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Wednesday, 6 April 2016

Scandals Have Been Boring For Too Long!

Scandals Have Been Boring For Too Long!
(The #PanamaPapers: Of Tax Evasion / Avoidance)
Inspiration for the title of this post is from an ad-slogan "Ships have been boring for too long" - How the great Cunard's QEII ocean liner was promoted at its launch in 1967.
Fund Portfolio Management - FPM looked at the latest whistle-blowing leaks of confidential / secret / private etc information. Particularly the significance of the #PanamaPapers dissemination. The revelations of the expose have similitude and character to a duplicitous grand theft from public-purse spanning over 40 years. Mere media cantation of whistle-blowing, leaks and scandal is wastefully "jobsworth" paper-selling newscycle. The seriousness of high profile Snowden, Assange, Clinton, Libor-fixing etc etc have sadly not been addressed and followed up to serve as tier of public-interest protection. Agencies do exist, but they are often Government-funded and therefore stymied by their regulatory enforcement efforts by unincentivised and overworked civil servants: for case in point, at least in the U.K., Her Majesty's Revenue and Customs - HMRC, the tax collecting authourity. Hence why scandals have created ennui and apathy in the accustomed-to-corruption public. FPM believe this "scandals" should be scintillating for the agencies concerned for years to come - not at all boring!
 
What is critically important TODAY is that we live in epoch-changing times with confluence of technological and geopolitical factors affecting the whole world – from globalisation. The joined-up thinking indicates that the #PanmaPapers serve to remind and ultimately remedy the biggest social problems of the past and TODAY, wealth-inequality - seriously. Climate change is indeed another one that threatens mankind, but while we exist the quality of existence is indeed measured by wealth. Especially so in a world imposed by money-lenders and money-changers in the "money game". People! we live in a plutocracy not a democracy - tax havens are an inevitable symptom of former type of organisation of society. Just as once Christianity was imposed on so-called pagan worlds, and theology used to exercise control power and influence (also sex!) over the subjects of religion.  The global oligarchy of wealthy establisment people and organisations in various countries have been exposed on global mass, for their shady practices equal to theft in complicity with law-makers and politicians. A grand theft from the majority of the public who have in essense been distracted and defrauded of tax revenues. Robbed blind! As the saying goes. And as further insult from these ruthless thieving classes of establishmentarians - upper-class elites devoid of human empathy that have always existed - the 99% of population now faces public spending austerity and public-assets privatised via corrupt crony capitalism. And isn't that indicative or cause of the biggest problem of global societies TODAY, great wealth inequality?
Mushrooming billionaires and millionaires inevitability means greater amount of common people poorer in debt servitude – zero-sum “game of money” (one wins another loses; then print and/or create more money via cycle of  asset-bubbles and lending).

So what makes the #PanamaPaper a catalyst for revolution by the proletariat and the middle classes? And who are these money-lenders and money-changers and accomplices  who make vast fortunes, exploiting the public? The various Biblical-proportions leaks revealing a shadow world of corporate and finacial malfeasance is treated by "Murdoch's MainStreamMedia Muppets" (a nickname from FPM's #NoSmokeWithoutFire: Of Reputation for bad journalists), as a "scandal". These sharing of secrets by whistle blowers in the interest of humanity could and should mean much more if big media were more responsible independent and didactic. Simply put, the public's induction and their deductions have been too long manipulated. FPM shed more joined-up-thinking perspectives on #PanamaPapers:

1) Examined in particular instances i.e. scrutiny of the deluge of data from JUST ONE organisation helping to avoid and or evade national taxes for the wealthy via offshore tax structures, we see the hypocrisy and blatant disregard for the public interest. Tax avoidance is meant to be illegal and evasion is permissable within rules. A public, who most of these wealthy classes,  entrepreneurs to politicians, claim to serve in their economic life and careers are arguably self-servingly exploiting and preying on the wider, majority and fellow humans. "Animals" is too insulting a word for wildlife, to describe this ruthless morality and behaviour: "beasts" seem apt! Not only of public figures like David Cameron, Prime Minister in the U.K. accumalating wealth from trusted public positions, but also of his ancestors and descendents indirectly; as the British PM shamelessly distance himself from his own deceased father through embroilment over Blaimore Holdings Inc.. This is exactly the case in point why FPM use the term "CORRUPT CRONY CAPITALISM". Most of these wealthy people rely on  their PUBLIC REPUTATION for their livelihood. Therefore it is not a stretch of the imagination to believe, for example, that David Cameron's has guilt by association, even though his father used tax shelter schemes. A case in point is the resignation of Iceland Prime Minister after the #PanamaPapers leaks – more later. So the high-impact value of these Mossack Fonseca company's operational files is not just about money laundering and discrete transactions in asset management – which to the many unsuspecting public would seem unusually like business as normal!

