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Arab Financial Offensive on U.S. Companies Concerns Analysts

[Jerusalem Post] Yaakov Lappin - As the American economy reverberates with fears that a recession has begun, affluent Gulf states are seizing the opportunity to increase their control of the U.S. economy, leaving some analysts concerned over negative consequences for Israel. "There is concern that the purchase of strategic assets provides the owners with the ability to intervene politically," said Prof. Gerald Steinberg, chairman of the political studies department at Bar-Ilan University. "The problem is not investment, but control. You could start to see subtle aspects of a boycott [of Israel], even though that is illegal under American law. You might find that some of these firms place obstacles to deals with Israel," Steinberg said. Petrodollar investment in the U.S. economy was nothing new, Steinberg noted, but "what makes this period potentially different is if it marks a significant decline in American economic power," leaving the door open to an Arab petrodollar buyout.
2008-03-19 01:00:00
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