Out of Europe

Remember the days when the G-20 demanded the EU come up with a solution to their problems and they cam up with that gem of an idea, "Leveraging the EFSF" to over a trillion dollars, yet while they announced it and the market went nuts for a few days to the upside, the more reasonable people asked, "How?" After all, the EFSF has been a failure since day 1, how do you take a failure and leverage it to over a trillion dollar rescue fund? Being the EU couldn't even cover a $3 bn Euro issuance for the EFSF, a trillion seemed unlikely. The answer? "CHINA!"

That worked for a week or so until China started denying they would sink money in the hole that is Europe. Well China has made it official, they have given up on their #1 trading partner.

From Bloomberg:

CIC Stops Buying Europe Government Debt on Crisis Concern

Gao Xiqing, president of China Investment Corp., said the nation’s sovereign wealth fund has stopped buying European government debt on concerns about the region’s financial turmoil.


You can read the rest of the article in which they are looking for opportunities in Africa now, but I think the above says enough. Lets just hope for the Euro's sake it wasn't China defending the Euro $1.30 mark and was the BIS instead.