanksion
Sanksion's picture

MDB is a marvel for spotting guys not able to smell an irony as large as Texas.

Thu, 05/10/2012 - 15:40 | 2414361 reTARD
reTARD's picture

MDB's super hero power is sarcasm. +1 to Captain Sarcasm!

Sat, 05/12/2012 - 04:53 | 2419572 MeelionDollerBogus
MeelionDollerBogus's picture

Now all the serfs of Zimbabwe trade 0.1 grams of gold for a loaf of bread.

That's all equal now.

That's what you meant, right MDB? Back to the gold standard?

Thu, 05/10/2012 - 11:00 | 2413160 Silver Bug
Silver Bug's picture

China needs to stop throwing good money after bad. Avoid the west, invest in gold and silver. They are.

Thu, 05/10/2012 - 13:08 | 2413727 narnia
narnia's picture

They are full board into Africa trying to get something / anything before the music stops for the bankrupt promises they are holding.

Thu, 05/10/2012 - 10:25 | 2413049 Sudden Debt
Sudden Debt's picture

Get real... The only people in Africa which I trust with my money is that Nigerian prince who's dying of cancer and who promised me to give me all his money when he dies.


Thu, 05/10/2012 - 10:34 | 2413070 maxmad
maxmad's picture

Are you referring to or President?

Thu, 05/10/2012 - 10:35 | 2413076 Popo
Popo's picture

Heh.  Small world!  I know the same guy, and because I helped him out he promised me all of his  ... oh shit...

Thu, 05/10/2012 - 10:37 | 2413084 Dr. Engali
Dr. Engali's picture

LOL .....did you happen to give him your account information so he can wire you a small installment?

Thu, 05/10/2012 - 10:45 | 2413101 smlbizman
smlbizman's picture

did anyone see steve rattner the x car czar this morn on cnbs....planting the seeds for the furture when he was saying the sheep are just to stupid to understand investing in individual stocks...."how can a doctor in kansas city know anything about exxon to invest in them" ...i am sure the only qualified people smart enough to do this is the say goodbye to ur ira and ur 401 k ....

Thu, 05/10/2012 - 10:46 | 2413107 Dr. Engali
Dr. Engali's picture

It's coming. They have put out a couple trial balloons already.

Thu, 05/10/2012 - 11:08 | 2413199 redpill
redpill's picture

check is in the mail!

Thu, 05/10/2012 - 10:52 | 2413119 tempo
tempo's picture

The US is the leader in promoting Gay rights, uncontrolable spending/deficits, and mini wars. Lets talk about more gay rights. That will surely create good paying jobs.

Thu, 05/10/2012 - 13:43 | 2413790 Joseph Jones
Joseph Jones's picture

NPR must do several dozen "news" articles per day promoting homosexuality.

Another NPR "news" favorite is"Women's rights" in the Arab/Muslim world.  Yeah, let's start a couple wars and spend a couple Trillion dollars to promote women's rights in Islam.  Excellent idea! 

Thu, 05/10/2012 - 11:04 | 2413175 jekyll island
jekyll island's picture

Take a look at what Africa Oil Co. stock has done over the last month. 

Thu, 05/10/2012 - 11:13 | 2413220 Gully Foyle
Gully Foyle's picture

This is very old news. China has been pumping money into Africa and South America for a very long time.

Meanwhile we have been invading third world nations and receiving nothing in return, except bases.

Thu, 05/10/2012 - 11:47 | 2413378 toady
toady's picture

...then our troops leave and turn the trillion dollar bases over to the locals. Now that is ROI!

But back to China / Africa. This is yet another example of of completely inept foreign policy. No one has sold American exceptionalism since Nixon. Reagan sold it to US citizens, but put off the rest of the world when he did. US dominance has fallen ever since, especially in Africa.

Thu, 05/10/2012 - 14:15 | 2414014 AnAnonymous
AnAnonymous's picture

Meanwhile we have been invading third world nations and receiving nothing in return, except bases.


That is a fair point.

The reason is obvious. US citizens had already performed the theft.

It is the current issue for US citizens, they have been so successful in robbing they own it all by now.

They no longer invade countries to add inputs to their economy but to avoid the inputs are withdrawn from them.

