China Expands Its Influence in Europe

[Frank]

http://www.spiegel.de/international/world/0,1518,734323,00.html

Were is Russia to do the same

[fyrOM]

Because Russia want real assets not bonds.
This is just the right ingredient to piss China off in the future.

[Frank]

Because Russia want real assets not bonds.
This is just the right ingredient to piss China off in the future.

What does that mean on both statements

[fyrOM]

In the past I have read articles where Russia was trying to buy European businesses eg power and telephone companies ad the Germans quickly scrambled to change their foreign investment laws to limit the percentage of shares Russia could buy.

On the other hand bonds are just paper and are as good as the country backing the bonds. Europe is not that solid and if any further GFC happen how are the going to pay the Chinese back…just sell them real assets at a fire sale I think not.

The Chinese are already not happy with the usa for keeping their dollar low as it affects the value of the vast reserves of usa dollars China has. The usa is also shaky. If we hit a depression and both Europe and the usa go down the Chinese will be left hold a bunch of bad debts which may not recover for a decade.