Saturday, December 25, 2010

China to Bail Out Europe?

Europe continues stepping down while China and Asia step up. Having China invest in the West could prove beneficial in another way. Global stability would becoming increasingly important so they would see that investment pay off. That could mean serious pressure on 'trouble makers' like Iran and North Korea to start behaving.

"China has said it is willing to bail out debt-ridden countries in the euro zone using its $2.7trillion overseas investment fund.

In a fresh humiliation for Europe, Foreign Ministry spokesman Jiang Yu said it was one of the most important areas for China's foreign exchange investments.

The country has already approached struggling European countries with financial aid, including offering to buy Greece's debt in October and promising to buy $4billion of Portuguese government debt.

Today Portugal had its credit rating downgraded by the Fitch Ratings agency amid mounting concerns over the country's ability to raise money in the markets to finance its hefty borrowings.

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