A reader sent me this link: MPs call for Cayman closure | CNS Business. About time! Someone has to stop these pirate operations. For years, I called for the US navy to invade these places since they are draining the Treasury and thus, endangering our nation, depriving it of needed tax revenues to fund the military. Instead of invading places so oil can be sold by international offshore corporations, we should have our military pay for itself by going after those who are evading just taxation.
Led by the Labour member for Leyton and Wanstead and former Treasury Select Committee member, John Cryer, the motion calls on the UK government to introduce urgent legislation to help close tax havens and increase transparency “so that the very richest pay their fair share of tax”. In the wake of revelations about US presidential hopeful Mitt Romney’s finances, Cryer and his Commons colleagues say they are alarmed by his use of the Cayman Islands, a UK territory, to avoid paying tax.
The Cayman Islands are actually not a UK territory but a Queen Elizabeth II territory. It is protected by the UK but doesn’t have to obey UK regulations…so far. The City of London operates the same way, it is exo-territorial inside the biggest city of England. The Queen also owns the entire shoreline of England and all its resources including wind energy!
The loss of their offshore operations will freak out the many million and billionaires in the US and England who use these to evade taxes. Romney never expected his own financial shenanigans to become a prime issue in the GOP primary. Making people aware of how the rich cheat our government while taxing us all heavily and piling more debt on us, is a good thing! About time!
In NYC, the money machine is again faltering. Undercapitalized and depending on ZIRP loans from the Federal Reserve, the biggest owners of the Derivatives Beast are cutting bonuses and jobs: Financial-Sector Job Cuts Announced: 200,000 – Bloomberg. The entire mechanism for fiances has been totally warped out of shape by international free trade games played by the very rich.
Free trade has caused the value of labor in the US to plummet. Workers who once earned $25 an hour are now earning $12-17 an hour, an immense drop in income. Households kept up, for a while, with inflation, via putting all family members to work. Gingrich wants to finish this by putting children to work, too. A la Victorian days.
Just as Romney sneered about enjoying firing people, so does his buddy, the Morgan Stanley CEO Snapped At Disgruntled Employees: ‘If You’re Really Unhappy, Just Leave’. Yup, the very rich just want us to all go away. Now. Don’t bother them. The Global Warming people wanted huge taxes on CO2-producing energy to fix things really good and to return us to the days of ice and snow. But with Oil Price Projection: $200 they don’t need to tax us, we will all be unable to afford energy and this will bring back polar bears and putting grandpa on an ice floe to get rid of him.
This $200 a barrel oil prediction is predicated on the idea we will cut out all Iranian oil from world markets and then voila: peace as the Iranians would then stupidly disarm and we can then quickly invade and steal the oil. Of course, this game has not brought down world oil prices in the past!
In our good buddy overseas, England, we see rising fear and despair so Sir Mervyn King comes to the rescue: no reason to despair over economy – Telegraph
“There is no reason to despair,” he said. “All crises come to an end, and businesses will find ways to trade with each other and meet the needs of consumers.
“Helped by the right policy actions, the UK and world economies can and will recover. And when they do so, they will be on a more sustainable footing than at any point in the past 15 years.” …After the three main party leaders gave speeches on the future of capitalism, Sir Mervyn urged politicians to “maintain support” for a market economy and an “open world trading system”.
“They provided the basis for the great prosperity experienced since the Second World War,” he said.
Our good buddies in Japan have had a 20+ year depression. The Long Depression 100 years ago lasted for over 20 years, too. The open world trading system caused this global collapse but we are supposed to do it again, even more, and longer. So, Japan which had a huge trade surplus for 20 years…had a long depression at home that continues today and Japan is now running a trade deficit! OOPS. Didn’t work! Mervyn the Merlin thinks that waving his magic wand we will find prosperity via global free trade and offshore profit havens.
This is obviously not working. It can’t work. Globalization killed waged in England and the US and incidentally, Japan. Its success rate is miserable. It has made the top 1% extremely, amazingly rich. But the trickle down is minute. Or negative, for workers in first world nations.
As the price of oil shoots to $200 a barrel thanks to the EU stupidly strangling Iran to please the owners of our government in Israel and Saudi Arabia, things are cooking that will really make our lives miserable: The demise of the dollar
Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
This is all hearsay. But calls for dumping the dollar have been rising more and more. It is inevitable. Especially since the Fed announced they would buy up more junk from the top bankers to fix the wrecked banking system and keep free trade treading water in a sea of red ink, for a while longer.
And here is a poorly-researched article supposedly rebutting those of us who point out that Japan is dying, not thriving. I used to directly argue with Krugman about Japan in the past and am amazed he finally embraces my own analysis about a decade late but better than never: A Reply to Paul Krugman | Sandcastle Empire
For me by far the most problematic statement in Krugman’s commentary is this: “Current account surpluses aren’t necessarily a sign of success.” An ivory tower economist can, I suppose, imagine circumstances in which rising surpluses might be considered a sign of weakness and deficits a sign of strength — but such circumstances are temporary blips and don’t apply to a Japanese trade policy that, except for a break in the early 1940s, has been consistently pursued for 140 years now. Krugman seems to forget that the soubriquet “Juggernaut Japan” was coined in the 1980s precisely because Japan was so successful in boosting its trade surpluses. (Reality note: Unlike some other commentators, Krugman to his credit does not cite last year’s decline in Japan’s surplus as evidence of a fundamental change. There are several things going on in the decline, of which the earthquake, the tsunami, the nuclear meltdown, the power shutdowns, and the Thai floods are only the most obvious. A key reason why Japan’s merchandise trade is lower than formerly is because of massive transfer pricing — a point that The Economist missed in a recent analysis.)
…In incurring deficits, the United States has been going ever deeper into debt to other nations. In earning surpluses, Japan by contrast has been acquiring ever larger assets abroad, not least in the United States. This is ultimately a matter of national security: debtor nations increasingly must defer to creditor nations.
Yes, the US is a debtor nation from hell. Japan has a huge trade surplus squirreled away in bank vaults to keep the US dollar more valuable than the yen. Japan still produces stuff BUT THIS IS ENDING. Japan still manufactures stuff BUT THIS IS ENDING. The exodus of jobs, manufacturing and society from Japan is now a huge flood and it is getting rapidly worse and worse.
And this editorial ignores recent statistical information such as the dire fact that Japan is now a net-importer, and now has red trade ink pouring into the Japanese sea of government debt and depressed asset markets inside Japan and on top of that, this red ink is radioactive, too! And the government has gone insane: City Assemblyman in Tokyo to School Children: Don’t Be an Egoist, Eat Your School Lunch to Share the Pain of Tohoku | EX-SKF . ’Shuddup, and eat your radioactive spinach!’ snarls the politician. Yikes. Insane.
And then there is this: Risk of big quake in Tokyo area within 4 years may be 70%: institute – The Mainichi Daily News. Yes, this will happen sooner than later and may happen at the same rough time frame the San Andreas between San Francisco and LA jumps 33 feet northwards in one second! This would leave both the US and Japan in a state of financial collapse because neither can afford to rebuild except via immense amounts of government debt.
And last of all, Philippines may allow greater U.S. military presence in reaction to China’s rise…yes, the military wants more bases. And Hillary thinks this is a great idea. More military obligations of protection equals power in her deranged mind. We hope to ring China and Russia with hostile military bases and then intimidate both empires and teach them all a big, fat lesson while Japan, the US, the UK and EU all run up incredible amounts of debt and destroy the lives of workers at home.
Sounds like Russia during the 1909-1917 era! What a great example that sets.
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