I’ve been expecting this to happen. The one world promised by the government bureaucrats won’t work as long as there are different nations with different religions and therefore different cultures – and different moral codes. But not many expected multiculturalism to hit Wall Street.
Large Chinese companies listed on the NYSE are suspected for fraudulent accounting practices. Criminal charges may be brought against some of the companies. May be. No one knows what must be done. Much more is involved than what is seen on the surface.
For example, the fact that FBI and SEC can’t do much to procure the records – when it is about companies operating under another sovereign nation’s legislation. When the other nation is Communist China where large companies are simply economic branches of the government, and the government is determined – for ideological reasons – to protect them from prosecution in other countries. In fact, one auditor – the Shanghai arm of Deloitte – already refused to provide records about its client, Longtop Financial.
Asked about it, Robert Khuzami, director of enforcement at the SEC, replied,
Merely not providing records under these circumstances – as in the Deloitte case – would not likely rise to the level of criminal violation.
Blah, blah. Tell this to any company within the US that refuses to provide documentation to the IRS, SEC, FBI, ATF, or any other Federal agency. Tell this to any individual citizen who’s been audited by the IRS. Try it yourself. You will see if it won’t “rise to the level of criminal violation.”
The message is clear: double standard. If you are paying taxes and are “protected” by the American government, you will be punished for any refusal to provide records. If you are protected by the Chinese government and you pay taxes in China, you can cooks your books as much as you want, and still be listed on the NYSE and take the money of the American investors.
This is a very important news. It marks the end of Wall Street as we know it. So far, for all the decades of its existence, Wall Street was bound by a common ethics. Not everyone was ethical, not everyone obeyed the rules in every detail. But at least there was some common base, and the investors could count on a fairly high level of predictability. That common moral base – not the Federal agencies – provided the foundation. And that common moral base came from the Western Christian values that were built into the very foundation of the system. There was a moral consensus, and with all the imperfections of the system, it still worked.
But Wall Street bought into the liberal ideology of “one world,” no matter what. Chinese companies were allowed to register on the NYSE, and no consideration was given to the fact that because of the different cultural background, they may not be so willing to join the Western moral consensus. It turns out that the Chinese companies are taking advantage of that naivete. And it turns out that the Chinese government is not more moral than the companies that pay their taxes in China. A company can lie about its financial situation, and fake financial health to improve its marketability, and no one is there to protect the investors. And the FBI and the SEC are helpless.
The Europeans are discovering that multiculturalism doesn’t work in the cities of Germany, France, the Netherlands, Britain. They are losing their territory.
We are discovering that multiculturalism doesn’t work on Wall Street. Investors will be losing money.
May be this will wake us up to restore the Christian culture of our Founding Fathers, and reject the utopia of a multi-cultural, multi-religious world.