By Mark Pritchard. As the eurozone sinks ever deeper into chaos and collapse, Brussels has sent a top eurocrat to China to beg Beijing for a handout. Klaus Regling, Chief Executive of the unfortunately-named European Financial Stability Fund (the Euro Bailout Fund) has been despatched to see if the Chinese can spare the odd $100,000 million to prop up the Euro.
President of the European Central Bank (the Bank of the Euro) Jean-Claude Trichet, explicitly denied that Herr Regling was going “cap in hand” to China, which confirms that is in fact what he is doing.
M. Trichet has now executed a well-timed exit, handing his job in charge of the Euro’s bank over to some hapless Italian at the end of October. Like the Captain of the Titanic managing to jump ship at Cork.
Now the Greeks have actually decided to give their people a say in a referendum and democracy has infected the eurozone, the markets have panicked and the last act in what has become the Greek Tragedy of the EU’s common currency looks to have begun.
Unless Herr Regling can get the Chinese to throw a few coppers – well, actually several tons of coppers – into the cap he officially is not holding out in front of them.
Chinese President Hu Jintao is currently gracing the G20 world economic summit in Vienna with his august presence. Being flush with trillions of dollars and euros in US and sundry EU bonds and head of the World’s biggest creditor nation, he could easily afford to toss some dosh the Euro’s way.
But his Vice Finance Minister Zhu Guangyao is playing hard to get, suggesting that bailing out the Euro is not a Chinese priority. Bailing out the US dollar, a trillion of which Uncle Sam owes Beijing, may be a more tempting exercise of largesse.
Although other leading Chinese officials have hinted that nonetheless they would not be averse to buying up a few European ports, railways and factories if the price was right.
A hundred years ago, Europe and the USA owned the whole World. China was a bankrupt, politically shambolic chaos, chunks of its territory occupied by racial aliens and possessing scarcely a scrap of sovereignty. Now the tables are turned and it’s the other way round.
Because we Europeans and Americans spent the intervening century fighting amongst ourselves and surrendering without a fight vast tracts of land won with generations of blood and sweat to Third World savages and despots, whilst opening our homelands to colonisation by tens of millions of their people. Whilst the Chinese…didn’t.
The results speak for themselves.
2
It ought to be pointed out that the Chinese work extremely hard and save their money instead of spending it.
hey do this because they haven’t got a welfare state and need to work and save so that they don’t starve and are able to afford healthcare and something for their old age,
In this country, too many people expect others to work hard and then be taxed to give them the things they haven’t worked for,
Or they have no idea really where the money comes from (‘The rich’ ?) but just feel entitled to it because they have been told that they are. They vote for the political parties who tell them this and hand over other people’s money to them.
Of course, millions of immigrants have come to this country primarily because they too expected to get their hands on other people’s money via the Welfare State.
And those same political parties welcome them because they vote for them and keep these politicians in the positions and perks to which they hav become accustomed.
What the people of the country want, is of course of no great importance – just a hindrance to be got round.
The focus may be on Europe at the moment, but the situation of the USA is as dire if not quite so immediately pressing.
The US government debt is around $15 trillions, up from $12 trillions two years ago. This is about 7 times the US government’s total annual tax take of $2 trillions and is therefore impossible to pay back .
The annual federal deficit has gone into overdrive since the 2008 crisis and is now running at $1.5-$1.6 trillions annually. It is expected to stay at above $1 trillions for years to come.
Since total spending is $3.5 trillions, this means that the US goverment is borrowing more than 40% of everything it spends.
The funds for US government spending has come from abroad, especially China and Europe.
But China is getting out of the US$, The leading Chinese credit agency recently said that the USA had already defaulted on its debt.
Why? because it has allowed inflation to rip, through ‘Quantitative Easing’ ie printing money.
If you hold huge amounts of a currency which is being debauched, you are not going to be too happy, and the Chinese aren’t.
What happens when the USA is unable to roll over its debt because the Chinese and others no longer want to lend it money by buying its bonds because they depreciate due to infaltion?
If it can no longer borrow it wil be effectively bust, just like Greece.
At the rate it is borrowing the USA won’t be be able to pay the interest on its debt, never mind its debt.
Fortunately, or unfortunately depending on how you look at it, as the world’s reserve currency, it can print dollars to get out of this hole.. But for how much longer is it going to be the major reserve currency?
As Vita Brevis has said, It has has depreciated by 30% against major currencies in the last decade or two already. Who is going to want to hold dollars?
Arab sovereign funds are beginning to buy gold.
Is it any wonder that China is so flush when half of what we buy these days is made there, our stupid and treacherous political masters having decimated Britain’s own manufacturing base, exporting it overseas. We need a government that is going to give Britain a second industrial revolution, get the country working again, re-build the manufacturing industry and use our skills to make the goods we want. Stop the trillions going on so-called overseas aid, down the bottomless EU pit and the endless resources being expended on immigration, and use the money to re-build Britain. Speed the day when we have a truly nationalist government.
