muses of the moment

March 2, 2009

US grants China Eminent Domain

Filed under: Long term investing, Odds 'n ends, The Financial Crisis — totallygroovygirlfriday @ 1:08 pm

I interrupt the current financial crisis posts on investing about something very serious. On Mrs. Clinton’s recent trip to China, an agreement from the United States government was given to China to grant it eminent domain, in exchange for China to continue buying US treasuries.

Here is the story from liveleak.com.

Here is a less radical opinion. (Scroll down for the translation, post dated 3-1-09)

My first outrage, if this is true, why is the press not covering it? Why are house and senate representatives not picking the White House this very morning?

My thoughts are that since China has just agreed to keep purchasing Treasuries, the government will definitely continue and accelerate printing money. Hyperinflation is coming.

And what would China demand for repayment when the US defaults on its debt? The banking system they are about to nationalize? Whole states? The government has their own eminent domain policy.

Prepare for hyperinflation (at the very least).

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