It has been widely reported that Deutsche Börse of Germany will be absorbing the New York Stock Exchange if a planned merger is allowed to consummate. Make no mistake, regardless of how this is spun, it reflects a decline in American position. It may also be a serious risk to America’s national security and sovereignty.
The Wall Street Journal stated it this way:
Planned Deal Marks NYSE’s Decline
http://online.wsj.com/article/SB10001424052748703716904576134732420983212.html?mod=WSJ_hp_LEFTTopStories
There has already been a good deal of commentary on the economics of the deal. According to the release, there will be efficiency-based cost savings counted in the hundreds of millions of dollars per year. What has barely been discussed, however, are the national security implications. On CNBC tonight, Larry Kudlow touched on this with guests Harvey Pitt (former SEC Commissioner), and California Congressman Ed Royce. One of the key questions they addressed is, “Who would have regulatory authority? Would it be the U.S. or the 60% German owners?
Obviously, Germany has been a long-term ally. But, there is a whole new layer of complexity having the Germans in control. For example, we can’t be certain how much Chinese or Middle Eastern money may be hidden in the German offer. Given everything else we have uncovered on this Blog and in our research, we should be VERY careful about giving up our economic sovereignty. Our economy depends on our capital markets. It is essential that they are free of any potentially subversive elements. Our future depends on it.
All posts Copyright (c) 2011 Kevin Freeman, All Rights Reserved
