China Offers To Buy Greek Debt

China Offers To Buy Greek Debt

english.aljazeera.net

China has offered to buy Greek government bonds, in a show of support for the country whose debt burden pushed the euro zone into a crisis.

Wen Jiabao, the Chinese prime minister, made the offer on Saturday at the start of a two-day visit to Greece, his first stop in a European tour.

During talks with George Papandreou, the Greek prime minister, Wen said China would double its trade ties with Greece over the next five years, underscoring Beijing's use of economic strength to win friends.

"China will undertake a great effort to support euro zone countries and Greece to overcome the c

(visit the link for the full news article)

So China is continuing it's buying up of foreign debt eh?

I see a very devious plan coming to light with China, if they continue this way, and end up owning most of the debt from other countries, it could become a world Super Power overnight.

Imagine if they started calling in those loans?

Another interesting fact:

China has a lot to gain from getting a foothold into Europe, Vagelis Agapitos, an economist in Athens specialising in investment, said.

"They [China] get a bargain in terms of buying into strategic industries, such as the port authorities, the railways and the logistic centre, which is important for the export of Chinese goods," Agapitos told Al Jazeera.

This effectively means that China can start slowly buying trade routes and continually expanding their influence in the global trade market.

Thoughts?

~Keeper


english.aljazeera.net
(visit the link for the full news article)

This is not surprising at all . As long as China keeps putting up double digit growth numbers they will use the Wests money , which is backed by debt , to then reinvest this " money " to buy up hard assets .

This bought up debt can also make a very nice bargaining chip

Wouldn't it be interesting if multiple countries get China to buy their debt and then, once a whole bunch of countries realize that there's only one country that holds their debt, they all default simultaneously. That might be precursor to WWIII.

Looks to me like it's aimed at america. Basically saying that they're done with buying our debt and would rather throw money away on Greece than the US.

reply to post by bowlbyville


hmmm, perhaps that was the strategy of orchestrating the GFC...

All these austerity measures as well are most likely to end up with tougher regimes - moving further towards a police state...

China has said it needs to diversify its foreign currency holdings meaning; sell its Dollars.
Their suggested transaction could give them a seat at the Euro table and influence its value for future benefits.
What happens if Greeks default?

Is is maybe something to do with oil now being traded in Euros rather tan dollars and China wanting 'in' on that market ?

I'm not very well educated on this subject but i have heard that the 'real' war is between the Euro and the dollar and that those are the sides that the rest of the world have to choose from.

reply to post by Surfrat


Well most of the agreements with China in regards to buying bonds state that if the country defaults there are several different actions China can take.

Most notably is the value of the loan in land.

Also another thought is that with china diversifying it's porfolio it would make it easier for it to become to primary exchange currency instead of the dollar in the event of a market collapse.

~Keeper

Originally posted by tothetenthpower
reply to post by Surfrat

 

Well most of the agreements with China in regards to buying bonds state that if the country defaults there are several different actions China can take.

Most notably is the value of the loan in land.

If that is the case with the US debt that China already owns, they can take TEXAS!



Can you imagine the loan star flag flying below a Chinese flag at the state capital?

reply to post by Fractured.Facade


Yeah, I remember reading somewhere at one point that a few states could be taken for what the US owes China.

Although I doubt they would ever try to do something like that, it would certainly mean war for the US and China.

~Keeper

Garden Gnomes and double posts still exist in ATS 2010.

You've been warned..

~Keeper

reply to post by tothetenthpower


Are you suggesting that default on legitimate debt should give the Chinese no recourse but war?

If we owe them, and can't pay then we have to honor the debt with Nukes?

Awesome, because we are not going to be able to even pay the interest on the debt by 2015, unless there are some major changes in government the least of which will be massive cuts in spending across the board, including military and defense spending, (either way China wins) massive rise in taxes across the board, and a major upturn in the US economy. (ain't gonna happen quick enough).

