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China's Colonization Of London Hits Ludicrous Speed, And Now: It's Detroit's Turn

Tyler Durden's picture




 

Earlier today, Brits were greeted with some good news: London house prices rose to a record in November, "as strengthening demand pushed values higher in all regions of England and Wales" according to Acadametrics. Bloomberg reported that values increased 0.6 percent from October to an average 238,839 pounds ($390,900), and that prices reached an all-time high in London, soaring 9.2% in the quarter, and parts of the southeast as average values climbed 4.9 percent from a year ago. "The trajectory is clearly upward," said David Brown, commercial director of LSL Property Services. "Competition is strong as a result of rising demand and supply of new instructions not growing, a factor that will continue to prop up prices in the long term." As usual, much was left unsaid, such as where demand is coming from. The answer, as is the case virtually everywhere else in the world, is simple: China.

According to another Bloomberg report citing Jones Lang LaSalle, Chinese investment in London between 2010 and Q3 of this year has risen by a "ludicrous speed" comparable 1,500%, or from a frugal GBP54 million to over GBP 1 billion! And boy do the Chinese love London - according to the same report, over 50% of European property investment by Chinese buyers is now in London.  As a result, China is now the third-largest overseas purchaser in U.K. behind Germany and U.S., which invested GBP 1.2 billion and GBP 1.1 billion respectively. "We expect the pool of investors from China targeting London to grow significantly in the coming years. They will consider everything from urban regeneration sites through to trophy assets," Damian Corbett, JLL’s head of Central London office investment, said in statement.

In other words, as London real estate becomes ever more unaffordable to orinary UK citizens, who instead are forced to rent out shipping containers, Chinese buyers will buy pretty much anything in the UK, with no regard for cost, since ever more of that ~$200 billion in monthly credit created by the government, which as we showed before... 

... blows both the Fed and BOJ money creation out of the water, is parked outside of China, which is aggressively trying to stop its own domestic housing bubble, and in the process blowing housing bubbles everywhere else around the world.

Which brings us to point number two: the latest target of the Chinese hot money colonization is none other than bankrupt Detroit.

Forbes explains:

Detroit, broke with almost no prospects for recovery, is the fourth most popular U.S. destination for Chinese real estate investors.  In fact, it was bad news—the city’s July 18 bankruptcy filing—that triggered renewed interest.  “While the bankruptcy is viewed as a bad thing elsewhere, it raised the exposure level of Detroit’s real estate market in China,” says Evonne Xu, a Michigan attorney catering to Chinese purchasers.  Middle Kingdom, meet Motown.

 

Chinese shoppers can’t resist a bargain.  Where else can you buy a two-story home in the U.S. for $39?  China Central Television, the state broadcaster, in March reported that two houses in Detroit cost the same as a pair of leather shoes.  No wonder a poster on Sina Weibo, the Twitter-like service, asked, “Seven-hundred thousand people, quiet, clean air, no pollution, democracy—what are you waiting for?”

 

Who says the Chinese are waiting?  Dongdu International Group of Shanghai bought, sight unseen, two downtown icons, the David Stott building for $4.2 million and the Detroit Free Press building for $9.4 million, both at auction this September.

 

Moreover, Chinese purchasers are making bulk purchases of “inexpensive properties”—those selling for $25,000 or less—in the rings surrounding the city center.  “They’re banking on the downtown resurgence spiraling out into those rings,” explains Kelly Sweeney of Coldwell Banker Weir Manuel.  Mainland parties often buy at tax and foreclosure sales, hold their property, and patiently wait for appreciation.

 

...

 

The Chinese are coming, but what are they doing?  Dongdu International will make a big contribution to downtown by redeveloping the Detroit Free Press building, turning it into a retail and residential complex, but that ambitious plan appears to be the exception.  China’s rich are investing in the Motor City like they invest in their own country, where they buy multiple units at a time.  In China, like here, they often keep their acquisitions vacant, treating new properties like stores of value.

As we have been repeating for the past three years, all China's intrepid real estate investors are doing, is parking China's record hot money - one of the three pillars of the so-called US housing recovery - abroad. In this case, in a broke city.

The Chinese buy-and-hold tactics in Detroit suggest patience, but that’s not the whole story.  The bigger story is that the parking of wealth offshore indicates capital flight.  The Chinese have only 13% of their wealth outside China, according to Oliver Williams of WealthInsight, while the global average is 20% to 30%, so some of transfers of wealth abroad are normal for a developing society.

There may be more, however, and as China prepares to liberalize its financial and social policies, the wealthiest part of the population may be considering outright getting the hell out of dodge, and taking trillions with it.

But it’s not just money that is fleeing.  A study conducted by Bank of China and Hurun found that more than half of China’s millionaires have taken steps to emigrate or are considering doing so.  This statistic tells us the transfers of cash out of China are not just normal diversification.

 

There is substantial disagreement as to how much Chinese individuals have already stashed offshore.  Boston Consulting Group estimates they hold $450 billion in assets outside their country, and WealthInsight believes the number to be $658 billion. 

 

Yet everyone agrees that the figure, whatever it is, will go up fast.  Boston Consulting, for instance, predicts offshore assets will double in three years.  CNBC late last month called the movement of Chinese capital “one of the largest and most rapid wealth migrations of our time: hundreds of billions of dollars, and waves of millionaires flowing out of China to overseas destinations.” 

