Interesting turn of events when the European sovereign debtors are looking for the Chinese to bail them out of their troubles. It is not the US. It is not the IMF. It is not even the EU itself. The Chinese are coming to the rescue. Maybe. In 2010 the SAFE bought about $500 million in Spanish 10-year debt. The Chinese premier last year offered support but no money to the Greeks. Even playing coy has benefits as countires line up to ask for Chinese support.
Will the support come this time? Hard to say, but the political impact of the Chinese serving as a the lender of last resort is very valuable. China is now a major international finance players even with a currency that is not convertible and with an economy with major capital controls. China has been able to insulate itself from the debt problems of the developed world but now offer support in exchange for economic and political power,
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