Posts Tagged ‘Tax Havens’

Is Britain The World’s Most Corrupt Country?

May 11, 2016

Britain is organizing an anti-corruption conference. Is that a form of British humor, or:

Should the EU Expel Britain From The European Onion?

More than 40 years ago, Great Britain’s population voted to join the European Union. Now it’s voting to see whether it wants to leave. This smacks of the tactic of obstruction through obfuscation, the story of the criminal accusing the police of being violent.  From the point of view of justice and solidarity, it should. Then the European Union could apply sanctions against it for TAX FRAUD.

One third of tax havens of the planet are actually states which have as head of state the Queen of England. That makes the Queen of England assuredly one of the greatest head of organized crime in the history of civilization. That criminal network pervades the USA. Just contemplate this:

Anglo-Saxon Plutocrats Own The Anglo-Saxon Main Stream Media Which Wants You To Not Know That Many Of Said Plutocrats Are Just Tax Criminals (To Start With).

Anglo-Saxon Plutocrats Own The Anglo-Saxon Main Stream Media Which Wants You To Not Know That Many Of Said Plutocrats Are Just Tax Criminals (To Start With).

Let me repeat slowly. One third of the world’s tax havens in monetary volume are British: Bermuda, Cayman Islands, British Virgin Isles, Isle of Man, Channel Islands. If one evaluates the half of the world of entities made to avoid all authorities, including tax authorities, are residents of territories headed by the Queen of England.

That corruption is becoming a problem is not just my opinion. David Cameron thinks that Afghanistan and Nigeria are “fantastically corrupt”. Cameron was caught on tape boasting in front of Queen Elizabeth Cameron that  “some leaders of some fantastically corrupt countries [are] coming to Britain” for his anti-corruption summit”. And he was joking with the corrupter in chief, the Queen!

Nigeria’s President Muhammadu Buhari said he did not want an apology from Cameron. Instead he pointed out that Britain could return assets stolen by officials who fled to London.

Forget Nigeria – David Cameron needs to tackle the tax havens in Britain’s own backyard

Says The Telegraph:

“Certainly Nigeria has a reputation. But the Panama Papers have shifted the focus of corruption far up the supply chain, to the people who make corruption possible – and those people are often rather closer to home.  

The UK, to its credit, has been at the forefront of the movement to make the world more financially transparent. The 2009 G20 Summit, hosted by Gordon Brown in London, created the first blacklist of tax havens that were holding out against sharing information on bank accounts with other countries’ tax authorities.

Under David Cameron’s leadership, the UK also became the first country in the world to require companies to be fully transparent about the people who own and control them. This is the key step towards stopping people squirreling money away behind fake companies they secretly own, out of the reach of the taxman and other authorities.

Other countries have since followed suit, and soon all countries that are part of the EU will have to collect information on who ultimately owns and controls companies and make that available to anyone who can demonstrate a legitimate interest.  So we should be proud of our leadership here.     

But careful readers of the Panama Papers will notice an important fact that should have given Cameron pause for thought before he made his comments to the Queen. More than half of the companies named in law firm Mossack Fonseca files are incorporated in Britain’s own tax havens. In fact, a full 50 per cent of the companies are from the British Virgin Islands.

Prime Minister David Cameron knows this. He said so just a few months ago:

“Some of the British Crown Dependences and Overseas Territories are making progress […]. Others, frankly, are not moving anywhere near fast enough. […] If we want to break the business model of stealing money and hiding it in places where it can’t be seen, transparency is the answer.”

Thanks to unfair austerity, avoiding taxes – whether legally or illegally – is coming to be seen as wrong.  If one wants to live in a society with decent schools and hospitals, no terrorism and an army powerful enough to not have tens of millions of refugees trying to smash through the border, all – rich and poor, small companies and giant ones – should be contributing to the public power. A recent poll for anti-corruption organisation, Global Witness, and Oxfam showed that 80 per cent of British adults agreed with the statement that “David Cameron has a moral responsibility to ensure that the UK’s Overseas Territories are as transparent as possible.”

However, PM David Cameron has whined disingenuously, for years, that “he cannot impose his wishes on independent territories.” So, instead of organizing a referendum on whether massive tax fraud can be perpetrated by the Queen of England, her dependencies, dominions and other minions, Cameron organized a referendum about whether Britain wanted to be in Europe or not. As if, after voting against Europe, it would find itself somewhere southeast of New Zealand.

There are fourteen “British Overseas Territories”. The Crown Dependencies of Jersey, Guernsey and the Isle of Man are also tax havens, under the sovereignty of the British monarch. When Britain want to exert power on the dominions, it can: Britain forced dominions to abandon the death penalty (1991), or punishments against homosexuality (2000).

Meanwhile any fantastically corrupt rogue official, thief or criminal can come to Great Britain and become a “Non Dom”, a non-domiciliated person, not taxed for at least seven years. Canada and the USA have imitated facets of this program. Some of China’s richest billionaires, anxious to be skewered by president Xi’s anti-pollution drive, have their children in Canada, driving around in cars worth hundreds of thousands of dollars.

All this to say that the “summit in London on the struggle against corruption”, May 12, 2016, is a colossal hypocrisy. And the stakes are not small. Not only is civilization is at stake, but the biosphere itself.

How did Rome fall? Rome fell in many ways: it became a tyranny, a plutocracy (all emperors were born from a small clique of families jousting for power among themselves, and exchanging the imperial throne as if was a frisbee). Rome became also anti-technological, and anti-scientific. Later it became a theocracy.

The historian Edward Gibbon was connected to the British plutocracy, so he could not accuse the plutocratic phenomenon to have caused the Fall of Rome. Instead, he accused Catholicism (as did Nietzsche). However, theocracy was the last justification tyranny found for itself. Plutocracy caused the Fall of Rome, and, over the next centuries, piled up the outrages.

So how did plutocracy blossom? By eschewing old Roman Republican law which limited absolutely the size of a family fortune. And how was that accomplished? With all the overseas dependencies and possessions Rome found itself with after the victory of Rome in the Second Punic War (final victory in 201 BCE). Those included North Africa, Spain, Macedonia, Greece… In those territories, it was not clear that Roman law had jurisdiction. The same loophole allowed slavery in the New World after 1500 CE: Frankish law had established jurisdiction outlawing slavery, all over Europe, in 655 CE. But the law could not be imposed in the New World, be it only because those who ruled there had no interest to see to it.

Recent globalization has operated in a similar fashion. This is all the more strange because American and French jurisdiction proclaim themselves as universal (France is presently judging Rwandan civil war criminals).

The explanation? Great Britain and the USA have been milking the tax haven, international corruption trick: trillions of corrupt, dark, criminal money has kept them afloat, by coming from all over the world. France has done so too, but on a much smaller scale  The latter case explains why Frenchman Pierre Moscovici is showing no alacrity to punish Luxembourg.

France and Germany are the core of the European Onion. It’s high time for them to seize their responsibilities. The terrible example of Britain has led to massive tax thievery by the likes of the Netherlands and Luxembourg. High time to get tough on more than retirees, elementary school children, and the indigent.

The arsenals of democracies have become arsenals of corruption. That may give leverage over Putin, since his plutocrats put their money in Western tax havens, but it’s no way to run a civilization.

Patrice Ayme’

Heathen Tax Havens Top World GDP

April 5, 2016

The Prime Minister of Iceland just resigned. The right honorable PM did not have major funds in a tax havens. He asserted this to journalists. That was correct. His very rich blonde wife did have dark money funds in tax havens, though. This has been revealed in Tax Havens. And the PM had claimed she did not. And how did the wife get so rich? Like Chelsea Clinton? Becoming a hedge fund money manager in her early twenties? Just asking.

