Euro Bailout Fund Chief Sees No Quick China Deal

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.

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4 Responses to Euro Bailout Fund Chief Sees No Quick China Deal

  1. Winslow R. says:

    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 – %$^^##!!!


  2. GLH says:

    Mr. Wilson:
    I it appears you are correct, the lunatics are running the asylum.


  3. Neil Wilson says:

    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.


    ESM Reply:

    @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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