Forbes' conclusion is accurate: Detroit is not an investment destination as much as it is a safe(r) place to park cash which may or may not have been procured by legal means, but which thanks to the epic cash creation tsunami emanating from the Middle Kingdom will be sure to continue for the foreseeable future: "So the Chinese buying up Detroit says less about the prospects of Motown than what they think of their own country.  It’s not like the Motor City is a good place to invest.  It has what is surely the worst housing market in the U.S.  “I’ve been in the Detroit area for 35 years,” says Chen, the broker from Troy.  “Thirty-five years ago downtown Detroit was like this, and it’s not getting better.” But that doesn't matter - there is money to be parked outside of China, and any place will do. After all, in a globalized monetary system, money is instantly fungible to any corner of the globe, especially when facilitated by such "dumbest banks of 2013" who defy all money-laundering regulations, as RBS.

The conclusion:

As grim as the future is for Motown, it is evidently better than China’s, at least according to many Chinese.  They are pouring their cash into Detroit.  

So yes: the colonization of the world's premier, and not so premier, metropolitan centers by China will continue, until the liquidity spigot is finally turned off. In the meantime recall that this is nothing new: after all Japan experienced an identical liquidity-driven colonization of the developed world in the 1980s, when it seemed Japan would buy up Manhattan. That didn't work out too well for them. With China, this time won't be any different either.

 

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Fri, 12/13/2013 - 13:13 | 4243705 hedgeless_horseman
hedgeless_horseman's picture

 

 

Go Rions!

Fri, 12/13/2013 - 13:18 | 4243719 TeamDepends
TeamDepends's picture

Chotown

Fri, 12/13/2013 - 13:34 | 4243763 Chuck Norris
Chuck Norris's picture

We have to buy the building in order to see what is inside the building

Fri, 12/13/2013 - 13:55 | 4243828 fooshorter
fooshorter's picture

Chuck Norris' gaze pierces cloud, shadow, earth, and        flesh...

 

 

Fri, 12/13/2013 - 13:56 | 4243842 pods
pods's picture

Chuck Norris mines Bitcoins with his mind.

pods

Fri, 12/13/2013 - 14:03 | 4243861 kaiserhoff
kaiserhoff's picture

Ye Olde Professor's first law of investment.

  The Foreigners always buy in at the top.

Fri, 12/13/2013 - 14:05 | 4243876 Troll Magnet
Troll Magnet's picture

Oh, man...What a sad state of affairs.  The entire US is turning into a big filthy Chinatown.

I'm counting on the heartlanders to be our last line of defense. 

Hung Lo, meet Hank and his .44. 

Fri, 12/13/2013 - 14:07 | 4243883 czarangelus
czarangelus's picture

The Chi-Coms bought and paid for the USA fair and square. What right do you have to complain about it now, after you've sold your future to eat the fruit of the labor of the Chinese working class? You made a deal with the devil and you've suddenly got the gall to complain about the terms after getting what you asked for?

Fri, 12/13/2013 - 14:10 | 4243897 Bananamerican
Bananamerican's picture

I, for one, welcome our new Chinese overlords - Tyrell

Fri, 12/13/2013 - 16:44 | 4244452 TruthInSunshine
TruthInSunshine's picture
Confucius say:

"Better to lose 80% of funny money overseas than 95% to 100% of it domestically...due to capital controls & other forms of punitive measures."

Fri, 12/13/2013 - 17:52 | 4244762 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

When it goes down in you own hood. Buy the neighbors. Why the hell would anyone from anywhere want to live in Detroit?

Fri, 12/13/2013 - 14:11 | 4243905 BaBaBouy
BaBaBouy's picture

SAID It Berfore... Chinee ARE Taking Over!

They Gata The GOLD, They Will Get Everything Else.

Wake Up People...

Fri, 12/13/2013 - 14:22 | 4243968 Larry Dallas
Larry Dallas's picture

Agreed 1000% with czarangelus...

Fri, 12/13/2013 - 14:14 | 4243878 BaBaBouy
BaBaBouy's picture

.

Fri, 12/13/2013 - 15:06 | 4243900 The Big Ching-aso
The Big Ching-aso's picture

Holy flaming won tons what next? Chinese rap stars riding rickshaws?

Fri, 12/13/2013 - 15:12 | 4244152 WOAR
Fri, 12/13/2013 - 15:13 | 4244145 KnightTakesKing
KnightTakesKing's picture

Buying a two-story house in Detroit for $39 is buying at the top? 

Fri, 12/13/2013 - 14:05 | 4243871 0b1knob
0b1knob's picture

Story gets extra points for obscure Space Balls reference.   Ludicrous Speed indeed.

https://www.youtube.com/watch?v=ygE01sOhzz0

 

Fri, 12/13/2013 - 14:10 | 4243872 BaBaBouy
BaBaBouy's picture

.

Fri, 12/13/2013 - 14:12 | 4243898 WillyGroper
WillyGroper's picture

I hope they take a big steaming dump right in front of Queenie's Buck House, then Windsor.

After that move right to Levin & Stabenow's digs.

Fri, 12/13/2013 - 15:12 | 4244151 The Big Ching-aso
The Big Ching-aso's picture

Chinese-made movie up next.......

Escrape From Detroit

 

 

 

Fri, 12/13/2013 - 13:23 | 4243721 reload
reload's picture

Connected people, who sit close to the source of freshly printed / freshly stolen - swapping it at warp speed for anything they can.

It is hardly a genuine endorsment of the health of the UK ecconomy. But we do love a non dom, tax exempt foreigner in London. All welcome, no questions asked, and if it means the indiginous population need to live in shipping containers - no problem. Boris Johnson loves `inovative solutions to challenging problems` - and Bankers of every stripe.

Fri, 12/13/2013 - 13:39 | 4243783 NoDebt
NoDebt's picture

I can't help but be reminded of the 80s when the Japanese were buying up everything in sight.  Man, they were going to buy the whole world, it seemed.  Then it stopped.

