Thread: CHINA POISED TO PLAY DEBT CARD – FOR U.S. LAND

CHINA POISED TO PLAY DEBT CARD – FOR U.S. LAND

Communist nation could control American land as 'development zones'

by JEROME R. CORSI


EDITOR’S NOTE: Barack Obama’s involvement in the DeMar Second Amendment case was previously reported in Chapter 7 of Jerome R. Corsi’s “America for Sale: Fighting the New World Order, Surviving a Global Depression, and Preserving USA Sovereignty.”
NEW YORK – 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.

Jerome Corsi exposes the globalists’ plan to put America on the chopping block in “America for Sale: Fighting the New World Order, Surviving a Global Depression, and Preserving USA Sovereignty,” available at WND’s Superstore.

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:

1. 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.

​

1. 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.”

​

1. 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”.

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1. 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.”

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Maybe the article has it confused with this - sounds like China is investing.
Casa Grande 'world trade center' complex set to open soon

by Caitlin McGlade and Lindsey Collom - Aug. 5, 2011 06:34 AM
The Arizona Republic



CASA GRANDE - A massive wholesale shopping complex is expected to open soon in Pinal County, bringing with it at least 300 foreign investors and their families looking to make a home in America.
To stay, they have to help boost the local economy.

Chinese investors, real-estate companies and local government officials have completed plans for a 1.5 million-square-foot business center, to be called Phoenix Mart.

The project's estimated cost is $150 million, and its developers' stated goal is to make it a "world trade center of sorts" by hosting 2,000 vendors, many from China.

The complex will be a one-stop shop for businesses seeking supplies or products to sell, according to the developer, Scottsdale-based AZ Sourcing LLC.

AZ Sourcing bought the land from a private owner in 2010.
Tenants on site will use storefronts to sell six categories of merchandise: consumer products for men, women and youths, automotive products, "home and hotel" products, and food.

A convention center at the mall will host regular trade shows so participating small businesses can share their products with national and international companies, said Adam Hood, a senior associate with commercial-real-estate brokerage Colliers International in Phoenix, which has been hired to identify and book tenants.

The general public also will be able to shop alongside business owners.
"It's kind of a new beginning for the city, county and the state of Arizona," said Casa Grande Mayor Robert Jackson at a news conference Wednesday.

AZ Sourcing also plans to add new businesses at nearby Tanger Outlet Mall in Casa Grande to complement the wholesaler lineup at Phoenix Mart.

One hotel-supply business is already set to move in by the end of the year, said Jeremy Schoenfelder, executive vice president of AZ Sourcing.

While AZ Sourcing and Colliers International are aiming to fill tenant slots with American companies, the project plan also calls for hundreds of immigrant investors with hefty pocketbooks. Those investors can obtain U.S. residency for themselves and their immediate families based on legislation passed in 1990.

The law, enabling what are known as EB-5 visas, allows immigrant investors to obtain green cards if they fulfill certain economic-development goals.

Generally, a foreign national must invest $1 million in a business endeavor to be a candidate, but the requirement is reduced to $500,000 in specially designated areas that have unemployment rates at least 1.5 times the national average.

The law states that each foreign investor must also create or save at least 10 full-time, local jobs.

If an EB-5 candidate does not fulfill those goals within two years, he or she does not earn permanent residency.

The program has grown in popularity over the past few years, with as many as 1,955 applications vying for a project during the 2010 fiscal year, compared with 776 three years before.

The U.S. Bureau of Citizenship and Immigration Services approved more than 1,360 applications in 2010.

Also that year, 768 investors applied to earn their permanent residency, but 56 of them failed to meet goals and were denied. About 270 were approved, and the rest are still pending, according to Department of Homeland Security records.

The EB-5 program has spurred an estimated minimum of 31,160 jobs and accumulated more than $1.5 billion in investments since it began in 1990, according to federal records.

Critics of EB-5 say the program allows people to "buy their way into the country" on the premise of creating jobs for Americans. But those employment opportunities often don't materialize, said Ira Mehlman, a spokesman for the Washington, D.C.-based Federation for American Immigration Reform.

"Very often, these are businesses that don't create jobs for anyone else except for someone who made the investment and their immediate family," Mehlman said.

"A lot of economically depressed areas are pretty desperate, and anybody who is willing to come in and invest anything, they get excited about it, even if (the benefit) isn't all that much."

The clock is already ticking for Phoenix Mart investors, so construction crews will aim to have the center up and running by the end of 2012. They will likely break ground late in first-quarter 2012.

If the Casa Grande project works, 3,000 job opportunities - that's 10 per investor - should open. These might include anything from sales-clerk to tech-support to administrative positions. Officials are estimating that another 4,000 or more direct or indirect jobs might crop up as well, including construction and maintenance positions to build the structure.
"These are people who are looking for a place to raise their families, invest in their future," said Elizabeth Mann, president of AZ Sourcing.
She said many of these families speak English, but the county and the city are preparing for a language-barrier problem to arise fairly soon.
The law does not limit the investors to living in Casa Grande, but officials are having discussions with high schools about initiating a Mandarin-speaking teacher and have also looked into having a Mandarin-speaking staffer in city government, said David Snider, a Pinal County supervisor.

The city offered no incentives to bring in Phoenix Mart. Officials chose Casa Grande because it met the unemployment-rate requirement, because of its location between Tucson and Phoenix and because of the convenience of the railway nearby the site, Schoenfelder said.

MORE ON THIS TOPICEB-5 visa program

The EB-5 visa program allows foreign investors in specially designated U.S. businesses to obtain temporary U.S. residency for themselves and their families. Each investor who creates or preserves 10 U.S. jobs within two years can obtain permanent residency.
• Started in 1990.
• Run by the Bureau of Citizenship and Immigration Services.
• Requires $500,000 to $1 million per investor.
• Has created 31,000 U.S. jobs.
• Has spurred $1.5 billion in investment.
Source: U.S. Bureau of Citizenship and Immigration Services



http://www.azcentral.com/community/p...#ixzz2IZnIhlN3

New Chinese World Trade Center in Casa Grande, AZ

Started by Newmexican, 08-05-2011 01:40 PM

http://www.alipac.us/f19/chinese-tak...-zones-271931/