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:

What ‘US Dollar Loses Reverse Status’ Actually Means

What ‘US Dollar Loses Reverse Status’ Actually Means

I may have mentioned last week that we have gone over the proverbially cliff and have not yet hit the rocks below, and that the ground is coming up fast and that it is really gonna suck when we hit.

The ground is closer:

From the Washington Times:

Federal deficit on track for a record this fiscal year

Government debt to exceed U.S. economy

and this from Bloomberg:

Geithner Quietly Tells Obama Debt-to-GDP Cost Poised to Increase to Recor

Barack Obama may lose the advantage of low borrowing costs as the U.S. Treasury Department says what it pays to service the national debt is poised to triple amid record budget deficits.

Interest expense will rise to 3.1 percent of gross domestic product by 2016, from 1.3 percent in 2010 with the government forecast to run cumulative deficits of more than $4 trillion through the end of 2015, according to page 23 of a 24-page presentation made to a 13-member committee of bond dealers and investors that meet quarterly with Treasury officials.

(snip)

The amount of marketable U.S. government debt outstanding has risen to $8.96 trillion from $5.8 trillion at the end of 2008, according to the Treasury Department. Debt-service costs will climb to 82 percent of the $757 billion shortfall projected for 2016 from about 12 percent in last year’s deficit, according to the budget projections.

Budget Proposal

That compares with 69 percent for Portugal, whose bonds have plummeted on speculation it may need to be bailed out by the European Union and International Monetary Fund.

Forecasts of higher interest expenses raises the pressure on Obama to plan for trimming the deficit. The President, who has called for a five-year freeze on discretionary spending other than national security, is scheduled to release his proposed fiscal 2012 budget today as his administration and Congress negotiate boosting the $14.3 trillion debt ceiling.

What is currently happening with the devaluation of the dollar and what you need to know to survive the crash starting with the United States government being the biggest debtor in the world, US dollars (Federal Reserve Notes) being the world’s reserve currency and what happens when other countries stop accepting those dollars (hint: oil skyrockets), how the entire world is moving away from the dollar as the world’s reserve currency – and what that means exactly for us poor slobs.  Mr. Stansberry also lays out what you need to do to protect what little wealth you may have left. (Disclaimer: this video is actually an advertisement for a subscription newsletter – sign up at your own risk.  I am posting it for educational purposes as information contained is pertinent.  Do your own due diligence on Mr. Stansberry’s company.)

Many of my readers have watched this one hour and sixteen minute video, but the newly minted awakees have not.  I urge everyone to find the time to watch this video in it’s entirety!  You will learn economic history that you may not have known and useful (unreported tidbits) like many new currencies being traded inside the United States like the Berkshares being traded in the Berkshire region of Massachusetts.

Porter Stansberry – The End Of America:

A small excerpt:

Let me back up, and show you in the simplest terms possible, what is going on, why I am so concerned, and what I believe will happen in the next twelve months.

In short, I believe that we as Americans are about to see a major, major collapse in our national monetary system, and our normal way of life.

Basically, for many years now, our government has been borrowing so much money (very often using short-term loans), that very soon, we will no longer be able to afford even the interest on these loans.

I say these things as an expert in accounting and financial research.

You may not think things are THAT BAD in the US economy, but consider this simple fact from the National Inflation Association:

Even if all US citizens were taxed at 100% of their incomes, it would still not be enough to balance the federal budget. We’d still have to borrow money just to maintain the status quo.

Ron Paul’s ‘Straight Talk’, 2.14.2011

The Fed Has Failed: Money Printing Can’t Create Actual Jobs

Ron Paul And Lt. Col. Allen West At CPAC, 2011 (Full Videos)

Dr. Ron Paul does it again by winning the CPAC straw poll with 30% of the vote and giving one of his excellent speeches detailing the attack on the 4th Amendment with the Patriot Act, our failed foreign policy, the fallout from the federal government taking money from us and propping up dictators in other countries ($70 billion to Mubarek), operating bases all over the world, the shenanigans of the Federal Reserve (which brought the usual ‘End The Fed’ chant), how the Federal Reserve is working hard to collapse the dollar, and that we have had too much bipartisanship for the last 60 years (the progressive movement).  We are rapidly approaching the crossroads when enough people realize that Dr. Paul has been right all along.

Dr. Ron Paul:

Lt. Col. Allen West’s Keynote speech:

After listening to Rep. West’s speech, I have to believe he has read ‘Got Real Vision?’.

Rep. West speaking with bloggers:

Ann Coulter At CPAC, 2011 (Full Video)

OMG! Ann Coulter hammers the left and Janet Napolitano, among other topics, in her unbelievably snarky way that will sure to make readers laugh out loud. Enjoy!

Q & A Session:

What’s Next For Egypt? (2.10.2011)

What’s Next For Egypt? (2.10.2011)

Egypt Today, 2.10.2011

With the coalition of islamic jihadists, American marxists, communists, and anti-capitalists using the Egyptian youth as a hammer, one can only wonder how long before Egypt looks like Iran in 1979?  (H/T RedLemur for the visual idea.)

