Example: [Turner, February 2009]
On February 11, Bloomberg Business News reported that China was seeking "guarantees" for its US Government debt (Story Here), and it now appears they got it. Well placed senior sources at the
This means that in the event the US Government defaults on its financial obligations to China, the Communist Government of China would be permitted to physically take — inside the USA — land, buildings, factories, perhaps even entire cities — to satisfy the financial obligations of the
[Rest of article here.]
Origins: The large amount of U.S. debt held by foreign countries such as China has long concerned many Americans, and especially so with the current climate of economic turmoil. As the Washington Post noted:
The concept of "eminent domain" in the United States refers to the right of the government to seize private property for public use in exchange for payment of fair market value. (The Fifth Amendment to the Constitution mandates that "private property [shall not] be taken for public use, without just compensation.") Thus the idea of enacting eminent domain as a form of debt repayment or guarantee isn't logical: It's akin to a debtor's offering to settle a $5,000 debt by agreeing to sell his creditor $5,000 worth of jewelry for
Moreover, Executive Order 13406 ("Protecting the Property Rights of the American People") states that the the federal government must limit its use of the taking of private property "to situations in which the taking is for public use, with just compensation" and "not merely for the purpose of advancing the economic interest of private parties to be given ownership or use of the property taken."
Aside from functional arguments, the common sense test applies: If the U.S. government had actually guaranteed, in writing, that China could seize private property within the U.S. to satisfy the financial obligations of the
Last updated: 8 March 2009
Cao, Belinda and Judy Chen. "China Needs U.S. Guarantees for Treasuries, Yu Says." Bloomberg. 11 February 2009. Corsi, Jerome R. "Did Hillary Really Pledge U.S. Homes to China?" WorldNetDaily. 2 March 2009. Kessler, Glenn. "Clinton Urges Continued Investment in U.S." Washington Post. 23 February 2009 (p. A12).