Monday, November 28, 2011

Gates of Vienna News Feed 11/28/2011

Gates of Vienna News Feed 11/28/2011Moody’s is warning that every EU country having the euro as its currency may see its credit rating downgraded if a solution to the Eurozone debt crisis cannot be found. China, which previously declined to help the EU by buying additional bonds, is eyeing investments in European infrastructure such as railways and factories. European countries are desperate for cash, so the Chinese may be able to pick up some bargain items during the debt crisis.

Meanwhile, some analysts believe that the only hope for Europe is a bailout by the Federal Reserve.

In other news, Germany has called for direct peace talks with the Taliban in Afghanistan.

To see the headlines and the articles, open the full news post.

Thanks to C. Cantoni, Fjordman, Insubria, JP, Vlad Tepes, and all the other tipsters who sent these in.

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Caveat: Articles in the news feed are posted “as is”. Gates of Vienna cannot vouch for the authenticity or accuracy of the contents of any individual item posted here. We check each entry to make sure it is relatively interesting, not patently offensive, and at least superficially plausible. The link to the original is included with each item’s title. Further research and verification are left to the reader.

2 comments:

RonaldB said...

"Meanwhile, some analysts believe that the only hope for Europe is a bailout by the Federal Reserve.
"

What kind of hope is that? If the Federal Reserve throws money into the EU, it will simply mean that in a few months down the road, we will all go down spectacularly. If the EU collapses right now, the savings of investors, such as myself, might go down by 50% or so (I'm a born optimist), but things will clear up in a few years.

If the US makes itself completely dependent on European fortunes, our own social institutions will be threatened. If you know the hit is coming sooner or later, you get it over with and deal with it, rather than pouring all your resources into putting it off in the hope your replacements will have to deal with it, rather than you.

Lawrence said...

This is what happens when we create a currency based on nothing more than a utopian ideology.

Sometimes the U.S. dollar isn't much more than that, but at least we have our real-value private-investment stock market to bolster the value of our paper. And one reason China is willing to buy our debt (I mean loan us money). China doesn't want our debt, and they don't care that much about our currency. They do care, however, about buying into the real-value of private U.S. investments.