Amid tear gas, rioting and several hours of delay the Greek Parliament today (29/6/11) approved a package of austerity measures that will allow the next tranche of funding from the first EU/IMF bailout. Meanwhile in Germany the Chinese Prime Minister met with the German Chancellor. As China is the largest holder of Greek debt the issue of debt re-structuring was no doubt on the agenda. Although I don't think either party was quite in a position to do a deal the good news is that Mr Wen seemed to be in a charitable mood. For example he explained - in no uncertain terms - that rather then switching from the US Dollar to the Euro China is instead diversifying it's currency reserves to include Dollars and Euros along with other currencies and mineral assets such as gold and oil.
Therefore the Americans, especially the Republicans have no excuse for not knowing that their current path is futile and will only lead to failure.
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