"There will come a moment - who knows when, but China plays a long game - when some ghastly, Europe-threatening crisis arises (Iran? Turkey? or another financial meltdown?) and Europe is confronted squarely with its own flabby uselessness. Couldn't face down Libya unaided: & certainly can't face this putative future challenge, without contemplating some seriously bloody bayonet-work (and/or precipitous standard-of-living reduction). No stomach for that - and the US has decided it's had enough.And then ... and then China or India has a quiet word in Brussels. Leave it to us, they say: and all we want in return is ..."
C@W 12 June 2011
"The chairman of China Investment Corporation, which was created to invest a portion of Beijing's $3.2 trillion in foreign reserves, met with Italy's finance minister last week in Rome, The Wall Street Journal and the Financial Times reported, citing unnamed sources. Italian Economy Minister Tremonti confirmed on Tuesday that he met officials from a Chinese delegation last week but declined to comment on the substance of the meeting. The Financial Times reported that Italy had asked Beijing to buy "significant" quantities of Italian debt to help calm market turmoil caused by worries over the sustainability of its €1.9 trillion debt load."
DTel 13 Sep 2011
And ain't Silvio just the man to do a deal ?
ND
OK. I'll bite.
ReplyDeleteWhen the Chinese say "and all we want in return is ...", how do they complete the sentence?
..... more pizza parlours in Peking?
ReplyDeletecome on guys, use a bit of imagination ...
ReplyDeleteTerritory. Technology. Resources. Disarmament. 'Environmental' transfer payments. Work permits. Migration rights. NATO codes. A compliant or proxy vote / veto in the EC / UN. The World Cup. Bunga-bunga parties ...
the list goes on
' And ain't Silvio just the man to do a deal ?'
ReplyDeleteHe won't be making any deals. The damage he is doing is now so enormous that most political effort is put into circumventing his activities. Italy has a constitutional and political crisis, not an economic crisis - Berlusconi's latest reference to the Chancellor of Germany as la “culona inchiavabile” is eclipsing even his flight to Brussels (so damaging to the Italian bond sales on the same day) to avoid appearing as a witness before the Naples prosecutors in the nth prostitution and blackmailing investigation into his activities.
The China connection is with Germany.
I think it is easier. China wants a strong Euro to protect its own mercatilist currency policy. Currently the Euro is weakening; supporting it is therefore good for China.
ReplyDeletehaving a strong Euro though exacerbates the current mess, with more Italian manufacturing moving to China and their economy sinking further into debt.
Our only clever strategy here is to borrow the money from China and then default on it...
chilling post
ReplyDeleteShopping the deal.
ReplyDeleteMerkles is going to ring up Barry and ask nicely for the Fed to pony up a trillion.....or else.
Lets call it the armegedeon conference call
"Did Tim mention it btw? we did put it to him at the Euro Meeting"
HG - insights from our own Tuscany correspondent always welcomed in these parts (when do you resume blogging ?)
ReplyDeleteCU - I buy your first 2 paras but I don't know who'd buy the 3rd: kinda risky looking ahead, the kraken wakes etc ...
Philipa - sorry to spoil your morning, but hey, this is to be China's century so there's more to come
Sean - a man after my own heart, & you may be right
but I suspect it's just sauve qui peut these days
I'm so minded of the deal from the Godfather 3 where the Vatican are selling 'Internationali Imobliare' and the Pope accidently carelessly poisons himself.
ReplyDeleteBerlusconni and Benedict - the boys. Tuscon Tony did a blog where he reckoned that Italy's economy doesn't really exist anyway because it's 40% Mafia.
Fucking hellski - what's for sale?
Had a great time in your site!
ReplyDeleteSample cv