German Deutsche Boerse AG Takes Over The NYSE

How many more indicators does the average American need to realize that we are in freefall with the rocks dead ahead?

The globalist march continues as banks buy each other up and merge stock trading indexes. I read about this story last week, and today, a german bank has taken controlling interest of the symbol of America’s economic power.

What does that say about the collapse of America?

German Bank Nears Purchase of NYSE

Wednesday, 09 Feb 2011 11:38 AM

Deutsche Boerse AG is in advanced talks to buy NYSE Euronext in an all-stock transaction that would create the world’s biggest exchange operator, accelerating a day of takeovers that began with London Stock Exchange Group Plc’s acquisition of Canada’s TMX Group Inc.

NYSE and Deutsche Boerse said they will produce 300 million euros ($410 million) in cost savings, according to a statement. Duncan Niederauer, New York-based NYSE Euronext’s chief executive officer, will hold the same job at the combined company. Frankfurt-based Reto Francioni, CEO of Deutsche Boerse, will be chairman. Deutsche Boerse will own about 59 percent to 60 percent of the joined corporation.

The combination, following a decade-long wave of mergers among exchange companies, would unite equity and derivatives platforms from the U.S. and Germany to France, the Netherlands and Portugal. Since 2000, there has been at least $95.8 billion in completed acquisitions at exchanges worldwide, including NYSE Group’s purchase of Euronext NV and Nasdaq Stock Market Inc.’s takeover of OMX AB, according to data compiled by Bloomberg.

Donald Trump on German Index Buying Majority Stake in NYSE

From The Trumpet:
February 15, 2011 | From theTrumpet.com

The writing is on Wall Street. By Robert Morley

It will be a day that will go down in infamy. The biggest symbol of America’s economic might—the preeminent institution of Anglo-Saxon financial domination—is about to be sold.

And to a German rival.

What is happening to America? Has it really lost so much economic strength that a company from a nation once bombed to rubble is now purchasing the institution that helped raise the funds to make America’s war effort possible? It should be the New York Stock Exchange doing the taking over, not being taken over.

When the bell chimes for the last time at American-owned 11 Wall Street, it will be an ominous, portent-filled day for the country. But probably not for the reason you think.

No other institution represents America like the New York Stock Exchange. It is the home of capitalism. And through the years, by and large, it has served America well. No other country in the world has generated so much wealth so quickly. Sure the super-rich have a disproportionate share of it, but knock capitalism as you will, it has also generated the largest middle class in history.

Throughout most of its 219 years, the New York Stock Exchange has also powered the growth of exceptional American corporations, connecting them with deep pools of financing to power rapid expansion—and just as importantly, punishing those companies that refused or were unable to adapt and innovate. For better or worse, it is the tool that has helped keep American companies sharp, competitive and accountable.

And now, the nyse is dying a very capitalistic death.

American media is selling the story as a merger of equals. The new combined company will be the world’s largest exchange group by revenues—and be valued at over $25 billion. The chief executive officer will come from the nyse group, while the chairman will come from Deutsche Börse.

But that is where the equality ends.

In Germany it’s being reported as a takeover through and through. The “merger of equals” stuff is window dressing to keep Americans happy. Sixty percent of the new merged company will be composed of shareholders of Deutsche Börse—giving them the voting power. The current plans may call for New York to remain a head office to supplement Deutsche Börse’s regional hubs in Frankfurt and Paris. But the reality is that both Paris and New York will become little more than token headquarters for the new company.

“There is going to be no ‘triangle concept’ here,” one source told the Financial Times.

The only triangle concept will be that of a pyramid—with Frankfurt on top. “New York is going to be important, but it’s not the financial center,” says Michael La Branche, a member of a family-run firm that has traded on the floor of the nyse for 87 years.

