‘China will refrain from saving the Euro’

[fd24]

Despite China being perhaps the only country with sufficient cash reserves to help the EU out of its crisis, the head of a Hong Kong-based investment company does not believe it will get involved at this stage.

*France’s move to have the EU print more money in order to deliver Greece’s 100-billion-euro austerity package was vetoed by Germany. So the EU is left with no choice but to find real money, Francis Lun, managing director at Lyncean Holdings, told RT.

“And there are not a lot of places in the world with real money today,” he added, “And China has $3 trillion of foreign exchange reserves, so it was envisioned in a leading role in saving the euro”.

“When they [the EU] run out of money, they go to China and say please give us your foreign exchange reserve to solve the problem. But I doubt China has to play that role. It should be played by Germany, France and the EU. If you don't have money – sell your assets or raise some taxes like the US does. They will refrain from playing a leading role in saving the euro,” Lun said.

Lun believes China will hold back despite having much to gain from helping Europe in terms of “political leverage and influence.”

“When you look around the world, both the EU and the US are in deep crisis and China is the only country that is not in a financial crisis and has a huge foreign exchange surplus. China can use this money and build up a political connection and influence, so that in future in foreign policy the EU will stand on the side of China, instead of against,” Lun concludes.

Let me give you it simple and in a nut shell : Start spending less than you have.

 

[no_name]

China does not really want the euro to collapse. If Euro collapse now US and China will be the beneficiaries but US being alot closer will take most of the benefits. Not to mention afterwards US will turn its complete focus on the yuan.

China wants the euro to survive for now but they want technology exchange in a few high end areas, hence China official's recent visit to Europe to discuss the deal (which fell through). Europe does not want to sell the few remaining lead in technology it has because it knows that it's the only remaining card to hase to prevent it's industry from being out-competed by China.

 

[JayAtl]

where is the link to the article? who is Lun?

 

[Chinese-Dragon]

China wants the euro to survive for now but they want technology exchange in a few high end areas, hence China official's recent visit to Europe to discuss the deal (which fell through). Europe does not want to sell the few remaining lead in technology it has because it knows that it's the only remaining card to hase to prevent it's industry from being out-competed by China.

They can sell us more of their assets. We've already bought up land in Ireland, and ports in Greece.

The problem with loaning them too much money.... what if they default?

Which is why it is better to have assets. So even if they crash, we still have something solid that we can build on afterwards.

 

[no_name]

[excerps from an article] If we look at it as a pyramid, traditionally the US has been at the tip, with europe and Japan occupy second tiers, countries like China and post soviet russia are third tiers, then you have fourth tier countries composed of the likes of Iraq and Libya.

This is the new world order. It is an improved system over the old colonial method where treasures and lives must be shed to physically occupy a country or piece of land for resources. Tier one country must remain high on consumption, flooded with cash and held all the technology leads, tier two helps tier maintain order and voice support. They themselves are rich and technologically advanced but still lags tier one by a large margin.

Tier three acts as factrories and produce products for the consumption of tier one and two countries, often at cheap prices, while tier one and two helds IP and patents rights over developed product and basically live off royalties. Some tier three countries completely lacks the ability to manufacturing products on their own due to insufficient industries. Some countries like post soviet russia were de-industrialised when their industries started to pose competition for tier one and two countries.

We need to face the fact that China did not have good IP protection records before. It is part of a strategy to break away from the sweatshop countries. And they can do this because unlike smaller counties they can stand on their own against foreign pressure. They can then start their own venture, become competitive, and out-compete the tier one and twos at their own game. Some other tier three countries will never make it through because they are more vulnerable to outside pressures.

Tier four countries provides resources for consumption, buys end products at a higher price, buys military weapons, and if needed, gets sacrificed as food when time is hard on everyone. With no independent complete industrial chain and a powerful military they are forever at the bottom of the hierarchy unless there are significant changes to the order.

Saddam tried to shift to trading in euro, and he is gone. Gaddafi tries to shift trading to an unified african dinar, and he is gone. And then outside contractors can make a buck 'reconstructing' the country, and propping the next strongman in place. As long as tier 4 countries don't do things uncle sam don't like, they are usually ignored even if they have poor human rights and dictators, but this alone never guarantees their safety if something can be gained from sacrificing their regime. Tier two countrie will tend to toe the line as they usually get some benefits afterwards.

 

[gambit]

I guess we can put to rest the idea that the euro is going to be the replacement for the dollar as reserve currency? Remember all those loony conspiracy theories about Iraq, oil, and the euro?

 

[ChineseTiger1986]

The Europeans are rich, so let them to get bailed out by themselves.

 

[Farooq]

They can also send NATO troops to take over the natural resources to salvage their economy. Oh wait! This is China!

 

[ChinaToday]

why dont they ask india to help ? India is predicted by them to over take china next year

 

[idune]

why dont they ask india to help ? India is predicted by them to over take china next year

You have nailed the right question.

 

[ChineseTiger1986]

why dont they ask india to help ? India is predicted by them to over take china next year

You are right, lets the biggest democracy in the World doing this job, and why the democratic nations will need the money from the evil commie to save their a$$?

 

[Maira La]

You have nailed the right question.

Well it would actually be good to see Europeans begging for money from India as well. Right now, India's MRCA purchase will provide them with some necessary cash flow to keep part of their defence industry up and running.

 

[Mosamania]

Not the first one to do refrain from saving the Euro lol:

Exclusive:Saudi central bank not interested in distressed assets | Reuters

 

[JayAtl]

why dont they ask india to help ? India is predicted by them to over take china next year

same reason they never asked japan. India is spending that money internally( and as you guys love to remind them is 1/4 of your gdp). They ask china because while taking over Japan on GDP, is a more materialistic - can you say it has given its people the standard of living remotely that Japanese have?

---------- Post added at 07:58 PM ---------- Previous post was at 07:56 PM ----------

I guess we can put to rest the idea that the euro is going to be the replacement for the dollar as reserve currency? Remember all those loony conspiracy theories about Iraq, oil, and the euro?

that and China is heavily dependent on the " whites" - you know the ones they love to denegrate, for its economy...

 

[Mosamania]

same reason they never asked japan. India is spending that money internally( and as you guys love to remind them is 1/4 of your gdp). They ask china because while taking over Japan on GDP, is a more materialistic - can you say it has given its people the standard of living remotely that Japanese have?

---------- Post added at 07:58 PM ---------- Previous post was at 07:56 PM ----------



that and China is heavily dependent on the " whites" - you know the ones they love to denegrate, for its economy...

Population plays a very big role in this you know.