How U.S. Could Make China Pay for COVID
June 20, 2021
How to Make China Pay
If Chinese sovereign immunity was removed from lawsuits, individual suits would quickly become a class action. Total damages could easily top $2 trillion.
Skeptics then say that even if a judgment were obtained, it would be impossible to enforce the judgment against China.
Actually, that’s the easy part. A U.S. federal judge could order the transfer of China’s $1.4 trillion in U.S. government securities to a custodian to be administered for the benefit of COVID victims.
China could not stop this because Treasury securities are held in digital form on a ledger controlled by the Treasury and the Federal Reserve. A few keystrokes could deplete China’s liquid reserve position by more than half. I wrote about this possibility last year in The New Great Depression.
Now, it could become a reality if McCarthy’s legislation is adopted. This won’t happen until after the 2022 midterm elections at the earliest. But, you can be sure China is paying attention and is already reducing its Treasury position just in case.
But the theory that the virus came from a Chinese lab may be about to receive major support, coming from a source high within China’s intelligence services.