[B]The head of the eurozone's bailout fund is beginning attempts to persuade China to invest in a scheme to help rescue member countries facing debt crises. [/B]
It is thought China may pay about [B]70 billion euros ($100bn) into the fund, which is expected to be boosted to 1 trillion euros.[/B]
Meanwhile French President Nicolas Sarkozy said [B]debt-ridden Greece's entry to the eurozone was a mistake.[/B] Greece was "not ready" when it joined in 2001, he said, adding that it could be rescued thanks to a new deal on the debt crisis.
[B]Beijing has made it clear that it will demand strong guarantees on the safety of any contribution it might make.
[/B]
Mr Regling, who is chief executive of the European Financial Stability Facility (EFSF), said he was not negotiating with China as a potential investor but holding consultations to decide the terms for raising the money.
"Don't expect any precise outcome of our talks," he said, quoted by AFP news agency.
"I cannot say today, and it's certainly far too early to say what kind of amounts might be envisaged."
He said China had been a regular buyer of EFSF bonds in the past.
"I am optimistic that we will have a longer term relationship," he said.
[B]The President of the World Bank, Robert Zoellick, has said he believes China will invest in Europe only if there are incentives for it to do so.[/B]
"I don't think that China will just come in as a [B]white knight to try to provide money just to bail out Europeans[/B]," he told the BBC.
The framework for the new EFSF bailout fund is to be put in place in November.
Germany, as the largest economy in eurozone, is expected to be the largest contributor.
[B]Asian markets rose for a second day on Friday and bank stocks in Europe continued to rally, a day after the deal was reached.[/B]
[url]http://www.bbc.co.uk/news/world-europe-15489202[/url]
[QUOTE=matt.ant;33007956] Meanwhile French President Nicolas Sarkozy said debt-ridden Greece's entry to the eurozone was a mistake.[/B] Greece was "not ready" when it joined in 2001, he said, adding that it could be rescued thanks to a new deal on the debt crisis. [/QUOTE] Too little too late to say that.
So how is Europe going to pay China back exactly?
[QUOTE=Sobotnik;33008013]So how is Europe going to pay China back exactly?[/QUOTE]
Europe is the worlds largest economy when it's actually functioning.
"If we have the ability to help them then we should, but there is no feeling of pride in that," said Xu Juan - a 27-year-old employee of an international trade firm. "We need to focus on doing a good job on developing our own country."
Dammit, Greece, take notes!
Was Greece that debt-ridden in 2001?
[QUOTE=Hans-Gunther 3.;33008084]Was Greece that debt-ridden in 2001?[/QUOTE]
Apparently they were, and just hid it.
[QUOTE=Baldr 2.0;33008096]Print more money.[/QUOTE]
[IMG]http://www.osisa.org/sites/default/files/blog_images/welcome%20to%20zimbabwe.jpg[/IMG]
greece has always been massively indebted
it deliberately covered up the poor state of it's finances to become part if the euro
if it had been properly audited then it would never been allowed in
[QUOTE=Hans-Gunther 3.;33008084]Was Greece that debt-ridden in 2001?[/QUOTE]
They had been deliberately faking their official economic statistics to stay within the monetary union guidelines for a while.
[QUOTE=Hans-Gunther 3.;33008084]Was Greece that debt-ridden in 2001?[/QUOTE]
They've never been particularly wealthy, as a cash economy a low proportion of its residents pay tax. Tax avoidance is a national sport in Greece which has a massive effect on the country's economy meaning the Government struggle to repay its debts due to this lack of funds. They were a high risk country to include and in hindsight we should have looked into their situation a lot more.
So Greece got fucked by tax-avoiders and now the population's flipping shit because they don't have any money, mainly because they didn't bother paying their taxes?
