The news that the Chinese government is taking over some American banks has been greeted in America with almost total silence. Technically it is a Chinese company that is taking the banks over but since the majority shareholder in the company is the Chinese government, perhaps we are splitting hairs.
From The Hill:
U.S. lawmakers have been unusually silent about federal regulators' decision to allow a Chinese bank to take over 13 bank branches in New York and California, suggesting that they think American banks have much to gain.
Members of both parties usually relish the chance to bash China on everything from government subsidies to the yuan's exchange rate. Yet Wednesday's decision by the Federal Reserve to certify a Chinese bank acquisition for the first time was met by near-universal silence.
Scott Talbott, the head lobbyist for the Financial Services Roundtable, said that's unsurprising. The U.S. wants China to open up its financial services market – foreign ownership of Chinese banks is limited to 25 percent – and allowing a Chinese presence in the U.S. is seen as a necessary trade-off.
“What this boils down to is that there are a ton more potential customers in China for U.S. banks than there are potential customers for the Chinese here,” Talbott said. “So in the long run, the approval is going to benefit the U.S.”
Wednesday's decision allows Industrial & Commercial Bank of China, which is 70 percent owned by the Chinese government, to take an 80 percent stake in a Hong Kong-based bank with 13 branches in the U.S. The Fed also allowed two other Chinese banks to open branches in New York and Chicago.
The decision came days after Treasury Secretary Tim Geithner met with top Chinese officials for annual talks in Beijing. China agreed during those talks to allow foreigners a greater stake in Chinese brokerage firms.
One of the very few lawmakers to speak out has been Sen. David Vitter (R-La.), who has a separate beef with the Fed over monetary policy and is holding up two nominees to its board of governors. And even he limited his response to a Tweet – two days after the announcement.
“In midst of my dispute w/ Fed,” Vitter wrote on Twitter, “news they're allowing China banks to takeover American financial institutes & enter banking market...bad news.”
Okay, let’s see if we have this straight. The Obama Regime is letting the Chinese government take over some banks here in America because we want the Chinese to open their markets to American financial services companies. So by opening the door to the Chinese, we hope they will do the same.
Has anyone ever told the idiots in the Obama Regime that hope is not a strategy?
The Chinese manipulate their currency so that they run huge trade surpluses with us. They have artificially lowered their prices so that Americans cannot compete with them, in many areas destroying the American manufacturing sector.
The Chinese to not believe in “fair trade.” The look on trade as a part of economic warfare and they do understand one simple concept. You fight a war to win it.
What is the advantage to America in allowing the Chinese government into our financial services markets? The answer is there is none. It is not in our best interest at all.
If the goal is to penetrate the Chinese market, then let the Chinese open their market first and then we can discuss reciprocity.
Until then, this is a very bad idea.
yes... will we never require a level playing field for US-China relations and commerce? Liberals seem to have no balls to say, "What's in it for the people we represent?"
I doubt that question ever enters their heads - on any subject.
Most educated Americans (like myself) try to read and understand our government & business practices. However, most (like myself) believe that "Our" government would "never" do anything that would "Militarily or Financially place The United States of America in a "Vulnerable position of losing our Safety and/or Life" !
Now.......when our Government "Allowed the Red China Communist to buy our Bonds (of credit) and by doing so "The Reds" hold us "Indebted to them for $Trillions"......."I thought.....what in the hell are we doing borrowing money from our Mortal Enemies" ! "If we can't pay them our debt they can simply "foreclose and never have to fire a shot to enslave us" ?!?!? Nikita K. said in 1962 (About the time I was joining the U.S. Marine Corps to fight those Communist Bastards in World War III) "The United States of America will hoist the "Hammer & Cycle" flag without there being a shot fired" !
I thought that was the dumbest statement I had ever heard ! What did this damn Russian Communist know about "Our Future"?!?! Apparently, a hell of allot more that I did or do !
We have allowed "Red Chinese Communist & Russian Democrats/Communist" to come to The USA and view and study our "Most Secretive Missile Sites, Interview Military and Government Officials and Lord knows what else".
I understand that we have "given water to the Chinese from Lake Michigan" and plan to give the Chinese and Russians oil rites within our waters. Sell land to the Red Chinese....where they can have "Chinese Colonies and Maybe their Own Military & Government entities within the Sovereign States of the United States of America.
