The Chinese is Coming to Get You

The Telegraph:

The Chinese central bank, one of the most secretive in the world, is amassing shares in many of Britain’s blue-chip companies…In total, investment entities either controlled by or affiliated to the Chinese government now own stakes in at least half of the FTSE100, and probably considerably more…questions about China’s motives are likely to become louder…  (full text)

I have to say that knock off a little of my respect for the Telegraph. So the Chinese Sterling is not as good as Sterling from a US hedge fund? How about middle east Sterling? I don’t think the British as a whole think like that. If they did. Adam Smith must be rolling in his grave right now.

 

I like the comment posted by Peter:

There was once a long established wealthy farmer and his family living off the fruits of the land. A poor family of newcomers moved in to a small rented farmhouse down the lane and, anxious to progress, all the members of the family work for very little wages for very long hours for the wealthy farmer. Over time, the newcomers save some cash from their earnings off the wealthy farmer, who by now is earning a living by doing very little – he lets the newcomers do all the real work. He continues to pay others to do the work while he enjoys his hobbies, cars, boats and holidays. If there is a poor season, he borrows to keep his lifestyle going. There comes the day, however, when the wealthy farmer is no longer wealthy: his land values plummet, he owes the bank money for the borrowings he took out when the land assets were high; and his family no longer know how to farm, still less have the inclination to actually do any hard work. When the bank moves in to demand repayment of the loans and the farm is sold off cheaply, the only people with the cash to buy are……the newcomers.

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