China Joyfully Bails Out EU?
By Staff News & Analysis - October 04, 2010

Chinese Premier Wen (left) says Greece emerging from crisis … Greece is starting to emerge from its severe debt crisis, Chinese Premier Wen Jiabao said on Sunday during a visit to Athens. "It is with joy that we see Greece emerging from the shadow of its debt crisis," Wen told the Greek parliament. "The financial market has started to stabilise, the budget deficit is coming down, investor confidence is increasing and a growth prospect is emerging on the horizon." – Reuters

Dominant Social Theme: As human beings who care so much, we celebrate the resurgence of the Greek economy.

Free-Market Analysis: Joy! That was the word that caught our eye. Premier Wen sat straight up in bed one morning, teary-eyed. He was overwhelmed with joy … at Greece's recovery! "China," he muttered to no one in particular (he really did), "is prepared, hand in hand with the EU, as passengers in the same boat, to strengthen cooperation … to confront the financial crisis." …

Joy! You know, we woke up the other morning, too, with the same emotions surging in our collective breast. We just felt a great love of Greece. It came out of nowhere. Sometimes those emotions just well up and there's nothing to do but call a press conference … But perhaps we are too cynical. Perhaps Wen is merely an aficionado of the classics and the Greek golden age.

Or perhaps, more than ever (sarcasm off), the old men of the Communist party are in cahoots with the Anglo-American power elite. The sub dominant social theme that the elite wants the West to imbibe seems to be "China – what a great country, but you can't trust ‘em." Yet perhaps that's not the case. The confrontation is only for show. The reality is different.

So in this article we want to explore the issue of how close the Chinese elite is to Western elites. It is a very important issue from our point of view, focused on elite dominant social themes as we are. Over and over throughout history we see elites of various sorts coming to understandings unbeknownst to the populations they lead.

Hm-mm … Say that Anglo-American and Chinese elites had decided that it was in the interest of both sides to do away with the dollar in favor of an IMF-initiated bancor. Say a deal had been struck and while the Anglo-American elite would maintain control of the bancor the Chinese leadership would have a tremendous amount of input. The Chinese elite essentially would agree to become junior partners to the Anglo-American elite.

What would be in it for the Chinese? Well, Chinese leaders are struggling with a good deal of price inflation right now – and also with a good deal of pressure from Western leaders to revalue the yuan at a higher price relative to the dollar. Say that the Chinese are aware that one way to ameliorate inflationary pressure is to purchase foreign real estate, industries, etc. Perhaps at the same time, American leaders would agree to stop pressuring China about a yuan revaluation.

Is it possible that Chinese and Western elites would cooperate closely? More than Korea, more than Japan, the Chinese elite is likely of the same psychological makeup and mindset as its Anglo-American counterpart in our humble view. China is an ancient society and a horribly damaged one. The sociopaths at the top will evidently and obviously do anything to stay there and the divide between those at the top and the average Chinese person seems wide and deep indeed.

For some reason there seems to us to be slightly more of a cultural (familial) commonality between Japanese and Korean leaders than between Chinese leaders and the masses they rule. We remember that a little more than a half-century ago, Mao was content to let some 50 million Chinese starve to death in pursuit of his Great Leap Forward. Chinese society, even more than the Anglo-American society or Europe's tribes, is especially brutish and cynical.

Does this sound absurd, dear reader? Probably. But we have tried to present it based on the kind of analysis that we encourage people to do in this day and age. The elite is under an extraordinary microscope thanks to the Internet and we don't put anything past it. In their desperation and wounded hubris, the elite is likely to contemplate any plan, no matter how absurd to retain and enlarge their franchise.

We think this is one of the reasons the world seems so wacky these days. America engages in serial wars without justification and mobilizes most of the world for terror attacks that never come. The UN announces that the world will literally come to an end as the result of global warming while the Bilderbergs meet to contemplate the next big thing – global COOLING. The world hurtles toward depression and central banks print trillions out of nothing to make sure they can accommodate additional spending.

We think the elite, generally, is running scared right now. And fear makes strange bedmates. The Chinese elites must terrified as to what is going to happen once 10 percent-per-quarter-growth ceases to be an option as, inevitably, someday it must. Western elites are simply terrified, in our humble view, that their loss of control will continue and deepen.

So as we have just written, the Chinese and Anglo-American elites (the two groups that really matter today) have plenty of incentives to work together even as they pretend that they are enemies or at least adversaries. And thus we keep trying to read the proverbial tea-leaves to ascertain the reality of the situation. This article by Reuters (excerpted above) provides some information that perked our interest. It is actually one of a series of four or five articles that appeared yesterday on the Internet in rapid succession from Reuters. All of them were very short articles and Wen was fulsome in his praise for Greece throughout. Oh Joy!

Here's another quote that Reuter reported from Wen in another brief story: "With its foreign exchange reserves, China has already bought and intends to buy new Greek bonds … China will undertake a great effort to support euro zone countries and Greece to overcome the crisis." And here's another from yet another story: "When Greece is in trouble, China is prepared to provide all the help it can." And Wen was also reported telling the same news conference that Greece was "China's best friend in the European Union."

So there you have it, dear reader. China has a new best friend: Greece. (Bet that's news to struggling peasants spreading night soil on parched fields.) We don't know what all this fulsome talk portends, but we're going to keep our big ears to the ground. It seems obvious to us that someone has leaned on China (and Wen) to say some very nice things about Greece – and to indicate at the same time that China intends to ensure Greece's solvency.

After Thoughts

Is this then the final solution to the European sovereign debt problem? Is this the way the Anglo-American power elite shores up one of its most threatened and important promotions – by turning to the Chinese for cash and credibility? Why not? we ask. But there are more questions of course. If China has indeed been persuaded to come to the rescue of Greece, what is the quid pro quo? Or is it somehow a free lunch?