Thursday, November 19, 2009

Wait, I think I've seen this movie.

You might recall that we have wondered from time to time how China was going to be repaid for all the US bonds and dollar holdings they have. Since they intend to divest themselves of most of both of these, the US would have to pay off this debt somehow. We thought maybe national parks, government buildings, or historical sites might do the trick. And I'm sure they are interested in real estate. But another option has recently become available - one they will also like. In short, the US is now in the process of clearing the legal obstacles that prevent China from buying US banks. This way, they get foreclosed real estate, gold or other reserves, and can unload their US greenbacks all in one package.

US Wants China to Buy into Its Small Banks
Published: Tuesday, 17 Nov 2009 | 4:56 AM ET
By: Reuters

Chinese and U.S. regulators are negotiating a pact aimed at encouraging Chinese financial institutions to buy into small and medium-sized banks in the United States, bankers briefed on the plan said on Tuesday.

...Two senior Chinese bankers said they had been invited this year by U.S. officials, investment bankers and financial advisers to look at several potential investments in U.S. banks, mostly in financial trouble.

"The trend is already there," said one Chinese banker.

"Now they're going to make this into an agreement to show there's a change in official attitude towards Chinese investments in the U.S. banking system," said the banker, who declined to be identified due to the sensitive nature of the matter.

...Over 100 U.S. banks have already been seized by regulators in the financial crisis, and more bank failures could come as the Obama administration also needs more capital to take over troubled lenders...

The "sensitive nature" of the matter, of course, is that having China own US banks means China has defacto control over issuance of loans and services to US customers.

Needless to say, a lot of people aren't going to like that.

But, as we see, Obama has to do something with all the banks they are in the process of seizing, and in their globalist minds, one buyer is as good as another - and in this case, better than most.

In reality, though, having your economic infrastructure owned by a county with a radically un-Western political ideology that sneers at little concepts like freedom of the press, freedom of religion, freedom of assembly, has no respect for human life and so on is about as smart as making your transportation and agriculture dependent upon a substance that is primarily obtained from countries with radically un-Western religious ideology that sneers at pretty much the same things.

Oh, wait...

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