Citizenship For Sale? citizenship-for-sale: Personal Finance News from Yahoo! Finance Every day investors around the world choose to put their hard-earned cash into the U.S. Billions of dollars flow in the form of foreign direct investment, as when a group of Brazilians bought Burger King, and foreigners purchase hundreds of billions of U.S. stocks and bonds, as measured by the Treasury's TIC data. But a small number of investors show up on these shores drawn by something more valuable than financial returns: the prospect of U.S. citizenship.You can't simply purchase an American passport (at least not legally). But since 1990, foreigners with as little as $500,000 in cash have been able to invest their way to a quick green card, putting them on the path to citizenship. Quick, somebody call Lou Dobbs! Yes, the U.S. government lets people with cash to jump the line for a green card through the EB-5 program.Starting in 1990, 10,000 visas have been set aside each year for the EB-category. The program was designed to encourage foreign investors to create jobs by starting a new business or preserve jobs by investing in money-losing businesses. If they agree to invest $1 million, foreigners can get a visa, apply for green cards, and become conditional permanent residents. After two years, provided they've made good on their promise to invest, created 10 jobs (family members don't count), and the business is still an ongoing concern, they can apply to have those conditions removed. And after five years with a green card, holders can apply for citizenship. Of the 10,000 visas in the program, 3,000 are set aside for "targeted employment areas" -- rural areas, or places with an unemployment rate that's 150 percent or more of the national average. For these visas, the threshold is lowered to $500,000. Another 3,000 visas are set aside for investments in "regional centers" -- areas or industries designated by states. (A full list of regional centers can be seen here.) Some organizations, professional service firms, and companies promote the program as a whole, or market investment in particular projects as appropriate for EB5 aspirants, such as a ski resort in Vermont. Other entrepreneurs having a tough time raising cash are now seeking to use the program to tap into new sources of financing. The Wall Street Journal reported last week that developer Bruce Ratner is seeking to use the program to help raise funds in China for his massive, controversial Atlantic Yards development in Brooklyn, N.Y. Now, many may view the prospect of giving favorable immigration treatment to investors as problematic. The phrase "bring us your moneyed investors yearning to breathe free" doesn't have the same poetic heft as the inscription about the tired, poor, huddled masses etched on the Statue of Liberty. From its inception, the price of citizenship has traditionally been a willingness to leave behind the old world and work hard -- not write a check to support the construction of a bunch of ski-in, ski-out condos. But I happen to think this is a very good thing. If it were fully utilized, the EB5 program would bring at least $7 billion annually and create or preserve 100,000 jobs per year. It's not much in the grand scheme of things -- there are currently about 130 million Americans with payroll jobs. But given the trauma inflicted upon American workers in the past three years, every little bit helps. And this is something the U.S. should be doing more of. One cure for the vast overhang of excess housing would be to offer expedited citizenship to people willing to purchase vacant homes in places in like Las Vegas or Detroit. In fact, it's surprising that more people don't take the U.S. up on its offer. Consider the changing shape of the world's economic geography: We've got American companies with lots of cash that are reluctant to invest at home because they see better prospects abroad. Thanks to that same dynamic, millionaires are being minted by the millions in China, India, and Brazil, and elsewhere. Unfortunately, the EB5 program has never come close to maxing out. According to U.S. Citizenship and Immigration Services, in 2009, just 1,028 people applied for EB5 status and 966 were approved, up from 776 applications and 485 approvals in fiscal 2007. Applications and approvals rose sharply in fiscal 2010, to 1,727 and 1,271, respectively. I'm guessing the lackluster numbers can be chalked up to a failure of marketing rather than the limited attraction of the underlying product, or of its expense. In fact, the investment-related green card should probably be priced higher. Here's a thought experiment: Ask how much you'd have to be paid to give up American citizenship for you and your family and assume that of a randomly chosen foreign country. Something tells me the bidding would start at a point much higher than $500,000. Kind of makes Philippine visa renewals and 13a visa application fees look cheap doesn't it? :D
Maybe it's not so much a failure of marketing and the attraction is really limited. If even your own companies and investment fonds are looking for opportunities somewhere else. The only importance what is left im the US is the military. Scary enough. If you are interested, look what Mr. Faber has to say and Warren Buffet agrees with him in that matter. I really hope, that they are not right. YouTube - Marc Faber: U.S. Bonds Worthless
I wouldn't write the US off - quite yet. There is, despite the doomsayers, a very very considerable amount of talent and energy in the country. Not looking good...have to admit...but I look forward to a huge devaluation of the USD to level the playing field and stop the Chinese farting in church. What's really needed though is a shift of power from the financial/defence contracting sector back to the American people....wouldn't mind the military making that happen (it's the only way)...and returning the country to its constitutional owners. Would be an excellent example for the Philippines to follow.
Forgot to add that these 'business' visas - are by far the easiest abused. We have similar visas in Australia and most Western, and many third-world countries, have them in some form. The issues are: they've been proven a conduit for criminal syndicates to buy their way in to another country to exploit (definitely happening in Australia, particularly Asian crime gangs - the authorities are about twenty years behind the game plan). Another issue is that many of these investors - even if they are real - fail to invest the assets - or fail to carry out the business plan they signed up to. Again in Australia, and I suspect others, there is no stomach (ie gonads) to deport them if this happens. Our government is way too soft....others may be too incompetent (much like ours)...or just too corrupt. Lastly, once in with a residence visa - many of these fake migrants use their position to funnel in syndicate money to purchase assets like real estate, failing companies, etc...to be used for money laundering purposes. I know the Philippines has a similar program...and I'm quite sure that every Chinese, Japanese, or Korean gang member with the inclination - has their visa now. I doubt that you'd get the Philippine government off their Facebook entries long enough to have a look at this problem.