Fri, 12/13/2013 - 14:42 | 4244056 just-my-opinion
just-my-opinion's picture

Good point...but...Japan....is not China

Not even close

Fri, 12/13/2013 - 15:11 | 4244153 dick cheneys ghost
dick cheneys ghost's picture

well......they (Japan) had to do something with those excess dollars......just like China is doing.....

 

Sat, 12/14/2013 - 06:14 | 4246144 matrix2012
matrix2012's picture

Japanese also bought a lot of expensive PAINTINGS incl. Picasso's Cubism ones, breaking record after record then :-)

What are the values of those abstract paintings today? lol ... what a farce!

Fri, 12/13/2013 - 13:44 | 4243789 Non Passaran
Non Passaran's picture

Who said anything about tax exempt ?
Didn't you read the news?

Fri, 12/13/2013 - 14:04 | 4243864 reload
reload's picture

I did - but it is only a possibility that in future foreigners will be taxed on capital gains made from UK property deals. But if they do a deal and get (buy) `non domiciled` tax status in the UK then for a one off payment each year they dont even have to file a tax return.

This is what Mittal (steel) numerous Euro Bankers - Russians - hedge funders etc all do. I think it is about £20k p.a and you are free of tedious paperwork, Thats for little people anyway, but if you are a US citizen (chattel of the IRS) it wont help you much.

Fri, 12/13/2013 - 14:17 | 4243940 Cacete de Ouro
Cacete de Ouro's picture

This is actually not far from the truth

"My name Lily. I give happy ending London.
You wery happy when I buy ur twophy assit in London..."

Fri, 12/13/2013 - 16:22 | 4244371 Kirk2NCC1701
Kirk2NCC1701's picture

@reload: "`innovative solutions to challenging problems`"

Translation to clear-text:  "New ways to age-old problem in how to get the most out of the peasants and merchants...  While putting and keeping them in their proper place, and us in our proper palaces."

Fri, 12/13/2013 - 14:12 | 4243899 Unprepared
Unprepared's picture

Chinese super-wealthy are the new Japenese superwealthy. They will get their asses handed back to them.

Fri, 12/13/2013 - 14:35 | 4244012 just-my-opinion
just-my-opinion's picture

Why?....buy it ....when you can take it?(I doubt they could)

I just wonder sometimes

Fri, 12/13/2013 - 17:20 | 4244645 Zero Point
Zero Point's picture

It's cheaper to buy things than take them.

Till the international bank cartel convince us all otherwise.

Fri, 12/13/2013 - 13:20 | 4243710 Sleepless Knight
Sleepless Knight's picture

At least some money is changing hands and they will at least pay the city taxes due. Unless they recieved a tax free deal for their investment from the Feds.

Fri, 12/13/2013 - 13:18 | 4243712 NIHILIST CIPHER
NIHILIST CIPHER's picture

Chicoms replace socialist blacks , not much change.

Fri, 12/13/2013 - 13:17 | 4243715 FieldingMellish
FieldingMellish's picture

Rudicrous?

Fri, 12/13/2013 - 13:19 | 4243722 corporatewhore
corporatewhore's picture

could they consider taking over that area that affectionately has a "stan" at the end?  I can't remember for the falafel of me.

Fri, 12/13/2013 - 14:19 | 4243953 Unprepared
Unprepared's picture

morgan stanley?

Fri, 12/13/2013 - 13:21 | 4243724 UH-60 Driver
UH-60 Driver's picture

ror

Fri, 12/13/2013 - 13:21 | 4243725 ZeroRights
ZeroRights's picture

DETRIOT

Fri, 12/13/2013 - 14:05 | 4243873 kaiserhoff
kaiserhoff's picture

Wait until some fool takes a shot at Barry.

We ain't seen nuttin yet.

Fri, 12/13/2013 - 14:25 | 4243983 Cacete de Ouro
Cacete de Ouro's picture

Good point...I was wondering when the shots at Barry will start. He should get his own loyal bodyguards and advance teams, and some advance sappers. That's what I would advise anyway.

Fri, 12/13/2013 - 20:08 | 4245227 Dogface
Dogface's picture

How many Barry doubles are there?

Fri, 12/13/2013 - 13:22 | 4243727 Its Only Rock N Roll
Its Only Rock N Roll's picture

Go long Windsor casinos....Rak Jak

 

 

Fri, 12/13/2013 - 14:43 | 4243730 Hongcha
Hongcha's picture

Vancouver, SEA, SF, LA and LV do not puzzle me; Detroit does. 

My best guess is someone in the PRC is securitizing these offshore buys and selling it hand-over-fist like a REIT investment to the better-heeled Chinese public.  What in the world could otherwise drive a buying boom directed at a black hole like Detroit except deep naivete? 

The Chinese middle class has been subject to scams hustles and stings since the 1980's.

Sight-unseen indeed.  Buying Detroit RE is like owning a swimming pool - it's a hole in the ground you throw money into. 

Fri, 12/13/2013 - 15:02 | 4244131 dracos_ghost
Fri, 12/13/2013 - 15:21 | 4244188 Overfed
Overfed's picture

What's the Chinese word for lebensraum?

Sat, 12/14/2013 - 06:28 | 4246150 matrix2012
matrix2012's picture

 

"What's the Chinese word for lebensraum?"

Qixidì  means habitat (i.e. earth; soil, ground; region to stay)

Fri, 12/13/2013 - 16:30 | 4244400 debtor of last ...
debtor of last resort's picture

Buy from white faces...

