You may remember three or four months ago when the Chinese were supposed to save the European Union. In other words, the Chinese would become the lender of last resort because they did not want to lose the European market for their exports. It is true that Europe accounts for almost 20% of its exports and, therefore, it was logical that China was worried about the euro crisis. While that may be true, the Chinese aren’t stupid with their money, but the Anglos seem to be. Okay, so let’s talk about this for a second, shall we?

You see, I thought it was kind of ludicrous to think that China would come to the rescue and save the Europeans and their economy, and further support their socialist black hole digging effort. However, it made big PR headlines and came just before the G-8 summit, which was about to severely punish China for currency manipulation. China agreed and let the rumor go on with no interest in helping those who make stupid policies from destroying themselves.

At this point, I think we can put an end to all those rumors, the Chinese are not going to bail out anybody, as they are going to try to bail themselves out with a couple hundred million dollars in new stimulus. for seven industries and 20 subsectors that they would like to own in the global market. In case you think that there is still a chance that the Chinese will come to the aid of the EU, the ECB, the Euro and the Eurozone, it is time to think again.

The Wall Street Journal reported on May 30, 2012 “Chinese Banks Back Off Europe” by Ken Brown and Lignling Wei that although China is looking to buy energy assets in Spain, we shouldn’t expect them to come to the rescue of Spanish banks. , or help stop the run on these banks as public sentiment becomes too pessimistic for the inevitable and continuing slow-motion train wreck. After all, as duly mentioned in the article, Chinese banks had been badly burned by Lehman Brothers and other investments during the 2008 US crash.

By the way, Spanish banks should not expect any help from the ECB, which knows that it does not have the wherewithal to become the lender of last resort for all, and a domino effect could render such a large bailout or loan package worthless, and costly to take away its credibility and strength. The ECB cannot be blamed for its conclusion or decision on the matter.

Needless to say, it looks like it’s time for eurozone talks to get a little more serious without the political rhetoric, populist uprisings or pointless debates. If they don’t stick together now, it will all fall apart. Why would China want to be a part of that? In fact, this latest episode of banking problems in Spain is just the tip of the globally overheated iceberg in the Eurozone. In fact, I hope you will please consider all this and think about it.