DUBAI (Reuters) – Iran’s Supreme Leader Ayatollah Ali Khamenei on Saturday called for closer economic and security ties with China, saying Iran had never trusted the West, as the two countries agreed to increase bilateral trade more than 10-fold to $600 billion in the next decade.
Truly a relationship made in heaven. The USA would have had to create this relationship, if it didn’t just all happen by itself. 🙂
The reason is this:
China is the epicenter of the looming crisis. China in today’s cycle is what US housing was during the financial crisis in 2008. In 2008, China reacted quickly, resorted to fiscal stimulus, which saved the boom and even amplified it. In addition, however, the liquidity from the QE-program in the US flooded into the country, which even accelerated the uptrend – in terms of credit growth and investment, the boom in China grew into the biggest excess in the history of mankind.
and Iran could use all the excessive commodities it can now buy, as sanctions are lifted, and its economy becomes a player in the developing market.
It’s a relationship made in heaven, because China’s relationship with Turkey is strong enough that they hold combined military exercises and strong enough with Russia that there is much in integration at their border regions, and Iran is basically at war with the Arab Sunni kingdom.
Whither that “Kingdom” is heaven, has yet to be seen.