Fri, 12/13/2013 - 13:25 | 4243736 Kirk2NCC1701
Kirk2NCC1701's picture

Dear Chinese RE buyers (and other Investors),  Please contact me at my Hush mail account (under my Kirk... 'handle'), as my LLC has some Detroit homes to sell you: 

All in good shape, all occupied, and prop. taxes have been negotiated down.  Managed under reliable Prop Mgt Co.  Fiat cash, BTC or 0.9999 AU (Pandas, Maples) preferred, wire xfers accepted.

Fri, 12/13/2013 - 13:26 | 4243741 Kaiser Sousa
Kaiser Sousa's picture

i been telling mother fuckers for years...

you better start working on ur mandarin...

just like in the movie "Loopers" the chinese r gonna bee running shit despite the petulant acts of this almost dead wannabe dominant hegemon...

its so totally funny...using the Fed's debt coupon dollars to conquer the United Banker Owned States of America without firing a shot,

while simultaneously vacuming up all the real money mined on an annual basis.....

FUCK YOU BERNANKE, O'LE YELLEN AND ALL YOU COCKSUCKER MOTHER FUCKING SOCIOPATH BANKERS....

 

buy physical Silver and Gold...cya on the other side...

Fri, 12/13/2013 - 13:38 | 4243774 LawsofPhysics
LawsofPhysics's picture

Well, the whites have been pussyfied.   If your predictions are correct, I am looking forward to seeing how these new chinese overlords deal with all those brothers.

If history is any indication, it will be genocide.  Good luck.

Fri, 12/13/2013 - 13:52 | 4243818 tsx500
tsx500's picture

how will the new overlords deal with the brothers ?     maybe like this . . . . .

http://www.funnyordie.com/videos/52051ec56f/airplane-oh-stewardess-i-speak-jive-from-dirttron

Fri, 12/13/2013 - 15:02 | 4244132 Crash Overide
Crash Overide's picture

You know Chicago's South and West side will send troops to the battle for Detroit, they are pretty well armed and trained in urban combat.

Fri, 12/13/2013 - 17:24 | 4244669 Zero Point
Zero Point's picture

After weeks of pitched fighting with heavy weapons, the battle for Detroit was finally won.

Early estimates of the damage wrought, put the costs in the tens of dollars....

Fri, 12/13/2013 - 15:52 | 4244290 Hulk
Hulk's picture

and asian pussyfied at that !!!

"i know I like my asian pussyfied

Cold beer on a Friday night

A pair of jeans that fit just right

and the radio up"

Fri, 12/13/2013 - 16:40 | 4244426 Kirk2NCC1701
Kirk2NCC1701's picture

No 'Happy Ending' for you!

You are all a Dim Sum.

Sat, 12/14/2013 - 02:13 | 4245985 dunce
dunce's picture

They have enough money to buy large sections of the city and could create a china town with out the thugs that plague the rest of the town. It would be de facto segragation that would near impossible to take to court.

Fri, 12/13/2013 - 13:41 | 4243782 therover
therover's picture

Good movie..and they paid in silver bars and sent back the future bodies with gold attached.  Both forms of PM's were PHYSICAL.

I know it's a movie, but back in the day, Star Trek was a futuristic show...with CD's, Bluetooth, Cell phones and Facetime !!!!

Fri, 12/13/2013 - 13:43 | 4243793 NIHILIST CIPHER
NIHILIST CIPHER's picture

KS   Don't forget in Blade Runner they infer the Chinese are running everything. Just a reminder those people are communists and I never want to live under a communist regime....a least not worse than the one we have now.

Fri, 12/13/2013 - 13:55 | 4243835 LawsofPhysics
LawsofPhysics's picture

FYI - what you are experiencing now is a fascist regime of crony/corporatism.

Fri, 12/13/2013 - 14:13 | 4243921 NIHILIST CIPHER
NIHILIST CIPHER's picture

LofP       Agree, but FYI do some research into how many folks with jobs in DC/ WH have serious ties to the communist party USA. In the end Fascist/Marxist/Communist is same pile of steaming pooh for us to step in, no? 

Fri, 12/13/2013 - 14:48 | 4244078 LawsofPhysics
LawsofPhysics's picture

No, because in all the real communist societies on earth, the state (not individual fat cats) have controlled the means of production.

We are experiencing something far worse.

hedge accordingly.

Fri, 12/13/2013 - 16:44 | 4244454 Kirk2NCC1701
Kirk2NCC1701's picture

Gotta hand it to them:  They got balls. 

I like Jasmine-scented Lotus Flowers.  But not Mushi Balls, or Cream of Sum Yung Guy.

Fri, 12/13/2013 - 13:57 | 4243837 Kaiser Sousa
Kaiser Sousa's picture

they aint coming here...they just gonna buy up everything and get our banker owned politicians to enforece their agenda until mother fuckers over here r left so penniless and dispossed that they start utilizing what most americans DO have in abundance......

G  U   N    S !!!!!!!!!!!!!!!!!!!!!!!

Fri, 12/13/2013 - 14:37 | 4244029 negative rates
negative rates's picture

Guns and black roses!

Fri, 12/13/2013 - 14:35 | 4244018 negative rates
negative rates's picture

Can you give that to us in sign language? I didn't get it.

Fri, 12/13/2013 - 13:26 | 4243742 Pseudo Anonym
Pseudo Anonym's picture

it's about time

..,China's Colonization Of London...

to get them out of vancouver

Fri, 12/13/2013 - 13:30 | 4243751 Kirk2NCC1701
Kirk2NCC1701's picture

I sold some RE in BC not too long ago.  Got a better deal from a local (German-Canadian) builder than a Chinese buyer.  Just cause they're "buying", doesn't mean they're not looking for a Deal/Steal.