They no longer add new suplly lines to their territory, they have to invest to securize and maintain their supply lines. A well known issue experienced by any expansionist nation.

The Chinese, on the opposite, adds to their inputs pool. And funnily enough, they do it through trade and diplomacy.

Thu, 05/10/2012 - 16:49 | 2414591 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

The Chinese, on the opposite, adds to their inputs pool. And funnily enough, they do it through trade and diplomacy.

Made me laugh. Just ridiculous propaganda spreadery of Chinese citizenism.

Observe judiciously the Chinese citizenism trade and diplomacy fruitful now in Tibet, Mongolia, and Nepal. Under firmly examination one understanding receives the official stamp of Chinese citizenism being slavery trade and gunboat diplomacy most heartfelt.

Ah, but Chinese citizenism escapes self indiction by pushing responsibility to exterior onto US citizenism fantasy.

Buy hey, Chinese citizenism will always justify or deny, this is known best.


Thu, 05/10/2012 - 20:27 | 2415611 StychoKiller
StychoKiller's picture

Man, you got that mangled English patter down pat! :>D

Fri, 05/11/2012 - 04:34 | 2416450 Ar-Pharazôn
Ar-Pharazôn's picture

i thought that Iraq is plenty of oil and Afghanistan of rare earth elements..................... but if you say so..............................................

Thu, 05/10/2012 - 11:29 | 2413264 walküre
walküre's picture


Africa is NOT a basket case? What are you smoking?

The common shit huts don't have any plug ins for toasters or other appliances.

Roads? What roads?

The Chinese need to export their crap somewhere. Debt has been GRAND for them. Now we have the debt and the stupidly high marked-up CRAP from China and they have our currencies. Now they're exploiting Africa for the resources. But who is going to buy the CRAP?

Thu, 05/10/2012 - 14:15 | 2414010 laomei
laomei's picture

Easy.  Make massive investments in infrastructure and improve the economies.  Then take over the economies.


The key to this of course is to do it with no strings attached, no bullshit politics behind it.  China is creating a new market for itself and the US and Europe will be left in the dust.  There's also pretty much nothing you can do to stop it.

Thu, 05/10/2012 - 10:21 | 2413027 GetZeeGold
GetZeeGold's picture



Lots of gold in Africa. What took them so long?


Also on the plus side lemonade stands are still legal about massive potential for growth.


Thu, 05/10/2012 - 10:26 | 2413050 Popo
Popo's picture

Yes, but has anyone else noticed that the world is running out of emerging markets?

What exactly happens when there's no one left to exploit?    


Thu, 05/10/2012 - 10:31 | 2413068 fuu
fuu's picture

We will just have to make some markets emerge from the rubble created by the bombs and missiles.

Thu, 05/10/2012 - 10:37 | 2413079 EscapeKey
EscapeKey's picture

Then Krugman and his fellow aliens land on planet Earth.

Thu, 05/10/2012 - 10:55 | 2413140 tabasco71
tabasco71's picture

That's referenced in the Bible is it not...  the second coming or something?

Thu, 05/10/2012 - 11:03 | 2413171 I Am Not a Copp...
I Am Not a Copper Top's picture

They move on to the next planet.  Ever see "They Live?"

Thu, 05/10/2012 - 11:15 | 2413223 Gully Foyle
Gully Foyle's picture


"What exactly happens when there's no one left to exploit?"


Thu, 05/10/2012 - 16:37 | 2414543 Joseph Jones
Joseph Jones's picture

David Letterman pays good money for such quip! 

Thu, 05/10/2012 - 10:21 | 2413029 battle axe
battle axe's picture

China wants those natural resources in Africa. Now if only US Banks would stay out of the European Hurricane, wouldn't that be nice....

Thu, 05/10/2012 - 10:22 | 2413030 xela2200
xela2200's picture

Acceptance is the first step in recognizing when one is wrong. Now, they are ready to accept the loss on US treasuries and move on.

Thu, 05/10/2012 - 10:23 | 2413033 dereksatkinson
dereksatkinson's picture

China has been investing in Africa for a while now.  They build an entire state of the art city in Mauritius called "cyber city".  They have been buying chunks of mining companies and then using their ownership in those companies as a bargaining chip to get these companies to sell gold directly to them.  The way they are going about getting out of their dollar exposure is brilliant.

