I have a real solution to the economic crisis.
China needs to invest $1 trillion in U.S. Real Estate, commercial and residential. China has the dollar currency reserves and Treasuries to do it easily. China can work with the US on an agreement that will guarantee a $1 trillion Chinese investment in the US economy. As the Chinese redeem their treasuries the money goes straight into US real estate.
The Real Estate market will immediately stabilize on the news, and start to rebound as the Chinese cash in their treasuries and invest dollars in the US.
For the Chinese this is a big win because they will get in at the bottom of the market, and can ride it up for great profit. Once they start buying other parties will want in and the Real Estate market will improve dramatically.
This will prevent more foreclosures as property values increase again. The influx of dollars back to the US will improve the entire economy, ease credit and strengthen the dollar. Then the Chinese will continue to back the dollar by buying more debt.
Then American consumers will again be able to buy more Chinese products, putting more Chinese back to work.
This would undo the root cause of the economic crisis and restore stability and confidence to the economic system. Plus it would be a huge face-saving act by the Chinese, excellent propaganda too.
The Chinese can do what America alone cannot. And isn't that our real problem? We are trying to solve what is now a global problem mostly on our own.
Copyright Skip Stone