Fri, 12/13/2013 - 13:53 | 4243821 Pseudo Anonym
Pseudo Anonym's picture

at least you sold while  it's still bubbly in van

http://www.greaterfool.ca/2013/12/12/really/

Fri, 12/13/2013 - 13:27 | 4243744 orangedrinkandchips
orangedrinkandchips's picture

Chinese buying 8-mile??

 

What is wong with that?

Fri, 12/13/2013 - 13:51 | 4243822 mumcard
mumcard's picture

Chinese Eminem.  Only in China...

 

http://www.youtube.com/watch?v=mTeVmDDT2Rw

Fri, 12/13/2013 - 13:27 | 4243745 robertocarlos
robertocarlos's picture

So sorry, this my garden now.

Remember when the Brits had a problem with the Wogs and Pakis. "But shampoo and bungalow are English words!" Now the Brits love a goood curry.

Fri, 12/13/2013 - 13:28 | 4243747 NIHILIST CIPHER
NIHILIST CIPHER's picture

Hongcha          Detroit sits right on the biggest fresh water source in the world. Water is the new oil. China is already paying for tanker loads of that same water everyday, why not buy lakeshore property to go along with it.

Fri, 12/13/2013 - 13:41 | 4243784 therover
therover's picture

Scary....can Detroit end up being a giantic fresh water treatment plant ?

Fri, 12/13/2013 - 14:04 | 4243868 NIHILIST CIPHER
NIHILIST CIPHER's picture

therover          Yes. Rothscilds were forcing their way into that fresh water resource back in the early 2000's. China has a couple tankerloads delivered every week. Great Lakes are biggest gold mine for the elites.

Fri, 12/13/2013 - 14:28 | 4243993 YHC-FTSE
YHC-FTSE's picture

+1 That makes a lot more sense than buying up hell hole Detroit. Clean, fresh water as a precious commodity is counterintuitive considering its abundance,  but a little more thought and extrapolation does make it very valuable.  

As for London,  we all know why Oligarchs of all shapes and shades come here: Banking and kids' education.  It sure isn't for the weather, food,  or the broken people on the edge. They're more welcome than most, since they are likely to be the least troublesome neighbours,  but they better bring a lot of cash with them if they want to keep the restless natives happy.

Fri, 12/13/2013 - 15:07 | 4244140 Crash Overide
Crash Overide's picture

Nestlé thinks they own all the water in the world. China will have to fight them for it.

Fri, 12/13/2013 - 16:55 | 4244503 Son of Captain Nemo
Son of Captain Nemo's picture

And just think what Great Lake(s) in Africa and the aquifers in Libya that were seized after NATO's invasion will be worth to the likes of Nestle when they start controlling the resident populations with water for "sale"?

Fri, 12/13/2013 - 14:31 | 4243999 zuuma
zuuma's picture

water? maybe surface water's not so important, anymore.

Exciting new developments:

http://www.npr.org/blogs/thetwo-way/2013/12/11/250308953/scientists-map-...

Buying $39 houses in the worst warzone the USA can offer, just for water doesn't fit on Occam's razor.

Why fill a tanker nowadays (size-limited. No supertankers in St. Lawrence Seaway) with H2o, and then burn cash/fuel to run all the way to the Hong Kong -- when you  can just drill for it closer to home.

 

Fri, 12/13/2013 - 15:42 | 4244254 Wen_Dat
Wen_Dat's picture

May be the cost. Detroit water to the suburbs costs $1 for 115 gallons (this includes the sewer and meter maintenance which are almost half the cost). Seems like a good deal.

Fri, 12/13/2013 - 13:34 | 4243754 NuYawkFrankie
NuYawkFrankie's picture

Detroit: Mo' town for your money

Fri, 12/13/2013 - 13:32 | 4243757 thestarl
thestarl's picture

Seeing all the smog issues the Chinese have could'nt blame them for bailing out of their own shithouse country

Fri, 12/13/2013 - 13:33 | 4243759 ExecutionParty
ExecutionParty's picture

Detroit is full of liquid assets...

 

Burrish Yes Prease

Fri, 12/13/2013 - 13:37 | 4243764 Wyatt Junker
Wyatt Junker's picture

Mexico already annexed the lower third of Cali.  The fencehoppers siphon off the low skills under the table cash market, and send the checks back home w/o Uncle Sam's vig.  

Its the decades old Leafblower War.  

They also make good future DNC candidates.  We've been taken over without a bullet being fired, just millions of gas powered lawn mowers invading middle class neighborhoods.  

They 'own' that market.  Little comic book reading Johnny with his Red Ryder bb gun hasn't gone out and mowed lawns for bubblegum cash in over 3 decades now.

China is so behind the times.  Mexico's gone entry level on our ass.

Fri, 12/13/2013 - 14:43 | 4244049 Hongcha
Hongcha's picture

Wyatt Junker, more like China has taken the high end and MX the low end.  The middle class is destroyed.

Fri, 12/13/2013 - 13:38 | 4243770 Dr. Engali
Dr. Engali's picture

Since Washington has already been purchased the Chinese had to settle for the nation's second worst shithole to park their cash.

Fri, 12/13/2013 - 13:51 | 4243798 NoDebt
NoDebt's picture

Second best in some ways, but if you're looking for people to help you move your money around, hide it, cheat people and generally get away with murder, London bankers still have an edge on New York.  Seems that's the epicenter of all the major banking scandals.  That's "Number One Lucky Dragon" if you were a Chinese national trying to get your questionably-attained wealth out of red China.

