This is the price the USA pays for deregulation and 'free will' markets with no taxes to pay the bills. Next will be auctions of USA assets until the only aspect of the country that defines it as sovereign is its Constitution. They didn't auction that off yet, did they?
From the Arab News
...The People’s Bank, for instance, refused $200 billion to help fund the US bank bailout. Such reluctance stems in part from their limited experience of global capital markets. Indeed when the subprime bubble burst, the Beijing authorities were being advised by Wall Street investment bankers on how they could reform their own banking and financial system to bring it into line with the US model. Some of those Masters of the Universe found that suddenly they did not have banks to fly home to, let alone valid credit cards to settle their five-star Beijing hotel bills.
The Chinese understandably must now doubt the validity of the expensive advice on reform they were being given. But the reality is that with some $1.38 trillion of dollar-denominated foreign currency reserves, the Chinese cannot afford to let the US economy sink.
A communist government has to bail out the capitalist system. But their assistance, as that of other sovereign wealth funds, ought to carry a price.
That price should include the removal of invisible barriers US legislators have erected to stop what they regard as key assets, such as their ports, coming under “suspect” foreign ownership. We all know how Dubai World Ports was forced to sell off its portfolio of US ports after it had acquired P&O.
The global economy has to work both ways, not just in favor of US investors. Now is the time to make this clear.