Thu, 05/10/2012 - 10:24 | 2413038 xela2200
xela2200's picture

Also, They have been investing in Latin America. Big wake up moment was the expansion of the china town in San Jose Costa Rica.

Thu, 05/10/2012 - 10:59 | 2413149 ParkAveFlasher
ParkAveFlasher's picture

Hearing similar stories out of Ecuador and Peru as well, from locals themselves. 

Thu, 05/10/2012 - 13:51 | 2413891 Joseph Jones
Joseph Jones's picture

Sold one of my products to a buyer in So. Africa who said money is everywhere, luxury cars abound. 

<$200k for 5000+sf main home + "in-law" home (larger than my friend's SF condo) is more than a little tempting.  Sunrise swim in the Indian Ocean, sunset wine and cheese on the Atlantic.

Thu, 05/10/2012 - 14:03 | 2413959 xela2200
xela2200's picture

If you can deal with the culture shock ...

Thu, 05/10/2012 - 10:26 | 2413046 GetZeeGold
GetZeeGold's picture




get these companies to sell gold directly to them.


Buying Doré bars to keep off the radar.....sneaky bastards.


Thu, 05/10/2012 - 10:23 | 2413037 Sudden Debt
Sudden Debt's picture

Africa... :) ... hard working people... peacefull... well educated... YEP! THE PLACE TO PUT YOUR MONEY TO RETIRE!

Thu, 05/10/2012 - 10:28 | 2413044 xela2200
xela2200's picture

Peaceful is NOT going to be the theme for the next few decades, so get ready for it. Security is one Americans' biggest illusion (Insurance and Military complex).

Thu, 05/10/2012 - 10:28 | 2413054 battle axe
battle axe's picture

Africa peaceful? When has Africa ever been peaceful? Also wait for the huge water shortage coming, then the fireworks will really go off...

Thu, 05/10/2012 - 10:48 | 2413110 Sudden Debt
Sudden Debt's picture

America is way to concerned with it's security.

Look at Europe. You can go about anywhere! About a year ago, a few kids walked into the palace of our king while he was home!

Trust :)

The key is under the mat, beers are in the fridge!

Thu, 05/10/2012 - 10:24 | 2413043 Joe The Plumber
Joe The Plumber's picture

I am tellin ya third world is the place to invest. Lots of potential credit expansion, desparate naive people willing to work their asses off for nothing. It's a rentier's dream

I might be able to fund a nice retirement after all

Thu, 05/10/2012 - 10:26 | 2413052 seanring
seanring's picture

I was just in Nigeria.  If they can figure out how to get rid of the corruption - most of the time funded by Western companies - they can really build something great.  The potential is enormous and if it works, would probably calm the sectarian violence.  I'm very hopeful, and maybe this time, they'll actually do it.

Thu, 05/10/2012 - 10:34 | 2413067 xela2200
xela2200's picture

Corruption is every where. It is just that American politicians are better at it. They use the backdoor "legal" way. Anywhere you see a company getting an "Incentive" there is a corrupt politician making money some how (political and economic support, million dollar consulting job waiting, stock tip, etc). The only difference is that 3rd world countries do it upfront, so at least they level the playing field. Everybody gets to negotiate their grease money upfront, so it is just another cost of doing business. Don't get me wrong. Some places it is really out of control like Mexico comes to mind.

Thu, 05/10/2012 - 12:23 | 2413550 toady
toady's picture

Rule of law has broken down when corruption is legal.

The Chinese play the long game, so they prefer their corruption negotiated up front. That way they can manipulate/work their way around it in the long run.

Thu, 05/10/2012 - 16:47 | 2414577 Joseph Jones
Joseph Jones's picture

This was circa 1990, but it happened.  I worked where construction executives needed to get building plans checked in a major western US city.  One particular guy was from the right coast.  Eventually, after several visits, he asks when we visit the back room with his briefcase to, um, "you know...".  He expected to deliver the office a load of cash as a bribe to get his building built.

Corruption?  What corruption?   

Thu, 05/10/2012 - 11:28 | 2413056 GeneMarchbanks
GeneMarchbanks's picture

Good. Europe's future is with Southwest Asian nations + Russia.

Let the Chimericans continue their endless tug-o-war in slave misery.