Instead the greater mass of the public, as in any peoples' revolutions of the past, have and have had an opportunity to hold accountable these wealthy individuals. Specifically to interrogate the difference in the public communication policy and their deeds towards accumulating wealth. David  This investigation of individual and corporate entities is KEY and CRITICAL as a catalyst for people's revolution to create or simply expect a fairer society, or at least re-dress the balance (until another and next era produces inequality!)

Q. Why is FPM certain that a comprehensive investigation of these #PanamaPapers and their information is key to opening Pandora box of the deceitful backward two-faced individuals and corporations?

A. As proof, World governments have come out one-by-one to publically announce that they are starting investigations into these files and the tax affairs of en-masse wealthy (not just isolated ephemeral cases like Bernie Eccleston or Lionel Messi!). Tackling tax-avoidance is an appeasement rhetoric or platitudes often expected from lip-service sound-bite politicians. Keep these politicians and governments to account for their pledge in the afternmath of the terroist bomb of secret information.

2) These confidential information leaks and those to follow, as whistle-blowers get legal status and protection, are NOT merely a part of the ever-changing "NEWS CYCLE"; perhaps leak is itself agenda-driven, this time to appease  the disgruntled left-wing public and activists, or anything of the sort. FPM suggests "The Force Awakens: In Investigative Journalism!" The nature of Panama Papers is probably designed to have revolutionary impact: ICIJ · The International Consortium of Investigative Journalists have been handed this confidential information about the shadowy world. And they seemingly are responsible as a worldwide journalist community of named individuals (Project Managers: Marina Walker Guevara and Gerard Ryle), to adduce and disseminate findings from the leaked confidential secrets into the mainstream consciousness. At least until tax laws are effectively changed by the #politicianRcriminal class towards wealth-equality (among the other more prominent rhetoric about "gender equality", "racial equality"etc). Treatment of this #PanamaPapers will be tracked by FPM to ensure the sorting of  "the wheat from the chaff"; between mainstream media and new technological advent of private independent blog media.


To repeat, the global game-changing factors are: 1) Technological, 2) Geopolitical and 3) Wealth Inequality. ("Climate Change" is also key factor and FPM classify it under technological - as man-made phenomenon)
 
3) FPM just mentioned a technological factor in the above point, and more to follow. Now we demonstrate a geopolitical factor such as events in Iceland. FPM concludes that the purest form of democracy has been demonstrated by the most isolated yet fiercely independent society in the modern era. Iceland's premier has been impeached after the leaked Panama files, following public protests. Now that's true democracy from a coherent   nation of people! Remember that Iceland, along with a few other countries took a different path to the financial crisis that caused the "Great Recession".  Instead of fearing a national banking crisis, the Government's policy was to let their insolvent banks fail, rather than use tax-payer funds to plug the black-hole (i.e. difference in the bottom-line balance sheet of the banks between their liabilities and assets). It seems the people could not forgive the perfidy of the Icelanic PrimeMinister: on the one hand seeming to be tough on banks, and on the other using offshore tax haven to hide away profits (of his wife).

4) The final equation of the game-changing epoch or revolution which FPM explore is the state of the people. Do the people have enough "bread and circus" to pre-occupy them while rulers freely rule? Or, as reformers of in 19th century England  used to discuss: "the condition of England question". How do we reconcile the two distinct groups of economic interests, the haves and and the have-nots (rich and poor, bosses and workers, etc), which now and then starkly arises, and with hostility to one another. This embryonic revolution  was witnessed in the Arab Spring protests in the Middle East recently. As monarchies once knew how to gauge the sentiment of its people before carrying out its sovereign will, so as to not foment uprising and revolution by the people; similarly governments also were meant to be in touch with popular sentiment before enacting and enforcing regulation. However, there is a mechanism of feathering-one's nest where politicians rule the people via corrupt crony capitalists motivations, instead of ruling for them, the people, as elected representatives. If politicians are indeed out of touch with the depravity and outrage of its citizens, an incendiary background or circumstances exist for igniting a peoples revolt against the order of society.