It needs to be broadcast to the voters of Europe that, even if the Chinese government agrees to throw money into the European begging-bowl, it will certainly not be a free gift! It will be a loan, repayable by installments, probably sweetened with gifts, and with a reasonable rate of interest added. The buying of government bonds is also, in simple terms, giving that government a loan. Such a bond is nothing more than a posh IOU with interest added. In effect, it is nothing much more than a Provident Cheque on a giant scale. The European Union, in accepting a loan of the suggested magnitude from the Chinese Republic, would be gambling the entire future of Europe and everybody in it – including us – on the slender hope that the arrival of the extra cash will, like a sprinkling of magic stardust, miraculously enable European industry and general business, and the whole interconnected western banking system, to become a “lean-mean-profit-machine”, the business equivalent of Popeye gulping down a tin of spinach (or in this case possibly fried rice and sweet & sour pork)! Since at least half the problem with all European industry (and probably more than half) is the inept, politically-choked and red-tape bound conditions it must struggle to operate under, the only certain way to ensure a European financial recovery that would be able to repay such mega-loans would be to abolish the European Union entirely and let each nation mind its own business (literally) in fierce competition with each other. (A business that doesn’t fight its rivals is a charity.)
Mark,
You could add the insane policies of ‘globalism’ and ‘free trade’ to the reasons why the west has gone down the toilet.
Basically we have millions of unemployed, mega trade deficits, whilst year on year enriching Chinese industry by the billions.
A nationalist government must tackle this in the same way it must tackle immigration.
I’m glad someone has pointed out the extraordinary reversal in fortunes which has occurred between China and the West. I’ve never seen a comment on the subject in the mainstream madia, probably because there is so little sense of history nowadays.
On the subject of economic collapse, how sad it is that the Left has grabbed the country’s attention with its anti-capitalist protest at St.Paul’s.Yet again it is the Marxist critique which people hear, and which wins the sympathy of young people, while the nationalist Right – with its own perfectly valid alternative to both Marxism and capitalism – is silent except in these pages.
The Chinese have already acquired a large chunk of the Piraeus (port for Athens).
The lesson seems ot be that if you are realistic, work hard, are self-reliant, live within your means and are nationalistic you will prosper. With prosperity comes power.
If you believe in opening your borders to all and sundry while spending money you haven’t got like a drunken sailor in the belief that Globalisation will ensure ‘something will turn up’, you are doomed to penury, powerlessness, disintegration and the metaphorical debtors’ prison.
China is racially and culturally homogenous (more or less). The Han Chinese represent 90% of the population and the problem is to keep their numbers down at around 1 billion give or take 100 million or two.
A nation that is united in this way and is as huge and as prosperous as China with a population as intelligent (average IQ 106 -107, whites 100) is going to be unstoppable. What’s more they have the motivation to dominate. They have always considered China to be the centre of the earth (the ‘Middle Kingdom’) and have the humiliations of the last two centuries at the hands of foreigners like the Brtish and Japanese to make good on.
Furthermore because they do not have a Western Culture they are not encumbered with the masochistic, self-flagellating suicidal guilt indulged in by left-liberal whites, notwithstanding their history of colonisation, domination and assimilation of Inner Mongolia, Szechuan, Manchuria, Tibet and other areas. They continue to try to destroy these ethnicities by importing huge numbers of Han Chinese.
They are now effectively colonising Africa, taking on the role previously occupied by Europeans.
It’s fascinating that a communist country should exhibit such traits .The answer is that they are on the same track as us but have passed us on the way up and out of marxism whilst we are on the way down and in to Marxism.
I know it’s difficult to believe but many reputable financial analysts are saying that the Chinese debt problems are even worse than the American’s or the Greek’s.
If every Nation on the planet is in debt, then obviously there is something inherently wrong with the international financial and banking system. But then we nationalists and other monetary reformers such as C H Douglas have been saying this since the early 1920’s.
Two thoughts, and in one day.
First, why do we not ‘borrow’ ALL the money we need to pay off the so called national debt, and a few trillion to spend; then do a Greek on them and say we arn’t gonna pay you back, Ha ha.
Secondly, how come the leaders of just two member states, ( The 3rd Reich and its French Collaberators ) without any apparent conversation with any other member, without a vote or even a discusion can change and diktate, can tell Greece and the E.U. what it is to do?
Why do we have a load of expensive money spounging M.E.P.’s and even more expensive Commissioners, plus TWO expensive building and all the staff, if just two people are making the decisions?
I say, good on you Greek People, go for it, pull the house of cards down; yes it will hurt us, but not more than the future we face now trying to pay for all this fiasco.
“President of the European Central Bank (the Bank of the Euro) Jean-Claude Trichet, explicitly denied that Herr Regling was going “cap in hand” to China, which confirms that is in fact what he is doing.”
Ha ha, I had to laugh at that; it reminded me of a Jim Hacker quote from Yes Minister, “Never believe anything until it’s been officially denied”.