Thu, 05/10/2012 - 10:29 | 2413058 Cult_of_Reason
Cult_of_Reason's picture

Maybe now the Chinese will allow the EUR to drop to where it belongs – parity.

Thu, 05/10/2012 - 10:55 | 2413134 walküre
walküre's picture

That would be great for all EU exports.

Why the world has any regard for the Chinese and their fudged sets of books is beyond me.

Why we lend any credence to accounting and statistics from a central planning committee is mind boggling. The Chinese have one thing going for them and that is their sheer size in population. Their slave labor economy dumped trillions worth of cheaply made gadgets and machines into the world's market in exchange for Dollars and Euros. The gadgets and machines were built by mostly American and European companies that moved manufacturing into the communist country.

Too late now but it should have been scrutinized much stronger 30 years ago. Alas we have a new class of enemies. Our plantation owners moved production to China. Time to go after the plantation owners - again.

Thu, 05/10/2012 - 10:29 | 2413059 Village Smithy
Village Smithy's picture

I don't think that China is really interested in Africa. They are just weary of trying to make money by picking up pennies in front of the steam roller. Like all the smart money they know this is pointless, it's time to wait for the crash.

Thu, 05/10/2012 - 12:35 | 2413605 toady
toady's picture

I disagree. I think China desparately covets Africa's resources. I think they already have the necessary infrastructure and legalities in place. I also think they have a strong enough military to protect the infrastructure and enforce the legalities.

I'm actually hoping they go in to take the resources so we can 'fight them over there instead of fighting them here'.

Thu, 05/10/2012 - 10:30 | 2413062 youngman
youngman's picture

I live in Colombia......Our president was just in China......they want to invest...commodities of course.....

"Santos spoke of China's desire for access to Colombia's natural resources. "Colombia has what China needs." said Santos.

China is currently Colombia's second largest trading partner, closely behind the U.S. Colombia's top exports to China are oil and coal. China uses coal to generate more than half of its electricity.

Last March a Korean energy company made its first Colombian-only coal purchase amid rising Asian demand for Colombian coal."

not just Colombia either..they are big in Trinidad and you can add South America and the Caribbean Islands too...and now they are looking at Argentina to develope their oil and gas fields......they have 2.5 billion feed and heat...and to find jobs for..they want commodities..and food

Thu, 05/10/2012 - 10:35 | 2413074 DutchDude
DutchDude's picture

What i'm affraid of is what happens when the world can't deal with China anymore... those 2,5 billion happy polite people becomes the worlds largest mob... and those f*ckers know Kung-Fu!

Thu, 05/10/2012 - 13:46 | 2413878 Sandmann
Sandmann's picture

Sell them coke - they are probably off opium by now

Thu, 05/10/2012 - 10:32 | 2413069 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

In his Bloomberg interview, Balnkfein had a visable boner when he metioned investing in the BRIC"S" et al.  Goodbye First World, hello Flat Earth.

Thu, 05/10/2012 - 10:39 | 2413087 dark pools of soros
dark pools of soros's picture

Who controls the Great Aquaduct now?

Thu, 05/10/2012 - 10:41 | 2413093 indianajohns04
indianajohns04's picture

Second Congress of Berlin.....LOL!!!

Thu, 05/10/2012 - 10:48 | 2413112 walküre
walküre's picture

China and it's slave labor should be shown the door. Long overdue.



Thu, 05/10/2012 - 10:51 | 2413118 Sandmann
Sandmann's picture

Hardly. China is trying to lock up raw materials and there are more in Africa than in Europe. They still buy up brand names - Lion Capital got $1 billion for a 60% stake in Weetabix last week. China will buy tangibles that's all not paper money.

Who cares ? China will be looking at Import Controls within 18 months as Europe and the US close their markets which is why the Chinese Elites are shifting capital to the West. Exactly as the Russians have been doing.

Anyone who obsesses about China is watching the wrong film

Thu, 05/10/2012 - 10:56 | 2413138 dirtbagger
dirtbagger's picture

Good luck in extracting the resources at a profit.   The Europeans have left a trail of failed commodity extraction ventures for over a century.  Any chance of a little culture clash -  the tribal oriented Africans will really go for the regimented Chinese work culture.  

