Eurozone bailout chief: No quick deal with China

It’s not just China that will drive a hard bargain, but all the other BRIC countries.
They will want the maximum out of this deal and as the EU is in need then beggars can’t be choosers and they will have to take up whatever off is on the table.
This boys and girls is reality on the ground not the BS your western media tells you. And the Albanians think that the west will be in Kosovo forever.

The EFSF, set up last year, is a 440-billion-euro fund designed to rescue the euro zone bloc’s indebted economies.

B92

One would recall that two years ago the Germans and the French insisted there was no need to set up a EFSF for Italy and Spain because they wouldn't need one.Last year under,immense pressure from speculators, they've decided to set up a bailout fund in the region of 440 billion Euros despite the fact that total debt for Italy and Spain was in the region of 3.5 trillion Euros.Last Thursday they announced the set up of a bailout fund of 1 trillion Euros and assuring everyone that this will be enough to drive the speculators away.How wrong they are again.

The root cause of all of the economic problems in Euroland are the Euro and overborrowing by the weaker countries, facilitated by their membership of the Euro. The euro was a currency with low interest rates set to suit German and French economies .Back in 2001 their economies were stagnating. Greece, Ireland,Spain and the others in trouble had booming economies and needed higher interest rates, something like 7-7.5% percent. This would’ve curbed their borrowing and cooled down their economies.But Germany encouraged countries like Greece to borrow with the euro’s cheap interest rates so that they may buy German goods and get Germany out of the recession.With the advent of the collapse of Lehman Brothers and the world banking crisis countries like Greece were unable to borrow any money from the banks and they couldn't either devaluate their way out of the crisis as the US and UK have done because they couldn't issue their own currency thus causing a sovereign debt crisis.

As I've said before no amount of bailouts can restore the competitiveness of those countries while staying within the Euro area.The only way to sort this out is to scrap the Euro and let the restored domestic currencies find their natural competitive level. It won't solve the short term debt crisis but it will correct the imbalances and promote growth in the weaker economies.At the same time those countries can proceed by restructuring their economies ie move from unproductive to productive activities and stamp corruption.

Greece should not have been into the euro area.It’s a scam and always was and we’ll see what the next crisis brings.

China already owns lots of US junk bonds.
I don't believe they will be as stupid as bailing out EU too.
Nice try :)

sj
we dont think the u.s will be in kosova forever. What you fail to understand is us albanians have been and will be in kosova for ever unless another milosovic rises in the future and finishes of what he started.

sj
we dont think the u.s will be in kosova forever. What you fail to understand is us albanians have been and will be in kosova for ever unless another milosovic rises in the future and finishes of what he started.
(sunny, 29 October 2011 01:59)

Perhaps you have answered your own question – until another Milosevic finishes what was started. The sad part is next time no one will even turn their head as no one will report it in the media.

China already owns lots of US junk bonds.
I don't believe they will be as stupid as bailing out EU too.
Nice try :)
(Joachim, 28 October 2011 22:54)

The Chinese are not stupid as they make decisions based on long-term strategies and they will not buy these bonds and leave empty handed. They are after free trade agreements with the EU and the ability to make large investments (buy) including into manufacturers of sensitive technology companies.
If the EU comes to the party then the Chinese will buy the bonds if not then bad luck for the EU.

It’s not just China that will drive a hard bargain, but all the other BRIC countries.
They will want the maximum out of this deal and as the EU is in need then beggars can’t be choosers and they will have to take up whatever off is on the table.
This boys and girls is reality on the ground not the BS your western media tells you. And the Albanians think that the west will be in Kosovo forever.

The EFSF, set up last year, is a 440-billion-euro fund designed to rescue the euro zone bloc’s indebted economies.

B92

One would recall that two years ago the Germans and the French insisted there was no need to set up a EFSF for Italy and Spain because they wouldn't need one.Last year under,immense pressure from speculators, they've decided to set up a bailout fund in the region of 440 billion Euros despite the fact that total debt for Italy and Spain was in the region of 3.5 trillion Euros.Last Thursday they announced the set up of a bailout fund of 1 trillion Euros and assuring everyone that this will be enough to drive the speculators away.How wrong they are again.

The root cause of all of the economic problems in Euroland are the Euro and overborrowing by the weaker countries, facilitated by their membership of the Euro. The euro was a currency with low interest rates set to suit German and French economies .Back in 2001 their economies were stagnating. Greece, Ireland,Spain and the others in trouble had booming economies and needed higher interest rates, something like 7-7.5% percent. This would’ve curbed their borrowing and cooled down their economies.But Germany encouraged countries like Greece to borrow with the euro’s cheap interest rates so that they may buy German goods and get Germany out of the recession.With the advent of the collapse of Lehman Brothers and the world banking crisis countries like Greece were unable to borrow any money from the banks and they couldn't either devaluate their way out of the crisis as the US and UK have done because they couldn't issue their own currency thus causing a sovereign debt crisis.

As I've said before no amount of bailouts can restore the competitiveness of those countries while staying within the Euro area.The only way to sort this out is to scrap the Euro and let the restored domestic currencies find their natural competitive level. It won't solve the short term debt crisis but it will correct the imbalances and promote growth in the weaker economies.At the same time those countries can proceed by restructuring their economies ie move from unproductive to productive activities and stamp corruption.

Greece should not have been into the euro area.It’s a scam and always was and we’ll see what the next crisis brings.

China already owns lots of US junk bonds.
I don't believe they will be as stupid as bailing out EU too.
Nice try :)

sj
we dont think the u.s will be in kosova forever. What you fail to understand is us albanians have been and will be in kosova for ever unless another milosovic rises in the future and finishes of what he started.

sj
we dont think the u.s will be in kosova forever. What you fail to understand is us albanians have been and will be in kosova for ever unless another milosovic rises in the future and finishes of what he started.
(sunny, 29 October 2011 01:59)

Perhaps you have answered your own question – until another Milosevic finishes what was started. The sad part is next time no one will even turn their head as no one will report it in the media.

China already owns lots of US junk bonds.
I don't believe they will be as stupid as bailing out EU too.
Nice try :)
(Joachim, 28 October 2011 22:54)

The Chinese are not stupid as they make decisions based on long-term strategies and they will not buy these bonds and leave empty handed. They are after free trade agreements with the EU and the ability to make large investments (buy) including into manufacturers of sensitive technology companies.
If the EU comes to the party then the Chinese will buy the bonds if not then bad luck for the EU.