Wen Jiabao Says China Willing To Extend Help To Europe... For A Price
When in doubt, recycle... In this case the rumor that China would bail out Europe is about to get second billing. From Bloomberg, quoting Wen Jiabao at the Dalian World Economic Forum:
- WEN SAYS CHINA WILL CONTINUE TO INCREASE INVESTMENT IN EUROPE
- WEN SAYS CHINA IS WILLING TO EXTEND HELP TO EUROPE
Granted, nothing new here, and it simply means that China will be happy to buy European assets at firesale prices and invest in 20%+ IRR projects, but the algos, which have not yet seen this news, are expected to kneejerk higher, regardless of how short the latest intervention halflife will be (recall that China already has sizable investment in Greece, Portugal, the EFSF and the EUR). Call it what it is - doubling down, all over again. That said, the bailout for Europe will not come free, and once that realization hits the market, this may have a completely opposite reaction that the one intended...
- WEN SAYS EU SHOULD RECOGNIZE CHINA'S MARKET ECONOMY STATUS
- WEN SAYS HOPES FOR BREAKTHROUGH AT CHINA-EU SUMMIT NEXT MONTH
Ah yes, quid pro quo Clarice. If Europe will be so kind to align itself with China in all future WTO escalations against the US, it will be much appreciated. After all, there is nothing more a mercantilist country needs than a subservient import partner. Ergo, any vile ideas about duties, subsidies and/or tariffs?.... Yeah, those are gone. Permanently.
In other words, if Europe likes it status quo, it sure as hell better like being part of the Sino-Russian axis in the coming trade wars, which incidentally will define the next reserve currency in 2-3 years.
Said otherwise, China may not have won the currency wars (the first round), but it is well on its way to winning the trade war (round two).
We all know what round three is...
And some additional info from Xinhua:
Chinese Premier Wen Jiabao said on Wednesday that the nation's opening up to the outside world is a long-term commitment which covers all fields and is mutually beneficial.
"China's basic state policy of opening up will never change," Wen said in a keynote speech at the opening of the World Economic Forum annual meeting of "New Champions 2001", a three-day event held in the city of Dalian in northeast China's Liaoning Province.
"We will continue to get actively involved in economic globalization and work to build a fair and equitable international trading regime and financial system," he said.
"We will continue to improve foreign-related economic laws, regulations and policies so as to make China's investment environment in keeping with international standards, transparent and more business friendly," he said.
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Asian clap - Ain't never gettin' rid of it.
NO SHIT....
MERKEL IS CALLING FOR A'CONTROLLED' GREEK DEFAULT.
ON BBC, FROM THE SNAKES MOUTH, HEARD IT...
1HR AGO!
Wen Jiabao is a smart guy. He knows China can't save a deeply septic Italy or Spain (with derivative counterparty risk amplified by never before seen levels of leverage), let alone the European Union in totality. China is going to have a big task ahead in saving its own economy (and others are going to have a much bigger task).
He's just talking the part of being a good neighbor, as is expected at such sober and gloomy moments in economic history.
Every Head of State in the World is going into CYA Modus Operandi as we speak.
It's when the massive tidal wave caused by the global tsunami recedes that everyone finds out that everyone else has been swimming naked, bitchez.
What the fuck is a "controlled default?" Is that where you slip a Prozac mickey to the criminal banker right before you tell him his is getting 10 cents on the dollar, and then lower him slowly into a Lazyboy?
All this nonsense language crap circulated by the syndicate is ridiculous.
It's when you've been chugging along at terminal velocity for about 2000 feet, and you open your parachute 2.7 seconds prior to hitting the ground.
I see...I see...I did not know that.
Sounds a lot worse than the Prozac mickey or the previously popular "soft restructuring"...which almost sounds like a sensual message.
Is everybody enjoying the complete death of any and all fiscal, monetary, and market credibility yet?
Off topic:
this video is all you need to watch on 9/11:
http://www.youtube.com/watch?v=yuC_4mGTs98&feature=player_embedded
no silly theories by useful idiots, and it is completely kosher for our jewish consumers.
Fantastic video, I have to say.
...but are insinuating that Jews were behind 9/11? Or are somehow less likely to accept the true story than nonjews? Wouldn't really surprise me, but still, that's kind of... completely absurd.
