The Democrats' American Belt and Road Initiative
American Democrats and the Chinese Communist Party are birds of a feather.
Here we go again with zero down, no credit check mortgages directed toward certain racial and ethnic communities, because, of course, it is racist and bigoted to deny a home loan to someone who cannot pay it back. Denying someone’s “right” to owning a house should never be a matter of money, you see – at least that was the Democrat’s excuse for engineering the first mortgage bubble which almost took down the entire global financial system back in 2008 and 2009.
Democrat politicians in Congress continued to deny a crisis was looming as the semi-governmental agencies of Fannie Mae and Freddie Mac were used as sponges to soak up bad, federally backed loans, which were packaged into larger financial instruments and sold in the markets around the world as investment vehicles known as “derivatives” (essentially these were bets on bets on bets that things were going to work out, a veritable Ponzi scheme that eventually was going to collapse.)
But never mind if you are white, you won’t have access to these loans, which in the long run is good.
I’m sure the brilliant minds know what they are doing since it worked so well the last time.
Just kidding, it won’t work from a logical or GAAP accounting perspective, but what the burst back in 2008/2009 did do was to create a “public/private partnership” arrangement where a Democrat controlled government used your tax money and obligated you to more debt to secure short term financial control (think GM) and long-term political influence over corporate America. The US federal government became the equivalent of a pay-day loan company or a loan shark. “Too big to fail” was really about the federal government, not the big banks that got bailed out, leaving you to pay for the Democrat’s merry little jaunt down the Marxist path.
Through Bush’s Toxic Asset Retirement Program (TARP) and Obama’s multiple, “shovel ready” stimulus packages (none of which stimulated anything other than the libido of Nancy and Paul Pelosi and big Wall Street investment banks) the government octopus got all eight tentacles into ever crack and orifice of corporate America. On second thought, it was more like a hydra, because the mortgage bust allowed Obamacare to be passed and implemented and as we are still seeing, no matter how many heads of Obamacare have been cut off, it still lives today, over a decade since it was passed.
This is going somewhere, please bear with me.
If you are a sentient human being, it is very likely you have heard of China’s “Belt and Road” (also known as One Belt, One Road or OBOR) philosophy. If you haven’t, it is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in nearly 150 countries and international organizations – largely in resource rich African nations.
China implemented another similar program at strategic points around the world’s oceans. Called the “String of Pearls” strategy, China began buying influence in small Island nations around the world using the same “loans” as in the Belt and Road programs – if you watch the news, you can see the benefits to China – the government of the Solomon Islands, liberated from the Japanese by the Allies in WWII, just denied a US Coast Guard vessel docking privileges and now has announced a moratorium on visits by foreign naval vessels (except Chinese vessels, of course).
Beijing has a long history of practicing “debt-trap diplomacy”, deliberately lending to countries that it knows cannot repay the money, thereby increasing its political leverage. China vehemently rejects this, alleging it's a way for the U.S. to discredit Beijing. To counter this assertion, China recently announced “waivers” and debt “cancellation” for several heavily debt-ridden countries in Africa, which you can bet were not given for nothing. China never forgives interest bearing loans.
China is NOT a benevolent and munificent actor. They have already taken control of assets in Africa through debt defaults. They are after control of Africa and they have figured out the quickest way to do this is not a wasteful war, it is through a stranglehold on the financial systems throughout the resource rich and cash poor nations around the world. China doesn’t really want the debt repaid; they want perpetual debtorship.
The other aspect of China’s OBOR programs is that it has such political power, it can create conflicts, stir the global pot as it were, in both economic and political ways that can severely impact the debtor nation’s ability to pay. In essence, they have their debtors coming AND going.
Do you ever wonder why it seems the Democrats are far more concerned with domestic matters? I mean, they do love sending money to be laundered through Ukraine, but it is clear they reserve their harshest rhetoric and political persecution for fellow citizens who disagree with them.
Well, there is a reason.
And this is where the philosophies of Chinese Communist Party and the American Democrat Party intersect.
Of course, there are more, but this one is relevant to current Democrat Party policies.
The lesson the Democrats learned from the aftermath of the mortgage bubble was not the one they should have learned – which was never to loan money to people whom you know can’t pay it back, it was that Americans under financial stress would accept more government intrusion into areas which were once considered off limits, and that corporations were more than willing to sell the futures and souls of their shareholders for financial gain.
If you wonder when giant corporations and supposedly free market financial firms became nestled comfortably in the pockets of Democrat politicians and agreed to become quasi-governmental agencies, the mortgage bubble bursting was when the light bulb came on. Democrats realized that the corporations were just Constitutional Judases who could be bought for thirty pieces of silver.
Never forget, like China and OBOR, the Democrats have the ability to create chaos to facilitate their own takeover.
Long story short, the “no money down mortgage” resurgence is but a small part of a larger generational initiative. The Democrat public/private partnerships, the massive federal spending and borrowing are all just components of an internally focused Democrat Belt and Road/String of Pearls plan to take control of America in the same way China has its eyes on control of Africa.
China has been "investing" in America for a long time. They most certainly *own* many, if not most, Democrat politicians. What they're doing now is just an *extension* of the homeland's OBOR strategy.
Great piece Michael! As usual.
And it frightens me how much farmland China has acquired over recent years too. Thanks again for another great piece of writing!