Let me suggest Chinese investment in Afganistan.  Didn't our DOD say there were hundreds of billions of economic ores lying right on the ground?   All you need to make a profit is a front-end loader, dump truck, and a private army of 5000 mercenaries.

Thu, 05/10/2012 - 14:19 | 2414025 laomei
laomei's picture

The difference between the US and China is that China doesn't care who's in power.  All China cares about is the ability to conduct business, no strings attached and the locals don't hate them.  Money, jobs and power from China.... or bombs and death from the US.  Hmmmm, hard choice there!

Thu, 05/10/2012 - 10:57 | 2413141 the tower
the tower's picture

"Sorry Europe: you had your chance."


Chance for what? To be bought and occupied by China? Good riddance!!!

Thu, 05/10/2012 - 11:05 | 2413181 Northeaster
Northeaster's picture

For the record:

IBM has been offering jobs/moves to South Africa (while they jettison US & European employees). It's not just China.

Thu, 05/10/2012 - 11:16 | 2413229 GMadScientist
GMadScientist's picture

Loose translation: "@#$% bars in HK, bitchez, we're buying the whole damn mine!"


Thu, 05/10/2012 - 11:22 | 2413238 bob_dabolina
bob_dabolina's picture

Yeah, because Africa of all places, is the purview of stability and productivity.

Genital mutilation, genocide, guerrilla ware far, violent and polarized war clans constantly looting and killing, unstable currencies....where do I sign up? 

Thu, 05/10/2012 - 11:33 | 2413286 GMadScientist
GMadScientist's picture

All interesting periods in the American historical experience, but back to discussing Africa...


Thu, 05/10/2012 - 11:33 | 2413288 dark pools of soros
dark pools of soros's picture

that is still better than investing in Detroit

Thu, 05/10/2012 - 11:42 | 2413340 GMadScientist
GMadScientist's picture

There could be gold in them thar 'jects! (mostly in the teefus of a handful of local denizens, but I digress) hometown. I miss Vernors.

Thu, 05/10/2012 - 12:45 | 2413644 toady
toady's picture

You can still find Vernors homeboy. Stroh's, not so much...

Thu, 05/10/2012 - 15:49 | 2414385 GMadScientist
GMadScientist's picture

I meant the plant where they used to make it though...used to live down the street on Woodward.


Thu, 05/10/2012 - 14:12 | 2413992 Iwanttoknow
Iwanttoknow's picture

And the wars are being fiananced by?

Thu, 05/10/2012 - 14:46 | 2414149 Uncle Remus
Uncle Remus's picture

What, you're not circumcised?

Thu, 05/10/2012 - 16:51 | 2414603 Joseph Jones
Joseph Jones's picture

What do you call two babies in NY State dead from herpes contracted through legal felatio by Rabbis performing briss? 

Americans tend toward the most naive and destructive bigotry.  

Thu, 05/10/2012 - 11:24 | 2413254 LawsofPhysics
LawsofPhysics's picture

Right, anyone else think that the Africans might have something to say about this?  Besides, has Africa (with some exceptions of course) suddenly become a "stable" place?  When did this happen?

Thu, 05/10/2012 - 11:43 | 2413303 GMadScientist
GMadScientist's picture

I think a country with a billion-strong (slave-)labor force might be able to set up shop...especially if all they need to control is the few clicks around each natural resource site.

It's not like they're looking for Peace in Zaire 

Somehow Shell keeps doing biz in the same environs to get that GoGoo.

Thu, 05/10/2012 - 11:47 | 2413370 LawsofPhysics
LawsofPhysics's picture

Fair point.  The U.S. has been doing this for years.  

Thu, 05/10/2012 - 11:56 | 2413419 GMadScientist
GMadScientist's picture

Have to look through the lens of wanting to control the commodities as leverage to force changes in the reserve currency regime.

These motherfuckers are playing 3D chess and they've got game; they had empires while we were still painting ourselves blue and getting naked every summer.


Thu, 05/10/2012 - 14:15 | 2414004 Charles Bishop ...
Charles Bishop Weyland's picture

You're on fire today, Gmad--You've just grasped the outline of the bigger picture: and the Chinese aren't looking to "help ' the locals--they're looking for MORE REAL ESTATE, and ALL THE PIES. With enough capital investment, guns, and time, Africa could not only do the 'resource goldmine" thing, it could also EXPORT FOOD AND WATER.