What’s a Tax Havens? A place with little or no taxes. By claiming residency there, individuals or corporations can escape taxes. Plutocratic corporations can claim their profits there. They do this by charging extravagant charges to their subsidiaries. Thus subsidiaries in high tax countries (such as the leading countries of the West: USA, Germany, France, UK, Italy, etc.) are not “profitable”, because they spent all their money paying a subsidiary in a

According to the IMF, there are around 60 Tax Havens around the world,  50% of world financial transactions pass through Tax Havens, for a grand total of 25,000 billion dollars ($25 trillions).

What Can't Be Seen, Can't Be Taxed. Or Why Dark Liquidity Grows Ever More, As Its Engine, Plutocracy, Grows

What Can’t Be Seen, Can’t Be Taxed. Or Why Dark Liquidity Grows Ever More, As Its Engine, Plutocracy, Grows

One should stop and meditate this number. The established mental order, in economy quantifies the performance of societies according to GDP (not Gross Demonic Product, but Domestic, supposedly). GDP is just the sum of all financial transactions.

So this means that the GDP of Tax Havens is $25 Trillion. By comparison the GDP of the EU is 18.5 Trillion dollars (a trillion dollar higher than that of the USA). It’s promised to a bright future: Dark Pool Liquidity is skyrocketing everywhere: even in Canada.

365 major international banks are involved in just the particular scandal at hand. The British centered bank HSBC alone is involved in 2300 screen societies managed by that law firm, Mossak Fonseca.

The idea of Tax Havens came from Great Britain, and initially was directed to the Anglo-Norman isles.

To be viewed officially as financially clean, that is, not a tax haven, a country has to make 12 tax treaties with other countries. Thus Panama has tax treaties with Luxembourg, Liechtenstein, etc.: tax havens, by signing treaties with other tax havens certify each other to not be tax havens.

Could the great leaders of the great democracies have ignored all the preceding? Sure. That’s what they did. David Cameron, the British Prime Minister, is an expert; he ignored his father’s overseas, false name accounts.

As The Guardian (a paper which censors me!) puts it:

“David Cameron’s father ran an offshore fund that avoided ever having to pay tax in Britain by hiring a small army of Bahamas residents – including a part-time bishop – to sign its paperwork.

Ian Cameron was a director of Blairmore Holdings Inc, an investment fund run from the Bahamas but named after the family’s ancestral home in Aberdeenshire, which managed tens of millions of pounds on behalf of wealthy families.

Clients included Isidore Kerman, an adviser to Robert Maxwell who once owned the West End restaurants Scott’s and J Sheekey, and Leopold Joseph, a private bank used by the Rolling Stones.

The fund was founded in the early 1980s with help from the prime minister’s late father and still exists today. The Guardian has confirmed that in 30 years Blairmore has never paid a penny of tax in the UK on its profits.

The prime minister’s spokeswoman said that Downing Street had responded to allegations about Ian Cameron in the past.

Asked if there was still any family money invested in the fund, she said: “That is a private matter.” She said the prime minister had “taken a range of action to tackle evasion and aggressive tax avoidance”.

The Panama Papers, 11.5m documents leaked from the offshore agent Mossack Fonseca, reveal the details of how Cameron Sr sheltered Blairmore’s profits with a series of expensive and complicated arrangements.”

How was all this possible? How come We The People have become so lenient for the crooks who govern us? How did we become sheep? Panem Et Circenses, the Roman historian and philosopher Juvenal put it, 19 centuries ago: bread and circuses. Distract people with distributions of bread and circuses. This can set a degeneracy of minds which can fester for centuries. Roman citizens did not revolt until the Nika Riots, four centuries after Juvenal. Those started after increasingly violent confrontations, years after years, of partisans of the “Blues” and “Greens” teams of charioteers. Roman citizens had lost all taste for politics. Actually this started a few generations before Juvenal wrote, when a  bunch of major plutocratic crooks such as Brutus (who, before becoming the assassin of Caesar, had been a major corrupt Roman official in “Asia”).

Under the second emperor (or “Princeps”), Tiberius, the Roman national assembly felt so irrelevant, that it fell in disuse. We The Roman People felt that governance had been completely confiscated by the major plutocrats, so why bother?

How not to fall in the same despondency? Well, by mustering some rage, or, at the very least, anger, as Senator Bernie Sanders has been doing, and showing. In a most timely, and wise, manner.

Patrice Ayme’

On The Insolence, & Power, of Plutocrats

February 18, 2016

The American NSA and French intelligence have agreed that the Paris attacks were made possible by unbreakable phone encryption. Their preparations would have been detected otherwise, as they involved communications between a number of countries and were prepared proximally from Belgium.

Apple Inc, whose boss is a dark clad plutocrat named Cook has refused, in spite of a judge’s order to allow the FBI to know the secrets inside Islamist State (inspired) terrorists in San Bernardino, California, who killed many.

The insolence, and impudence, of plutocrats knows no bounds.

Disunion Jack? Nice Flag, Too Bad The Craziness

Disunion Jack? Nice Flag, Too Bad The Craziness

Let me remind plutocrats that we have not yet formally switched to… plutocracy. They don’t command.

Apparently Apple believes it is Big Brother. But who elected them? Money? The State is supposed to represent We The People. Maybe the present state does not do this well, but then it can be modified. Putting plutocrats and tax avoiding ultra wealthy corporations in charge, is no solution.

By protecting the communications of mass murderers, Apple Inc. has clearly gone off the deep end.

In other news, a European conference among the principals is doing “all it can” (“Alles tun” said Frau Kanzler Merkel) to keep Great Britain in the EU. Well, Europe may be better without British obstruction and day-dreaming. Many of the English who fear Europe are typically losers who drank the imperial kool aid of an empire which is no more. The empire, now, however weak, is Europe, not the British empire.

Fear what you ask for. The problem of the millions of Brits who live outside of the United Kingdom and who would be left stranded by “Brexit” is easy to solve: they should be given expeditious ways to acquire the citizenship of their country of residence.

Thus a British citizen whose family lives in France, and who works in London should be offered French citizenship, and Great Britain forced to accept the same sort of treaties that France has with Switzerland.

The latest polls give 54% for Brexit, the British Exit. PM Cameron thunders that his intent is clear: to stay inside the European Union. Then why the vote in 127 days? It’s not like the Brits did not already vote. They did, at 67%. Everybody is angry against the European Commission in Brussels. Well, then, fix it.

But behaving as if Britain, or, more exactly, England, could set sail to somewhere southeast of New Zealand is beyond grotesque.

And how did we get there? The plutocrats who increasingly rule Britain, just as those who rule the USA, or the world (they are all the same), continually accuse the European Commission in Brussels of malfeasance… to hide their own. The EC is just the executive arm of the EU, and it is increasingly directed by the European Parliament, let alone the continual meetings of the European elected leaders with each other (as they are doing today with the British case). The EC has tended to bother cheese makers, rather than the plutocrats who pull the strings. This can all, and should be, fixed.

Countless plutocratic corporations, including Apple, have avoided taxation, and the EC has let it happen all too long. It just woke up to the fact IKEA forgot to pay a billion Euros in taxes. Well…

All what the plutocratic corporations tend to do is to bog down society in useless years of litigation against democracy. Apple Inc. wants to protect dead terrorists, and the psycho plots of plutocrats would only bring years of litigation between the EU and the UK, and between Brits and their own government, all this to end with an independent Scotland joining the EU, while England finds it does not enjoy the affection Switzerland got through 600 treaties with the EU… However, lunacy is the best way for the mighty to lead We The People by the nose.

