Europeans hoping for a bailout by China aren’t going to be thrilled by the comments of Jin Liqun, the supervising chairman of China Investment Corporation, China’s sovereign wealth fund.
He says that unless Europe changes its labor laws and adjusts its welfare system, he does not consider it to be a profitable investment. You know when communists think your system is too communist, you are in real trouble. Europe has been listing since 2004 and the worldwide recession made it worse. Europeans who don’t understand economics (Americans too) have long thought that a low dollar was a sign of European strength. It was just the opposite, leading me to conspiratorially speculate on occasion that perhaps letting the dollar fall was Pres. George W. Bush’s way to stick it to them for not buying his program in Iraq. They subsidize so heavily to compete that if the value of foreign currency drops it becomes far more expensive for them to sell anything – so a high Euro is good for tourists visiting the US but really bad for Europe.
If you look at the troubles which happened in European countries, this is purely because of the accumulated troubles of the worn out welfare society. I think the labour laws are outdated. The labour laws induce sloth, indolence, rather than hardworking. The incentive system, is totally out of whack.
Jin Liqun: Europe induces ‘sloth, indolence’ – by Teymoor Nabili Al Jazeera