In a complex set of transactions, Dubai is moving to acquire 19.9 percent of the Nasdaq in New York, placing the Arab government in an ownership position of the key U.S. stock exchange and raising concerns in Congress.
As a result of the transaction, Dubai also will acquire 28 percent of the London Stock Exchange, one of the oldest and largest in the world.
The announcement set off a firestorm of criticism in Washington, prompting President Bush to comment today in a news conference, “We’re going to take a good look at it, as to whether or not it has any national security implications involved in the transaction. I’m comfortable with the process to go forward.”
On July 26, Bush signed into law the Foreign Investment and National Security Act of 2007, a law passed after last year’s controversy over the effort by Dubai Ports World to acquire London-based Peninsular & Oriental Steam Navigation, an international ports operating firm that would have given Dubai control of operations in up to 22 U.S. ports.
The Foreign Investment and National Security Act of 2007 was passed to strengthen the examination requirements of the Committee on Foreign Investment in the United States, or CFIUS, a highly secretive bureaucratic panel constituted by the Treasury Department to pass verdict on the national security implications of foreign investments in the U.S.
Jeez, at the same time the uneconomic are decrying the dollar shrinking in the world market they’re having a tizzy over Dubai investing some of their money in the US. Do you think those loons realize that it’s the hostility towards foreign investment that’s hurting the dollar?
Why else should the dollar be in decline? Interest rates are still fairly high. The deficit is very low as compared to our GDP. The trade deficit is stable.
Everything should be in place for a stronger dollar but for some reason it’s struggling. Between the hostility to foreign investment in our economy and travel restrictions we’re just not getting the money coming back to the US.
Of course as the dollar falls exports from the US are cheaper, imports are more expensive, foreign investment is a better deal AND it’s cheaper to travel here. So don’t worry, the dollar’s not in trouble.
A big deal is being made about the Canadian dollar being on par with the Dollar. I think that’s more about the Canadians doing some things right rather than what we’re doing wrong.