Looks like Italy might have their bacon saved by China. The two countries are in talks to sell Italian debt to China (sparking hope that we might avoid a Great Depression globally).
One has to almost chuckle over China buying up all this debt. I mean, we're talking about a communist country that subjects its citizens to slave labor-like conditions and wages. So of the 20 dollars of revenue the worker produces in a day, the government keeps 18 dollars and the worker keeps 2 dollars (I don't know that those are the figures, but I'm assuming it's something along those ratio lines).
Then the government takes the 18 dollars and uses it to buy up the debt of countries who are living high on the hog without paying as they go (in part to keep their export trade going, but also, I'm sure, to keep those countries from getting too vocal about Chinese activities they may not agree with).
From what I can tell this essentially equates to developed nations being bailed out by people who are treated like slaves.
Thankfully, depending on how you look at it (thankfully only if you are getting bail outs, not if you are a Chinese citizen), the strict control over information in China keeps the population from ever realizing that they are propping up other countries off their hard work. If the masses realized that they were living a low standard of living so that Americans and Italians (among others) could keep living a high standard of living (as a result of deficit spending off-loaded to China), it's safe to say a revolution would be a real risk.
I have to admit, it's really odd to be living in a time where a country once condemned for being communist and having horrible human rights practices, is the one saving the day (although one has to wonder at what cost down the road?).
Anyway, from a PR perspective, as horrible as this is to say, China takes the cake. By buying up everyone's debt they've basically silenced all critical voices the world may have of them. Even those not being bailed out are hushed in the realization that at some point they too may have to turn to China to save themselves.
Anyway, I stumbled on this very cool infographic which is a year or so old, but still a great representation of China's stake in US debt (I love infographics... I wish more organizations put the effort in to created them... they are almost works of art in my opinion and are great for communicating an idea).
One has to almost chuckle over China buying up all this debt. I mean, we're talking about a communist country that subjects its citizens to slave labor-like conditions and wages. So of the 20 dollars of revenue the worker produces in a day, the government keeps 18 dollars and the worker keeps 2 dollars (I don't know that those are the figures, but I'm assuming it's something along those ratio lines).
Then the government takes the 18 dollars and uses it to buy up the debt of countries who are living high on the hog without paying as they go (in part to keep their export trade going, but also, I'm sure, to keep those countries from getting too vocal about Chinese activities they may not agree with).
From what I can tell this essentially equates to developed nations being bailed out by people who are treated like slaves.
Thankfully, depending on how you look at it (thankfully only if you are getting bail outs, not if you are a Chinese citizen), the strict control over information in China keeps the population from ever realizing that they are propping up other countries off their hard work. If the masses realized that they were living a low standard of living so that Americans and Italians (among others) could keep living a high standard of living (as a result of deficit spending off-loaded to China), it's safe to say a revolution would be a real risk.
I have to admit, it's really odd to be living in a time where a country once condemned for being communist and having horrible human rights practices, is the one saving the day (although one has to wonder at what cost down the road?).
Anyway, from a PR perspective, as horrible as this is to say, China takes the cake. By buying up everyone's debt they've basically silenced all critical voices the world may have of them. Even those not being bailed out are hushed in the realization that at some point they too may have to turn to China to save themselves.
Anyway, I stumbled on this very cool infographic which is a year or so old, but still a great representation of China's stake in US debt (I love infographics... I wish more organizations put the effort in to created them... they are almost works of art in my opinion and are great for communicating an idea).
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