WORRIED???? You damn right this old 1960s Vintage USA Marine is worried !! I have spent 50 years (In Defense of The United States of America to Keep the Enemy Out of This Country). NOW......This Government opens the door (Not to Immigrants) But, to Arab Muslim Jihadists, Red Chinese Communist, Red Russian (Putin) Liars and Enemy. Talk of Our Government Taking Our Firearms and At the Same Time stirring up Racial Hostilities and Refusing to Enforce the "Rule of Law" and Inflating Our Currency to "Collapse of USA Dollar" and Make All that "The Working Class in America that have worked for for a 100 years....WORTHLESS" ???? OH YEAH...I AM WORRIED.
QUID QUO PRO ...... "The Profiteers from USA, SAUDI ARABIA, RED CHINA, RED RUSSIA, RED GERMANY, EUROPEAN UNION SOCIALISTS, INDIA, AFRICA......ARE ALL IN BED WITH ONE ANOTHER " !
Never thought, in my 67 years that I would see The United States of America turn their back on our own people for "profit & pleasure".
As it starts in our country - find out what banks and/or businesses and 'boycott' them. Do everything to make their operations a failure. Impose local & state taxes on them - anything to make their stay a disaster.
another step to the lefts new world order. not no but HELL NO!
The explanation for allowing this is just another example of the fact that we are living in the age of sophistry.
Sophistry: Rhetoric that allows foolishness to sound like wisdom.
So, "Members of both parties usually relish the chance to bash China on everything from government subsidies to the yuan's exchange rate. Yet Wednesday's decision by the Federal Reserve to certify a Chinese bank acquisition for the first time was met by near-universal silence." Uuummm...Hello? Proponents of "Audit The Fed" should be ssscccrrreeeaaammmiiinnnggg right now! Also it was said in another blog that the banks are 5% bigger now than they were @ the time of the bailout? Folks we've got to convince as many individuals & businesses to close their accounts from the big banks & move to smaller community banks & credit unions as possible. The big banks need to be shrunk so the burocrats, plutocrats, oligarks & egalitarians known as so called fed regulators need to be broken up & shut down!
Mr. Banko and Mr. Sorrells have stated the problem better than I can. Thanks.
Being hopeful men, from their words, they look for solutions. Are there any?
I read yesterday the Bank of America has 2.3 trillion of assets and 75 trillion tied up in derivitives. Seemed a bit lopsided to me. And they swear they have a grip on the situation.
Now the Fed wants the Chinese into the game. Keep in mind they are already IN by owning lots of bank stock.
Folks, WAKE UP. It's all a pea under a cup switch, like in carnival days. Do we even have carnivals anymore? You knew you were going to get ripped off there and didn't take much money along. But I still went and stood off from myself and let the good times roll.
There's no fixing the mess the greed of some got us into.
After the bankrupcy dust of the world monetary system settles, we can organize something within our shores. We have the farmland and ranches. Everybody will get fed.
Meantime, enjoy the carnival.
Peter Sowatskey amazon.com/kindle/greenergreen
ps Come Nov get ABSENTEE BALLOTS for the elderly, ain't we all, in your circle.
How dumb does this get? Numbers matter and we keep inviting the fox in.
Ron Paul is looking better and better. While many bash him for his foreign policy ideas I bet he would not allow things like this to happen. Maybe not so crazy now. No I am not one of his supporters as I know the establishment wont offer him up as an alternative to obama. Surely it is becoming clearer that my prediction of romney being the candidate is coming to pass. I wonder if he would condone this type of thing. When we look at the bigger picture withdrawing our resources back within our own borders seems like a wise thing to do. Cut deals and ties with all countries that have not been close friends in the past. This country can stand alone. It may be the time we did it. Before we let the worlds problems become ours.
"SEVERE TOTAL STUPID LUNACY!" go to DicMorris .com and get linkks to buy his book "Screwed" it has a whole chapter on why this is Lunacy---It also tells how we can deal with China(Oh yeaaaahhhh). If only we had leaders with testosterone loaded balls! Did you read the story about China buying 200 acres near detroit to make a closed city for Chinese business men wanting to start up bussiness in America! I refer you back to the very first phrase and "READ" the book!!!!!!!!!!!!!!
This is what you get when a rogue nation hold the note on your home turf! We're screwed!