Topic: LIBOR Spike

[Libertas]

http://www.zerohedge.com/article/more-liquidity-tremors-overnight-european-libor-doubles-178-highest-early-2009?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

Let's see what tomorrow brings.

Oh, and on that ChiCom Euro buy -

http://www.zerohedge.com/article/its-official-china-mystery-daily-buyer-billions-euros?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

If the PIGS fold, China's Euro play could backfire big time, and no doubt seriously derail their alternative reserve currency club!  But they are too invested in the European mess now to back off, so this game isn't over.  This could be a very interesting summer.

[Weisshaupt]

If the PIGS fold, China's Euro play could backfire big time, and no doubt seriously derail their alternative reserve currency club!  But they are too invested in the European mess now to back off, so this game isn't over.  This could be a very interesting summer.

Backfire how? Oh, you can't pay us in Euros? Well why don't you give us Natural Resources instead, or maybe we will just come over there with our military and take what is ours.  You have a nice legal position, backed up with military force. Hell, this might be to ensure the currency club.. okay you can restructure your debt in a partial default , but you MUST  pay us back in Yuan. 

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves." - Norm Franz

[Libertas]

Well, if you're going to play the military card, OK, all bets are off!

But you're right, instead of seeing their positions go up in smoke with everyone else they'd have to act, umm, decisively to consolidate their position.

They ain't in entirely good straits over there themselves and having a billion peasants go apenuts could make them even more decisive.

It would take a big splat to get to that kind of thinking though...

[Weisshaupt]

Well, if you're going to play the military card, OK, all bets are off!

The Military card is implicit. They may not even have to make the threat. They just walk in and say, so what are we going to do about this debt you owe us? And then start making demands.  Everyone know with the United States out of the way, that China is the new Big Kid in the block, economically and militarily. Yes, China has its own economic bubble to deal with, but what better way to deal with that than by ransacking other nations who "owe them" , besides, China is no stranger to domestic unrest. They know how to handle it: Now sit down or you will be fighting on the front in Europe.

[Libertas]

Well, if you're going to play the military card, OK, all bets are off!

The Military card is implicit. They may not even have to make the threat. They just walk in and say, so what are we going to do about this debt you owe us? And then start making demands.  Everyone know with the United States out of the way, that China is the new Big Kid in the block, economically and militarily. Yes, China has its own economic bubble to deal with, but what better way to deal with that than by ransacking other nations who "owe them" , besides, China is no stranger to domestic unrest. They know how to handle it: Now sit down or you will be fighting on the front in Europe.

Yes, pillage and extortion come easy to totalitarian regimes and life is pretty cheap in the PRC, but pushing around a weak neighbor is one thing, a strong neighbor (even if you own large pieces of 'em) is another.  I'd like not to test it one way or the other.