 Like the late Bruce Lee said: "You don't want to miss all that Heavenly Glory."*

(* translation?Watch the OTHER hand.)

Thu, 05/10/2012 - 15:51 | 2414391 GMadScientist
GMadScientist's picture

"That's no moon..." - Obi Wan


Thu, 05/10/2012 - 11:44 | 2413348 gckings19
gckings19's picture

the problem with europe is they are debating carbon limits and other bs.  they have natural resources but jkust like the US they are trying to handicap themselves and not exploit them....rather they will make it harder and harder for their economies to grow.  its frighteningly stupid.

Thu, 05/10/2012 - 11:44 | 2413356 vote_libertaria...
vote_libertarian_party's picture

Rumor is that when they say sell sell sell their eyes are saying buy buy buy

Thu, 05/10/2012 - 11:50 | 2413386 Thisson
Thisson's picture

China should not be investing internationally at all.  How much of China is without electricity, indoor plumbing, or paved roads?  Their own country is still backward yet they are looking for investment opportunities in the rest of the world?  How does that make any sense.  There are tons of investments that they could and should be making in their own country for the benefit of their people. 

Thu, 05/10/2012 - 11:58 | 2413435 GMadScientist
GMadScientist's picture

They are not looking for classical "direct investment"...they are putting natural resources on lock-down for the end-game.

Thu, 05/10/2012 - 14:17 | 2414022 Charles Bishop ...
Charles Bishop Weyland's picture


 "would you like that in chips or dollars, sir?" "Neither---I'll take mine in GOLD."

   Too obvious if you 've been paying atttention to the last 5000 years of their history.

 3-D chess FTW.

Thu, 05/10/2012 - 14:48 | 2414157 Uncle Remus
Uncle Remus's picture

Lowest. Common. Denominator.

Thu, 05/10/2012 - 11:54 | 2413406 Hubbs
Hubbs's picture

If you can't import slaves to your country (a la slave trade of the centuries past), then go directly to the country and enslave them in their own back yard.

Think Southern Sudan is bad? Think "Cowboys and Indian"s was bad? It's just a matter of time. 

Thu, 05/10/2012 - 12:05 | 2413470 ArrestBobRubin
ArrestBobRubin's picture

You DO realize that what you just described is the last 400 years of Western colonialism, resource exploitation, asset stripping, and genocide in every corner of Africa, right?

Or did that irony kinda escape you?

Thu, 05/10/2012 - 12:33 | 2413595 Hubbs
Hubbs's picture

Nope. That's my point. Meet the new slave owner, same as the old slave owner.

Thu, 05/10/2012 - 14:27 | 2414061 AnAnonymous
AnAnonymous's picture

They are both US citizens!

Thu, 05/10/2012 - 16:54 | 2414611 TheFourthStooge-ing
TheFourthStooge-ing's picture

As Confucius say, "US citizenism is nothing more than Chinese citizenism looking in mirror."


Thu, 05/10/2012 - 11:59 | 2413447 ArrestBobRubin
ArrestBobRubin's picture

China, meet Africom.

This is gonna be good....

Thu, 05/10/2012 - 14:31 | 2414083 Charles Bishop ...
Charles Bishop Weyland's picture

 Bullish for  star-spangled energy weapons in the jungle.If we want a seat at the table, we'd better kit out the Africans capable of resistance, and clue them in on the long-term strategy--becvause if the Chis get a serious foothold there, they WILL be unstoppable-and THEN they'll crush us. Everybody who thinks the continental US is the GOAL is SADLY mistaken. we're the orange cone NEXT to the goal.

 The big pile of diamond-coated, molybdenum-encrusted,coltan-studded, platinum-rimmed, GOLD floating on a SEA of(undiscovered) OIL IS  the goal: and guess what? most of it is sitting underneath ARABLE LAND. (or land that COULD be made arable utilizing modern farming technology and irrigation... yeah, we've spent the last 100 years missing the POINT.