A great part of English wealth, at this point, comes precisely from immigration of other Europeans to Britain, and, even more, from Franco-Germania closing its collective eyes to the general tax evasion and financial manipulations centered on London, while it profits of a nebulous galaxy of semi-dominions such as the isles of Man, and Jersey, or the British Virgin islands, or making financial conspiracies so dark and outrageous, that they are unlawful in New York. If Brexit happens, don’t expect that Franco-Germania will tolerate it anymore.

And this is why, precisely, and unfortunately, Brexit will not happen. I guess. But the law of unfortunate consequences all too often rules. Norway, or Switzerland, are not members of the European Union (although they are members of Schengen, the passport free area, which the UK does not belong to). However, they both contribute to the European Union budget. The fools who will vote for Britain to get out of the EU do not seem to realize this: Norway and Switzerland are still in Europe, and have to make do with the European superpower (Franco-Germania). Brexit will make Franco-Germania stronger, and thus Britain weaker (projections are that the UK will lose 3% of GDP, Germany, just .3%).

Well, whatever. The Europe empire, the ability of Europeans to command to the crooks of giant corporations, has to rise. English plutocracy is in the way: sweep it out there, and make compost with it.

NSA ought to be under WE THE PEOPLE’s Command (Imperium in Latin). That is not, is extremely deplorable. But it has to be fixed. Snowden should not perhaps get the Order of Merit, fleeing to Putin and what not, but some of what it did is extremely important, and commendable.

Apple has amply demonstrated, that, in spirit, it’s not just plutocratic (Crook is filthy rich), but an outlaw (literally). Apple outlawed profit processing, & that of other pluto corporations, depends upon total secrecy in how it makes money circulate thru filth. We The People can only rule if we can see what the criminals are plotting. Apple, and its ilk, have for business model, though, secrecy. To escape taxes, pay politicians serving them, violating the spirit of the law, and trampling human rights by feeding inequality to the point of inequity… Plus selling personal information, and manipulating public opinion to the point of madness (see the Iraq invasion, the inability of people to comprehend that the Clintons sold them to financiers, the sleight of hand of the 2008 crash, when Transfer of Assets to Rich People was effected, Brexit, etc.).

We The People should have every right in the world to extend the tendrils of surveillance all over. OUR surveillance, under OUR watch. It’s now technically possible, having access to Uranium ore, to make a nuclear bomb in a basement (with laser separation). Let alone make ricin in a tiny lab, etc… Actually since 9/11, the water networks, in countries such as France are watched exquisitely.

Immense powers require now immense surveillance, and we should start with spying all the phones of all the plutocratic corporations, to find out where they hid all the money, they stole from us, and who they pay, among our so-called leaders who are busy bossing us around, and spying on us illegally.

Plutocracy without secrecy is an apple without cyanide: not lethal, delicious to eat. The secret of Brexit: a plutocratic plot so twisted it is turning into its own demise.

We live in a wonderful world: everyday our power on the physical world augments. But that means the power of corporations, and of the richest, augments ever more. We have to watch them carefully to check they are not violating the spirit of the laws. And the same goes for individuals. Freedom and surveillance are two aspects of the same coin.

Surveillance is a direct consequence of the advancement of technology, and, thus, of liberty. Liberty means power, power means surveillance.

Patrice  Ayme’

USA Financial Extortion

July 6, 2014

Individuals (famous economists), and organizations that are profiting from the present oligarchic system cannot be too critical against what feeds them. One has to read beyond the mellifluous lines.

Here is The Economist, June 28, 2014:

“Share and share alike… America should also embrace the OECD’s efforts, already backed by more than 50 countries, to create a truly multilateral system in which tax information on residents’ accounts and certain investments is shared annually. For that to work, America would need to hand over data similar to those which it demands from others—something it has hitherto appeared reluctant to do. The financial superpower looks ever more a regulatory bully, setting rules it ignores itself.

Bullies Kill, Vultures Feed, Justice The Old Fashion Way

Bullies Kill, Vultures Feed, Justice The Old Fashion Way

Setting rules for others one ignores for oneself is the essence of viciousness.

The financial superpower looks ever more a regulatory bully?

The USA is a financial bully, and it started in 1944, when the USA tried to bully Lord Keynes himself (head of the currency commission at Bretton-Woods), into accepting the Dollar of the USA as the world’s reserve currency.

The fact that it started so long ago means that the bully’s institutions have evolved accordingly. A particular case if American justice, which finds American violence to be just: the case of the vulture funds is exemplary. Whoever stands in the way of American vultures is unjust.

Keynes wanted to use the International Monetary Fund to create “Drawing Rights” as needed, a solution Dominique Strauss-Kahn implemented to the tune of 450 billion dollars until his fateful encounter with the maid from hell, taken super seriously by New York “Justice” (until she proposed so many tricks to the officers in charge of “protecting” her, that, well, it was embarrassing, even for New York “Justice”).

Keynes resisted totally, so the government of the USA forged the documents that made the USA into the one and only financial superpower. When Saddam Hussein begged to differ, and started to use Euros, he was hanged. So the BNP executives, who have not been executed yet, ought not to complain too much, as The Economist astutely points out, somewhere else.

What is The Economist alluding to above? “… hand over data similar to those which it demands from others.” To the fact that the USA is the world’s largest tax haven for global plutocrats, while busy destroying all other tax havens. The destruction of Swiss banks and bankers is exemplary that way.

In other words, the USA sucks up capital from all over the world, by stealing other countries’ taxes (as it provides plutocrats, worldwide, to escape taxation, thanks to… Delaware).

Says The Economist in: “Tax havens, The missing $20 trillion How to stop companies and people dodging tax, in Delaware as well as Grand Cayman”: a lower rate on a broader base, combined with vigilance by the tax authorities, would be more efficient and would probably raise more revenue: America, whose companies face one of the rich world’s highest corporate-tax rates on their worldwide income, also has some of the most energetic tax-avoiders.

These reforms would not be easy. Governments that try to lower corporate tax rates will be accused of caving in to blackmailing capitalists. Financial centres and incorporation hubs, from the City of London to Delaware, will fight any attempt to tighten their rules. BUT IF POLITICIANS REALLY WANT TO TAX THE MISSING $20 TRILLION, THAT’S WHERE THEY SHOULD START.”

From the horse’s mouth: to tax the missing $20 trillion, start from London to Delaware… Exactly what I have been saying for years. The global financial exploitative mess is part of an Anglo-American imperial situation.

I have condemned the way “judicial” authorities in New York siding with the financial vultures therein. The Economist now agrees with me, and goes somewhat further, as it alleges state corruption. Here is an extensive extract from:

BNP Paribas in the dock: No way to treat a criminal. The French bank deserved a clobbering, but America’s legal system looks like an extortion racket.

BNP argues that it broke no European laws… That is true enough, to Europe’s shame… It is also true that the underlying transactions had nothing to do with America, but because they were denominated in dollars they had to be cleared in New York, which provided America’s lawmen with a toehold.

But the guilt of a suspect and the justice of a cause do not make a tribunal fair. And America’s system for pursuing errant banks, especially foreign ones, is anything but fair… BNP had little choice but to settle. Defeat in court might have led to the loss of its American banking licence—a death sentence for a big international bank. America’s prosecutors can also wield the threat of criminal charges against individual bankers.

Bank against the wall

Not only were BNP’s tormentors, such as Benjamin Lawsky, New York’s politically ambitious banking regulator, able more or less to dictate their terms, they also had an incentive to make the fine as big as possible because the agencies involved divvied up much of it among themselves. Mr Lawsky’s outfit gets $2 billion, four times its annual budget, which it will triumphantly deposit in New York state’s depleted coffers.

