Chinese-Dragon
RETIRED TTA
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And you expect anybody to believe your claims..
Developereo makes a LOT more sense than you do.
It's not even a comparison.
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And you expect anybody to believe your claims..
So it's a three way power equation, at least -- it's China, US and EU -- What benefits does China derive from the EU? Is an EU that is home to NATO deserve being "saved"? if yes, why isn't the US saving it? What's in it for China? Why would the EU want Chinese help??
Hi Sir,
it is quite simple. China needs to save EU because if they go in to a recession then China will follow immediately because EU is a big market for China's export oriented economy. With the slowdown in US, a similar situation in Europe will practically lead a death blow to China's high positive balance of trade and the economy will slow down. that coupled with the real estate bubble waiting to burst, the results could be catastrophic. And once that happens, the real inflation will show up and the social upheavel will be very dangerous for the Chinese economy and stability and more importantly for the Chinese communist party. so really trust me on this, CHINA WILL FUND THE EURO BAILOUT. they have no other way. The economic policies of China over these years ensured that they will have to bail out their markets or China sinks with them. Funny but true.
Which of the links say that France 'escaped' downgrade as you claimed?
No sources, No logic; only your own concocted crap. And you expect anybody to believe your claims..
From your own link Later on....
And you were claiming Europes IP rights are up for sale when even its mention has such opposition.
French don't even want to appear weak to the Chinese, and you suggest wholeslae technology buys....ridiculous.
China 'buying up Europe' claims study - Public Service Europe
Godement and Parello-Plesner said: "Five years ago the story was European companies establishing bases in China. Now the story is that China is strategically acquiring European companies giving it ownership of vital infrastructure, access to cutting-edge technologies and allowing it to play some European countries off against others."
It's true that the Chinese government is afraid of the EU collapsing.
However, it does not mean we will go into recession. Worldwide exports collapsed by a greater amount during the 2008 Credit crunch... and we still managed to grow by almost double-digits.
It did lead to millions of factory workers becoming unemployed though, something which many predicted would lead to the downfall of the CPC. It didn't, due to the fact that the unemployed migrant workers went back to their family farms, and did not congregate in the urban centers to cause political unrest.
You will change your mind about it if you will just look the the huge increase in the chinese banks lending during the period of 2008 up to middle of 2010. The huge loans actually went in to real estate more than the bailouts of the smaller businesses in China. So to say that there was no impact will be very naieve because even when the figures are window dressed, every financial analyst in Hong Kong knows that Chinese banks are actually sitting on a crap load of NPA's from the lovely lending gala time. On top of it the hot money flow in to real estate made it a practicaly time bomb ticking away. With the Eurozone crisis if Europe defaults on the soveriegn debts, which will actually happen if the bail out will not be extended, then there is not anymore appetite for the retail investors to fund banks who are actually funding the hot money via lendings in China. So my friend, let us do away with the nice political language and smell the coffee. And also rest assured, CHINA WILL FUND THE EU BAILOUT. They have no other choice!
Umm... I never said the Credit crunch had no effect on China, in fact I quite clearly stated that millions of migrant factory workers lost their jobs. If that doesn't count as an "effect" then I have no idea what would.
Yes China will most likely contribute to the EU bailout, if only to save our own export markets over there.
The rest of your post is the same "China will collapse" prediction that we have been hearing every year, since the 1989 Tiananmen incident. And more recently with the: credit crunch, property bubbles!, food inflation, military takeover, Jasmine revolution!, ghost cities... it's all the same formula.
If you have something new apart from NPA's as a legacy of the excess lending during the credit crunch, please bring it forward. We faced the exact same problem not too long ago with the state owned banks (which was fixed), and it is nice to have $3 trillion in currency reserves.
For all interested readers to review:
http://www.defence.pk/forums/china-defence/13960-millstone-around-china.html
I just want to add that the 3 trillion dollar reserves are now more like stones around the neck rather than glimmering medals. A lot of that is invested in just trying to keep the USD afloat, + now it will be also funding the Euro.
Yes, that is perhaps the best use of the reserves: to keep China's customers afloat so they can continue buying Chinese products.
This keeps China's workers employed and builds Chinese infrastructure. Meanwhile, China can increase domestic demand slowly but surely to wean itself away from export dependency. When that day arrives, the artificial prop can be removed from under the US (and possibly Europe).