5) Collaborative investigative journalism versus mainstream propaganda media is viewed by FPM as technological innovation of news organisations. One or two investigative journalists on large press / TV networks with secret leaked information may be putting his/ her job or career at stake in exposing powerful wealthy persons and organisations. In extreme cases, the exposing journalist/s may have their life threatened, and mostly sidelined or excommunicated from the press fraternity. Wasn't Glen Greenwald denounced for publishing Snowden leaks? With the scale of the #PanamaPapers information (2.3 terrabytes of digitised data) and the manner of its scrutiny and publication is indicative of an highly organised platform of the ICIJ consortium (109 news organisations and 370 named 'journos' worldwide have shared the high-level mass data). This augurs an effective dissemination of potent information to have societal impact; as much impact as handful of oligarchy colluding editors and their press-baron billionnaires owners have had to now(in the U.K. currently Mr Murdoch, Lord Rothermere, Barclay brothers and Mr Lebedev). Hopefully, the Force Has Awoken indeed: FPM has consistently criticised #msm while espousing alternative independant media in its financial services analysis.

6) The greater impact of the #panamapapers is only beginning to unfold i.e. now only the proverbial tip of the iceberg. FPM have long been speculating that geopolitical risks WILL cause the next economic and capital markets crash. Our capital markets strategic research points to a tsunami in currency trading markets, related to the $Euro foreign exchange crashing or even its existential demise. The Eurpean Union - E.U. itself not long ago faced an existential crisis with national deficit problems in member "PIIGS" countries. FPM have from the beginning espoused the doomed project that is the Eurpean Union in its blogs and commissioned / subscription research. The ultimate events and the catalyst for E.U. breakup are on stage following #panamapapers leaks. (Citation is Stratforumn)... to see complete doomsday-mongering on coign moment for capitalism's disaster, including end of carried-interest tax treatment), please contact FPM.

7) FPM's indicated in point 2 above about #panamapapers, that "perhaps leak is itself agenda-driven". Our veracity or disbelief in the potential impact and deductions that society draws from the modus operandi of a secretive global financial system, of essentially preserving and compounding wealth, is the involvement of George Soros funded Open Society Foundation. They report themselves as  'general support funding' the consortium of independent journalists charged with using the leaked data - the ICIJ. George Soros's "NoSmokeWithoutFire" reputation is not necessarily the public perception of him, through propaganda pandering mainstream media. Equally therefore, FPM prinicipals are somewhat dubious about the aims and source of this Panama leak. For instance, the bias in data revelations seemingly does more damage to developing countries' public figures than ones in developed countries. And lesser historical and extended family seem targets than uber-wealthy powerful figures of the USA etc. Further, as George Soros is a billionnaire money-lender, and some suggest staunch supporter of Zionist aspirations and one-world-government, FPM suspects a furtive  stealth agenda to usefulness of leaked transparency. Notice that Mr Soros is from the opaque world of hedge-funds and private-equity financial investments; he famously bet against the British currency the sterling being pegged too high against the Deutschemark in the European Exchange Rate Mechanism - a forerunner currency union to the E.U. and the Euro itself. Then in September 16, 1992 pound exchange-rate crashed and was eventually withdrawn from the ERM; and unsurprisingly is STILL out of the Euro-Zone member countries. Mr Soros made a reported billion-dollar-region fortune with his clients' money, for them and no doubt, significant proportion for himself through management and carried-interest fees, when the pound crashed on what is dubbed "Black Wednesday". The British taxpayers' public-purse lost that much money to Mr Soros and other cabal hedge funds in foreign exchange financial trading.

8) Threading points 6 and 7, it is remarkable that Mossack Fonsec, the Panama-based law firm, as the source of the leaks covering 21 tax-shelter jurisdictions around the world does not include Cayman Island.... To Be Continued.

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