There are no meaningful checks on this process, let alone a plausible procedure for BNP to appeal. Bank bosses cannot even publicly criticise deals they agree to under extreme duress. No precedent is set and no guidance provided as to the limits of the law and the proportionality of the punishment.

So even if BNP fully deserves its punishment, the legal system that meted it out is closer to an extortion racket than justice. France’s economy minister, Arnaud Montebourg, has compared America’s pursuit of BNP to “economic warfare”. In other words, a bank that catered to mass murderers has had some success in portraying itself as a victim. Any process that can make BNP’s dealings with Sudan look anything less than shameful must be very flawed indeed.”

“Catered to mass murderers”? Is that not the story of the invasion of Iraq by the USA? Did BNP invade Sudan? Is the USA pursuing the invaders of Iraq?

No, the USA is using imperial might in ways very similar to Putin. (Putin also has laws and judges and Congress on his side, nota bene.)

Two months ago Argentina reached a settlement with the Paris Club, a group of government creditors.

On June 16th the Supreme Court of the United States decided twice in favor of NML Capital, a “vulture” fund (and subsidiary of hedge fund Elliott Management) that snatched dirt cheap bonds after Argentina’s 2001 default. The fund and its plutocratic owners have since pursued the country for the payment of all principal plus outstanding interest in US courts. For at least 1.6 billion dollars.

The ability of struggling countries to restructure their debts has been dented. Hold-outs everywhere have greater incentive to litigate; creditors who might accept exchange offers could see them gulped down by vultures, catered to by USA judges.

Those who play with fire to burn others may find where the concept of “backfiring” comes from.

Patrice Ayme’

No Ideology But Greed

November 8, 2013

Standard & Poors, the most prominent USA rating agency, which pretends to rate, if not rule, the world, has downgraded France. Same S&P which used to give AAA ratings to banks too big to flail… until the moment they went bankrupt in 2008. Same reason, as we will see, to downgrade France than there was, and is, to praise the banksters.

Because France hurt the plutocrats, and threatens to hurt them much more, insults are in order. Warren Buffet, America’s own grand father, owns S&P, S&P barks. Good doggie.

S&P (Sadist & Posh?) claims that  “France hasn’t carried out the reforms that will enhance its medium-term growth prospects“. Another factor is the inchoating agitation of the French plebs, says S&P. The Sans Culottes are rising, S&P disapproves. Meanwhile Great Britain keeps it AAA rating. Although Britain has clearly performed less well. Here are the French and British per capita GDP:

Britain: Lower GDP Than France, Absolutely, Comparatively, Overall & Also Recently

Britain: Lower GDP Than France, Absolutely, Comparatively, Overall & Also Recently

The plutocrats are the party of no taxes to themselves, hence no government by and especially for, the people. They can only hate, with all consuming passion, that the French Republic has brought up taxes to 75% on those earning more than a million euros.

The truly abominable French idea behind this was to enforce equality and decrease debt. As it is France has a lower deficit than the USA. The USA is suffering sequestration, a slash and burn cutting-into-the-muscle of the country, reduction in spending. Whereas France suffers indignities from a few anxious soccer stars and one demented actor with, apparently, an alcohol soaked trunk, in the middle of his face.

British total debt (98% GDP) is worse than France’s. Amazingly the British and USA deficits (= the rate at which debt grows) are about 6%, or nearly TWICE the French deficit. Here is the evolution of French & British Debt Per GDP:

Britain: More Debt Than France In Spite Of Astronomical Tuition "Public" Universities

Britain: More Debt Than France In Spite Of Astronomical Tuition “Public” Universities

What the plutocrats are afraid of is that such tax margins on high salaries will spread. And then what? With heavy taxes all over, plutocrats would just disappear. That would be the extinction of the species that has come (erroneously) to define itself as the pinnacle of civilization, the very engine of creation (insisted Ayn Rand, and her bleating followers).

And why is Great Britain so valued, although it performs worse than France?

The Tax Justice Network came up with the answer: with its overseas territories (Isle of man, Anglo-Normand isles, British Virgin Islands, etc.), Great Britain is the world number one tax heaven. This explains why plutocrats love London. The plutocratic mayor of new York has a 50 million dollars residence in London; he pays just $3,000 in taxes (yes three thousands; meanwhile schools close in London, from lack of funding).

I of course, beg to disagree, I think the USA is an even worse tax haven… for worldwide plutocrats.  It’s a den of thieves, and no propaganda is too low, too base, too outrageous. As a German Chancellor who came to incarnate the Dark Side put it: “Make the lie big, make it simple, keep repeating it, and ultimately they will believe it.”

What mainstream economy has been hammering, that big, simple lie, is that the market decides everything, and decides it for the best, it’s god. However, most of the “market” power is held by the plutocrats, either directly through their increasing purchasing power, or indirectly, through their paid propagandists and pet politicians. So indeed, it’s all ideology. Plutocratic ideology. And the ground state of plutocratic ideology is that it hates the French Republic.

Says Krugman in “Ideological Ratings” (thanks Kroog for the graphs!):

…”where is this coming from?

I’m sorry, but I think that when S&P complains about lack of reform, it’s actually complaining that Hollande is raising, not cutting taxes on the wealthy, and in general isn’t free-market enough to satisfy the Davos set. Remember that a couple of months ago Olli Rehn dismissed France’s fiscal restraint — which has actually been exemplary — because the French, unacceptably, are raising taxes rather than slashing the safety net.

So just as the austerity drive isn’t really about fiscal responsibility, the push for “structural reform” isn’t really about growth; in both cases, it’s mainly about dismantling the welfare state.

S&P may not be participating in this game in a fully conscious way; when you move in those circles, things that in fact nobody knows become part of what everyone knows. But don’t take this downgrade as a demonstration that something is really rotten in the state of France. It’s much more about ideology than about defensible economic analysis.

Amen.

Why is the French Republic so frightening to plutocrats? Because, as France is the sister Republic to the USA, they are afraid that French solutions too friendly to equality will be applied in the USA too (something about 1789).

Ever since May 1, 1914, a flood of venom and viciousness has been directed at the French Republic by all too many USA based plutocrats. Result: two world wars, a few holocausts, and counting. But it will not be over, until the fat lady sings.

***

Patrice Ayme

USA: Den Of Thieves?

November 2, 2013

Hey, it’s not me saying it, but the New York Times! Finally waking up to the obvious. That’s courageous, as the greatest, and wealthiest of all the dens of thieves in the world, Plutocracy Central, is New York City itself.

John A. Cassara, a former special agent for the Treasury Department, wrote in the New York Pravda: Delaware, Den of Thieves? November 1, 2013:

“OUTSIDE of crimes of passion, criminal activity is typically motivated by greed.

As a special agent for the Treasury Department, I investigated financial crimes like money laundering and terrorism financing. I trained foreign police forces to “follow the money” and track the flow of capital across borders.

During these training sessions, I’d often hear this: “My agency has a financial crimes investigation. The money trail leads to the American state of Delaware. We can’t get any information and don’t know what to do. We are going to have to close our investigation. Can you help?”

The question embarrassed me. There was nothing I could do.

In the years I was assigned to Treasury’s Financial Crimes Enforcement Network, or Fincen, I observed many formal requests for assistance having to do with companies associated with Delaware, Nevada or Wyoming. These states have a tawdry image: they have become nearly synonymous with underground financing, tax evasion and other bad deeds facilitated by anonymous shell companies — or by companies lacking information on their “beneficial owners,” the person or entity that actually controls the company, not the (often meaningless) name under which the company is registered.