But even before the merger, about half of the nyse group’s shareholders were already European. In 2006, nyse merged with Euronext, consolidating New York with exchanges in Paris, Brussels, Amsterdam and Lisbon, along with a futures exchange in London. Now if the Deutsche Börse deal goes through, U.S. shareholders may own even less. Plus more than half of the board of directors will come from Deutsche Börse.

The baton of economic leadership is being passed again: From London to New York in 1919; and now from New York to Frankfurt in 2011.

According to some experts, U.S. regulators most likely won’t be able to block the nyse sellout either. Just a few years ago they approved the nyse merger with Euronext. Plus, as the Financial Times brings out, there is “‘good support’ at the highest political level in Germany” for the deal. So U.S. regulators would risk offending an important trade partner and ally. Also, the German government has said that since the two companies are private, the German government will only have a “limited” role in the new entity.

But as our 2006 article “Will the U.S. Lose the NYSE?” asked, “What if relations between America and Europe were to become strained? Is it unrealistic to be worried that foreign interests, in a position to sabotage America’s largest stock exchange, would be tempted to do so?”

Even beyond just sabotaging markets, think of all the data on U.S. companies that foreign interests would be able to mine. Already the nyse sells high-speed access to its computers to hedge funds so they can trade a fraction of a second ahead of regular customers, according to the Daily Finance.

Yet here is perhaps the most ominous part about the deal.

The Germans probably don’t even want the New York Stock Exchange!

For all the patriotic flag-waving that has ensued over the loss of the nyse, the truth is that it has been in dramatic decline for decades. Scandals have shattered its reputation, and its profitability is shrinking. The last few years were especially devastating. After the Wall Street meltdown in 2008, even Americans disparage it. In 2005, it handled 80 percent of all trading in stocks it listed; now it handles less than a quarter. As a public company, its stock has plummeted 64 percent since it was listed.

Its business model is broken too. With the march of technology, there is nothing New York does that cannot be done elsewhere for less: less cost, less regulation, and less taxation.

The sad, simple truth is that New York is no longer the coveted economic crown jewel it once was. It is more like tarnished costume jewelry—pretty to wear, but not worth much.

German companies don’t even bother listing in New York anymore. Deutsche Telekom was the latest to pull out on June 18. On June 4 Daimler called it quits. Of the 11 firms on Germany’s dax index (its biggest blue-chip companies) once listed in New York, only four still think it is worth the effort.

For Deutsche Börse, the real prize is in what nyse Euronext owns—with the emphasis on Euronext.

In 2006, the nyse and Deutsche Börse fought over control of Euronext, which owned the Paris, Amsterdam, Lisbon and Brussels stock exchanges as well as a derivatives exchange in London. As we quoted in 2006, at that time Deutsche Börse officials touted the potential Euronext tie-up as the creation of a “truly pan-European exchange organization” and “significant step forward in the integration of European financial markets” (Agence France-Presse, May 22, 2006; emphasis mine).

New York won the battle when it thwarted Deutsche Börse and merged with Euronext. Five years later, Deutsche Börse looks like it is about to win the war. Deutsche Börse is about get Euronext after all—and the nyse, for whatever that is worth.

And from Germany’s perspective, it couldn’t have come at a better time. With much of the periphery of Europe in economic crisis, Germany is pushing for greater economic union—on its terms. In return for bailout money, Germany is forcing indebted countries to turn over national sovereignty. Gaining ownership over the largest stock exchanges in Europe will just add additional firepower to Germany’s already impressive financial weaponry. In the years ahead, the European Union is set to become a much more German-looking institution.

If this merger goes through, the stock exchanges in Amsterdam, Paris, Lisbon, Brussels, Frankfurt and nine other European countries will all fall under control of Germany’s Deutsche Börse. And that is not all.

Make sure to go over and read the entire article at the title link.

