Friday, January 14, 2011

Having One's Cake and Eating It

It would seem that, according to the Telegraph, the EU (despite wanting to shore up the fragile Euro) fears Chinese investment in the currency/bond markets.

For why?

The EU fears that this is an "evil" plot by the Chinese to weaken their own currency (as the USA has done with quantitative easing).

Additionally, the EU fears that this may be a ploy by the Chinese to garner political influence and possibly push for a relaxation of the arms embargo.

All very well, but if the EU expects to operate in the real world it will have to accept that this is the norm in the real world free market economy.

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