Fri, 12/13/2013 - 13:40 | 4243778 dizzyfingers
dizzyfingers's picture

"Now: It's Detroit's Turn"

:-)

Good  luck with that.

Fri, 12/13/2013 - 14:00 | 4243796 Son of Captain Nemo
Son of Captain Nemo's picture

Well if the U.S. Government sells the rest of Detroit, throws out the Americans and puts barbed wire fences around the properties it is selling to the Chinese to make "Little Beijing" the home away from home for those Chinese students with U.S. Government funded R&D projects as a gift from the MIC, continuing there educations in Ann Arbor, East Lansing and Columbus will be something to look forward to. I understand the smog is so bad in China that Chinese are even willing to live in the United States -given the chance!

Unless of course this gets in the way.   This United States of America truly is as paranoid and schizophrenic as it looks and in bad need of a padded cell on heavy meds.

 

 

Fri, 12/13/2013 - 13:47 | 4243800 HamRove
HamRove's picture

Buying up London eh? Well....

G'DAY MATE! Lets put another SHRIMP ON THE BARBIE!

Fri, 12/13/2013 - 13:49 | 4243811 Son of Captain Nemo
Son of Captain Nemo's picture

Poetic justice is what I call it -if the British 'subjects' like their American counterparts doing nothing else with it but "bitch" and "complain".

Fri, 12/13/2013 - 13:49 | 4243813 Crash Overide
Crash Overide's picture

I do like Chinese food, Thai is better though.

Fri, 12/13/2013 - 13:49 | 4243814 shovelhead
shovelhead's picture

Wait until the children try to pet the feral wildlife...

 

And the dogpacks aren't getting any better either.

Fri, 12/13/2013 - 13:58 | 4243849 markovchainey
markovchainey's picture

They're not "packs", they're "herds".  Lunch anyone?

Fri, 12/13/2013 - 14:09 | 4243884 mumcard
Fri, 12/13/2013 - 13:52 | 4243827 ElvisDog
ElvisDog's picture

Oh, that is hilarious. The Chinese are the worst investors in the world. Good luck getting your ROI from those apartment rentals in Detroit. 

Fri, 12/13/2013 - 15:17 | 4244170 Crash Overide
Crash Overide's picture

To defend China a little, they do plan ahead and I am pretty sure they were sailing the oceans long before that Columbus dickhead.

They also showed up in Africa with money to spend, most other countries showed up with guns.

I know they have all those "ghost" cities in China that are pretty much empty. Empty that is until they evacuate Tokyo from the fallout and China offers them a place to live in exchange for disputed islands?

China maybe does a some dumb things but have you seen the United States lately? We are letting international banks and corporations to bend us over and stick it real good.

What's the score here?

Fri, 12/13/2013 - 13:59 | 4243845 divide_by_zero
divide_by_zero's picture

Where else can you buy a two-story home in the U.S. for $39?  China Central Television, the state broadcaster, in March reported that two houses in Detroit cost the same as a pair of leather shoes.

I'm pretty sure the leather shoes are a better store of wealth than a house in Detroit

Fri, 12/13/2013 - 14:12 | 4243915 Blano
Blano's picture

One typically doesn't need an AK-47 to get to said shoes.

Fri, 12/13/2013 - 14:07 | 4243881 Darkside
Darkside's picture

While the Chinese are increasing their debt to fund an expansion. The US is increasing their debt to finance their debt.   

Fri, 12/13/2013 - 14:11 | 4243894 ghostzapper
ghostzapper's picture

"you think you got it

all locked up inside

and if you beat em enough

they'll die

it's like a walk in the park

from your cell

where you're keeping

your own kind in hell

when your Great Wall rots

blame yourself

while their arms reach up for your help

and you're out of time" 

Chinese Democracy, GnR

it's already been ongoing but just wait until the U.S. kicks off a huge recruiting campaign to pull in anyone from anywhere that has money and will come over in exchange for buying a property.  the U.S. is so fucked up as we know but at the global game of poker it holds some cards others do not - it is still considered highly desirable by others as everything is relative. 

Fri, 12/13/2013 - 14:11 | 4243909 Blano
Blano's picture

I'm sure the local rags, especially that pathetic Free Press, will spin this as a sign that Detroit is back BABY!!!

Fri, 12/13/2013 - 14:28 | 4243917 falak pema
falak pema's picture

the principal motive of Chinese investment is simple =  Extract money from home "ill gotten gains"; alike russian appartchick or drug "hot money"; unlike ME funds which are "rent" for Oil princes earned "legally";  towards western safe haven for better lifestyle. This feeds the global uber ghetto

So it has to move fast, it has to be faceless and it has to be recycled via trust funds type vehicles that the UK gives non dom investors. Whence the rage for London and USA which are tax havened and invite inflows.

Detroit could have a good purchase price/ROI potential; whereas London is more safe haven. 

Their investments in France in vineyards are trophy plays, some with good ROI. 

Three strategies there : Quick cheap hi ROi; Classy; trophy.

And good lifestyle locally. Then one foot in each camp and we are true jetlagged oligarchs.

Soon you won't be able to tell a trust fund brat from USA and one from Shanghai. Aristocracy in the making. 

If you looked at a photo of last Czar, Brit King George V and Last Habsburg, they were all similar faces of incestuous families and had often beards like Ben of FED.

Before Armageddon Europe the last aristocratic breed all looked alike! 

 

Fri, 12/13/2013 - 14:14 | 4243933 stant
stant's picture

no deal unless they bring back the pontiac. the good ones ie

Fri, 12/13/2013 - 14:15 | 4243939 monad
monad's picture

You know you're fucked when North Korea looks reasonable.