Catherine Austin Fitts On The Dangers Of A 401(k) In This Economic Climate

Catherine Austin Fitts On The Dangers Of A 401(k) In This Economic Climate

Catherine Austin Fitts on Financial Survival Radio (1.16.2011) on why her money is NOT in a 401(k) and how the federal government is salivating over yours. I have written extensively about the government seizing your 401(k), (and the leftist think tank behind it), and using the last $8 trillion in American’s wealth to keep the ponzi scheme going. Check the related links at the bottom of the post.

Solari Report; Proposals For Annuitization:

By David Liechty

October 13, 2010
Download a PDF version of this article

Introduction

Over the past few years, various proposals for annuitization of 401(k) and IRA accounts upon retirement and automatic enrollment in 401(k) programs have been made. On September 14-15, 2010, the Departments of Labor and the Treasury held a joint hearing on Lifetime Income Options for Participants and Beneficiaries in Retirement Plans. The hearings focused specifically on annuitization of retirement funds and the feasibility for introducing these annuities into 401(k) and IRA plans.

Switch to Annuities/Lifetime Income

The possibility of 401(k) annuitization appears to have caught the public eye primarily in response to the November 04, 2008 testimony of Teresa Ghilarducci before House Democrats and a November 20, 2007 paper she 401(k)wrote entitled “Guaranteed Retirement Accounts: Toward Retirement Income Security,” published by the Economic Policy Institute’s Agenda for Shared Prosperity. A report in the Carolina Journal Online characterized her testimony and the hearings as “proposals to confiscate workers’ personal retirement accounts—including 401(k)s and IRAs— and convert them to accounts managed by the Social Security Administration.” While somewhat polemic in its language, and perhaps not entirely accurate, the Carolina Journal did cover the most salient points of this proposal. Ghilarducci advocates creation of Guaranteed Retirement Accounts (GRAs), which would be mandatory, and which would be funded through payroll deductions in the same way Social Security currently is. These funds would be matched and placed into a pooled account which the Federal Government would invest and manage, guaranteeing a 3% rate of return. Upon retirement, these funds would be annuitized, and that portion of the funds contributed by the individual, minus any benefits received, could be passed on to heirs. Ghilarducci further advocates shifting current employer tax incentives from 401(k)s to these GRAs, and to the extent that tax privileges are, indeed, shifted, there would almost certainly be a shift of funds held in 401(k)s to the GRAs, though there would technically be no “confiscation” of 401(k) assets.

As interesting as Ghilarducci’s proposal is, it pales in comparison to the influence and reach of the writings and proposals of individuals associated with the Heritage Foundation and the Brookings Institution’s Hamilton and Retirement Security Projects.

In April of 2006, the Brookings Institution’s Hamilton Project published “Improving Opportunities and Incentives for Saving by Middle- and Low-Income Households“, in which it advocated mandatory and automatic enrollment in retirement plans for employees of all businesses (“with possible exceptions for the smallest”), universal matching by the Federal Government for all contributions, and “other changes to the retirement system to promote lifetime annuities.” In particular, the paper “recommend[s] that the government set as a default that the matching contributions in each person’s account be annuitized,” which “would set the precedent … that annuities are a sensible use of retirement resources.” These annuities would ideally be provided by the Federal government and processed by the Social Security Administration.

Chief among the individuals associated with the Brookings Institution and its retirement policy proposals is J. Mark Iwry, who is currently serving as Obama’s deputy assistant Treasury J. Mark Iwrysecretary for retirement and health policy. Iwry co-sponsored the September 14-15 Joint Hearing on Lifetime Income Options, and the writings with which he is associated suggest the ultimate agenda of the hearings.

In June of 2008, Iwry co-authored, and the Hamilton Project published, “Increasing Annuitization of 401(k) Plans with Automatic Trial Income“, in which Iwry and his colleagues advocated that “a substantial portion of assets in 401(k) … plans be automatically directed (defaulted) into a two-year trial income product[, i.e., an annuity,] … unless [retirees] affirmatively choose not to participate.” The reasoning for these automatic trial annuities is not clear, and seems simply to be that retirees might run out of money if they manage their own savings themselves.

