Last year, Ortega's allies in Congress fast-tracked legislation granting HKND a 50-year concession, renewable for another 50, to build and operate a canal in return for a payment of $10 million a year once it's up and running. The law lets HKND develop ancillary projects — ports, an airport, roads, a railway — even if it doesn't get built.Read the whole story here.
HKND hired the respected U.K.-based consulting firm Environmental Resources Management about a year ago to assess the environmental and social impact of a project that is expected to displace some 29,000 people. In late July, just two weeks after HKND announced its preferred route for the canal, ERM held community meetings in seven cities over 10 days, according to a document on HKND's website.
Be advised. The Chinese will have a foothold in Central and S. America that will require the US to establish bases and forces to counter it. And don't be deceived. They will build sea and air ports.
The Chinese govt just moved into our neighborhood and no one is paying attention.
HDND's website is here.
I like their tactic of putting a well renonwned western face in the form of (ERM) for their expansion scheme. Gives it that much more legitimacy for investors worldwide.
ReplyDeleteThe Chinese have no shortage of finances to finance gargantuan schemes like this but I bet they will give us an ironic situation of financing a majority of their American Safari with US cash. Break this project into financial instruments and mutual funds and other instruments of capital raising.....approach global banking and financing giants to raise the capital from the "International Investor" (Hence the need for a respectable well known front face). The Banks then go to the most lucrative and biggest marketplace for raising capital......USA. The US funds their challengers to the hilt and even earn a profit from it. "I am Jack's flaming sence of Irony." (a steak dinner from my side if you figure out which movie this line belongs to without using google).
Off course, the US wont be alone in funding these projects. Lots of people and organizations with tons of cash lying around just waiting for good investible projects they invest in. Khazanah, Temasek, The Qatar Fund etc.
Fight club?
DeleteKinda apt.
haha....true. Now all you have to do is haul your ass to India and the Steak dinner is on me.
DeleteYeah, Fight Club. :)
DeleteThe Panama Canal suffers from width issues that prevent a lot of larger class vessels from going through. This, I'm sure, costs billions every year in travel time even as it prevents economies of scale from being applied to ever larger hulls delivering ever bigger quantities of bulk goods and containers.
ReplyDeleteI am a little shocked that Nicaragua is charging a measely ten million a year in rental fees so I assume that there are some monster 'big seaway = big fee' assessments which will be made.
I also wonder what this means to the NAU/NAFT plan for the 'Central Corridor' by which Texas to Kansas to Canada would have been subject to a major highway system to deliver goods that bypassed U.S. customs by virtue of being unloaded in Mexican ports.
The implication here is that both the East Coast and Europe will be served directly, rather than having to negotiate Malacca and the Suez or journey around the Cape Horn. I'm sure that if the Chinese offered million dollars per family, they would treat it as an opportunity to get out of farming which is likely subsistence unless it corporate 'sponsored'.
As far as the Chinese owning America, hey, until 1975, we were the world's largest lending nation and we faced an endless barrel ride over the falls of third world state default because we wouldn't create social welfare projects without capitalism and democracy. Other nations are less picky and so they BUILD THINGs which these puissant states can then use to improve their wealth index to the point where easy living eventually takes the teeth out of the local junta and you get something like the PI or Arab Spring (sponsored though it was).
Forgetting the Continent, the Chinese already own significant chunks of the United States real estate-
http://fivethirtyeight.com/datalab/why-the-chinese-are-snapping-up-real-estate-in-the-u-s/
And are looking to set up even more-
http://www.wnd.com/2013/01/china-poised-to-play-debt-card-for-u-s-land/
Via massive 'development regions' that would essentially become Chinese dumping grounds for population and business ownership. Being afraid of a dollar collapse based on the very economic factors which their own success is causing to snowball in USD dollar values (crashing, crashing) the Chinese want real property offsets to counter any assumed risk inherent to a massive implosion of the U.S. debt economy with something like 77:1 dollar holding values and endless trillion dollar deficits on the march.
