For most of us on the ground, it doesn’t look like there is a housing boom. Figures coming in say that the real estate market is on its way up. With the economy in the poor state it’s in, this seems contradictory.
So what’s really happening? Maybe the better question is who. The who is the Chinese who are buying up American property, thus explaining the boom.
Here’s how ZeroHedge finds it, from Liberty Blitzkrieg
Many of us spent much of 2012 confused about how the U.S. real estate market was improving within the context of a broke and unemployed citizenry. Well as time has passed the answers to our questions have been revealed. The criminals are piling in. I first explained a couple of weeks ago how the financial oligarchs in the United States are currently in a bidding war to become America’s slumlords in my post: America Meet Your New Slumlord: Wall Street.
Now we also discover that part of the bid to U.S. real estate has come from another criminal class. In this case, we are talking about corrupt Chinese officials who are pulling their ill gotten gains from their homeland and desperately placing it in real estate all over the globe. From The Telegraph:
As China’s new leaders intensify a campaign to root out corruption, thousands of Communist party officials have been panicked into a fire sale of their illicit properties while billions of pounds have been smuggled overseas.
It said the volume of deals had intensified by “a hundred times” after Xi Jinping, the incoming Chinese president, warned that corruption could kill the Party and put one of the country’s most vigorous and resolute politicians, Wang Qishan, in charge of stamping out graft.
It also claimed that an astonishing $1 trillion (£630 billion), equivalent to 40 per cent of Britain’s annual GDP, had been smuggled out of China illegally in 2012.
In the United States, the National Association of Realtors said that more than $7 billion of properties had been bought by Chinese in the US last year. Some high-end homes are now specifically built for rich Chinese with ponds for koi carp and a second kitchen for pungent cooking.
I guess word has gone out globally that the U.S. is open for business as far as the global criminal class is concerned. They can rest assured knowing they will never face repercussions in this lawless land. At least that is what they think. What we must do is never forget who is buying all of these properties and when the time comes they should all be seized and these crooks sent back to the place they came from.
You ask how this can be done legally:
The fact (is) that the NAR (National Association of Realtors) can legally launder offshore money courtesy of being exempt from anti-money laundering provisions. This allows billions in ill-gotten offshore cash, sourced primarily from Russia and China, to be “invested” in US real-estate, with no cost or pricing discrimation and without any questions asked from any authorities. Because, sure enough, the final result can be spun as a “boom” in real estate by the administration and the banks so very invested in reflating the housing bubble.
This was explained as follows:
The NAR, best known for misrepresenting the real state of the existing US housing market for years, has an open waiver for anti-money laundering regulation from none other than Uncle Sam. Because while it is one thing to blow up the biggest breadwinning industry in Switzerland to pad the tax bill and to spread class warfare, it is something totally different to represent to the world that ultra-luxury segment aside, which is merely an artifact of global money laundering, the US real estate housing emperor is as naked as he was 4 years ago.
Makes sense, doesn’t it?
What better way, also, for China to engage in an invisible war with the US? We owe China for our outlandish borrowing, we manufacture our goods there and now they are buying up our land. They also hack into our banking and government computer systems to see what we do and perhaps disrupt commerce. Remember when they were even putting chemicals in baby formula and pet food that harmed babies and dogs? They hardly would have to fire a shot to cripple us.