From NY Times:

Mubarak Refuses to Step Down

Suleiman Tells Furious Crowds to Go Home

Wired and Shrewd, Young Egyptians Guide Revolt

Headlines from Drudge:

Mubarak Hangs Tough...
VP Urges Protestors to Ignore Media, and Go Home...
AL-JAZEERA LIVE FEED...
CIA Panetta Confused: Said Strong likelihood Mubarak would 'step down tonight'...
March to palace being organized...
REUTERS LIVE...

Patriot Act Extension Voted Down; Entrenched Republicans Plan To Bring It Back To The Floor

Patriot Act Extension Voted Down; Entrenched Republicans Plan To Bring It Back To The Floor

It’s good to bitchslap Janet Napolitano and the Obama administration from time to time.  Now it’s time to call Boehner, Cantor and McCarthy!

The march against the ever-growing federal government continues as democrats and eight House republican freshmen (of a total of 26 republicans) voted against extending the Patriot Act.  Halle-freakin-lujah!!!!

To keep the issue in perspective, Obama wants to extend this bill through 2013, and entrenched House republicans only want to extend it through this year.

Want to find common ground with your fellow Americans?  Here is an issue that both left and right can agree on; the government being able to warrantlessly tap phones, secretly rifle through bank accounts and safety deposit boxes, hold people indefinitely without charging them, etc., etc., etc., is NOT the American way.  Does anybody actually think that Janet Napolitano, the DHS and TSA really have our best interests at heart?

The tide is turning.

From Politico:

Rank-and-file reject Patriot Act

House Republicans Tuesday night got a harsh introduction to the majority, as more than two dozen rank-and-file GOP lawmakers voted against reauthorizing the Patriot Act.

(snip)

There was no sign that the leadership saw the setbacks coming. The Patriot Act was moved to the floor under suspension of the rules — a provision that requires two-thirds majority (290 votes) to pass and is often used for noncontroversial legislation. After holding the vote open well past the 15-minute window, it failed 277 to 148 with five Republicans and four Democrats not voting.

Republican leaders will bring the bill back to the floor under a rule, where it will almost certainly secure the 218-vote threshold.

(snip)

Speaker John Boehner’s (R-Ohio) office had no comment on the trade bill or Patriot Act failure. He did not vote, which is somewhat of a tradition for the speaker. Majority Leader Eric Cantor (R-Va.) and McCarthy voted for the Patriot Act extension.

The Patriot Act has long been a contentious issue on Capitol Hill. It was passed shortly after Sept. 11 to give the government expanded surveillance powers, while breaking down barriers between the CIA, FBI and other intelligence agencies.

But many — ranging from liberals like Rep. Dennis Kucinich (Ohio), to libertarians like Rep. Ron Paul (R-Texas) — have long expressed concerns over the sweeping breadth of the legislation. Kucinich called Tuesday’s vote a “significant defeat,” adding that it will “fuel opposition” to the measure nationwide.

Indeed, many members were concerned about Patriot Act provisions that would allow the government to access medical and business records, GOP sources said.

And a handful of the no-votes were freshmen who felt completely uninformed by their leadership. Rep. Todd Rokita (R-Ind.), who voted for the bill, said he “didn’t know anything about (the vote) until today.”

(snip)

Twenty-six Republicans voted against the Patriot Act extension, but only eight were freshmen — Reps. Justin Amash (Mich.), Mike Fitzpatrick (Pa.), Chris Gibson (N.Y.), Randy Hultgren (Ill.), Raul Labrador (Idaho), Bobby Schilling (Ill.), Dave Schweikert (Ariz.) and Rob Woodall (Ga.).

Rep. Connie Mack (R-Fla.) voted against the extension, while his wife, Rep. Mary Bono Mack (R-Calif.), voted for it.

Minority Whip Steny Hoyer (D-Md.), Reps. Chris Van Hollen (D-Md.), Steve Israel (N.Y.) and Henry Cuellar (Texas) all voted for the bill. Committee leaders including Reps. Norm Dicks (D-Wash.), Nita Lowey (D-N.Y.) and Adam Smith (D-Wash.) also voted for the bill. Minority Leader Nancy Pelosi (D-Calif.) and Judiciary Committee Ranking Democrat John Conyers (Mich.) voted against extending the bill.

Altogether, 122 Democrats voted no, and 67 voted yes. Republican votes to back the bill numbered 210.

Ron Paul’s house speech before the vote:

Dominique Dy Sings The National Anthem

Damn…just damn! Whenever patriots start to lose hope, watch this video of eight year old, Dominique Dy, singing the national anthem.

A hair-raising performance by 8 year old Dominique Dy singing the Star Spangled Banner / National Anthem for Nashville Outlaws baseball team at Hawkins Field / Vanderbilt University’s (Commodores) baseball stadium in Nashville, Tennessee (TN) on 07/25/2010.

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