It’s a testament to the absurdity of our failed financial system when the highly indebted rich countries of the world have to go to China, a nation of peasants, for a bailout.
Simon Black, Sovereign Man
As US politicians continue their perma-campaigns telling constituents that the US remains the greatest country in the world, behind the scenes Western nations trek to China, hat in hand, to beg for more money. The US IS the greatest; the greatest debtor nation in the history of the world, as Jim Rogers put it.
In today’s FT there is a caption over a presumably homeless man in China that says “many poorer Chinese would rather foreign reserves were spent on basic services than on European bonds.” It is a fair point. The demerits of any government spending aside, surely the Chinese people would be better off if their money stayed at home. It should be noted that the elites in China have more in common with elites in the west than they do with poor Chinese people, their fates closely linked to those in the west.
In any event, China cannot continue to bail out the west, nor can central banks. The correction is here once again, and this time it’s the real deal.