There were several interesting aspects to this news item. First, unlike when Western Deadbeats talk about “buying bonds” amongst themselves; when China’s government talks about doing this it doesn’t need to print more money simply to finance the purchases.
I’ve written about the Western dynamic several times. Being forced to print more money each time they take turns “bailing out” each other is precisely the same thing as when a deadbeat writes a new bad cheque to “cover” an old bad cheque. If you must print new paper in order to “cover” the old paper; all you are doing is kiting cheques.
That is the Western financial system – a cheque-kiting financial system. There couldn’t possibly be a more obvious Ponzi-scheme. Note that with all of the Western Deadbeats ultra-leveraged that no one is really in the driver’s seat, since if one goes down they all go down.
Then we have China. When China buys Western bonds (i.e. lends money to these governments), it’s not making itself vulnerable. While China would certainly lose money on some mass debt-default (Debt Jubilee?) in the West; it would not be instantly vaporized like every Western economy.
Thus China is acquiring financial leverage with Europe, just as it has already done with the U.S. Whenever the U.S. starts to annoy China with its rhetoric, Chinese leaders just yawn – and start publicly musing about “selling Treasuries.” It appears that China has now indicated a willingness to allow Europe to also mortgage their economies to China.
For any who doubt that “the Baton of Power” is being passed from West to East, here we see the dynamics clearly on display. We all know the horrible things the bankers can do to us as the ones holding our debts. China already has a similar choke-hold on the U.S., and is acquiring the same with Europe. And in China, they execute financial criminals.
It was also interesting to observe Chinese leaders offering financial advice to European leaders, as it offered its conditional financial assistance. Specifically, China suggested that Europe’s governments “balance” Austerity with stimulus.
Regular readers will recall that I’ve already shown that Europe’s Austerity is nothing but a deliberate effort by the bankers to destroy Europe’s economies, and increase the speed of their “economic rape” of these nations. Now we have China’s leaders subtlely telling Europe’s governments that if they want more financial support from China then the raping-and-pillaging of their own economies must be scaled back.
There’s a new Sheriff in town. And having watched decades of endless fraud and endless wars as we’ve endured Western hegemony, we can all only hope that this is a change for the better…
China says willing to buy EU bonds amid worsening crisis
Beijing (Reuters) – China is prepared to buy more EU government bonds amid a worsening European debt crisis that is dragging on the world economy, Premier Wen Jiabao said, in the strongest sign of support for its biggest trading partner in months…
“China is willing, on condition of fully evaluating the risks, to invest in the euro zone sovereign debt market…” he said after meeting Merkel…
He added that Beijing hopes the euro zone can “balance” fiscal austerity with economic stimulus measures… [emphasis mine]