Italy Turns to China for Help in Debt Crisis

Source

Italy’s center-right government is turning to cash-rich China in the hope that Beijing will help rescue it from financial crisis by making “significant” purchases of Italian bonds and investments in strategic companies....

The possibility of Chinese investment comes at a critical moment for Italy, as markets demand increasingly high yields to buy Italian public sector debt, projected to reach 120 per cent of GDP this year, a ratio second only to Greece in the eurozone.

See link for full article. This seems like a good move but is it signaling desperation? There just isn't enough buyers of Italian debt which is sending interest on its debt higher? Perhaps too high for the Italian government to remain solvent or something? Interesting development.

As A Reminder, Here Is What China REALLY Thinks About Italian Bond Purchases

"Italian Economy Minister Giulio Tremonti said on Thursday that Asian investors are reluctant to buy Italian bonds because it sees they are not being bought by the European Central Bank."

China will buy gold not worthless paper.

reply to post by surrealist


Italy, Portugal, Spain and Ireland are all Wile E. Coyote running in the air, feet from the cliff face before the fall. Hopefully, they will recover, but it will take time and some serious cuts.

If their people, and the rest of us for that matter, don't learn to stop depending upon the Government, then we will get what we deserve.

Which is probably more war.

not good...the more people loot (aks for money), the more china will become angry...and i dont want to deal with angry china...

China should not rescue freeloading socialist states. Let 'em rot!!!