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Bank of America Sends Your Tax Dollars to China

Published 12/07/08 Craig Harrington - Print Article
E-mail - editor@economyincisis.org

Just one month after receiving $25 billion form the Treasury to stave off disaster, Bank of America spent $7 billion to increase its holdings of China Construction Bank.

In mid October Bank of America was one of the hand-selected institutions to receive the first phase of the $700 billion bailout package. As one of the world’s largest banks, Bank of America was deemed suitable for a cash infusion by the Treasury Department in order to shore up its assets and get the bank to open up its channels for lending. Bank of America is apparently lending, but it is lending overseas rather than to beleaguered home and business owners in the United States who desperately need a hand.

One of the main reasons that the public was so unified in its opposition to the financial bailout was their belief that the recipient banks would not use the money for the right purposes. We have already seen American International Group executives take lavish and luxurious vacations while the government scrambled to shovel more money their way. We also saw bailout recipients use the funding to start buying up competitors via Treasury-backed mergers and acquisitions. Now it seems that our tax dollars can easily be spent in foreign direct investment overseas, rather than here at home where it is needed.

The move by Bank of America also puts money into the hands of the Chinese government as they begin collecting money to fund their own nearly $600 billion bailout and rescue operation. Essentially, the United States Treasury has gifted $7 billion dollars of your money to the Chinese government with Bank of America as an intermediary.

Click here to contact your Representative in Congress.

Unless the above article is already copyrighted, this article is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License, EIC grants permission to use this article in whole or in part provided attribution is given, preferably in the form of a link back to EconomyInCrisis.org.

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Article Comments From Readers

guest says "TAX DOLLARS" on 12/08/08
I UNDERSTAND THAT B OF A SAYS IT IS NOT RESPONSIBLE TO THE WORKERS AT REPUBLIC IN CHICAGO AND THEY HAD THE AUDACITY TO TELL THE MANAGMENT AT REPUBLIC THAT THEY OWE NOTHING TO THE WORKERS WHO ARE OCCUPING THE FACTORY LOOKING FOR THERE SEVERENCE AND VACATION PAY EVEN THOUGH IT IS THE LAW IN ILL,BUT THESE SOBS AT B OF A GO CRYING FOR A HANDOUT-SORRY BAILOUT FROM THE TAX PAYERS AND HAVE THE NERVE TO SEND $7 BILLION OF THE BAILOUT MONEY TO CHINA TO INCREASE HOLDINGS, AND THOSE IDIOTS BERNAKE AND PAULSON LET ALONE THE REPUBLICAN AND DEMOCRATS DO NOTHING, JUST SHOWS YOU HOW CORRUPT AND DISGUSTING THESE PEOPLE ARE, WELL IM TAKING MY MONIES FROM B OF A, YOU PEOPLE CAN GO TO HELL

guest says "Bank of America offshores hi tech jobs to India" on 12/07/08
The focus of this website seems to be on the offshoring of blue-collar manufacturing jobs but why stop there? You have a whole new constituency to support your cause if you begin writing about the offshoring of high-skilled white collar jobs, like Information Technology jobs to India and Electrical Engineering jobs to China.

The layoffs and offshoring in tech fields have ruined the investments of skilled Americans that have spent (or borrowed) tens of thousands of dollars and years of study on a college education.

And guess what? U.S. financial services firms have been leaders in the charge to offshore tech jobs to low wage countries like India. Yes, the very banks that are being bailed out with your tax dollars: Bank America, Citigroup, ... are offshoring hi-tech jobs to low-wage countries resulting if devastating effects on real U.S. citizens.

Take for instance (sadly and respectfully) a hi tech worker took his own life as his employer, Bank of America, offshored technology work to low wage countries:

http://www.zazona.com/NewsArchive/2003-05-13%20BofA%20Programmer%20Commits%20Suicide.htm

some quotes:

"He knew that his employer, Bank of America Corp., like other giant
corporations weathering the economic storm, was cutting high-tech jobs.
He knew that Bank of America was sending jobs overseas. He had seen his
friends and coworkers leave until only he and one other person remained
on the last project "

"But his death underscores the anxiety that has swelled among technology
workers at Bank of America and elsewhere as more businesses shift
high-tech jobs and responsibilities to contractors offshore even as
they cut jobs in the United States."

The U.S. citizens that Bank of America betrayed are now being forced to bail Bank of America out.

How can this be happening? Where is justice?

guest says "increadible packs of theives." on 12/07/08
this is ridiculous.

Go watch Myspacesecrets channel on youtube.

guest says "You can't keep up with these guys! " on 12/07/08
(I see where that great guru on the American economy, Warren Buffet, is investing 230 million dollars in a Chinese auto company, BYD Co. His advice is solicited by the MSM and those who rule us as to what we should do about the American economy. His bridge buddy is lobbying for 500,000 H-1B visas "per year," not including family members.)

Corporate America and the American public are a bunch of globalists, as well as the US Congress, King George and his predecessors.

My question is how many of those who are against the massive trade deficits, the outsourcing and insourcing of American jobs, and the offshoring and inshoring of American industry are driving foreign cars and making no effort to avoid buying foreign products? I talk to these globalists all the time. Principle is great when you say one thing and do the opposite. We are "nationalists" until we have to pay more for American goods, or go without.

Where are the true believer whose thinking is backed up by actions? Where are they? How many of the "true believers" would not buy a new Mercedes or a Lexus if the sales price was $1,000? Ask our ancestors at Valley Forge what was their price. Until the
American people are willing to cut their standard of living for the sake of their country we have no hope for survival as a free and industrial viable nation: none.

Tariffs yesterday, and tariffs now! No American should be allowed, have the right, to buy foreign products without paying a hefty tariff. We are at a war for our survival, and I am not talking about the greatest strategic disaster in our history, the Iraq and the Afghanistan Wars.