Bain Capital Paperwork Leaked to Gawker: Murky, Offshore Tax-avoidance Schemes

Somehow, the Bain paperwork for the SEC and others have been handed over to the media today.  Not a good thing for Romney.  He is spinning this as, ‘I did nothing ILLEGAL’ but this begs the real question.  The question we are asking is, ‘Do all the rich people run offshore money games that evade taxes while they simultaneously run our government?’  This is the core Oligarch question.  What surprised me the most when I looked briefly at these documents is, the top one is all about ‘absolute capital’ funds which I have written about extensively in the past.

 

The rich people who own our media do the same tricks Romney plays because many people who are rich can’t resist playing games they created, themselves, aimed at evading taxes!  This is the main reason why our government is going bankrupt.  The cynicism of the rich is astonishing.  They took over and ran our economy off a free trade cliff while moving their wealth offshore and meanwhile, keeping an iron grip on our government via bribes and buying offices via running attack ads on TV stations owned by fellow rich people.  The Bain Files: Inside Mitt Romney’s Tax-Dodging Cayman Schemes

 

Today, we are publishing more than 950 pages of internal audits, financial statements, and private investor letters for 21 cryptically named entities in which Romney had invested—at minimum—more than $10 million as of 2011 (that number is based on the low end of ranges he has disclosed—the true number is almost certainly significantly higher). Almost all of them are affiliated with Bain Capital, the secretive private equity firm Romney co-founded in 1984 and ran until his departure in 1999 (or 2002, depending on whom you ask). Many of them are offshore funds based in the Cayman Islands. Together, they reveal the mind-numbing, maze-like, and deeply opaque complexity with which Romney has handled his wealth, the exotic tax-avoidance schemes available only to the preposterously wealthy that benefit him, the unlikely (for a right-wing religious Mormon) places that his money has ended up, and the deeply hypocritical distance between his own criticisms of Obama’s fiscal approach and his money managers’ embrace of those same policies. They also show that some of the investments that Romney has always described as part of his retirement package at Bain weren’t made until years after he left the company.

 

Bain isn’t a company so much as an intricate suite of steadily proliferating inter-related holding companies and limited partnerships, some based in Delaware and others in the Cayman Islands, Luxembourg, and elsewhere, designed to collectively house roughly $66 billion in wealth in its many crevices and chambers.

 

Here is the first document:  The Bain Files: The Documents

The Bain Files: The DocumentsAbsolute Capital Return Partners LP
A U.S. private equity fund with $929 million in capital as of 2009. Romney held at least $1.25 million in it as of 2011, according to disclosures. Click here to read its 2009 audited financial statements.

 

 

I laughed the minute I spotted this.  Took me another minute to dig up one previous story I wrote right before the Big Blowup.  From my own blog, July 2007:  Money Matters: Absolute Return Funds Are Not Absolute Wealth Machines

Today, I want to talk about Absolute Return Funds which is yet another whacky scheme to make money with high rates of return due to high risk while pretending there is not only no high risk but it makes money going up or down! These various schemes are called ‘products’ and the guys struggling to get money from investors have to keep coming up with better and better schemes every day and these have been proliferating like crazy the last 7 years. This is because the fundamental systems we live with today have been totally destabilized and are not getting better but are actually collapsing!

 

This seems obvious in retrospect but when I first wrote this, I was one of less than half a dozen, far less than half a dozen economic commentators who spotting the future collapse.  I also predicted that the rich would bail themselves out of the impending disaster at the cost of all the citizens of the first world countries who would be looted.  Which is what happened.

 

Of course, just as the mainstream media totally misreported events and refused to analyze things to see what would go wrong if we did these stupid things like offshoring wealth with impunity, today, this same media continues to misreport events.  They make it look like if only we trust the very rich, they would wave their magic wand (as in the above cartoon) and voila: everyone will also get rich, too.

 

Tax cuts were supposed to do this.  All this caused was tremendous inflation, the collapse of US jobs as they were offshored and the rich getting very much richer while parking this also, offshore.  Back to my own blog:

 

But easy to understand. The global liquidity factor is due to all things being hidden. All these privateers have to do is change the numbers and voila! Money is there! They don’t have to bother with any outside agencies like the SEC in America. No government controls them. In England, for example, they park their darker doings offshore in Jersey, for example, and bribe the Royals to keep their lips zipped. The government of England is increasingly agitated about this but if they try to stop it, the finance houses of the world hammers them so they play along hoping this won’t end badly.

 

It is, of course, worse.  They ARE the ‘government’ and thus, rescue only themselves while throwing the rest of us to the wolves.  They ARE the wolves.

 

Simulatenously, they are selling shares in these funds to us. We can get the profits in this madcap rush to turn all public organizations, private. But as soon as this is done, the door will slam shut. When purchasing abilities fail, instead of stocks losing value, nothing will happen except workers will be laid off!

 

Then the rich can have their lovely depression and we will have no say in the matter! I keep warning people, rich people love depressions. It makes them rich without any interest paid, no labor, nothing. If you read the history of depressions, they talk about money under the matress (note the dark connotations and the fact that childhood monsters live there). This means, if you do nothing with money, not even banking it, you make a profit! How lovely if one has money!

