Jim,

Here we go. Watch the Chinese control the finance world.

Regards,
CIGA Luis Ahlborn Sequeira

China advocates Europe borrow in renminbi
By David Marsh, MarketWatch

BEIJING (MarketWatch) — In the wake of last week’s new deal on European debt, China is serving up a steely reminder to Europe: you may have to start borrowing in renminbi to gain a sympathetic hearing from the world’s largest creditor.

Already officially enshrined by U.S. Secretary of State Hillary Clinton as bankers to the world’s biggest debtor the Americans, the Chinese have no wish to become, too, a last-ditch lender to the Europeans. The idea of renminbi borrowing has been put forward by Beijing advisers and officials as a way of lowering Chinese foreign-exchange risks caused by further exposure to Europe — and also of using the Europeans’ latest discomfiture to advance China’s international monetary-policy agenda.

If this happened, it might pave the way for the U.S. Treasury eventually to issue renminbi-denominated paper — a momentous moment in world monetary history .

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Dear Eric,

If China and other areas do not buy the euro rescue paper to finance the operation then the paper has to be produced by QE.

Gold is going into the $2000s without any question.

Regards,
Jim

China wants Europe to solve its own problems
CIGA Eric

Oops. How quickly the confidence of change fades when reality remains unaltered. China smart enough to distance itself from a savior role that must come from within. A savior must demand one currency, one debt, and plenty of devaluation.

Headline: China wants Europe to solve its own problems

LONDON: China has stressed it will not be a ”saviour” to Europe as the Chinese President, Hu Jintao, embarks on an official visit to the continent that will take in Thursday’s crucial Group of 20 summit in Cannes.

The warning came as the European Commission President, Jose Manuel Barroso, and the European Council President, Herman Van Rompuy, urged G20 leaders to use the meeting to address Europe’s debt crisis, saying measures proposed last week were not enough by themselves.

The French President, Nicolas Sarkozy, has said Beijing has a ”major role to play” in proposals to expand the European Financial Stability Facility to €1 trillion ($1.32 trillion), possibly through a special investment vehicle that would attract sovereign wealth funds.

Advertisement: Story continues below However, Mr Sarkozy came under fire from opposition leaders for seeking China’s help.

Source: smh.com.au ^[2]

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