Great stuff rich. It's really better to just let the official story hang out there. Takes a willful act of self-deception to buy it when you lay it all out there.
We may be back to shells and beads and spices (and gold and silver) before long as commerce trade begins to see how worthless and eventually irredeemable the fiat paper is. Water and oil could become the trade exchange too.
The change in world reserve currency will happen much faster than people expect . . . and it is something like this that will put it into play. The current global monetary system is in transition.
dont forget the ports, airports, roads and anything else that generates revenue. you are now a ...
PERMA-SERF.
looks like LUKE, the riot dog, is going to get some serious overtime....
China should just demand some of that stockpile of Euro-Gold as collateral.
they probably already have......
if the governments keep on spreading these rumors they just might be able to scare off every short and lure everyone back into the water
come inside. it's warm
When you pee in the pool, the water is always warmer.
a price? you can have our President, Vice President and Treasury Secretary and we'll throw in our Secretary of State and her husband if you'll give us your South China Sea oil royalty rights too...
How about, they can have our President, Vice President, Treasury Secretary, Federal Reserve Chairman, Secretary of State, her husband, 100 Senators, 435 House Representatives, and Secretary of Homeland Security and they can give us one of those cheap plastic Derek Jeter bobble head things. I think that would be a fair trade policy.
Wait...plus one salad shooter...and I'm down with it.
434 congressman. In fairness Ron Paul wants nothing to do with this slow motion abortion.
Sadly he is the only one.
I should add that the Jeter bobble head is a done deal.
When the going gets tough, the Europeans sell their soul to the devil.
They sold it to the nazis and the fascists in the 30s, now they are selling it to China.
Zorba, if you mean to the Chinese ...what about Greece selling itself to the economic hitmen of the squid who "does god's work"?
Round three -- war?
Yup, that's how I read it, for what it's worth. That also fits the red shield paridigm.
Well, yes, war but only in so far as you can wage war with shit made in china. It better be a short war because if they have to launch the planes more than once the warranty falls off...well, actually the whole wing falls off but the warranty notice is attached.
Krugman must be on...notice all the -1's popping up all the sudden?
Anyway, you can't fly planes without jet fuel.
I think China won't do squat, they are in a stagflation (oil based inflation) zone...they are done, just don't know it yet. Most the BRICs will do is buy into EZ banks en masse. But, Brazil looks more and more like it's also going into stagflation. Don't thnk the market will get all bid on that news, even HFT's will be muted.
as I said they are "done" and about a c-hair away from being dusted.
The "yuan`tons" ~ keep flying>
Usually the buyer of last resort is Japan. Spyglass golf club, Rockerfeller Center, Morgan Stanley, etc. etc. China doesn't have that reputation.
Man you're living in the 80's! China want's resources!
The only way this kind of rescue makes sense is by offering more senior terms to a party that steps in.
How can you structure a DIP loan against a sovereign?
Far simpler. Vendor financing with DIP conversion feature.
Well, yeah, guess that was your point all along...
Beware China. Greece will screw you like they screwed Germany.
Now known as a "Wen to offer help for U?" situation. Think of it more of a rhetorical question than actual answer...or at least "something other than the answer we were looking for" moment.
http://www.youtube.com/watch?v=Tt1W0F0yObg&feature=player_detailpage
Ok~~~the countdown of his term.
China gives EU money to get EU purchase MIC return.
I don't get why they would intervene in something that is so blatantly doomed... unless they had a specific timetable for when Europe should go under and they're just holding the place together until culling time or something?
Exactly. You win the cigar.
It's not about the money. It's about power and control. Why go to war if you can simply purchase the enemy's resources, own the enemy's real estate and means of production, assert defacto control. The strings to be attached are much more than an interest rate or a promise to pay. It is much more sinister. Just MHO.
Do you think when two representatives holding diametrically opposing views get together and shake hands, the contradictions between our systems will simply melt away? What kind of a daydream is that?
Nikita Khrushchev
If I, taking care of everyone's interests, also take care of my own, you can't talk about a conflict of interest.
Silvio Berlusconi
The construction of Europe is an art. It is the art of the possible.
Jacques Chirac
The best way to destroy the capitalist system is to debauch the currency.
