We're reading monthly about numerous U.S. financial institutions needing to turn to foreign governments for money to stave off financial disaster. While some investors cry foul, alluding to nefarious plots to take over America, Bloomberg examines uber-investor Warren Buffett's take on what's occurring in the economic world today.
Instead of some global plot against the U.S., Buffett says that investments by foreign government-controlled firms are fueled by U.S. spending overseas, not political motives. These so-called sovereign wealth funds are merely responding to some to our own activities.
"This is our doing, not some nefarious plot by foreign governments,'' said Buffett, chairman of Berkshire Hathaway Inc. (NYSE: BRK.A), in his annual letter to shareholders. "Our trade equation guarantees massive foreign investment in the U.S. When we force-feed $2 billion daily to the rest of the world, they must invest in something here.''
Bloomberg reports that countries like China, Russia, and Dubai have deployed record central bank reserves to set up funds to invest as much as $2.9 trillion. We've already seen a flurry of activity. Investment funds from Singapore, Korea, Kuwait, and Abu Dhabi bought stakes during the past four months in the largest U.S. bank in terms of assets, Citigroup (NYSE: C), and Merrill Lynch (NYSE: MER), the world's biggest brokerage.
Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
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Reader Comments (Page 1 of 1)
3-02-2008 @ 3:55PM
TX CHL Instructor said...
When I saw the headline, I thought the article was going to be about the 4-way race between the Socialist, Monica's Boyfriend's wife, the RINO, and the theocrat.
As for getting more foreign investment (and the deterioration of the $), that's just what you get when you spend horrific amounts of money killing people and breaking their things. BTW, those folks who insist we are in Afghanistan and Iran for the oil should realize that it would have been cheaper just to buy it for $500 a barrel. Much cheaper.
War is bad for for democracy. And it is grossly uneconomical, regardless of what it is you are after.
3-02-2008 @ 7:08PM
Dereck Dodson said...
The entire problem with the U.S. Economy derives around the mutinous and treasonous President George W. Bush who was actually impeached in the summer of 2006 which went unreported, "Skull And Bones" Network, Organized Crime Families and Major Corporate Executives who are attempting to block the Ethnic Private Owner of the World Fortune who is a African American who lives here in the United States. All Legal Tender and Currency is owned Worldwide outside of Government Employee and Civilian Jurisdiction by this person. He owns U.S. Interests, FirstGov, and The United States Government which are actually Private Corporations. Elected Government Officials are elected to work for the U.S.Government by the people and can be fired despite term lengths but dis-organization has slowed this process.
Bill Gates and several other Billionares have attempted to sue this person for "Cash Whording" with dirty Judges and Lawyers without him even being notified and given the chance to appear in Court even though he is "Carte Blanc" status Worldwide and cannot be arrested, detained, sued, prosecuted or Judged in any Court System Worldwide. Bill Gates was caught in this scandal in 2002 and forced to turn in the bulk of his financial holdings as well as others involved and has been reporting false profits since, "paying off" "Wealth Reporting" Companies the whole way.
Bill Gates was also forced out of Microsoft this year by this person who actually owns Microsoft, Microsoft having been started by IBM also owned by this person where Bill Gates was an employee and granted the opportunity to be the first CEO of Microsoft yeilding him a "Founder" title. Bill Gates is so racist and idiotic he allowed Microsoft to be split in a "Monopoly" judgment when he had only to ackowledge the Private World Fortune Owner in Court but refused to do so. Microsoft and Microsoft Works are still completely controlled by this same person.
There are many other racist run Corporations like GM, Ford, and Citibank who would attempt to standoff against the re-organization of this persons authority all while being stripped of financing and selling off to Saudia Arabian and Chinese Interests controlled by Original Masons under this persons Leadership forsaking employees being laid off being thrust into financial ruin. All this done in the false belief of controlling the U.S. and World Economy and deny Ethnic Rights in the U.S. and U.K. especially.
85% of the Natural Resources imported to the U.S. from Africa, South America, and the Middle East that supply the commercial industry are completely controlled by the World Fortune Owners many family members and relatives in those places including 90% of all Royal Families Worldwide truthfully.National and Worldwide marketed and distributed companies rely on exclusive Mason Inc. (Switzerland) contracts to supply their demands. The World Fortune Owner pays for these Natural Resources to be extracted and processed and yeilded to the product making and "brand naming" market also using Mason Inc.built and supplied mass production machinery.
Processing such as rendering raw iron ore into metal lengths to be used in mass production processes. Also rendering rubber trees into processable plastics even dyed plastics merely placed into machines to produce brand named products like restaraunt and kitchen supplies. All banks, Credit Card Companies, and Finance Companies are financed by the World Fortune Owners Company Merrick Inc.(Sweden) which is the reason for the Housing and Credit crunch.