Anonymous
Anonymous asked in Politics & GovernmentOther - Politics & Government · 8 years ago

the unthinkable: EU ask china to pay the bailout bill? aint china a poor 3rd world country? why not ask US?

4 Answers

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  • 8 years ago
    Favorite Answer

    US is bankrupt at the moment.

    And china is a really rich country. All the people are poor but the government is stupidly rich.

  • Anonymous
    8 years ago

    The term "bailout" is probably the most misunderstood and misused word today. Bailouts rarely involve direct loans, or simply giving money to the party in trouble. In most all cases, they actually involve investments. The bank bailouts in the US involved buying stocks/stock options and assets. Bailing out a government is when investors buy more bonds.

    The bailout part comes from the investors assuming or taking on the debt and risk of the one they are investing in. Governments invest in other government bonds, when they benefit from trade imbalances which produces a surplus of money. China has one of the largest trade surpluses in the world currently

  • BruceN
    Lv 7
    8 years ago

    Because China is a huge emerging nation with a lot of cash, and since its government controls most of that cash, it is relatively easy to make a deal with them. China - emerging nation - practical marriage of communism and capitalism - the next superpower (if they don't blow it).

  • Anonymous
    8 years ago

    it is because of political reasons

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