Vladimir Lenin
I'm thinking that the citizenry who used to "own" that property, personally and publically, will not go quietly.
Sino - colonialism. Communists doing a 180 on the West. Hey, if you can't beat 'em, join 'em.
Agreed , they are the worst form of loan shark who will bully and transform from the smiling fu man chu when they have the upper hand.
if they get the upper hand with the usa they will demand alaska for the payment of the debt. :/
... whereas, while the US had the upper hand with China, the US demanded (and still demands!) that China send it lots more 'stuff' in return for useless IOUs ... "because our serfs get bored easily and complain loudly if they don't keep getting lots more 'stuff'"!
China is such a mean and unfair loan shark! Send more stuff, China! ... Oh, and shut up about it -- we'll pay for it when we're good and ready ... maybe...........!
ok loan shark was wrong - i meant 'daddy warbucks'
anyway, i guess u r saying the USD is a 'useless IOU'
thats debateable.
and sympathy for the chinese because they have catered for a consumer culture nurtured by debt... perhaps.
but while i don't think that china has imperial ambitions my point is that they will drive a hard bargain and they WILL be paid... the chat about when you owe the bank upteen trillion then they have the problem is naive when your banker plays the long game.
Yeah, selling Alaska (for a good gain, I may add) is a neat idea. Especially if Sarah Palin would come with it.
They don't own it if they don't possess it. China will own Europe about as well as Japan owned America back in the late 80s.
Right. USA has $1 trillion/year slush fund from CIA drug running just for starters. Hard to one-up the domestic bidders for "our" politicians.
The only problem is this will take months if it gets done at all and they need it like yesterday!!!
China, hopefully, will have some structural problems of their own to sort out soon.
http://www.theaustralian.com.au/business/world/china-troubled-by-steel-thinning-scam-in-building-foundations/story-e6frg90o-1226136555319
Well, it is comforting to know that China also manufactures cheap crap with high failure rates...for Chinese people, too.
Not news on me - I have bought piles of Chinese crap over the years that was junk - tools that broke, electronics that died young, etc etc etc.
If only we all just returned the crap to them and demand a refund for the junk we bought from them.
Return it to the [American?] company that designed it -- and passed it through both quality control and contracted failure rates -- then stuck its brand name on it and sold it to you at a massive markup. I'm sure they'll be happy to hear from a valued customer and give you a refund.
...plus their Fraud caps = a major bubble.
This is why I do not fear China as an American. They poison milk with melamine sold to their own people. They can build a city based on US specs but not US quality.
Making knock offs is fine when its DVD's or Ipods, not the same with high speed rail or stealth fighters.
opportunistic
Wen got wind of the rumors and now he exploits them
I think Wen and his team is taunting us while we are trying to find the grail !
http://www.youtube.com/watch?v=9V7zbWNznbs
opportunistic
Wen got wind of the rumors and now he exploits them
this is bad news not good news. wen didn't say he'd loan money to europe today, that was months ago. he said other stuff today. generally, the news is so misleading.
this was also said by a big wig former central banker in china
http://www.bloomberg.com/news/2011-09-14/china-must-avoid-loans-to-troub...
1,000 Athenian Virgins is his price?
Rotsa Ruck!
"China will be happy to buy European assets at firesale prices and invest in 20%+ IRR projects"
Me, too. Default, bitches.
Greater Fool Theory. The ECB is hoping it can unload its c-r-a-p onto a Bigger Fool before the whistle blows.
No, Wen is talking in riddles, you can't have a 'global' slowdown and expect a import reliant country use it's reserves to prop up insolvent countries. More BS, plus, everytime they issue more BS they get oil bid, which the Chinese are net importers.
A total doomsday trade looming...maybe a war.
It's a printing war. He with the most ink, wins! Get to tha choppa!!!!!
How much will Wen print to buy what Europe prints?
How much yuan would a Wen-chuck print, if a Wen-chuck could print yuan.
The vultures are gathering...
We must pull this toy from the chest tricks, once again.
While your being filled with racial hate, uncertainty, fraud and deception. Your life is being formed through daily appearances of an individual who is lying to you. As each day progresses, the planners are switching strategies on which playbook to use as the next experiment to complete a short term fix. The longer they can kick the can, the more they are confused in what to implement. Fear has run rampant, and higher security is necessary to protect the clueless planners.
