By John Galt
October 23, 2011 – 14:50 ET
Obviously the Eurocircus is getting desperate.
In the old days of 2008, it used to be the simple story where China, Warren Buffet, or Goldman Sachs would buy out XYZ and rescue the civilized world causing the ES futures to spike 20 points on the open.
Well, it is 2011 now and the days of the power and the influence of GS and the Orifice of Omaha has faded, so now its up to the most capitalist nation on earth, Communist China. As the meetings appear to be degenerating into another announcement to make an announcement to promise to make an announcement of a promise on an announcement to save the banksters of Europe, the clock requires a mandatory course of action by all parties involved:
Start a China bailout rumor.
Hence, as it is now ten minutes until 3 p.m. ET as I type this, the following story from the Le Figaro the newspaper in France says it all:
There must be some concern about the Asian and European markets as this portion of the article implies (translated):
Because it would effectively “integrate direct or indirect contributions of external actors in the EFSF,” a variant on the table, said a European diplomat. “The Chinese said they were interested, but some member states are skeptical about the idea of integrating a Chinese contribution to the EFSF,” he said. The Europeans have pledged to achieve by Wednesday a solution to get out of the euro area of this rut. In addition to strengthening the emergency fund, this includes a tough restructuring of the Greek debt and recapitalization of European banks to absorb the shock.
Translation beyond the French to English version?
They are just as far from a solution to this issue as they were in 2010.
I can not wait to see how the idea of usurping national sovereignty floats with the poor sisters and PIIGS as that is the next solution, an European Union “treasury” to oversee and dictate tax and spending policy for the entire membership.
Because outside of that, there has been no realistic solution presented which does not include a massive default and derivatives crisis in the weeks ahead.