Interesting points. I agree with everything you have to say; China's closed book policy would also allow them to do this. They know that in this environment, they are many countries' saving grace because they are one of the few entities that can actually buy debt, something every country in the world needs going forward. This does not come without risk, though. China is not yet in position internally to burn any political bridges. They must sustain their working class and financial markets before they can make more bold moves. Their stimulus will go directly to this source which may expedite this process. To be honest, I am not sure why they didn't spend more.
China Trying to Break the Euro? [View article]