If you thought the government, couldn’t get any more insane, it has. The government is backing/funding China’s purchase of US assets. We are creating a PPIP for the Chinese, whereby, the US Treasury matches private purchases of US assets like bonds or property and credits/guarantees 6x as much as the total lump sum after the match.
The Chinese company, China Investment Corp (CIC) plans on purchasing $2B worth of AAA distressed US mortgages. The US Treasury would match that amount for a total of $4B and then credit up to $24B. In essence, since the US Treasury has no money of its own, we, as taxpayers, are funding the purchase of our country, not only via our debt, but our mortgages/property, by the Chinese.
It is being reported that China Investment Corp (CIC) intends to purchase $2 billion of AAA rated, distressed mortgages in the United States. The press reports are suggesting that CIC is presently interviewing 9 American money managers.
These managers have been approved by the Treasury to participate in the PPIP program as servicers. CIC will pick one or perhaps two to manage its investment program.
Has this been going on for a while in the US? Of course it has, but does that make it right and when does the insanity stop? The real losers in this mess are the American working public who do not make up the elite class and the Chinese people who are not part of the oligarchy. It begs the question of how far away from a Republic are we?
A serious question must also be presented that questions what type of property would be purchased as well. It could get very precarious if the property involved included farms, and other vital properties. Just food for thought!