Fwd Soviet!

Fri, 12/13/2013 - 14:27 | 4243985 PTR
PTR's picture

If water is, in fact, being exported directly, it is not by official means:

 

http://www.glslregionalbody.org/GLSLRBAgreements.aspx

 

"On December 13, 2005, the Great Lakes Governors of Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin, and the Premiers of Ontario and Québec signed the Great Lakes—St. Lawrence River Basin Sustainable Water Resources Agreement, and the Governors endorsed the companion Great Lakes—St. Lawrence River Basin Water Resources Compact. The agreements detail how the States and Provinces will manage and protect the Basin and provide a framework for each State and Province to enact laws for its protection. The agreements include the following points:

  • Economic development will be fostered through the sustainable use and responsible management of Basin waters.
  • There will be a ban on new diversions of water from the Basin. Limited exceptions could be allowed, such as for public water supply purposes in communities near the Basin, but exceptions would be strictly regulated.
  • The States and Provinces will use a consistent standard to review proposed uses of Basin water.
  • Regional goals and objectives for water conservation and efficiency will be developed, and they will be reviewed every five years. Each State and Province will develop and implement a water conservation and efficiency program.
  • The collection of technical data will be strengthened, and the States and Provinces will share the information, which will improve decision-making by the governments.
  • There is a strong commitment to continued public involvement in the implementation of the agreements.

The Governors and Premiers are aggressively putting these agreements into action. In the United States, the Compact became law on December 8, 2008, following approval by each of the eight State legislatures and Congress, and signature by the President.  In order to put the Agreement into law in Ontario and Québec, the Provinces are amending their statutes and regulations as appropriate.  It was approved by the Québec National Assembly on November 30, 2006, and by the Ontario Provincial Parliament on June 4, 2007. No Canadian federal legislation is required."

I recall the article- the jist of the agreement was to place limitations on usage/consumption by the surrounding provinces/states.

 

To add to that, the Pols in Chicago are stingy as hell just to open up the locks of the Chicago River when the Mighty Miss is running low, so it makes me think that knowing what a resource it is, how freely they (and any other interested parties) would let it go.  Unless it were for a sweet song, maybe.

 

Nestle bottled water, anyone?

Fri, 12/13/2013 - 15:22 | 4244193 Crash Overide
Crash Overide's picture

This is my backyard, fuck Nestle.

 

PS: Chicago everything is for sale, just call 1-800-buy-Rham

 

Fri, 12/13/2013 - 14:37 | 4244023 q99x2
q99x2's picture

Juan Ton

Hey how do you get the rights to conterfeit? That's the business I wanna be in.

Fri, 12/13/2013 - 16:03 | 4244316 W74
W74's picture

Did you have a Menorah on display last week?

Fri, 12/13/2013 - 14:41 | 4244048 philosophers bone
philosophers bone's picture

Print easy money and buy up all the real assets. 

Fri, 12/13/2013 - 14:46 | 4244052 Nobody For President
Nobody For President's picture

http://www.businessinsider.com/detroit-houses-for-1-dollar-2012-2

Some real beauties here - 'fixer uppers', you just can't leave them overnight once you start fixin' em...

 

But even better - Why buy at all? :

http://www.businessinsider.com/detroit-houses-for-1-dollar-2012-2#the-city-is-also-offering-incentives-to-lure-residents-back-to-abandoned-neighborhoods-15

Fri, 12/13/2013 - 14:50 | 4244085 Rukeysers Ghost
Rukeysers Ghost's picture

So I am supposed to be worried about a bunch of dopes dumping money on loser properties hoping for a Detroit Renascence? The Chinamen might as well have flushed their money down the toilet. Detroit is and always will be dead.

Fri, 12/13/2013 - 15:16 | 4244168 W74
W74's picture

I don't know about always.  Simply change the demographics and it'll be safe and productive again. Revitalization would occur organically; as opposed to the chaos and decay that has and is organically occurring now.

There's no reason not to think that flooding Detroit with Chinese would turn it into another Portland or Seattle.  I'm fairly sure doing so would indeed facilitate revitalization. Who knows, if the Han start facilitating law and order again you may even see White people return.

Fri, 12/13/2013 - 17:55 | 4244778 hootowl
hootowl's picture

Law and order, like public mass hangings to reduce the "gimmedat" population and make life safe for eveybody else.....or mass beheading of all infidels that stupidly wander into the wrong areas of Southeastern Michigan......and internment and enslavement of all former union members to replace the stupid boondoggle of unsustainable retiree pensions and medical care.

 Chinese are clever and efficient in their use of in-house prison manpower and the use of bulldozers in quickly disposing of useless, wornout, eaters in mass graves.....after, of course examining them and harvesting any marketable organs for use of the elites of the world.

So much to look forward to.

Fri, 12/13/2013 - 14:52 | 4244090 ZeroPoint
ZeroPoint's picture

Detroit to become yet another Chinese ghost city.

Fri, 12/13/2013 - 15:05 | 4244135 walküre
walküre's picture

First they buy up Detroit's slums, then they open up shops and start building Chinese cars in Detroit for slave labor. Nobody can deny them Euro 5 certs then and Chinese built cars from Detroit will flood the world!

Detroit will be auto capital NO 1 once again!

Don't you just love good communism?

Fri, 12/13/2013 - 15:12 | 4244148 W74
W74's picture

I would like to see the Chinese come in and rehabilitate Detroit.  They're already well underway in the process of colonizing Africa, so why not?  A couple hundred thousand Chinese in the Michigan area would stabilize it, businesses would get started, jobs (for their families) would be created, homes and streets would get repaired, and some semblance of a normal economy would return to the area.

