China & the Middle East move to scarf up U.S. Assets as The Dollar Collapses

Posted on November 12, 2010 by

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Some time ago I wrote about Obama selling off National Parks to help pay down the deficit.   It was a parody but soon after we saw that very thing happen.  Now we have a situation where the dollar is losing value on a daily basis.  We owe China billions of dollars in loans and interest.  The Fed intends to pay China back with money it simply prints, Some $600 bn.

China not being the absolute dolt the Fed takes it for has now moved to seize asset’s of the US buy purchasing them as stock.  Given enough time China could end up owning the lions share of the US and her corporations thanks to Congress and The Federal Reserve.

NEW YORK-China’s biggest [STATE RUN] auto maker is close to finalizing a plan to buy a stake in General Motors Co., which is preparing for an initial public offering next week, according to people familiar with the discussions.

SAIC Motor Corp., which has built cars with GM in China since the 1990s, is among foreign entities who will become part-owners of GM when the auto maker returns to the public markets, these people said. A final decision could come within the next couple of days.

Separately, sovereign wealth funds in the Middle East and Asia are on track to buy more than $1 billion worth of shares, these people said. Such funds are attractive investors to GM and its bankers because they tend to hold investments for longer, providing stability for the company.

The issue of foreign investors buying GM shares in the company’s IPO is a sensitive one for the U.S. government, which will reduce its 61% stake in the auto maker in the IPO. Treasury also is worried about the political reaction if non-U.S. investors, such as sovereign-wealth funds or a Chinese company, are allowed to acquire a significant stake in GM after U.S. taxpayers spent $50 billion to assist the company through bankruptcy reorganization.

GM set a target of $26 to $29 for the IPO stock price. High investor demand could drive that initial price to $30 or slightly above. Investors are sending signals to deal underwriters that they would pay a higher price for shares, people involved in the offering said.

The auto maker plans to sell $10 billion in common stock as part of the IPO.

If that happens, it would be good news for the Obama administration, which could find itself under fire for pricing the deal too low—thus shortchanging taxpayers—if GM’s post-IPO price rises sharply after the offering.

GM plans to price the IPO Wednesday and shares would go on sale the following day, according to people familiar with he plans.

So someone explain to me how this is a good thing. How printing money to pay off our national debt is a good for the US Citizen. Should we not send the Secret Service in to arrest Bernanke and the other goons that are trashing our dollar? Is it not a fact the Secret Service arrest counterfeiters because what the do by printing counterfeit currency it “Destabilizes The US Economy”? When does the madness end America?