Posted on 05/21/2012 12:15:25 PM PDT by SeekAndFind
China has a secret: It owes American investors hundreds of billions of dollars.
The Chinese government doesn't like to talk about it and the U.S. government doesn't want to raise it. But decades ago, Beijing defaulted on debt owed to Americans, as well as investors and governments around the world. In one case, it was paid. In the rest it was not. More than 20,000 American investors own this debt. The U.S. government may also own Chinese war debt, unpaid since World War II.
With the simple stroke of an executive proclamation, President Barack Obama can begin the process of addressing this issue. A 1930s-era law has established a quasi-public agency within the Securities and Exchange Commission, known as the Corporation of Foreign Securities Holders, which can arbitrate this dispute, much as a predecessor agency did for decades. China can both afford and benefit from this solution; it will afford goodwill at a time when relations between the world's two superpowers are strained.
The story begins nearly 100 years ago, in 1913, when the government of China began issuing bonds to foreign investors and governments for infrastructure work to modernize the country. As the country fell into civil war in 1927, paying these debts became increasingly difficult and the government fell into default. Even so, in April 1938, the Nationalist government of China began to issue U.S.-dollar denominated bonds to finance the war against Japan's brutal invasion.
Locked in a pitched battle for survival, the government issued these bonds into 1940. As part of its wartime financial aid, the U.S. government further provided a $500 million credit to China in March 1942, shipping gold there and helping to stabilize the currency. In return, it appears that the U.S. government redeemed some of these dollar-denominated bonds.
(Excerpt) Read more at mcclatchydc.com ...
Global Communists colonize nations and fuel insurgencies and the Left is cool with that.
Saudi Arabia’s theocratic government colonizes nations and fuels Islamist insurgencies and the Left is cool with that.
The talk of “anti-colonialism” was anti-WESTERNISM.
They love Third World dictatorships.
Carter recognized Taiwan as part of Communist China back in the 70’s at the demand of the Chinese.
Nowhere to point.
I guaranty you you...the ChiComs consider all that debt to have been “forgiven”.
We already ignored it long time back.
Its important to understand what it means to live within ones means. Cuz if you don't, then there consequences. There is no easy way out of this debt if that's what you are looking for. Chinese aren't fools to lend out so much money without holding something in co-lateral, so that one we can simply walk away from this debt. The only way out of this debt is to cut spending and make our economy grow at over 7-8% of the GDP.
So, Communist Amerika will never honor any pre-Communist obligations, either. No worries! :)
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