Fri, 12/13/2013 - 17:43 | 4244739 hootowl
hootowl's picture

What kind of mess will be created by the mingling of the black "gimmedats" (or I'll cut your throat) of Detroit Metro, the muscum "anti-everybody but me" cutthroats of Dearborn, and the reformed(?) communists of Mainland China?

God help us.  Look what we have done to ourselves with this "Free trade" Open Border scam by the Elite NWO crowd.

Everybody has somewhere to run,...but us.

Fri, 12/13/2013 - 15:13 | 4244160 docmac324
docmac324's picture

One-sold-low.

Fri, 12/13/2013 - 15:58 | 4244173 earleflorida
earleflorida's picture

just thought i'd throw this out there?

"China in the 21st Century"

http://www.china-mike.com/chinese-history-timeline/part-16-modern-china/

Ps. China, Taiwan (ROC), Japan, {[place name here for future reference??? too whom ownership belongs, given 5000+/+ years of Chinese History??? and countless civil-wars with Japanese occupation...etel, etc., etc., ]}  have--NO-- legal rights to the 'Diaoyu (China) and Senkaku (Japan) Islands?!?

http://en.wikipedia.org/wiki/Treaty_of_San_Francisco

and this...     http://www.spiegel.de/international/world/tension-between-japan-and-china-in-senkaku-islands-dispute-a-857514.html

Ps.   This is jawdropping--  "The Deng Years: An Impressive Turnaround"     (Note how quickly Nixon and Kissinger brought China into the fold and aborted the ROC(?)?!?   http://www.china-mike.com/chinese-history-timeline/part-14-mao-zedong/

,... can't forget to tie-a-bow around this circle jerk?    http://www.china-mike.com/chinese-history-timeline/part-15-deng-xiaoping/

Ps2.   Pakistan made this happen, in which China is forever greatful?

 

 

 

 

Fri, 12/13/2013 - 15:18 | 4244176 One of We
One of We's picture

You know Monopoly is about over when you're building hotels on Baltic and Mediterranean Ave......

 

We bring ow floating pig to Rake Erie

-Bang Ding Ow

Fri, 12/13/2013 - 15:41 | 4244259 earleflorida
earleflorida's picture

but, what about 'Get-out-of-Jail' Free? card,... on canary wharf?

Fri, 12/13/2013 - 15:18 | 4244185 yogibear
yogibear's picture

Detroit is already a ghost city.China wants to add another to it's inventory?

Fri, 12/13/2013 - 15:36 | 4244223 pashley1411
pashley1411's picture

You think this is a real estate play.   Its not.   Its a "get the fck out of Dodge" play.  

And do the Chinese know that London is simply a suburb of greater Karachi?  

Fri, 12/13/2013 - 16:10 | 4244343 roadhazard
roadhazard's picture

"Gung Ho" gone wong.

Fri, 12/13/2013 - 16:28 | 4244391 GoldenDonuts
GoldenDonuts's picture

I know this is ancient history but isn't this just like the late 1980's early 1990's when the Japanese were buying pretty much everything and then there was nobody else to sell too.  Look what happened to them.  But then again I believe that their credit is created the same way that the US creates it.  With debt.  Does China do that too or do they just print up whatever cash is needed to paper over whatever the can't hide?

Fri, 12/13/2013 - 16:30 | 4244401 ColoQ
ColoQ's picture

Another active shooting going down in Littleton, CO right now.  Arapahoe High. My high school :(

Fri, 12/13/2013 - 16:49 | 4244475 Kirk2NCC1701
Kirk2NCC1701's picture

Suggest you hedge with golden BiteMe Coins.  Tip: The good ones are soft, the bad ones are hard.

;-)

Fri, 12/13/2013 - 17:13 | 4244608 nasa
nasa's picture

I'm sure that once the Chinese settlers see Detroit in person, they will high-tail it back to the homeland.  That's if the Free Shit Army doesn't get them first...

 

http://www.businessinsider.com/someone-in-detroit-pointed-a-gun-at-a-google-street-view-car-2012-9

Fri, 12/13/2013 - 17:31 | 4244693 robertocarlos
robertocarlos's picture

Give everyone in Detroit a prepaid bus pass to Houston or Liberia. Hand over Detroit to China in exchange for $200 billion. Spend $200 billion giving every American $600. Buy shares of WalMart.

Fri, 12/13/2013 - 17:32 | 4244697 hootowl
hootowl's picture

When they are assailed by the hordes of "gimmedats", they'll hightail it back to the beautiful smog of Shanghai in a hot jet minute.

Fri, 12/13/2013 - 18:03 | 4244807 esum
esum's picture

OK so the chinese are shown pics of beverly hills and are told detroit is even nicer because each house comes with 1000 rats.... Not so fast one hung lo cause i'm uloading the okeefenokee basis it's great rice growing property with friendly wildlife to boot. 

Fri, 12/13/2013 - 20:08 | 4245220 RaceToTheBottom
RaceToTheBottom's picture

Wow, who would think it?

 

This will be interesting to watch as the vultures of the new powers of the world feast on the weaknesses of the old power.

As Detroit recovers, there will be huge black-chinese resentment and stress, just the same as there is stress between Vietnamese, Taiwanese, Mexican and other immigrants, legal and otherwise and black.

Fri, 12/13/2013 - 21:33 | 4245434 grunk
grunk's picture

Do they have real estate taxes in China?

Just wait until the non-resident, non-voting Chinese speculators realize that the resident voters will tax the snot out of them.

 

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