by JEROME CORSI
Leading economist requests dollar protection larger than U.S. homes
A high profile Chinese economist has begun circulating a new plan under which the U.S. government would guarantee foreign investments, so foreign nations with large dollar holdings in U.S. Treasury debt could convert that debt into equity to buy and own U.S. assets or invest in the nation's infrastructure without risk of loss, Jerome Corsi's Red Alert reports.
In the process, much of U.S. industry and infrastructure would be sold to the Chinese.
In the Financial Times of London, Yu Qiao, a professor of economics in the School of Public Policy and Management at Tsighua University in Beijing, proposed a plan for the U.S. government to guarantee foreign investments in the United States.Corsi noted that while WND has reported that the Internet rumors Secretary of State Hillary Clinton had given China an eminent domain claim on U.S. homes and property were untrue, the plan advanced by Yu Qiao must be interpreted as a proposal the Chinese government wants the U.S. to give serious consideration.
'Secretary Clinton may not have pledged American homes to China, but the Obama administration may be willing to grant a financial guarantee as an incentive for China to convert U.S. debt into Chinese direct equity investment to establish Chinese ownership in U.S. successful corporations and potentially profitable infrastructure projects,' Corsi wrote. 'The Obama administration is now willing to put the U.S. up for sale to China to induce China to keep financing U.S. government deficit spending.'
As WND has reported, the U.S. Treasury is preparing to borrow $2.5 trillion this year and another $4 trillion in 2010, an amount that would increase by 65 percent in two years the $10 trillion in national debt accumulated since George Washington was president.
WND has also reported the U.S. government faces more than $65 trillion in unfunded Social Security and Medicare benefits scheduled to be paid out largely to baby boomer retirees in coming decades.
Foreign nations now hold $1.6 trillion of U.S. government debt, with Asia, including China and Japan, holding half of the outstanding public-owned U.S. Treasury bonds.
China now directly or indirectly holds more than $1.2 billion of U.S. Treasury bonds.
If the U.S. dollar were to collapse under the weight of Obama's trillion dollar budget deficits, holders of U.S. debt could 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.
Red Alert's author, whose books 'The Obama Nation' and 'Unfit for Command' have topped the New York Times best-sellers list, said the plan to convert 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.
Corsi received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.
In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.
For more information on China's push to acquire U.S. assets and for financial guidance during difficult times, read Jerome Corsi's Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, 'The Obama Nation.' ....