None of which the Chinese can continue to support as it is rapidly deflating the globalization of trade with useless dollar values.
As you might imagine, The Fed is in on this with promises galore to secure Chinese investments by dual holder stock certificates through a combined credit account which essentially has matching funds only so long as Chinese minority ownership in key companies and infrastructure was given 'preferred' status as guaranteed monetary returns (before all other commitments).
The only way for the United States to remain a Sovereign Entity rather than a copyrighted Brand Name is for the U.S. Military to stand up and start serving their oaths which, as I recall, included something about 'threats foreign and domestic'.
We are on our way out of this world with crashing white birthrates and massive unemployment looming as the economy crashes just like it did in 1925 Germany when Jewish interests made the Locarno treaty into a slave labor convention that so devalued German industry that they could be bought out, en-masse, by Outside Interests as the U.S.. Making them a pretty penny in the process with some 10:1 private wealth valuation compared to Germans who worked for pennies after losing everything in the endgame of Versailles.
The collapse of the U.S. stock market in the Black Tuesday margin call on these wild investments saw brand new acquisitions liquidated for cash value which so completely destroyed German economics that not only were factories shuttered but people were out on the street in the MILLIONS, starving because they couldn't pay rent (majority housing, also owned by YKW).
DeleteHitler was elected based on this betrayal of German national interests and within a year had found homes for 250,000 people who surely would have died that winter and within 3 more years, had put nearly 3 million people into houses, often for 25 marks a month with debt forgiven with every child born to women who were paid to leave the workforce and resolve the TFR deficit in a single generation.
It worked. The problem then being that the recently consolidated and stabilized new currency could not take the two primary German banks cross loaning each other money's they couldn't cover in gold which every nation on the planet EXCEPT those of South America demanded because they greatly feared socialism.
Which brings us back to the Central/South American reality of dealing with people who would deal with them, using barter trade of material goods. The South Americans had lumber, metals and food. And Germany -gave- them tractors and machine tools which the U.S., in it's obsessive (one might say /English/) desire to control all elements of manufactured goods, would not provide.
This made Germany friends in Brazil and Argentina which persist to this day.
The U.S. had exactly this chance to begin doing something similar, as a means of raising up nations where they were at. And instead, thanks to Reagonomics, chose to begin selling us all out with the demands of capitalsm as financial intermediaries whose currency trading games have functionally destroyed our country and our people.
Again, the only people who can stop this, now, are the U.S. military, stepping in to dismiss the existing government, secure our borders and begin a Constitutional Convention under military governance in the hopes of setting up a new society.
Will it happen? Of course not. The kinds of people the military brings to rank are those who execute the mission orders they are given. They don't write them, even with the Constitution they are sworn to protect as a guide.
Sol, I would make a truly MASSIVE bet that this canal never gets built. The guy behind it is a fraud and he will NEVER be able to get financing for the project. One of my favorite books is called "The Path Between the Seas," and it is about the failure of the French to build the Canal and then the success of the Americans. The Nicaraguan route is dramatically longer and technically far more challenging. Notice how you didn't see pictures of any massive machinery breaking ground, or an announcement of a major bank backing the project. That's because there aren't any. Also this company has never built anything. How are they going to go from building nothing to a 50 billion dollar highly complex project? They need 10 billion in financing from major banks just to start, and there is no bank that will give it to them. There simply is not a business case for a 2nd canal, especially considering the existing canal is getting widened and lengthened currently and will be finished by 2016. I see people like the guy behind HKND a lot in New York. Basically it is a scam. He pays himself an enormous salary as CEO of a company that will never do anything, and he raises money from fools to pay for the continuation of the charage. This can go on for a long long time. A few years ago when the rare earth mineral price spike happened I had a dinner with the CEO of REE. It is a total fraud company that owns land in the US but has no revenues of any kind. The CEO pays himself a million a year and tries to raise funds from hedge funds and private equity. In 2011 the stock price got to over 15 bucks, and is now back to .40. The same will happen with HKND.
