Will China Bailout Italy? By Ambassador mo

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Italy is negotiating with a Chinese sovereign fund for investments in Italian debt. Presumably such would relieve pressure on Italian debt which has been dragging down capital markets around Europe as well as the Euro currency. Nothing strange about Italy seeking such investments. (Embattled Italian Prime Minister has already shown his ideological flexibility in favor of political and economic expediency - Russia's Vladimir Putin is a frequent host and guest to the presumably center-right Silvio Berlusconi). The question is why would though China want to invest in Italian debt at a time when it is being avoided by most traditional investors. China may invest in Italian debt for same reason it had bought Greek bonds, (Read ARTICLE - diplomaticallyincorrect.org/films/blog_post/china-loans-to-greece-influence-in-europe-leveraging-economic-might-into-political-influence/30564 ), and in future may buy Spanish, Portuguese, French etc debt - as a means to convert economic weight and its huge foreign currency reserves into political clout. Undoubtedly part of that strategy is to create also some separation between the US and its European allies. (PHOTO - Chinese New Year being celebrated in Italy). Related Reports at “International Financial Crisis Channel” - diplomaticallyincorrect.org/c/international-financial-crisis By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect” Twitter – Follow us at DiplomaticallyX


About the author

DiplomaticallyIncorrect

"Voice of the Global Citizen"- Diplomatically Incorrect (diplomaticallyincorrect.org) provide film and written reports on issues reflecting diplomatic discourse and the global citizen. Ambassador Muhamed Sacirbey (@MuhamedSacirbey) is former Foreign Minister Ambassador of Bosnia & Herzegovina at the United Nations. "Mo" is also signatory of the Rome Conference/Treaty establishing the International…

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