Our State and Treasury Departments routinely identify countries that are havens for financial crimes. But, whether because of shortsightedness or hypocrisy, we overlook the financial crimes that are abetted in our own country by lax state laws. While the problem is concentrated in Delaware, there has been a “race to the bottom” by other states that have enacted corporate secrecy laws to try to attract incorporation fees.”

The hypocrisy has, indeed, been colossal. The Clintons, for example, on the face of it, are among the planet’s most corrupt politicians. Just watch their fortune. Try to explain the difference with the king of Zimbabwe.

Yet, thanks to relentless propaganda, the Clintons are among the most admired American citizens. Why so? Because the same propaganda machinery  that make Clintons thrive is the one that makes made in USA plutocrats thrive, and if one can one’s soul grovel for the former, one sure will for the later.

This week we learn for example that the owners Google, Oracle and their kind would come down from the sky, and make Obamacare work. Saved by plutocrats again! So now, whatever good Obamacare is capable of doing, the indelible impression will be left, that the world’s richest men saved it. Verily those thieves are philanthropists!

The USA is plutocracy central. It can be seen in many ways. Not just the profusion of legal tax evasion and “optimization”. It can be seen statistically.

Consider this. France, or Germany, have a percentage of millionaires comparable to that of the USA. But the USA has, by far, a much greater number of multi-billionaires than France. Actually the USA has the greatest density of billionaires in the world.

It’s not that Americans are more industrious: otherwise French multimillionaire density would be lower. It’s that (legal) tax evasion is much greater in the USA… and it kicks in mostly for the hyper rich (who literally own the country and its politicians).

Many are the tricks, for example borrowing (against stock collateral; not taxed), instead of earning (taxed). Those tricks are tolerated, or even instigated, by the very political and propaganda machinery that the plutocrats control.

In truth the USA is the world greatest tax haven for the global plutocracy, and not just because of the foundation law and countless tax write-offs for the hyper rich inside the USA, to profit American multibillionaires. The USA also behaves like a philanthropic organization for worldwide multi-billionaires. The USA is plutophile.

The idea is simple. By allowing global plutocrats to evade taxes in the USA, then they will enrich the United States, and help further their American colleagues by reciprocating exclusive, mutually benefiting arrangements. That’s why formal requests for help from foreign IRS are blocked in the USA. Ultimately, the Pentagon and the intelligence system of the USA (NSA, CIA, etc.) protect Plutocracy Global.

The USA is the blackhole at the center of the worldwide galaxy of tax havens. That’s exactly why no light comes out. Of those worldwide tax havens USA billionaires themselves profit, through specially written tax laws (watch Apple, Amazon, and other major corporations paying only 2-3% tax, whereas the local bookstore pays 35% tax). Everybody knows about it, but don’t expect Obama Wealth Care to talk about it. Or Sugar Bowl’s Pelosi to evoke it.  When sitting on a branch, do not talk about saws. Or why the plutocrats who lead us by the nose don’t like to talk about equality.

Here is Mr. Cassara again:

“The Financial Action Task Force, an international body that sets standards for the fight against money laundering, terrorist financing and other threats to the international financial system, has repeatedly criticized America for failing to comply with a guideline requiring the disclosure of beneficial ownership information. The Organization for Economic Cooperation and Development, with which the task force is affiliated, has championed international standards for financial transparency, but cannot compel compliance.

Watchdog groups like the Organized Crime and Corruption Reporting Project, Global Financial Integrity and Global Witness say that anonymous companies registered in the United States have become the vehicle of choice for drug dealers, organized criminals and corrupt politicians to evade taxes and launder illicit funds. A study by researchers at Brigham Young University, the University of Texas and Griffith University in Australia concluded that America was the second easiest country, after Kenya, in which to incorporate a shell company.”

Now that Switzerland has been domesticated, it is high time to handle Delaware and Wyoming! Or, more generally, the entire tax code of the USA. However, there will be resistance.

Many behave as if New York City was the universe. And it’s all too true. Yet, let see what happens after we cut finance supreme down to size. From 25% down to 8% that is. Right now, finance is 25% of the profits of the economy in the USA. Historically, the average stands below 8%.

25% of the income of the state of Delaware comes from protection money paid by corporations.

Why has globalization become such a bad thing? Around a century ago, problems arose mostly from the excesses of exploitative colonialism. Exploitative colonialism, at its worst, caused the extermination of most of the natives of entire continents. That was as diabolical as diabolical can be, so it fully deserves to be described as rabid plutocracy.

After the termination of colonialism the old fashion way, complete with its more or less civilized imperial administrations, a much leaner form of exploitation arose. Old style administration chained the plutocrats: they had to play by the rules. After the departure of transnational (“imperial“) administrations, there were no more rules. Or, more exactly, the plutocrats made the rules. And here we are.

Cassara: Domestic law enforcement agencies are as stymied as foreign ones. In one case I worked on, American investigators had to give up their examination of a Nevada-based corporation that had received more than 3,700 suspicious wire transfers totaling $81 million over two years. The case did not result in prosecution because the investigators could not definitively identify the owners.

Anonymous corporations are not only favored tools of criminals, but they also facilitate corruption, particularly in the developing world. A recent World Bank study found that the United States was the favored destination for corrupt foreign politicians opening phantom companies to conceal their ill-gotten gains.”

That’s what we are at.

Globalization has become plutocratization. Time for a global correction. And that means striking where the head of the snake is. In the USA. Not just in Delaware, Wyoming and Nevada.

The top Democrats on the House Financial Services Committee, proposed legislation requiring United States corporations to disclose to the Treasury Department their beneficial owners. British Prime Minister Cameron, going further, announced that a planned national registry of companies’ true owners would be open to the public, not just to law enforcement.

Global plutocracy, especially of the Anglo-Saxon sort, was the force that made the difference with Nazism. Why? Because plutocracy rotted the head of Western civilization. The body stayed vigorous, and more than one million young Western soldiers courageously died on the battlefield… Civilization was saved, but is again encountering problems, actually the greatest ever. Yes, ever. Never was the biosphere in question before.

Not really understanding how that war was a racket (as the head of army of the USA, Major General Smedley Butler had put it eloquently years before the Second World War).

Right now mysterious kabuki wars against foreign co-conspirators have been replaced by an outright War Against The Poor. It’s all very simple. To get out of it, let’s treat Delaware as if it were Switzerland, a few years back.

***

Patrice Ayme

Raid Treasure Islands, Finally?

March 24, 2013

Abstract: The plutocrats, plutophiles, and hired guns who dominate the planet have brought a Greater Depression. A punier crisis in the 1930s brought political fascism all over. To avoid a repeat, representative democracies need heavy corrective measures, now. Here is the latest outrage.

Cyprus has invested many times its GDP. In Russia alone. Year after year, for years. Cyprus is a money laundering scheme. One of the many pirate islands around the planet, whose main enterprise is organized crime. Initial violent reactions in Moscow from president Putin and his prime minister Medvedev show that they were party to this conspiracy.

That set-up allowed plutocratic mobsters to buy more and more of Russia. It has also enabled them to purchase a large part of the West. Criminal money, satanic minds, all over, what could go wrong?
Enough has been seen, it’s time to use force.

***

Pompeius: Magnus Accomplice to Pirates?

Pompeius: Magnus Accomplice to Pirates?

ROME, OR WHY ONE SHOULD KILL PIRACY, NOT PAY IT OFF:

In the late Roman republic, the seas came to be paralyzed by piracy. Roman politicians, busy at each others’ throats, had overlooked the growth of pirate havens. Pirates owned ports, cities, countries. The situation became untenable; international trade was coming to a stop, and Rome depended upon grain from overseas. Pirates were hanging just outside of Rome, Corsica was full of corsairs, very naturally, even a young Julius Caesar was kidnapped against ransom.