Thu, 05/10/2012 - 12:29 | 2413578 goldstandard
goldstandard's picture

Europe may be a bust for the Chinese, but their dumping billions into various Carrabean island nations like the Bahamas. In Nassau, a gift of a new soccer staduim and Cable Beach nor the Atlantis will ever be the same after the Chinese complet a 3.2 billion hotel complex known as Baha Ma.

Thu, 05/10/2012 - 12:58 | 2413695 HungrySeagull
HungrySeagull's picture

Maybe China wants to have their crap made and shipped from Africa. It's gotta be cheaper and more fulfilling than schlepping boxes of crap across two oceans and continents.

Thu, 05/10/2012 - 13:14 | 2413746 automato
automato's picture

The irony for China is that they will soon discover that investing in the Third World is not unlike investing in China. There is little to no "Rule of Law". Intellectual Piracy is rampant as well as back-door counterfeiting, fraud, corruption, and outright theft. If the people with whom you do business feel backed into a corner they will simply lie, default or nationalize and you will be left with nothing! Despite all its faults, the US is still the gold standard place to invest because we are one of the few countries where Tort law actually exists.

Thu, 05/10/2012 - 14:25 | 2414058 AnAnonymous
AnAnonymous's picture

Stability is unneeded to perform US citizen economics.

The Chinese probably know that already when it comes to Africa.

Thu, 05/10/2012 - 14:41 | 2414127 Charles Bishop ...
Charles Bishop Weyland's picture

HAHAHAHAHA--you think they're there to RESPECT THE LAW? in ANY WAY? you must be NEW. They're not fucking AMERICANS--They're Chinese. They're there to occupy as MANY squares on the board as they can get away with before WE arrive in force.They also  don't have idiots in red-and-blue fucking TIES contesting with each other over what deck chair to sit in while the ship goes down. they're working AS ONE to SEIZE resources and real-estate in as many locations as they can. Full STOP. 


Thu, 05/10/2012 - 14:25 | 2414053 AnAnonymous
AnAnonymous's picture

and the next great resource grab arena will be all too clear.


No. It cant be Africa. The great resource grab is already done.

All the resources are already allocated in multi years of US citizen economics plans.

The next arena can only be the former USSR as big poppa commie failed to consume its satellites as efficiently as US citizens. Doing so, it was conserved and protected from US citizens race to depletion of resources.

There is room to expand and grab not already allocated resources.

Places like Africa see their wealth already allocated for decades, probably as long as they meet exhaustion.

Thu, 05/10/2012 - 14:50 | 2414158 Charles Bishop ...
Charles Bishop Weyland's picture

You're wrong. this party hasn't even gotten going good yet. The Chis are positioning themselves--and the locals are getting ready to make the best deals they can--not knowing the deals have already been plotted without their participation.

 The US will be the only other contender-- for as long as they can keep it hidden from their people.When they announce their  position,it will only be after we have committed men and money, and then it will be too late to think about it. AGAIN.

 This game will be a long one. I'm gonna go make some popcorn.

Thu, 05/10/2012 - 14:38 | 2414117 Uncle Remus
Uncle Remus's picture

A new life awaits you in the Third-World. The chance to begin again in a golden land of opportunity and adventure.

Thu, 05/10/2012 - 14:53 | 2414174 Charles Bishop ...
Charles Bishop Weyland's picture

 Yep:That's how they'll sell it. You're from the FUTURE, aren't you?

 Will there be spandex jackets, one for every one?

Thu, 05/10/2012 - 19:28 | 2415390 SmittyinLA
SmittyinLA's picture

This is old news, TPTB ceeded Africa to China in exchange for the Middle east years ago when TPTB agreed to abolish property rights of white people on the African continent.

This is the reason China has a "hands off" military policy for the broke western nations looting oil in the Middle East, its the same reason we have a "hands off" policy for the Chinese looting Africa.

What we have is a statist gentleman's agreement to not compete in Africa and the Middle East, China benefits from our middle East policy by buying their oil in their US trade surplus dollars of $50B a month.

Our trade surplus with China gives them 50B a month in free cash and we get to keep printing cash and having it accepted for oil.  

Thu, 05/10/2012 - 21:41 | 2415881 Terra-Firma
Terra-Firma's picture

Excellent point! But how does russia fit into the equation?

Sun, 05/13/2012 - 23:25 | 2422666 qiongqiong
qiongqiong's picture

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