Could real estate on American soil owned by China be set up as “development zones” in which the communist nation could establish Chinese-owned businesses and bring in its citizens to the U.S. to work?
That’s part of an evolving proposal Beijing has been developing quietly since 2009 to convert more than $1 trillion of U.S debt it owns into equity.
Under the plan, China would own U.S. businesses, U.S. infrastructure and U.S. high-value land, all with a U.S. government guarantee against loss.
Yu Qiao, a professor of economics in the School of Public Policy and Management at Tsighua University in Beijing, proposed in 2009 a plan for the U.S. government to guarantee foreign investments in the United States.
WND has reliable information that the Bank of China, China’s central bank, has continued to advance the plan to convert China’s holdings of U.S. debt into equity owned by China in the U.S.
The Obama administration, under the plan, would grant a financial guarantee as an inducement for China to convert U.S. debt into Chinese direct equity investment. China would take ownership of successful U.S. corporations, potentially profitable infrastructure projects and high-value U.S. real estate.
The plan would be designed to induce China to resume lending to the U.S. on a nearly zero-interest basis.
However, converting Chinese debt to equity investments in the United States could easily add another $1 trillion to outstanding Obama administration guarantees issued in the current economic crisis.
As of November 2012, China owned $1.17 trillion in U.S. Treasury securities, according to U.S. Department of Treasury and Federal Reserve Board calculations published Jan. 16.
Concerned about the unrestrained growth in U.S. debt under the Obama administration, China has reduced by 97 percent its holdings in short-term U.S. Treasury bills. China’s holding of $573.7 billion in August 2008, prior to the massive bank bailouts and stimulus programs triggered by the collapse in the U.S. mortgage market, dwindled to $5.96 billion by March 2011.
Treasury bills are short-term debt that matures in one year or less, sold to finance U.S. debt. Holdings of Treasury bills are included in the $1.17 trillion of total Treasury securities owned by China as of November 2012.
In addition to a national debt in excess of $16 trillion, the U.S. government in 2010 faced over $70 trillion in unfunded obligations, including Social Security and Medicare benefits scheduled to be paid retiring baby boomer retirees in the coming decades, with unfunded obligations showing no sign of being reduced with Congress at a deadlock over reducing federal government spending.
Yu Qiao observed that if the U.S. dollar collapsed under the weight of proposed Obama administration trillion-dollar budget deficits into the foreseeable future, holders of U.S. debt would face substantial losses that the Financial Times estimated “would devastate Asians’ hard-earned wealth and terminate economic globalization.”
“The basic idea is to turn Asian savings, China’s in particular, into real business interests rather than let them be used to support U.S. over-consumption,” Yu Qiao wrote, reflecting themes commonly suggested by Chinese government officials. “While fixed-income securities are vulnerable to any fall in the value of the dollar, equity claims on sound corporations and infrastructure projects are at less risk from a currency default,” he continued.
The problem is that, in a struggling U.S. economy, China does not want to trade its investment in U.S. Treasury debt securities, with their inherent risk of dollar devaluation, for equally risky investments in U.S. corporations and infrastructure projects.
“But Asians do not want to bear the risk of this investment because of market turbulence and a lack of knowledge of cultural, legal and regulatory issues in U.S. businesses,” he stressed. “However if a guarantee scheme were created, Asian savers could be willing to invest directly in capital-hungry U.S. industries.”
Yu Qiao’s plan included four components:
- China would negotiate with the U.S. government to create a “crisis relief facility,” or CRF. The CRF “would be used alongside U.S. federal efforts to stabilize the banking system and to invest in capital-intensive infrastructure projects such as high-speed railroad from Boston to Washington, D.C.
- China would pool a portion of its holdings of Treasury bonds under the CFR umbrella to convert sovereign debt into equity. Any CFR funds that were designated for investment in U.S. corporations would still be owned and managed by U.S. equity holders, with the Asians holding minority equity shares “that would, like preferred stock, be convertible.”
- The U.S. government would act as a guarantor, “providing a sovereign guarantee scheme to assure the investment principal of the CRF against possible default of targeted companies or projects”.
- The Federal Reserve would set up a special account to supply the liquidity the CRF would require to swap sovereign debt into industrial investment in the United States.
“The CRF would lessen Asians’ concern about implicit default of sovereign debts caused by a collapsing dollar,” Yu Qiao concluded. “It would cost little and help the U.S. by channeling funds to business investment.”
Read more at http://www.wnd.com/2013/01/china-poised-to-play-debt-card-for-u-s-land/#tYCJ6rlh9hdIkHYw.99
This is how British agents working as members of the Bush (Molloch) criminal cabal run the country into debt sending troops out to conquer the world by first a mental incompetent, Bush43, followed by an apparent lobotomy subject, B. Obama, to destroy the country and sell it to anybody offering credit to the U.S..Meanwhile, the American people, in their stupidity, have not the faintest clue about these developments as the American military’s obedience goes to the guy who hands out medals instead of the Constitution and the citizens of the U.S., who are unworthy of anybody else’s sacrifice to begin with. What a mess. Expect a cultural clash until competent leadership prevails. The U.N. will try first.
