China tie to CA HSR?
The Republic of China, America’s banker, is positioning to take over the CA HSR. Yesterday’s Fresno Bee acknowledges their having an interest in this project.
As we continue to borrow money from China, reported to be about $1 trillion in US Treasury Securities, according to MIT Economics Professor Simon Johnson, we now see their interest in using our own money to get their hooks into our transportation system. So China’s potential investment in the CA HSR will be bankrolled by the interest earned on our own US Securities.
Some might argue that should this initial interest become a reality, at least it will create jobs. Who cares if accept their money; after all it’s green.
As the state is bankrupt perhaps we should sell them the Costa Mesa Fair Grounds, the Ronald Reagan State Office Building in Los Angeles, the San Francisco Civic Center, which houses the state Supreme Court, and several other state owned buildings in downtown Sacramento.
As representatives from the Peoples Republic have expressed an interest in HSR perhaps we should also ask them to take over other underfunded Capital Improvement projects so that the new governor will not request an extension of the largest tax increase in our state’s history.
Should we care who eventually owns any property in this country? Should we dust off the word protectionism?
As China has expressed interest in US high speed rail perhaps they can begin by taking over Amtrak operations so that they can subsidize it instead of the American taxpayers.
Simultaneous with our being the worlds greatest military power we are the worlds greatest debtor. Without question the later represents one battle we are losing to the Republic of China due to our federal Government’s mismanagement of revenue with our resorting to floating billions of US Treasuries to whomever will buy them.
In case you have not heard, our trade deficit with China “has exceeded $200 billion for each of the past five years.” Former presidential chief economic advisor Lawrence Summers coined the phrase “the balance of financial terror” in reference to our dependence on foreign capital.
Yes, I am aware that on its surface this post contains two unrelated topics. Not really. Follow the money.
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