Tuesday, November 07, 2017

Trouble in Paradise


The Paradise Papers have hit the fan. Bernie Sanders understands what they are really telling us:

Vermont Sen. Bernie Sanders, in a statement to The Guardian, said that the papers demonstrate that the world has turned into an “international oligarchy” controlled by a minute number of billionaires. “The major issue of our time is the rapid movement toward international oligarchy, in which a handful of billionaires own and control a significant part of the global economy,” he said. “The Paradise Papers shows how these billionaires and multinational corporations get richer by hiding their wealth and profits and avoid paying their fair share of taxes.”

Of course, the Americans aren't the only ones who are avoiding taxes. Justin Trudeau's chief fundraiser, Stephen Bronfman, and Elizabeth II are on the list of those who stash money in the islands.  The world's most profitable companies are also socking money away there:

Apple has come under scrutiny by Congress for shifting much of its earnings to Irish subsidiaries, avoiding income taxes. Documents from the leak show that after its chief executive, Tim Cook, said that the company didn’t just “stash money on a Caribbean island,” it found a new tax haven—an island in the English Channel. The use of complex offshore structures have helped keep much of Apple’s more than $128 billion in profit abroad free from taxation. 

And Russian money is being washed clean in the Caribbean:

Behind one of Silicon Valley’s most prominent investors, Yuri Milner, was hundreds of millions of dollars in Kremlin funding. The documents show that Mr. Milner’s investment in Twitter relied on money from VTB, [a] bank controlled by the Russian state. One of his most significant investors in Facebook relied on funding from Gazprom Investholding, another government-controlled institution. Mr. Milner is also an investor in Cadre, a New York-based real estate technology company founded by Jared Kushner, President Trump’s son-in-law and White [House] adviser.

Wilbur Ross, Donald Trump's Secretary of Commerce -- the man who is telling Canada and Mexico about the new trade rules -- is avoiding taxes and getting richer in Paradise:

The revelations about Ross prompted Sen. Richard Blumenthal, a Connecticut Democrat, to call for an investigation into the investments. The New York Times reports that “much” of Ross’ wealth is tied up in secretive offshore dealings.

Interestingly, Ross's wealth has Russian connections.

There's trouble -- lots of it -- in Paradise.

Image: Lovin Malta

11 comments:

Steve said...

Remember the Panama Papers, its just Groundhog day, nothing burger.

Steve said...

https://www.icij.org/investigations/paradise-papers/explore-politicians-paradise-papers/

Owen Gray said...

An interesting link, Steve. I agree we've seen this movie before. But it's not a nothing burger.

Lorne said...

Makes all of Trudeau's promises about tax fairness a cruel hoax, doesn't it, Owen?

Owen Gray said...

It appears, Lorne, that -- to borrow a phrase from Justin's father -- our politicians are headwaiters to the wealthy.

The Mound of Sound said...

I came across an op-ed in The Atlantic today arguing that "governments don't stand a chance against rich people who don't like taxes." That sent me back to home base, Theodore Roosevelt's "Square Deal" speech. I believe that there's truth in the Atlantic op-ed but only if we accept what passes for government today. That, in turn, recalls the closing line of a piece published by Vox today.

"It is quite possible that moderate conservatism and moderate liberalism are inadequate to explain and tame the convulsive economic and social changes of our time. Which places America’s future — uncertain, maybe unknowable — on the other side of an earthquake."

I'm beginning to feel the mountain rumbling. Are you?

Steve said...

That PET quote is perfect for our time and proves once again that PET was a person we did not deserve. Why we abandoned him for the other, could it have been CIA? PET was fighting not just politics but old white anglo Canada. That obstacle is in the rear view mirror for Justin.

Its as futile as thinkingaboot what would the world be like if Gore had won.

I have another great quote from you from an unexpected source.

Politics is the entertainment division of the Military Industrial Complex.

The Toronto Star calculates Canada loses 8 bill a year to offshore accounts. 8 bills could pave alot of streets in this country with gold. It could give Canada a superconducting power/train from east to west. It could give us Sinagpore style public housing. The possibilities are endless. OR if Scheer is elected we could buy an aircraft carrier.

Justin must become Trump like in his crusade to repatriate these funds. I hope the useless
press makes Scheer condone these devices. The great thing is that Justin wisely avoided
the bagmen in his election victory.

Owen Gray said...

"Malefactors of great wealth." That's what Teddy called them, Mound. When you stop and consider that Teddy was a Republican, you begin to understand what has happened to the party.If things continue to get worse, the United States could have its own version of the storming of the Bastille.

Owen Gray said...

Justin should begin repatriating taxes, Steve. But Trump's vow to do that is a fraud. Take a good look at his tax "reforms." Trudeau should not be Trump-like.

The Mound of Sound said...

Yes, Teddy R was Republican. His cousin, from the "other" branch of the family, was a Democrat. Neither's progressivism was constrained by party lines. There's an invaluable lesson in that.

Owen Gray said...

They were both members of the financial elite, Mound. But they were not afraid to take on their own tribe -- even if that tribe considered them traitors to their class.