Euro Bailout Fund Chief Sees No Quick China Deal
Posted by WARREN MOSLER on October 28th, 2011
Now it all starts unraveling. It’s all talk- another ‘optical illusion’ with no operational reality I sight. The China participation isn’t a done deal. The 50% haircut isn’t a done deal either as they haven’t yet figured out how to actually do it without a default event. The EFSF contributions aren’t a done deal either.
What they have done is further frightened investors to the point where the ECB will find itself buying a lot more bonds to keep member nation funding in check, while ‘negotiations’ drag on with no resolution, meaning, as previously discussed, this is the resolution.
Hoping i’m wrong…
Euro Bailout Fund Chief Sees No Quick China Deal
By Reuters
October 28 (CNBC) — The head of Europe’s bailout fund said on Friday he does not expect to reach a conclusive deal with Chinese leaders during a visit to Beijing but expects the surplus-rich country to continue buying bonds issued by the fund.
October 28th, 2011 at 8:51 am
There are reports that China want their bonds denominated in Renminbi.
If the EU agree to that, we really will know that the lunatics are running the asylum.
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ESM Reply:
October 28th, 2011 at 9:06 am
@Neil Wilson,
If those reports are true, then at the very least we know that the Chinese think their interlocutors are idiots.
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October 28th, 2011 at 12:57 pm
Mr. Wilson:
I it appears you are correct, the lunatics are running the asylum.
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October 28th, 2011 at 1:21 pm
Is this whole game to shake China loose from it’s Euro holdings?
China – we will hold euro bonds
Europe – we will default on euro bonds
China – we will hold euros instead
Europe – we expect China to convert euros into European bank capital (which we could still default on)
China – we will keep our euros and instead issue Renminbi based bonds that Europe will accept as bank capital
Europe – %$^^##!!!
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