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| F&@!..I am not giving you a single Renminbi to you. |
Chinese Premier Wen Jiabao crushed the hopes of many European optimists on Wednesday when he said while attending the World Economic Forum that it was up to European countries to "put their own houses in order" instead of hoping for cash rich China.
Nowadays everyone look to China for money. I picked up this article as Hang Seng tanks to 2009 year low (-200+ points) during the morning session but managed to pick up to positive territory. But suddenly it was not mentioned in google finance news or even yahoo. These news were neglected because DJIA now is on a positive trend, and if suddenly DJIA turns to RED , I am betting that this news will be on the highlight on both portal. Sometimes, you just cannot really take the headlines at the face value.
The main problem with Europe namely Greece & Italy is that there are part of the Euro Cartel, and they cannot print money to resolved the deficit like the US. And to receive help from their brethren Euroland, they need to impose super duper unpopular austerity measures to their people. And this will result in riot and will perceive as a challenge to the sovereignty of a nation. Hence, by calling the arms of patriotism and nationality, any upcoming politician can take the opportunity to gain popular support.
Remember how South Korean and Thailand suffered miserably under the IMF when they decided to receive the bailout money during the Asian financial crisis?? IMF imposed alot of economic constraints causing both nations to recovered more slowly than Malaysia whom refuse to take the bailout and quickly peg the ringgit to USD. (something similar to what the Swiss are doing to their currency).
Conclusion: I don't think Italy & Greece can resolved the financial deficit easily as doing unpopular measures can be a DEATH knoll to the ruling government. The moral of the story:
Hungry mouths can be very dangerous and a force to be reckoned off.
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