Markets rally as Italy asks China for bailout help

[peaceful]

US needs to do more to help its NATO allies out of these dire situations.

What are you smoking? it is in America's interests to have a weak and unstable Europe.

Do you seriously believe that yanks want a strong Euro to be the second largest hard currency?
Do you seriously believe that yanks want a unified Europe speaking in the same voice?
Do you seriously believe that yanks want a super fancy military force controlled by Europe?

No, with a strong economy and 600 million population, European Union will be the biggest competitor, America will never allow this to happen.

 

[no_name]

^^^ It doesn't hurt for China to make a call on the US to help out their allies in Europe, if all just done on surface.

 

[marshall]

USA have lots of food for the poor , so no problem for them, but poor CHinese may not able to buy food in higher price, and CHina will be in Big trouble.

Just let wait and see, I think 80 % that CHina inflation rate will keep climbing higher next month .

Perhaps you are right but not because China does not have enough food. China is over 99% food self-sufficient, if feedgrains are not counted. The only food item china has a significant import volume is soybeans where it imported nearly 55 million metric tonnes in 2010 as feedgrain. That total is expected to exceed 60 million tonnes this year. Other than soybean, which is used as a feedgrain, China is food self-sufficient.

I agree that China's inflation rate may go higher though. But, I do not think this is because of lack of domestic food supplies. It has more to do with China buying American dollars using Chinese Yuan, which is then held as foreign currency reserves. This Chinese Yuan floods the Chinese banking system which increases the money supply in China, thus producing domestic inflation. The faster China accumulates foreign exchange reserves, the more additional inflation pressure it will have.

China could solve its inflation problem by not increasing its foreign exchange reserves so excessively and pushing for the Yuan to become an international reserve currency. This process is already underway, but in the meantime, the Chinese Yuan is still pegged to the US Dollar, which means it will continue to buy American dollars and stored as foreign exchange reserves...which will cause upward pressure on inflation.

 

[marshall]

no we will just buy rice from Vietnam in exchange for paper money into Vietnam. then we use that paper money to buy natural resources and extract them from vietnam at permanent and immense environmental damage.

The United States has had this sort of sweet deal since WWII. When that comes to an end within the next 5 years, is when the US Military power will either expand exponentially to STEAL what they cannot pay with free paper money, or it will shrink to less than half what it is now. My bet is, it will expand, so it can continue to take what it wants. Expect alot more sob stories about evil tyrants needing to be overthrown by the heroic American military before this all plays out.

 

[below_freezing]

screw bonds.

we want italian industries as collateral. We can start with Milan football club.

 

[Farooq]

I would really like to see China bail out Italy to increase it's influence, however, I think it may be difficult given the hatred and mistrust EU nations have towards Chinese and Muslims.

Right now the West sees Muslims & Chinese as a collective threat

 

[DelhiDareDevil]

Dangerous move by China.

A entrepreneur would never invest into a failing system, dont no why China is.

 

[below_freezing]

Dangerous move by China.

A entrepreneur would never invest into a failing system, dont no why China is.

I don't know either but apparently, SAFE is betting on a successful bailout, and if the bailout fails, well, 1 less competitor.

 

[Obambam]

What are you smoking? it is in America's interests to have a weak and unstable Europe.

Do you seriously believe that yanks want a strong Euro to be the second largest hard currency?
Do you seriously believe that yanks want a unified Europe speaking in the same voice?
Do you seriously believe that yanks want a super fancy military force controlled by Europe?

No, with a strong economy and 600 million population, European Union will be the biggest competitor, America will never allow this to happen.

Regardless, America is still pretty much the leader of NATO. Without America NATO is nothing.

Why should the number two economy help the Europeans when the leader and number one economy does nothing? China can only do so much and we are in no way responsible for the failure of these "developed" countries.

We've already seen countries such as Iceland, Greece screwing up, Ireland almost followed the same fate followed closely by Spain, Portugal and now Italy. Do you really expect China to help them all whilst they go around trying to screw up China's businesses abroad? I don't think so, unless they give us something worthwhile in return, be it over or under the table.

America may not want Europeans to become strong, but is it their interest to risk losing faith and interests of allies to China?

 

[below_freezing]

Regardless, America is still pretty much the leader of NATO. Without America NATO is nothing.

Why should the number two economy help the Europeans when the leader and number one economy does nothing? China can only do so much and we are in no way responsible for the failure of these "developed" countries.

We've already seen countries such as Iceland, Greece screwing up, Ireland almost followed the same fate followed closely by Spain, Portugal and now Italy. Do you really expect China to help them all whilst they go around trying to screw up China's businesses abroad? I don't think so, unless they give us something worthwhile in return, be it over or under the table.

America may not want Europeans to become strong, but is it their interest to risk losing faith and interests of allies to China?

Agreed. We don't want no more intangible bull$hit bonds. Real industries, real ownership, real tech transfers. Strip Ferrari of its knowhow and ship it all back home. Own Milan, disband it, and send all the players as coaches to Chinese football team. If nothing else, we can say, we've owned Milan. Seriously, someone needs to shoot the people at SAFE who are converting China's physical assets to foreign paper.

 

[Chinese-Dragon]

Agreed. We don't want no more intangible bull$hit bonds. Real industries, real ownership, real tech transfers. Strip Ferrari of its knowhow and ship it all back home. Own Milan, disband it, and send all the players as coaches to Chinese football team. If nothing else, we can say, we've owned Milan. Seriously, someone needs to shoot the people at SAFE who are converting China's physical assets to foreign paper.

I agree 100%.

One trillion in highly liquid assets (treasury bonds) is more than enough to cover ourselves.

The other two trillion should be put to better use.