President Donald Trump must block U.S. financing of the Chinese government by restricting access of American pension funds and other IRS-registered retirement investments to “companies linked to the Chinese Communist Party,” said Frank Gaffney, executive chairman of the Center for Security Policy and host of Secure Freedom Radio, in a Tuesday interview on SiriusXM’s Breitbart News Daily with host Alex Marlow.
Gaffney explained, “What’s been going on for some time is that the folks on Wall Street have seen it to be enormously lucrative to provide almost unlimited funding to communist China. They’ve done it in a number of ways, but of most immediate concern is the fact that America’s pension funds and other institutional investments, as well as that of private individuals, have been going to something called the Morgan Stanley MSCI All-Country World Index, which has, in recent years — in fact just in the past year — begun to incorporate companies that are … amassing threats to the people of China, to other nations that they’re exporting their social credit score totalitarian security system to, and weapon systems that are being used to threaten us as well as others.”
Gaffney offered his advice to Trump on Monday’s edition of his daily Secure Freedom Minute, titled “Time to Deregister Dangerous Chinese Stocks”:
President Trump reportedly has under consideration deploying a powerful new weapon against Communist Chinese aggression that is now becoming evident in virtually every conceivable domain. It would involve ending China’s ability to use Americans’ pension funds and other investments to underwrite the threats the PRC poses to us. What a concept!
By deregistering companies linked to the Chinese Communist Party – and, let’s face it, they pretty much all are – we can stop them from raising mega-billions on our capital markets. As a result, U.S. investors would no longer enable, for example, Chinese corporations that are building Beijing’s police state apparatus, its man-made and fortified South China Sea islands and its next generation of naval combatants.
Wall Street is furiously lobbying to let it keep funding our enemy. One of its alumni, Treasury Secretary Steven Mnuchin, is, too. Just say “No,” Mr. President.
Gaffney remarked, “There are sanctioned companies that you can’t do business with these companies according to the United States government, but you can invest in them. These are the sorts of things most Americans [and] investors, I think, have no idea are going on, and, frankly, Wall Street does not seem to care that it’s a danger to our national security.”
“First of all, the MSCI, as it’s called, is going to ramp up the percentage of Chinese companies … to 20 percent of its portfolio,” added Gaffney, “but specifically, the board that oversees the Thrift Savings Plan — as it’s known, the TSP, the federal retirement system, it goes by the name of the Federal Retirement Thrift Investment Board (FARTB) — has decided, several years ago, actually, that in 2020, it’s going to have this Thrift Savings Plan mirror the MSCI.”
Gaffney continued, “That means that government employees past and present — civilian and military — are going to start having their pension funds invested in the same way as the MSCI, that is to say, in communist Chinese companies. … Their money is going to be going into companies that are building weapons with which to kill them.”
Trump must stop “the connivance of people on Wall Street,” concluded Gaffney.
President of Committee on Present Danger: China