Friday, January 24, 2014

Who are all those wealthy Chinese buying US homes with cash?

From Hugh-Smith's article we could conclude that those Chinese nationals buying foreclosed properties in our cities with cash are neither agents of the Chinese government nor China's new billionaire class scheming to gain power or control over the US.  Rather they are simply criminals laundering their loot and preparing their getaway.

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Two Powder Kegs Ready to Blow: China & India

Submitted by Charles Hugh-Smith of OfTwoMinds blog,
China and India are both powder kegs awaiting a spark for the same reason: systemic corruption.
China's "princelings" (offspring and family of the inner political circle and top apparatchiks of the Communist Party) are billionaires, not mere millionaires. A recent expose of offshore accounts held by various Chinese billionaires estimated the wealth skimmed and transferred our of China at between $1 trillion and $4 trillion: China's Epic Offshore Wealth Revealed: How Chinese Oligarchs Quietly Parked Up To $4 Trillion In The Caribbean.
Even the top number is a gross underestimate, as $4 trillion only accounts for the skim of the top layer
... even the lowly functionary skimmer can get huge sums out of China: take a "vacation" to Macau. Buy $1 million in casino chips with your looted yuan. Lose $50,000 at the tables and then go cash in your remaining chips in U.S. dollars. Deposit the dollars in a Hong Kong or other Asian bank and then transfer the cash to L.A. or Vancouver to buy a house for cash. Repeat as necessary.
It has taken an enormous credit bubble of $23 trillion (The $23 Trillion Credit Bubble In China Is Starting To Collapse – What Next?) plus the monumental credit expansion of the shadow banking system in China to enable the skimming of $6 trillion by the political/financial Plutocracy….
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CH: Hugh-Smith ends with some words of wisdom that would apply at home:
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The spark that ignites the powder keg cannot be predicted or suppressed. Don't look to the disenfranchised peasantry as the source, though they are ready enough to cast off the Powers That Be; look to those who believed the gilded promises issued by the looters and discovered that the fruits of their labor and their hopes is disillusionment on a scale as vast as the skim looted from their nation by their self-serving leadership.
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