“THEY SOLD YOU OUT FOR MONEY”


U.S. stops following foreign money trail
Expert says nation’s assets are being sold for billions

Posted: June 09, 2008
10:13 pm Eastern

By Jerome R. Corsi
© 2008 WorldNetDaily

NEW YORK – Foreign investment in the United States is on the rise and key U.S. businesses and infrastructures such as roads and airports are being sold to foreign investors. Now comes word from the U.S. Department of Commerce the Bureau of Economic Affairs will stop publishing a key report tracking those foreign dollars.

WND reported earlier on a decision by the Federal Reserve to quit publishing M3 data, a money-supply measure watched closely by economists.

Last month, econometrician John Williams reported on his subscription website, “Shadow Government Statistics,” that the M3 statistic he compiles from available government data shows the growth of M3 at historically high rates last seen in June 1971, two months before President Nixon closed the gold window and instituted wage and price controls.

Charles McMillion, president and chief economist at MBG Information Services in Washington, D.C., also has expressed concern over the recent decision by the Department of Commerce to discontinue publishing foreign investment data and warned that may forecast an unprecedented surge in foreign investment anticipated by the Bush administration.

In the announcement, BEA claimed funding limitations necessitated halting future reports.

The most recent report, released Wednesday, showed direct foreign investment in U.S. businesses reached $276.8 billion in 2007, the second largest amount recorded and the highest since 2000, when new foreign investment outlays peaked at $335.6 billion.

Of the direct foreign investments in the U.S. in 2007, only about 10 percent, approximately $21.9 billion, established new U.S. businesses, while foreign investments to acquire existing U.S. businesses totaled $255.0 billion.

Nearly 37 percent of the foreign investments in 2007 involved European investors, although the BEA noted investments from Asia and the Middle East rose substantially.

McMillion noted in an e-mail that the BEA decision to discontinue publishing foreign investment data comes at a time when public and congressional concerns have increased over the acquisition of U.S. assets by foreign investors

McMillian referenced the recent attempt by “China’s mysterious but closely state-aligned Huawei” to acquire 3Com, a key supplier of Internet security technologies to the U.S. Department of State, in conjunction with Boston-based Bain Capital, a private equity firm founded by Republican 2008 presidential candidate Mitt Romney.

In March, Bain pulled out of the deal after learning that the secretive Committee on Foreign Investment in the United States, or CFIUS, organized in the U.S. Treasury Department, planned to block the deal.

In May, during a four-day trip to the Middle East that included Saudi Arabia and Dubai, U.S. Secretary of Treasury Henry Paulson encouraged foreign investment in the United States, arguing the controversy over Dubai Ports in 2006 did not reflect an adverse U.S. attitude toward foreign investment.

“I have met with many leaders from the Middle East who ask if the United States really continues to welcome investment,” Paulson said in a speech to the U.S.-United Arab Emirates Business Council, according to Bloomberg.com. “As we seek to open new markets abroad, America will keep our markets open at home to investment from private firms and from sovereign wealth funds.”

WND previously reported since the beginning of the year, Dubai and Abu Dhabi, two of the largest United Arab Emirate states, have been in discussions with the U.S. Treasury, offering reassurances that their investments in U.S. banks and security firms would not impose restrictions usually dictated by Islamic law, commonly known as sharia.

WND also has reported sovereign wealth funds in six Persian Gulf countries, including Kuwait, the United Arab Emirates and Qatar, have now amassed $1.7 trillion, positioning them for attempts to control major banks and securities firms in the United States.

In September 2007, Dubai acquired 19.9 percent of Nasdaq, the second largest stock exchange in the United States.

WND also reported last month the top bid to lease the Pennsylvania Turnpike on a long-term public-private-partnership, or PPP lease, for a bid of $12.8 billion was submitted by Spanish infrastructure management company Abertis Infraestructuras of Barcelona.

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