China to the Rescue of EU in Sovereign Debt Crisis

I wonder how long it will take for the politically correct EU to declare China as part of Europe and offer a full membership. (Turkey should have offered to buy the euro debt.)

Bloomberg reports:

Chinese Vice Premier Wang Qishan said China has taken “concrete action” to help the European Union with its debt problems as he officiated the opening of a one-day forum in Beijing to discuss economic and trade relations.

...Chinese Premier Wen Jiabao said in October that China supports a stable euro and won’t reduce its holdings of European bonds. The Portuguese government said last week that China had made a “clear statement” of financial support during Finance Minister Fernando Teixeira dos Santos’s visit to Beijing.

Japan's Nikkei Shinbun takes it to mean the ongoing sovereign debt crisis in Europe will abate with the Chinese purchase of the euro debt, and euro will strengthen.

China got so close to overrunning Europe during the Yuan Dynasty (a Mongolian dynasty founded by a grandson of Genghis Khan) in the 13th Century. This time, the Chinese won't even have to fight a battle. All they need to do is to buy the euro debt on a discount and stick it to Germans. They can use US Treasuries as payment.

Tweet