China is emerging as banker to the rest of the world and could hold the key to rescuing the euro from collapse. The U.S. owes China $1.3 trillion and is unlikely to help bail the E.U. out of its liquidity crisis. China is the only power in the world that could afford to ‘help,’ hence French President Nicolas Sarkozy’s call to his Chinese counterpart, Hu Jintao, to request support.
What’s the Big Idea?
For China, the role of Europe’s savior following 66 years as a U.S. protectorate would be rather irresistible. “But China isn’t about to jump through European hoops in to the monetary quicksands of Europe on the strength of a friendly Gallic phone call and a Teutonic visitor.”