Finally the Roman Senate gave full power to a young Gnaeus Pompeius. After a winter preparation, Pompeius sent 13 legates all over. Cicero was enthusiastic: “Pompey made his preparations for the war at the end of the winter, entered upon it at the commencement of spring, and finished it in the middle of the summer.”

Some say that it took just 40 days for Pompeius to re-establish  freedom of navigation. Yet, years later Cicero knew better. He bitterly criticized Pompeius’ work: “we give immunity to pirates and make our allies pay tribute.”

Sounds familiar? If Cicero’s charge is true, it explains a lot of the further deterioration of the Republic. Two reasons to believe it’s true: 1) No anti-plutocratic measure was taken in Rome at this stage.

2) This is exactly what we have been doing since 2008: exacting tribute from the citizens, and paying the pirates. “Quantitative Easing”, that is money given to the very banksters who caused the 2008 crisis was tribute paid by the citizenry, while immunity was given to financial pirates.

The grossest of the gross will claim that we have nothing to learn from Rome. But Rome had a republic, a pretty direct democracy functioning for more than 4 centuries, and that’s still the world’s record in duration. How did the Roman pull that trick?

The Roman republic lived for more than 4 centuries with an explicit limit on the wealth that could be acquired by any given family. It is precisely attempts to break down inchoating plutocracy by application of an existing law enforcing that limit, which brought the civil war that the Gracchi brothers lost. By then the plutocrats had private armies, and they used them to kill the Gracchi and thousands of their supporters.

Conclusion: Crack down on plutocracy, before it cracks you.

So what happened to Rome? Plutocracy kept on going, until by the Late Second Century it devoured the ability to destroy foreign enemies, and then devoured the state. In the Third Century, plutocracy devoured the socio-economy until the military rebuilt society in its image. In the Fourth Century, plutocracy merged with theocracy, and devoured philosophy and the brains. By 400, plutocracy devoured the army itself. The Franks were put in charge of the defense of the North-West corner of the empire.

Next Roman state was replaced by the Frankish state, which was very lean, and Frankish law came to rule. Frankish law enforced equal inheritance in (large) families, and leaders were elected. Plutocracy did not die, but became a shadow of its former self, all the more as brains were re-established under the guise of a church ruled by a secular state, that ordered it to teach secular.

Clearly the Gini Index of the Imperium Francorum and the Renovatio Imperium Romanorum that followed was much lower than that of the Roman empire. Only then could civilization be re-launched. Because there was money to finance progress. Again.

Conclusion: plutocracy is a malignancy, it has to be eliminated ASAP, should one want civilization to go up, instead of down. (And of course nowadays we need more civilization than ever, as the old civilization we enjoyed is running out of resources. Same as what happened to Rome, just way worse, and on a planetary scale.)

***

MOOD ABOUT PLUTO CHANGING IN EUROPE:

Injecting 85 billion dollars a month, as USA central bank chief Bernanke announced he was doing, is not enough (although that’s injecting 7% of GDP a year in printed money!). Rats have to be removed from power, prosecuted, fiscal havens have to be exploded, and tax cheat global corporations have to be forced to pay tax where they make sales. Earth’s problem is bigger than just banksters, and oil men.

Such was the hope Obama surfed, before he spent four years flashing his mesmerizing, mile wide, dazzling smile-to-seduce-the-world. And nothing happened.

Fortunately there are inkling that the mood is changing.

The  evidence is coming from Franco-Britannia, the EU, the Eurogroup. Suddenly, laws are passed: Financial Transaction Tax, limiting banksters’ bonuses. Taxing tax eschewing corporations is considered. The latest: telling Russian plutocratic mobsters that they have to pay tax, if they want to go on pumping dirty money through Cyprus.

This turn of civilization against plutocracy, to save itself is slow going. Indeed, the leaders of the West profit of a system rigged by plutocracy. Those elected politicians, supposedly servants of the People, live like kings, in the service of their plutocratic masters. Putting a few in jail, as justice is trying to do in France, may help.

***

REVOLUTION BREWING IN FRANCE:

First the good news: the plutophile who was French president a year ago, has been indicted (“mis en examen“). Justice believes there is enough evidence that Sarkozy was “abusing” an old lady, to put him under “examination”. One cannot make that good stuff up: elder abuse is next to Pluto, second only to pedophilia. Meanwhile many prominent politicians are on trial for  what they did in Iraq. French politicians, of course.

Amazingly, the abuser of the elderly, Sarkozy his name, married to a Franco-Italian billionairess, cost French taxpayers 2 million euros a year. The rich is never rich enough, in the mind of the established order of things. The suspected criminal prepares his defense from a 300 square meter office, next to the Élysée! ($250,000 a year in rent, paid by French taxpayers.)

Top Americans politicians cannot be suspected of any wrongdoing; they prey next to god, as they emphasize all the time, and never go on trial (except for the son of Jesse Jackson). Does not matter if they chew down the Fourth Geneva convention for breakfast. In fact Sarkozy is hounded for practices that are perfectly legal in the USA. 

Sarkozy had to hide in the dark, and persuade an old lady it was perfectly OK to give him money. While he was doing what Obama does one thousand times more, just in one day, and while Obama does it for a thousand days, as he buys himself a presidency.

Americans have stricly no problems when they see their president sleeping in a plutocrat’s bed. And if the president sleep in 100 plutocrats’ beds, it’s one hundred times better. Well, in France, it’s illegal, and it’s elder abuse to make the richest lady in Europe believe she is suddenly in Palo Alto, or something, and American law has superseded French law.   

Ex USA presidents cost USA taxpayers at least 4 million dollars a year (without counting their health care cost, and regalian security cost for them and their relatives). Obviously they deserve it: they all are extremely rich multimillionaires, and the richest get subsidies, so that low lives can dream even more.

Meanwhile in Spain more and more people are imitating the king, his family and the PM: they are living outside of the law. In the region of Andalusia, unemployment is at 35%. Low lives have started to seize government property, and cultivate food to survive. I guess austerity has met ingenuity.

French President Francois Hollande confided that “the unthinkable is now becoming possible, in France and many other countries, I know what I want to do, the problem is I do not have much time to succeed”.  By “unthinkable” he means the return of fascism.

Some may scoff: “who cares about France?” But France is the brainy spider in the middle of the European web. The decider on Cyprus was clearly the French finance minister Moscovici (in full accord with his wheelchair bound German colleague). Interestingly, France is also of one mind with Britain, and not just about Mali… But about taxes!

***

FRANCE & BRITAIN ASK OECD TO FIND WAYS TO TAX GLOBAL PLUTOS:

It is clear that France and Britain have had enough with mobsters (aka tax cheats). The governments there are on opposite ends of the political spectrum, that makes their alliance all the stronger. Alliance? Were not they trying to eviscerate each others’ budgets recently?

Conservative PM Cameron has realized that austerity alone does not work (as many have pointed to him with relish). British GDP numbers are worse than in the 1930s “Great Depression”. To relaunch the economy, Cameron reduced top tax margin from 505 down to 45%. Yet, Cameron is running a terrible deficit, he has to increase revenue.

Can taxes be augmented in France? The newly elected Socialist French government knows it has taxes as high as they can get without having the Sans Culottes take over. Indeed the Constitutional Court barred the proposed 75% proposed top tax margin rate (throwing the law out, although it had passed!). Then the Council of State followed on March 21 2013 by declaring that the top rate ought to be no more than 66%.

(The USA has neither a Constitutional Court, nor a Council of State, but it has a Supreme Court that plays with the constitution, when plutocracy is at bay, contrarily to, well, the constitution…)

So both the French and British government discovered the only solution: get those who pay no taxes to contribute, by force.