 

Like Bush Jr., the latest GOP incarnation is telling us, all we need to to drill more oil and then we will have cheap energy.  They don’t mention that any oil taken out of the ground will be sold…TO ASIA.  This will not make more cheap oil for us.   Nor do they mention that the stupid oil embargo of Iran is directly responsible for oil shooting up in price.  Then there is the catastrophe of not enough rain in the Midwest.

 

Global warming or not, the Great Plains has droughts like this regularly over the last 12,000 years.  And since corn is turned into gasoline, this will hammer gas prices on top of everything else.  Neither Obama nor Romney and most certainly, our media will dare not mention that the AIPAC oil boycott of Iran is directly eating up our money which has to buy very expensive oil from…Saudi Arabia!  Which is selling more and more oil to us, too.

 

Here is where Bain Capital Asia Fund LP parks its loot:

A $487 million Cayman Islands fund investing primarily in China and Japan. Romney held at least $100,000 in it as of 2011. Click here to read its 2009 audited financial statement.

 

And this is all about Romney’s promise to create more US jobs.  He has worked tirelessly to do the exact opposite.  The issue of sex is the #1 topic to the greatest relief of our media owners who use sex ruthlessly to sell ad minutes to corporations, luring everyone to watch sexy, sexy Pussy riot females mouth assuring words to them both in and before ads.  The GOP is going to fix sex for us by making everything illegal except for what they choose to do.

The real issue this election is the US destroying its own economic and banking system thanks to rich people destroying our laws, our regulations and deliberately misdirecting the flow of capital, hiding the fact that they are systematically looting it from our infrastructure and transferring it to foreign venues.  Hostile foreign venues.  More about that later.sunset borger

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14 Comments

Filed under .money matters, Politics

14 responses to “Bain Capital Paperwork Leaked to Gawker: Murky, Offshore Tax-avoidance Schemes

  1. Peter

    I’ve been enjoying your posts so much,especially yesterdays Pussy Riot one,hysterical!!!
    I had to make another donation.
    I hope other readers do the same with whaetever they can afford for these wonderful writings.

  2. OK, these pirate coves have existed for decades and now the non-liberal, unbiased media wants to “expose” them just because some dork Republican is hiding $100K offshore. Of all the rotten, stinking luck! Just when I was in a position to hire myself out as Bush’s landscaper in Paraguay, or Goldman’s doorman in Zurich. Maybe there’s still a chance I can work as a bellhop on Libertarian Island.

  3. Eso

    Maybe the logic of the usurous corrupt has more to do with poetic justice having murphed into written law, than what the ordinary man and woman understands as law.

    Originally, right after writing appeared, the spoken word still held sway. The spoken word had to be understood by everyone. If it was not understood and you stole, I would want, at least, to slice off the tip of your little finger. Something like this still prevailed right after the law came in written form.

    Unfortunately, poetry also then became written, and spoken (read) poetry became incomprehensible–unless it was read on a page. On a page one could take the time to figure out (decipher) the association(s) the poet meant the reader to make.

    Then the virus of letters struck the law with the Black Plague: an attorney and lawyer could think up so numerous interpretations of the law that no ordinary man or woman could either grasp or understand; but the rich and their attorneys, and Supreme Court judges delighted in it: today money is become poetry and can and will trump the spoken word any day: http://www.poetryfoundation.org/poem/241052

  4. Jim R

    Shocku, I understand the island from Lord of the Flies is looking for a punkawallah, it might be just what you’re looking for.

  5. Jim R

    And a little known fact about corn and ethanol (Elaine, you should know that ethanol is not gasoline) … it is probably EROEI-negative!

    In other words, if we stop doing this incredibly stupid thing, not only will we have more corn, but we will have more of the other fuels that were used to distill the ethanol! More natural gas, more diesel, etc etc.

  6. emsnews

    You are probably right. Global warming has been made worse, if one wishes to point out the obvious, thanks to cutting down rain forests and replacing them with sugar fields which are used mainly to make gasoline.

  7. DeVaul

    “Just when I was in a position to hire myself out as Bush’s landscaper in Paraguay…”

    So that’s who got the position! They told me the only position left was that of “gamekeeper” — out in the jungle.

  8. Jim R

    Absolutely.

    All this talk of ‘carbon credits’ (which is really just more financial fraud) — if they really wanted to account for all that carbon, those tropical countries that keep bulldozing their forests, and letting multinational timber companies come in, would owe big-time carbon credits! They would owe more every year, because the natural forests, which are now gone, would have soaked up carbon every year, forever.

    Which reminds me, did you get your check from Al Gore yet? I figure he owes you for having some of the last trees standing 😉

  9. Liberal AND Proud

    I sincerely hope the entire house of cards collapses entirely.

  10. @Jim R As long as it pays good.

    @ Devaul The position more likely available at Bush’s Ranch is that of a “Running Man.” It’s how Skull & Bones guys relax.

  11. DeVaul

    Yeah, well, when Bush said “gamekeeper”, Cheney had this odd smirk on his face, so I decided not to take the job. Just a hunch, really.

  12. Follow your (survival) instincts.

  13. Being There

    Great piece, Elaine and thanks for that. These creeps own the narrative, they have run circles around the polity here and it’s amazing to me to see the “reality” they have created for these election cycles. It’s the same as the 60’s, but worse–that’s all. They have no idea that the whole system was changed out from under them.

  14. 90404

    Elaine, you sound more and more like Catherine Austin Fitts.

    Theres an old book by Adam Smith [not the guy from the 1700s] called
    ‘Paper Money’ that you might enjoy.

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