Get real
At a lunch party yesterday, someone announced at the table that the Chinese government had paid off the Spanish national debt, and this was seconded by my dear wife. My reaction was ‘Eh?’, so I’ve done some research. There are several accounts of what is actually happening, but they all go back to a statement by the Chinese vice-premier in the leading Spanish daily El Pais, that his country has faith in the Spanish economy and will be prepared to invest in government bond issues, as it has done in Greece and Portugal. While it doesn’t mean that cash-rich China now owns Spain, it is an encouraging vote of confidence. However it doesn’t follow that anyone in Europe can relax. There are several accounts of the situation out there, but this one is the most comprehensive.
Quintin Jardine's blog 