ReplyDeleteThe Bric countries are reshaping the economic geopolitical map developing infrastructure projects, Brasil and Peru are fully integrating their rail systems from Santos to Ilo and the IRSA connecting all the routes of Latin America. Recently a train with containers from China cross Eurasia up to Spain with three transborder for the differnet train systems. USA and Euripe are not leading any more the geopolitical changes in the world, they are totally out numbered and broken. The best thing the US could do is to jail all the wall street gumblers and the privet Federal Reserve Mafia thet prints money from thin air and have a real central bank in charge of the US dollar with real gold reseves to finanve real infrastructure projects and not NY gamblers.
ReplyDeletehttp://m.scmp.com/business/china-business/article/1659300/first-freight-train-china-arrives-spain
ReplyDeletewhats so bad about chinese investments in south and central america ? they are doing this for economic purposes with gain for both sides.. these are not military conquest or colonization , i doubt china will put military base in the region.. and for a nation that have hundreds of military bases on foreign soil, i think america dont have anything to fear ..
ReplyDeletethis is yuan diplomacy, much much better than gunboat diplomacy
i wouldn't expect for you to understand my stance on this issue. add to it an equivalency bias and there is no need to even discuss it further.
Deletesidenote: want to see the world spiral completely out of control and more suffering than you can imagine? let some politician do as the American people want and only protect our nation and not allies. you call it gunboat diplomacy? i call it a drain on American resources for a bunch of ungrateful spoiled children that have the audacity to talk shit to those who provide them protection.
im sure the world will be fine if america go back into isolationism. te fact that american foreign policy insisted on propping their world hegemony / influence and using massive resources to prop up military bases all around the world are not because some innocent purposes.. Only naive american citizen believed america is doing good the whole world, when in reality it just cared about it's own interest. Nothing wrong with protecting your own interest mind you, but dont call it like you doing it for the world's favor.. thats absurdity beyond laughable..
Deletebut as long as you saw everythin with that american exceptionalism glasses, then of course you will see america the saviour of the world.. A really distorted view considering this saviour used 2 atomics on 2 civilian cities unnecessarily..
The stark differende between China and the Soviets of old was that the Soviets were not given the luxury of using US money to create doom for the Americans.
ReplyDeleteThe Chinese may have 1/4 the size of the Soviet army and reducing but the Chinese do have access to the hundreds of thousands if not millions of financial instruments that the Soviets just could not. Whats more....the US economy and the much vaunted "US Capitalist oriented businessman" shows no signs of reducing this trend.
William above provided a nice insight into this particular project and why it might not take off. But what about the hundreds of other projects which are being backed up steadily and are allowing the Chinese to increase their footprint.
Buntalanlucu.....there are some conversations that are just out of your depth. While we do laugh "at you/on you" for your Zach Galifianakis ish comedic novelty factor.....you must realize your limitations and stick to your depth.
i dont swim in kid's pool and pretend to be olympic swimmer like you did lol... but seriously , you indian kids should learn mandarin , to prepare the chinese dominated economic zone now forming north..
Deleteordinarily i'd cuss and fuss. instead i'll simply say you're quickly heading toward the ban barn.
DeleteThere goes the idiot savant again....minus the savant.
Deletesol, i think you knew who started the insult first, the indian who keep throwing insult and cannot receive a retort.. and as per your rule here, only you can insult people and it is ok as this is your home..
Deletebut if you letting this indian kid throw insult while banning me for replying to him , isnt that a bit unfair ?
i didn't ban you Buntalanlucu.
Deleteno worries. let it go.
Right on the bulls eye Solomon, it’s worrisome to have the Chinese trying to establish a foothold in America, especially in a zone of geopolitical importance to the US like Central America. But I think the US will respond sooner or later, the Monroe doctrine has kept the US safe on its borders from foreign powers for hundreds of years. Central America and Mexico are the US Ukraine and the US will or at least should (because it’s hard to know with Barry) put an end to Chinese ambitions in the home turf.
ReplyDeleteLPAC Weekly Report: The New Paradigm for Mankind: http://youtu.be/krT8fLSNA-U
ReplyDelete