China has cleverly agreed to help the EU out of the pit it dug for itself...but with certain conditions.
They obviously want financial guarantees on their investment. What they also want is in essence a silent veto on criticism or opposition to China's policies, like its opposition to sanctions on Iran, any disagreements with the US or China's currency policy, which artificially undervalues the renminbi to support Chinese exports at the expense of western producers.
If they get that, China could be willing to throw substantial amounts into the EFSF, the EU's bailout fund. Another possibility that's being looked at is a new fund set up under China's auspices in collaboration with the IMF.
French President Sarkozy is already prepared to take China's terms. “Our independence would not be put into question by this,” he said in a television interview. “Why would we not accept that the Chinese had confidence in the eurozone and place a part of their surpluses in our funds or our banks? Would you rather they placed it with the US?”
If President Sarkozy seriously thinks the EU's independence won't be compromised by a deal with the Chinese, he's in for a rude awakening.
3 comments:
It will be amusing to watch this go down. It couldn't happen to a nice bunch.
Of course the EU's independence would be compromised by a deal with the Chinese. If Mr, Sarkozy does not recognize this, he is either a very stupid man or he has allowed the immediate needs to cloud his judgement. Since he is not stupid, it must be he has allowed the immediate needs to cloud his judgement.
Since NATO is the primary force for the defense of the EU nations and America is a major contributor to NATO such a deal will be harmful to Aemrica as well. Our own independence would be further compromised, as we will get pulled into any conflict involving the nations of the EU. As such, it is vitally important that we withdraw from NATO forthwith. Those forces and the support personnel for them should be redeployed to america where they will have a fighting chace to defend America.
"Would you rather they placed it with the US?" The Chinese are not going to be placing any thing else with the US. The US dollar is the most over valued currency on the planet. Mr. Sarozy has to know this. As such, why would he make such a statement. I think it reveals how the EU nations really feel about America. America is viewed by them as a "strategic competitor." As such, any misfortune that befalls America is viewed by them as good for them.
One thing is clear. Mr. Sarkozy and the Chinese have to be thinking to themselves while the issues they face are serious the problems they face are no where near as dire as those faced by America.
For the EU nations to solve their problems the first thing they need to do is to scrap the EU and the Euro. Allow each nation to pursure its own just interests without being tied to the EU or the Euro. This would gratly enhance the security and the prosperity of all of the affected countries. Their issues, while serious, are quite easy to solve compared to what America faces.
A real French nationalist, in his political prime,unlike the phony internationalist Sarkozy, wouldn't do it. I speak of course of Jean Marie Le Pen.
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