There are two main types of those: 1) multinational plutocrats, 2) multinational corporations.

So Mr. Osborne, the UK finance minister and his French colleague, Mr. Moscovici, sent a check to the OECD (Organization for Economic Co-operation and Development, based, in Paris, France). They asked this economic organization of the 34 most developed countries to find out how to tax multinational corporations.

there for a decade or so, The head a OECD an ex Mexican finance minister, Mr. Gurria partly educated in the USA at Harvard. On Saint Patrick day, march 17, 2013, he flatly declared on Tele5Monde (French speaking world TV): “les multinationales ne paient pas d’impots” (“multinationals do not pay taxes”).  And he added in no uncertain manner that this had got to change. He is very happy with the Franco-British checks. And

So even Osborn is determined to tax an entire category of international plutocrats and corruptocrats. Gurria insisted that it was Osborne the Conservative, and not Moscovici the Socialist, who launched the initiative.

***

MAKING AN EXAMPLE OF PLUTOCRAT ASSAD:

For me, plutocracy is, first of all, the rule of the Dark Side without any overwhelming justification from the Light Side.

This being said, Assad’s family is filthy rich in the traditional sense, having stolen We The People more than quite a bit. His shop-alcoholic wife used to support London’s luxury stores, and now she has fled to Moscow, one of Assad’s cornucopian source of weapons (the other being Iran, thanks to Iraq). She and Putin can commiserate of the fate of their funds in Cyprus, I guess.

To make their meaning clear, that the days of arrogant plutocracy are numbered, France and Britain announced they will ship soon to Syrian rebels absolutely lethal French and, or, American anti-aircraft missiles. The Americans do not even have to agree, because the French Mistral are even faster and more deadly than the American Stingers.

The essence of the matter is to make revolutionary secular forces win the war, because otherwise Russian inspired, or Salafist inspired, plutocrats will surely win, and establish their terror, strong as they will be after killing a million or so. Not intervening in the Spanish Civil War had been the fundamental mistake of France, Britain, and the USA in 1936… OK, intruth American plutocrats were fully on the fascist side (with fuel, ammunition, weapons, and Texas oil). At least, this time, those three are no as inert… 
***

CYPRUS ULTIMATUM:

Cyprus’ banks invested heavily in Greece, while paying, year after year, interest rates between 5% and 9%, for years. Cyprus’ banks need immediately 17 billion Euros to keep on operating.

The Eurogroup (mostly the finance ministers of France and Germany) agreed to give ten billions, if Cyprus found the rest. As the Greek church is part of the state there, it could easily sell part of itself, and find the money. Another solution is to tax plutocrats. There are 8,000 (mostly Russian) plutocrats in (nominal) residence in Cyprus.

The European Union gave a banking ultimatum to Cyprus. I saw that one coming. Cypriots had a good run. Money from their tax haven. Hush money. Who protects the tax haven from, say, Turkey? Franco-British military force. Do Cypriots pay for the Franco-British military establishment? Now they will.  

Moscovici agreed to lift the limit of reimbursement to 100,000 euros. (I don’t see why, as those accounts made huge money in the last few years!) That means the Plutos will be taxed at an even higher rate. 25% has been suggested.

There can be NO run on the banks, as all accounts have been blocked in Cyprus. Even the smallest ones. Plutocrats are given a choice: be taxed, or go bankrupt.They can’t even escape, because of capital controls. The days of Cyprus as a tax haven are over. Let all other tax havens join them at the bottom of the sea.

The problem with plutocracy is not just the plutocrats themselves, and the institutions that serves them. It’s also the general mentality that crimes pays, and the more criminal, the more paid one is.

That psycho mechanism, that crimes pays best, has to be broken at some point, and the point is now. Otherwise one would down in the sort of catastrophe that affected Germany. Nietzsche screamed in writing, by the 1880s, that Germany’s mood was turning from ugly, to criminal, and even mass criminal. Nietzsche even explicitly accused Kant. Indeed, Eichmann in Jerusalem, tried for the assassination of more than one million people, brandished Kant’s moral system as his justification.

Nietzsche was not listened to by Very Serious Germans. Why? Because Germany was a successful, run-away plutocracy, ever more fascist to fight the socialists. When Bismarck, no shrinking violet, nor fanatical socialist, finally understood a monster was born under his loins, he was thrown out, and Nietzsche’s prophecy, the destruction of Europe by Germany, proceeded.

We now have the same situation, on a world scale.

Plutocracy, fascism and depletion of resources (including climate) are all entangled. if we did like the Romans, and let our civilization go down, we would not have, like the Romans, a plan B. For the Romans, plan B, as it turned out, was the Imperium Francorum. 

What is therefore needed, immediately, is to traumatize plutocracy. In all sorts of ways. Exploding the island tax havens is a good start.

It’s a new paradigm. Common financial commentators in the USA whine to high heavens that trust has been breached, never to be seen again. Quite the opposite, a new trust has been established. It’s all about trust. Put your money in a tax haven, TRUST the European Union to tax it.

Spare nought. Cyprus today, Monaco tomorrow.

Even Monaco Has Got To Go

Even Monaco Has Got To Go

Of course, it’s traumatic. Voltaire gave a moral order:”Il faut ecraser l’infame!” (“One ought to crush infamy“) Traumatizing infamy comes before crushing it thoroughly. What else?

So it’s very simple: give an ultimatum to every single tax haven. The truth about these havens is that they are a modern form of piracy. Their relationship to the West is even more abusive than that of Rome’s pirates to Rome. Indeed, they are just another face, another interface, of Western plutocracy with the the weak it’s abusing.

The exact charge against Sarkozy is “abus de faiblesse” (“abuse of weakness”). It’s highly symbolic

In the case of Cyprus, it can submit, or be kicked outside of the Eurozone, to join the fishes at the bottom of the sea. Against the Russian mafia, a greater force has to be employed, and examples made. After years of tremendous interest rates, Cyprus’ parliament has stupidly decided to be greedy in the line of fire. Excellent.

***

Patrice Ayme

Force Tax Havens

January 9, 2013

FORCE IN THE NAME OF DEMOCRACY’S SURVIVAL IS NO SIN.
The brand new Swiss president had the impudence of moaning that “big states do not treat small states as equal”.

At first, this sounds good: the eternal lament of the weak and small being oppressed by the big and strong, something to make the righteous weep. And yet bacteria are small, but nothing to cry about.

The proximal object of the Swiss’ hypocritical whining was the unilateral French decree on January 1, 2013 to tax 5,430 tax payers who earn their living in France, but were (lightly) taxed in Switzerland (through special contracts with Swiss cantons, although they are French citizens). Under what theory is one supposed to negotiate about that?

I have a question for Switzerland, Belgium, the Netherlands, Denmark and Sweden (and other European tax havens).

What were they doing in October 1939? Hitler had just invaded Spain, Austria, Czechoslovakia, and Poland. Hitler had started a holocaust in Poland, bombing cities, focusing on flour mills, for all to see. France and Britain had started a war against Hitler. 40 French divisions were trying to break through the Nazi Westwall in a very narrow, difficult mountainous sector (they would succeed 54 months later). The French could only attack there, because Belgium and Luxembourg were “neutral”.

It’s not that they are just small: roaches may be small, but they accumulate as great masses. The total population of Switzerland, Belgium, the Netherlands, Denmark and Sweden is now 51 millions (2012). That is, larger than the population of England (although less than the UK).

What were those “small”, “neutral” countries doing in 1939? Well certainly not cooperating with France and Britain. In other words, the “neutral” were not on the side of civilization.