[QUOTE=Baldr 2.0;33008096]Print more money.[/QUOTE]
[img]http://upload.wikimedia.org/wikipedia/commons/thumb/8/8f/GermanyHyperChart.jpg/480px-GermanyHyperChart.jpg[/img]
[img]http://upload.wikimedia.org/wikipedia/commons/thumb/3/39/Inflationmedal.jpg/662px-Inflationmedal.jpg[/img]
[quote]A medal commemorating Germany's 1923 hyperinflation. The engraving reads: "On 1st November 1923 1 pound of bread cost 3 billion, 1 pound of meat: 36 billion, 1 glass of beer: 4 billion."[/quote]
When you print more money, the value of your money goes down. As an example, if you have 1 gold bar and make a single bill representing this gold bar, then the bill is worth 1 bar of gold. If you print off three more bills each bill is only worth a quarter.
[QUOTE=Hidole555;33008128][IMG]http://www.osisa.org/sites/default/files/blog_images/welcome%20to%20zimbabwe.jpg[/IMG][/QUOTE]
Europe can back their money up though, Zimbabwe thought they could just become a superpower without any real substance behind their money.
[QUOTE=Ogopogo;33008252]A medal commemorating Germany's 1923 hyperinflation. The engraving reads: "On 1st November 1923 1 pound of bread cost 3 billion, 1 pound of meat: 36 billion, 1 glass of beer: 4 billion."[/QUOTE]
Wow, the reichsmark was a fucking disaster in its last few years.
I saw a 500 billion reichsmark note at a museum, that's how much of a disaster it was.
[QUOTE=Sobotnik;33008013]So how is Europe going to pay China back exactly?[/QUOTE]
well, the idea is that the money is used to generate more money.
[QUOTE=Ogopogo;33008252][img]http://upload.wikimedia.org/wikipedia/commons/thumb/8/8f/GermanyHyperChart.jpg/480px-GermanyHyperChart.jpg[/img][/QUOTE]
But there was this great politician who said he could solve that issue. He looked kinda like Charlie Chaplin. I forget his name.
Don't borrow for china!
Its a trap!!
[QUOTE=Baldr 2.0;33008459]At least the kids had something to play with.
[img]http://i.imgur.com/KJCNh.jpg[/img][/QUOTE]
People carted their money around in handcarts and wagons when they went to stores. When they came back, the cart/wagon might not have been there...but the money sure as hell was.
[QUOTE=Mort and Charon;33008116]Apparently they were, and just hid it.[/QUOTE]
Guess who did it.
Hint:Goldman.
[QUOTE=NoDachi;33008032]Europe is the worlds largest economy when it's actually functioning.[/QUOTE]
Can't we just kick Greece out and get back to that.
[editline]28th October 2011[/editline]
Also as people have been mentioning it, here is an article slightly about Greece.
[url]http://www.bbc.co.uk/news/world-europe-15487269[/url]
[QUOTE=Sobotnik;33008013]So how is Europe going to pay China back exactly?[/QUOTE]
If they agree they will most likely ask for lower customs prices for the goods they export to europe.
Edit: And europe is the wealthiest and largest economy in the world. Even when were losing money like never before :v:
This means shitloads of consumers.
Edit: Yes, europe is statistically the largest and wealthiest economy.
[QUOTE=Hans-Gunther 3.;33008215]So Greece got fucked by tax-avoiders and now the population's flipping shit because they don't have any money, mainly because they didn't bother paying their taxes?[/QUOTE]
In a very simple sentence, yea.
I hope no one expects any of the countries asking for funds to actually pay them back...
Pardon me if I sound like a box of boxes, but I don't see it happening at all.
Fucking bullshit, "In hindsight, Greece was a mistake". And they then go on to ignore Turkey's request to join the EU just because they are a Muslim country.
Greece needs to GTFO of the world economy period.
[QUOTE=FalconKrunch;33009141]Fucking bullshit, "In hindsight, Greece was a mistake". And they then go on to ignore Turkey's request to join the EU just because they are a Muslim country.[/QUOTE]
Only part of Turkey is inside Europe. However It would still have been excellent if they could have joined, regardless of their geographical location.
Yeah if you want to have your country overrun by Turks then sure, it would be.
I for one welcome our new Chinese overlords.
[QUOTE=Spirit_Breaker;33009636]Yeah if you want to have your country overrun by Turks then sure, it would be.[/QUOTE]
wat
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