Amid all the ongoing discussions on the credit meltdown and deep economic recession we are all currently finding ourselves in, one idea has been conspicuously absent from the political debates raging in America at the moment: instead of having the U.S. Treasury borrow a few more trillion dollars from the Chinese and then dump the cash straight into the financial black hole that is Citibank and GM, why not invite Chinese investors to directly buy a stake in and recapitalize these failing U.S. businesses?
In practice allowing Chinese managers to take over Citibank would not make much of a difference for the average U.S. consumer-except they would no longer incur the cost of paying interest over trillions of dollars more in public debt. And presumably they would also avoid suffering the consequences of a plunge in the dollar's value with respect to the yuan, which will soon make all these cheap Chinese goods look not-so-cheap anymore.
Just why is it this option is not being put on the table by the U.S. government? this is a good question, which ought to be asked from them by their citizens. Most importantly, I feel being bought by China would be an excellent punishment for all these greedy Wall Street executives at Citibank and elsewhere...
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