Switzerland was racking in the cash and valuables of millions of Europeans from Middle Europe, who were fleeing the Nazis. That included all the valuables of hundreds of thousands of Jews (conveniently the banks would later lose the records of these transactions, once their clients had been exterminated by their accomplices the Nazis). While filling up its coffers with what would turn out to be an enormous stolen capital, Switzerland was not cooperating militarily with France. This had drastic consequences, because the Maginot line, which extended along the border with Italy, did not extend along the Swiss border.

So France had forces at the ready, in case the Nazis tried to pass by the central plain of Switzerland; the dispersion of French forces on May 10, 1940, was the major factor in the defeat of May-June 1940.

(The major sea-land-air invasion of Norway and Sweden ongoing in May 1940 by elite French and British forces did not help; for example the Legion could not be deployed to help the Fourth Heavy Armored French division led by de Gaulle cut behind the Nazi Panzer army; as it is giant French heavy tanks came within a kilometer of the top Nazi generals, at night, without knowing how close they came to decapitating the German command, including general in chief Guderian, who related the situation; a few legionnaires may have made the difference; but the Legion was getting ready to invade Hitler’s collaborator, Sweden.)

The usual Francophobic rabble will laugh, at the idea of 5 million French prisoners, 200,000 French killed. However France had on her territory hundreds of thousands of political refugees fleeing Nazism. A direct consequence of the French defeat was to enable further the extermination programs directed at Poles, Jews, Slavs, Gypsies. (And soon 28 million Soviets killed.)

Those extermination programs extended the extermination program against mental retards and degenerates, which was completely official, so Switzerland, Belgium, the Netherlands, Denmark and Sweden knew very well what the Nazis were up to.

Sweden was outright intensely collaborating with Hitler by selling him enormous quantities of high grade iron ore that the bloodthirsty dictator needed for making his weapons. The ore was going through Norway along the “Iron Road” to Narvik, a special railway carrying the world’s heaviest trains.
The situation was so strategic that France and Britain decided to cut off that non-sense by force, while Hitler, anticipating this, decided to invade Norway, to secure the “Iron Road”.
Sweden could have sent the ore by a longer route to the Baltic, so France and Britain decided to invade Sweden with an army spearheaded by the French Foreign Legion. Unfortunately the Legion had to be recalled in May 1940, when the Nazis attacked through the Ardennes mountains.

Hitler, smart in the way predators are, and desperate, because his chances against the French army seemed tenuous, had concentrated all his forces on one road through the Ardennes. A Spitfire pilot saw the German armor traffic jam, reported it, and was not believed.

Meanwhile the worldwide dispersed French Air Force was not even at 50% strength over France, and could not check where exactly the main Nazi forces where. Hitler focused on a savage attack against the Netherlands, in the hope that the French would stupidly show a big heart.
The French High Command fell in the trap and, with consummate stupidity sent the Reserve Mobile army of seven armored divisions led by general Giraud to the Netherlands. While the ten Nazi Panzer divisions broke through the Meuse river, way south.
The reason Hitler broke there is that the French Maginot Line finished a few kilometers to the south. The Maginot Line could not be penetrated. It was even stronger than the Nazi Westwall, which held the five million man Western Allies for 6 months in 1944-45.

The portion of the Maginot Line that was supposed to be built in Belgium, going north, had never been built, although it was supposed to be built, by treaty with France. This non construction of crucial fortifications was a particularly fatal treachery of “neutral” Belgium.

The initial Nazi plan called for a double pronged attack through Belgium. It had been fully anticipated by the French High Command. Had the Nazis done this they would have encountered head-on the French and British army, and be defeated. French and British armor was superior to the Nazi one, with much bigger tanks. The rare pitched tank battles with the French and the British brought systematic Nazi defeats (it’s only by going AROUND French and British armor that the Nazis won in May 1940!)
However a plane carrying the Nazi plan crash landed in Belgium, and the Nazis had to change to the crazy plan that worked.

There is a contemporary lesson therein: plans do not resist contact with the enemy, that’s well known. Less known is the fact that a vastly inferior enemy, as the Nazis in May 1940, can win by trying something crazy, as the Nazis did in May 1940. The admonishment is that the Western Allies should not underestimate, again, what potential enemies are capable of. Ballistic missiles, satellite and cyber attacks should be prepared against.

To come back to the initial subject, had the Netherlands, Belgium. Norway and Sweden declared war to Hitler during Fall 1939, Hitler would have certainly lost.

So we can conclude two things:
1) countries that still claim to be neutral, such as Sweden and Switzerland, should be sanctioned against, on that ground alone. They are, in truth vile, always anxious to serve the worst, most profitable master they can find. (See the WikiLeaks story with Sweden or Switzerland’s anxious pandering to Qaddafi, as ongoing symptoms of baseness.)
2) countries that are “neutral” when civilization, basic human rights, or the right to life are at stake (as was the case in 1939), are actually followers of the Dark Side.

Some will say:”Grow up, we are not in 1939 anymore, this is not relevant today.” But nothing could be further from the truth. The order established worldwide, is primarily military. It is symbolized by the United Nations, and was established by the democracies during World War Two (as the SDN’s idea got started in France in 1916; the SDN was the ill fated predecessor of the UN).

Taxation precedes militarization, which precedes democratization (this point of view was argued in these terms in Athens 2,500 years ago, leading to the construction and manning of a 200 triremes fleet, and, at enormous human, financial and ecological cost, the victories of Marathon, Salamis, and Platea… Against a particularly parodic version of the Dark Side. Thus civilization won over fascization.

For decades, Switzerland and the Benelux have played tax havens (it varies from canton to canton; Luxembourg or Zug are particularly abject, the Netherlands milder, but bigger by two orders of magnitude!).

Tax havens are not just draining the bigger states from tax revenues. As I always mention, the withdrawal of the legions from Britain, Germany and Gaul in 400 CE was directly caused by lack of revenues (the Roman plutocrats refused to pay tax, they felt reasonably confident that, protected by their own private armies, they could resist the small invading German bands). The crisis had been long in coming (Marcus Aurelius confronted it already in 160 CE). The “Occidental” Roman empire collapsed within six years.

By draining tax revenues from the bigger, leading DEMOCRACIES (there are about ten of those, led by the nuclear armed USA, France and Britain), the smaller states, the tax havens, are actually conducting CHRONIC hostile operations against democracy, republic, civilization, basic human rights, or the right to life.

Thus, whenever Occidental democracy confronts an enemy, Switzerland, whether conscious of it or not, is an objective ally of said enemy.

So Mr. Swiss president, by choosing the Dark Side, your country is not just small, vile and ugly, but should also be treated as a hostile alien. Such is the lesson from 1940. As France, Germany, Italy, the USA, maybe even Great Britain are presently requesting Switzerland to surrender tax evading plutocrats, they should hesitate to use force (as they have been doing increasingly).

The other lesson is that France and Britain should have invaded Narvik and perfidious Sweden in 1939, instead of waiting passively, and stupidly, for Hitler to attack Norway. (If the Norwegians wanted to fight the Foreign Legion, well, tough luck for them.) Cutting the “Iron Road” in 1939 would have fatally weakened the Nazis.

Right now the galaxy of small and despicable tax havens, worldwide, greatly weakens the big democracies, and is at the root of the ongoing Greater Depression. Tax havens enable gangsterism, banksterism, and tax avoidance by the largest international corporations, while leeching off the military power and order established by the leading democracies.

Tax havens should be viewed as terrorist organizations, as they enfeeble those who fight the enemies of the Open Society, and treated as such. That means, they should be treated with democratically imposed military force, precisely what the plutocrats do not want to pay for anymore than they did in 400 CE.
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Patrice Ayme