“Then today, Reuters cited Italian officials who said the talks centered around Chinese industrial assets, not bond purchases.”
“The United States government and the Federal Reserve must come to the rescue of the Eurozone or the ramifications will be catastrophic. And she will say that she needs roughly $1 trillion in financial guarantees and liquidity support. That's the number that will calm the markets.”
===
If there is going to be deflation then there need to be a willing buyer at bargain basement prices.
The only one that has any cash is China. It is in China’s interest to step in and delay the catastrophe to its time table.
Future is still down. So Algos got smarter this time.
I hope the men of Europe like toiling in the yellow man's lead mines.
The more they throw this monkey shit at me the more pissed off I get. I've an unfortunate turrets syndrome sort of thing that causes me to be attracted to violent curse words about now. I'll refrain only because I respect ZH and the fact that some people here might not appreciate the use of vulgarity.
In the spirit of Graham summers and the MAN Reggie....
This excrement is about to drop.
china isn't the ony one with money call ben
Ben Hur vs. Wen in the Chariot race to the death....or is that the Bread and Circuses...or is it the Christians vs. the Lions ?
China has a lot of problems of their own. China can't save Euro. Not even UFO aliens can save Euro, especially there are so many US bankers betting against the EURO.
When Greek crisis first started, so many US credit rating agents bet against it. US gov does nothing to stop. In fact, US gov does nothing to punish the real people who started the subprime crisis that trigger the EURO crisis.
I Just heavily shorted the euro against the australian dollar I. I fugure a 4:1 risk reward!
Congratulations!
;-)
Jiabao: Yes! We help Greece! High yield bond is good investment for China! China make bet that world forced bailout will occur in Europe on fears of contagion! China will get in market before every other country! China wins!
Merkel: The German people will not let the Europansies control our economy! Sell the rest of Europe short!!
Obama: Where's the head cover to my 3 wood, Tim? Oops, I found it. Nevermind.
Geitner (Timmay): Mr. President, can you send me back to Europe? I love it there this time of year. Plus, we can blame them for our problems.
Obama: I don't care. Just don't tell Hilary.
If China succeeds in it's plans to re-invent the World Economy in it's image, it may regret the outcome. The possibilities include a War to end everything, an America that closes off the World, the rise of 50-100 dictatorships that make North Korea look like day-care, a new Dark Ages that lasts a hundred years or more....
China won't "re-invent the World Economy in it's image". The Chinese will generally stay out of day to day noise and not try to influence countries. They want all the money and they don't know what to do with it. They need food and energy but they can't buy enough. So, they will pirate intellectual capital and rape sovereign debt markets (while they startegically stregthen an alliance with Russia and Iran) just to feed their people and fufill energy needs.
So a conversation that occured months ago can move the "market" up 2% if the story is re-reported? Then a denial of the report can still move the market up because the denial actually doesn't pertain to the conversation of a month ago, only that the coversation didn't happen yesterday. Yet even if untrue the rumor has merit because the Chinese will buy some debt in the future, so the market has to rally.
The market also has to rally because the Fed has to do some QE at some point. The question is where is the money that buys the stocks coming from? Oh yeah the treasury and the Fed when it buys securities from the banks that are the same ones that run all the big market funds.
It must be great to take out a loan, push up stocks with it, sell the stock, pay back the zero interest loan, keep the profits, and then do it all again the next day. Or have someone pay you top dollar for something worthless. Let's see I'll pay the full retail price of a fully restored Gullwing but the car is actually a 1985 K-car tha some retard put a trick door on. But the guy told me it was a Mercedes and I bought it sight unseen!!!!
The global Ponzi is so transparent now. Is the world really this stupid???
Hold up, now. A K-car with Lambo doors would be righteous. And a spoiler. It would definitely need some big-ass spoiler bolted on the boot.
The futures are down....that must mean at least another 2%+ day tomorrow.
Yep! Good comment! Look at the spx (vix) every 10% move is good for 2% in the markets as a general rule...
China want PIIGS + ECB's gold.
simple as that.
No...land and Gold.
Its a "face" for Land/Gold swap dealeo.
looks like they haven't gotten the memo yet.