Prepare yourselves, the new name for the capital of Texas will be New Beijing!

reply to post by Fractured.Facade


I'm just saying there's no way that Americans will allow China to take land from them, regardless of how legal the grab would be or not.

As well they won't allow any government to give land to another country, at least I wouln't. They didn't make the deal with China, the government did.

~Keeper

reply to post by tothetenthpower


In that case the Greek would be wise to learn from what a mess we are in here.

By the way, do you think it matters to our current government, what the people want or how they feel about anything?

No!

Whether we like it or not, the debt is ours, every American's ... Maybe we could give them Utah and make them believe it is Texas?

reply to post by Fractured.Facade


No, I don't think they care, but what they do care about is keeping a civil war as far away as possible.

There would be SO many states that would attempt to seperate as well as millions of Americans showing up to sack the government.

Actually now that I think about it, maybe it SHOULD happen. Might be the catalyst they need .

Nah, you all need Utah. I mean the garden of eden was there after all ...

~Keeper

reply to post by tothetenthpower


Look how China has been buying up natural reserves in Africa and South America to fuel its economic growth over the decades. I have always thought of China as the sleeping giant that over the past twenty years has awaken from its slumber and very cleverly fed of the West's greed. Especially from a manufacturing perspective. China has also extended its help to other failing economies.

Edit: If China starts advancing its political and economic might across Europe, it might just kick the UK into realizing that the European Parliament exercises too much control over the nation and we can start reclaiming our laws back. I kind of like the idea that rules made to govern a country are created and enforced within that country. Failing that, then we could ask China to cover our debt, Bob Crow would be happy and we'd not have to make all these arbitrary cuts. Better get reading my Communist Manifesto!

Originally posted by tothetenthpower


Actually now that I think about it, maybe it SHOULD happen. Might be the catalyst they need

.

Now you are thinking!

But, would the Chinese assist our government in crushing the revolt?

Would be wise to prepare regardless, we have been sold to the Chinese already in many ways other than debt, because of taxes and restrictions on business, energy production and a weakening economy US business and manufacturing is leaving the country and has been for quite some time now, guess where most are going?

China.... along with all those jobs!

Take a look yourself at the trade deficit with China! use google.

They have already won, and never had to fire a single shot!

We've all been focused on the wrong things and the wrong enemies.

The Greeks are next, and will be only one of many nations in debt to the Chinese, and ultimately manipulated and controlled by them as well.

Here is a little blurb I found on a Chinese website...

Wen put forward a five-point proposal for the further development of China-Greece ties concerning cooperation in maritime transportation, trade and investment. China will set up a special fund on China-Greece shipping cooperation, with the initial part of 5 billion U.S. dollars, in a bid to promote cooperation in maritime transportation between the two countries, said Wen. He added China will help upgrade Greece's southeast and largest port Piraeus to a distributing center for Chinese exports to Europe. Wen said he believes it is realizable for trade volume between the two countries to double and reach the goal of 8 billion dollars in five years, adding China will expand the import from Greece. China encourages its companies to invest in Greece and also welcomes Greek companies to explore the Chinese market, said Wen, who expressed the hope that the two governments will provide convenience for their companies in terms of mutual investment. Wen also urged the two countries to increase exchange in culture and humanities in a bid to strengthen mutual understandings not only between China and Greece, but also between China and Europe as a whole. He also called for the two sides to coordinate closely in international organizations including the United Nations, and jointly promote the reform of the international financial system.

www.chinadaily.com.cn...

reply to post by tothetenthpower


Greece should tell China to shove their money up their collective backsides.

They are only in this trouble because they got involved with the Euro.

A currency like the Euro does not always work nor does everyone want it.

Currency trading and fluctuations in the markets have always been a problem.

The usage of the Euro however only makes less people at the top richer through influence.

Greece, tell China, shove it up your Communist butts.

We do not need, want, or have a reason to see Communism spread.