Ontario Finance Minister Dwight Duncan identified "wild-eyed nationalists who don't know international business" as being irrelevant in the discussion concerning the approval of the stock exchange merger. I can only assume he was pointing a finger at us nationalistic beavers.
Little does he know that he was still in diapers when when many of us were involved in international businesses.
After his political career is finished he will be looking for a lucrative international business job. Does this mean he is biased and may not act in the best interest of Canadians? Should we be confident his ethical integrity will overcome whatever personal interests he might have in the outcome of the merger proposal?
This $3 billion proposal will undermine Canadian influence over $trillions in our current economy. From personal experience in one of Canada's largest foreign controlled businesses, I know that the Cdn president asked for American approval to spend a miniscule $25,000 that wasn't previously approved in his hundreds of millions of dollars budget. Foreign control is exactly that and a merger creates foreign control. Don't believe for a minute that Canadians will have control of a new TSX-LSX!
The bottom line is that the owners of the merged TSX and LSX alone will profit by access to a larger pool of commission paying and registration paying stocks. The fact that a company is headquartered somewhere else in the world doesn't matter to them. After all, many foreign resource stocks are already listed on the TSX.
In fact, the TSX is the pre-emminent resource stock market in the world. So, if some resource companies in London can't raise capital, they should list on the TSX where this kind of capital is already plentiful. This would be basic good "international business" sense.
Canadian beavers need to be wary of the domestic and foreign weasels who proclaim our market is "too small" for "international business" needs. This is pure poison ivy. We have served the global resource markets effectively for 100 years.
In fact, most legitimate investors prefer the Canadian stock exchange because they know it has a reputable level of integrity and is closely policed. In a global business world where even huge financial institutions have had their paws in the honey-pot, "international business" men truly prefer the security of Canadian controlled markets. Furthermore, those who claim our markets eventually will be bought up by Americans are globalists who want financial moguls to establish even more influence and control over our Canadian autonomy and independence.
Canada should be involved in "international business", but we must stop shipping out so much profit to foreign companies who own or control the trading in our resources. These funds are lost to internal Canadian re-investment and are easily structured to avoid paying significant taxes here. The bottom line is that the small cap beavers end up paying the Lion's share of taxes and these foreign concerns send zillions to their managers and directors outside Canada.
Canadians need to pressure our politicians to begin the process of securing our global autonomy. This merger should not be allowed to occur.
On the other hand, if the LSX is so short of investment capital, maybe they would like a national beaver fund to just buy them out?
Sorry guys... bite my tail... if you dare!
Bob the Beaver
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