Tuesday, October 28, 2008
China to bail out Russia
Chinese Premier Wen Jiabo and Russsian PM Putin are making it clear that co-operation between them is on the increase.....and reading between the lines....with an aim of further weakening the financial strength of the U.S. They have signed a border agreement...have signalled more prominence for the yuan and rouble in trade(as opposed to the troubled US$) and the Russian pipeline monopoly Transneft and China National Petroleum Corp have agreed to build a new pipeline to carry 15 million tons a year of oil ( ie 300,000 barrels per day) between the countries' trunk pipelines from 2009.And of course China is "lending" Russia the money to do so. China is going to come out of this crisis (fiasco)with enormous global power and enormous growth. The long march continues.