Eastern promises

It would appear that our Asian friends have confidence (and an interest) in the survival of the European project. Japan and China will help fund the European Financial Stability Fund that will be used to bailout European banks,  sorry,  I mean Ireland. With Japan pledging to buy 20% or more of the bonds that will be sold later this month. From Bloomberg

There is a plan for the euro zone to jointly issue a large amount of bonds late this month to raise funds to assist Ireland,” Finance Minister Yoshihiko Noda said at a news conference in Tokyo today. “It’s appropriate for Japan to make a contribution as a leading nation to increase trust in the deal. We want to buy more than 20 percent.”

At least this shows that there is appetite in the market place for European-wide bonds, similar to those that would be issued under the e-bonds solution proposed by Jean-Claude Juncker and Giulio Tremonti. But can the German’s be persuaded? As Pete often points out, the euro-crisis hasn’t gone away, you know, and time is running out..

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  • Greenflag

    Never mind the euro crisis – The Brazilian government is accusing both the USA and China of indulging in a currency war as a prelude to a full scale trade war . The swings in the USA and Chinese Currencies have been the main cause of Brazilian economy going from a trade surplus of some 15 billion dollars to a trade deficit of 9 billion over the past two years and Brazil is not the only emerging economy to be hobbled by the failure of the world’s leading economies to engage in effective reform of the world currency market .

    It’ll take the G20 to sort out the current mess and that is itself a problem given the spread of economies now represented in the G 20 .

  • pippakin

    Which I wish to remark—
    And my language is plain—
    That for ways that are dark
    And for tricks that are vain,
    The heathen Chinee is peculiar
    Which the same I would rise to explain.

    Ah Sin was his name;
    And I shall not deny
    In regard to the same
    What his name might implyl
    But his smile it was pensive and childlike,
    As I frequent remarked to Bill Nye.

    It was August the third;
    And quite soft was the skies;
    Which it might be inferred
    That Ah Sin was likewise;
    Yet he played it that day upon William
    And me in a way I despise.

    Which we had a small game,
    And Ah Sin took a hand;
    It was Euchre, the game,
    He did not understand;
    But he smiled as he sat by the table,
    With the smile that was childlike and bland.

    Yet the cards they were stacked
    In a way that I grieve,
    And my feelings were shocked
    At the state of Nye’s sleeve;
    Which was stuffed full of aces and bowers,
    And the same with intent to deceive.

    But the hands that were played
    By that heathen Chinee,
    And the points that he made,
    Were quite frightful to see—
    Till at last he put down a right bowers,
    Which the same Nye had dealt unto me.

    Then I looked up at Nye,
    And he gazed upon me;
    And he rose with a sigh,
    And said, “Can this be? We are ruined by Chinese cheap labor”—
    And he went to that heathen Chinee.

    In the scene that ensued
    I did not take a hand
    But the floor it was strewed
    Like the leaves on the strand
    With the cards that Ah Sin had been hiding,
    In the game “he did not understand.”

    In his sleeves, which were long,
    He had twenty-four packs—
    Which was coming it strong,
    Yet I state but the facts;
    And we found on his nails, which were toper,
    What is frequent in paper— that’s wax.

    Which is why I remark,
    And my language is plain,
    That for ways that are dark,
    And for tricks that are vain,
    The heathen Chinee is peculiar—
    Which the same I am free to maintain.

    By Bret Harte…