China can have all of the treasuries they want, sorry comrade Chang your not getting country.
You damn sure wont get us to disarm either.
Why all the subterfuge? If China wants to buy up US real estate, they can just whip out their titanium VISA card and buy it, like anyone else. The US is one of the few nations where it is legal for non-citizens to own property. The only variation here is the Chinese want the value of their US portfolio to be “guaranteed” by Washington, a benefit our largest banks and corporations have enjoyed for years at the expense of the taxpayers.
A more interesting question is why we owe anything to the Chinese in the first place, given we have our own central bank which can easily conjure any amount of money needed from thin air. If this were done via our own Treasury at zero interest instead of at interest from the Federal Reserve, there would be virtually no debt at all.
None of this will be done of course, because freedom from debt equals freedom from slavery, and our owners are all about keeping the commoners under lock and key.
The infrastructure and resources belong to the AMERICAN people and their decendants.
There’s a DIFFERENCE between a foreigner buying a house and a foreign power buy up vast swaths of your country.
Besides the debt china holds belongs to the federal reserve and the last time I checked they are a PRIVATE bank owned by PRIVATE individuals, let china collect from THEM.
China wants us disarmed so it’s easier for them to collect our treasonous governments fraudulent and worthless debt
Ye of short memories! During WWll we lent China billions of dollars of arms, munitions and supplies to ward of the Japanese invasion. Billions!!!
70 years of Principle Debt plus 3% interest compounded yearly should total up to more then enough to pay the Red Chinese Communist loan. I thought these guys hated “Capitalism?!!!
Oh, I almost forgot! How much is the American Blood spilt worth to save their worthless backsides? Priceless!!!
Anyone who played Monopoly as a kid knows how this ends.
Hmm. The monopoly winner isn’t necessarily the winner of “king of the mountain.” It’s only business, right? Any businessman knows to drop a project that’s too hard to maintain.
You have a dilemma now in the Good Ole USA. Which language you have to learn/ Mandarin or Cantonese?
I’m sticking with English
Can everyone say F_ck You?! I don’t have to speak Mandarin or Cantonese. They’ll understand my English. Good day.
So that’s why they were pushing for gun control in the US. They so sneaky. Go ahead and try it motherf@#%ers!
One reason. The others are self-explanatory.
China has been buying businesses and land for some time. They’re developing Chinese communities and bring folks over. Our country and its assets are being sold out from under us. Been in the works for decades.
Remember when Hillary Clinton went over to China 4-5 years ago and the rumor was she was signing a Eminent Domain Security deal to secure our land, National Forests, Oil (that they have been drilling for years and when they hit oil they capped it off and moved on), Harbors and surrounding property, Water, all of our Natural Resource, and on, and on. All so they would keep financing the TPTB conquest of the Middle East, Africa, and the destruction of America. Which, is the prize and payback to China for their help.
There was also a letter or transcript of a lecture 4-5 years ago of a Chinese General who was lecturing a Chinese War College about how China was needing and planning a land expansion for their people. The USA was the target that he discussed. The plan they have is to release a bio-weapon and kill us all off in a way to save our infrastructure for them. They would wait a year or so then just walk in and take over.
It was a very long lecture and spelled out in detail the plan they have already spelled out. I will see if I can find it one the internet. Just search some of the terms in what I wrote. Chinese General, Land Expansion, Etc
Basically, We have totally been sold out and betrayed by our leaders were totally screwed and we are going to have to fight this thing out to get it back. We need to get this party started soon while we have strength and are not put in a weaker state. This is going to really suck, but we need to get busy while we can. We don’t need everyone awake, they will catch on as we go, or maybe they won’t. Maybe, they just need to come get our guns now and let rock. May the men with the best marbles win… I got heart!!!
Let them have Washington DC. Better than Israel owning it.
Better yet, let them have Israhell.
Then WE’LL deal with D.C.
… beats having World War Three, I guess …
‘Coffee coloured people by the score’
China will ship over 100MILLION+ and not even notice. Then they will be allowed to vote. Is this the REAL reason for “gun control”? Have we ALREADY surrendered?
“Is this the REAL reason for “gun control”? ”
Bingo!!!
Give ‘em a fistful of those trillion-dollar coins for their trouble and kick ‘em the hell out of here.
I was in an airport in Minneapolis/St Paul Sunday when over the intercom the instructions were given in English, Mandarin and Cantonese (I believe). I thought it was unusual and odd until I really looked around and 25% of the people there were apparently Chinese.
hey it’s Wall St all over! only this time WE THE PEOPLE hold the securities! Let China “buy” all the worthless land titles they want, who cares. China thinks it owns huge swaths of our land, HAHAHAHAHAHA! China owns toilet paper.