In July of 2009, the Retirement Security Project of the Brookings Institute published “Automatic Annuitization: New Behavioral Strategies for Expanding Lifetime Income“, in which Iwry and his colleagues continued their proposal for automatic, mandatory trial annuities, and added a proposal for automatic enrollment, mid-career, in a separate annuity fund within existing 401(k) accounts, to which the employer’s matching contribution would be directed.

The push for automatic annuities appears mainly to be rationalized through the demise of the historic private pension plan system in which companies provided fixed income benefits to their employees upon retirement. As 401(k) programs were introduced, businesses opted for these less-burdensome and tax-incentivized plans, abandoning the traditional pension plans. The need for fixed-income payments is also briefly rationalized in an articulated concern over the future of Social Security benefits, something which does not really lend support to yet another Federal government-sponsored annuity plan. Finally, the arguments for automatic annuitization are generally based on the uncertain financial landscape and a general need for guaranteed income on the part of retirees. As important as these factors are to consider, however, the necessary logical conclusion that all retirement accounts must be turned into annuities simply does not follow.

The actual testimony at the Joint Hearings on September 14-15 was varied on the subject of mandatory annuitization. The Vanguard Center for Retirement Research indicated that annuities are not a popular investment choice for retirees, especially given the annuity-like Social Security and Medicare programs already provided, and most individuals want to have the flexibility and liquidity of a lump-sum payment managed under their own direction, rather than a fixed-income annuity. However, several large entities, including TIAA-CREF came out in favor of at least partial retirement annuities, and in support of proposed Federal regulation requiring annuity information on retirement documents.

Making 401(k)s Mandatory

A second aspect of current 401(k) and IRA proposals at issue is the possibility that all business entities will be required to provide 401(k) plans and that all employees will be required to enroll in these plans.

Hit the title link to read the rest.

‘A Day In The Park’

‘A Day In The Park’

One sample of a 'V For Victory' poster to put up in your neighborhoods.

Alex Jones breaks down the recently submitted ‘A Day In The Park’ video entrant to the ‘The Answer to 1984 is 1776′ contest.

‘The Answer To 1984 Is 1776’ contest:

The answer to 1984 is 1776

The posters have been created. Now go out and put them on every legal surface. Make the public ask questions. Go for a Victory walk. Spread the V!

Alex Jones invites you to produce videos defending our natural rights against the onslaughts of the New World Order. Others may be viewed on Alex’s Facebook page.

CONTEST RULES:

Video must be uploaded to You Tube and the URL sent to contest@infowars.com by February 28th 2011.
Video must address the Police State and the disappearance of our liberties.
“INFOWARS.COM” must be included in the title/credits of each submission.

The Winners will be picked by Alex Jones and announced on Monday, March 7, 2011
Go to http://www.infowars.com/the-answer-to… to view all the details.

Why the contest?

Big Brother telescreens at more than 9,000 locations. Naked body porno radiation scanners. PSA propaganda cranked out by the DHS spreading paranoia and the insidious proliferation of a high-tech Stasi state. Militarized police teams armed to the teeth patrolling subway platforms and bus stations as goons in latex gloves rummage through backpacks and briefcases without probable cause and in total disregard for the Fourth Amendment and the Constitution and the Bill of Rights.

It’s all about fighting back against the psychological warfare we are now being subjected to by our new would-be slavemasters. Use the V for Victory flyers we have provided to let Big Sis know that we are not her slaves. Use them on banner hangs or as stand alone flyers, post them on message boards or any places where announcements are made in your local community. Anywhere that’s legal and lawful, we want to see the V for victory proudly displayed as a symbolic message of resistance and defiance.

Congressman Allen West Explains The Tea Party

Allen West explains the main tenets of the tea party at a townhall meeting held at the National Press Club on 2.08.2011.

Congressman West Speaks at National Tea Party Town Hall, 2.08.2011:

The entire Townhall Meeting from C-Span.org:

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