Elite Banking at Your Expense: How Secretive Tax Havens are Used to Steal Your Money

Posted on March 13, 2019 by Reid Mukai

By Robert J. Burrowes

Tax havens are locations around the world where wealthy individuals, criminals and terrorists, as well as governments and government agencies (such as the CIA), banks, corporations, hedge funds, international organizations (such as the Vatican) and crime syndicates (such as the Mafia), can stash their money so that they can avoid regulation and oversight and, very often, evade tax. According to Nicholas Shaxson: ‘Tax havens are now at the heart of the global economy.’

Which is why, as he explains it: ‘The term “tax haven” is a bit of a misnomer, because such places aren’t just about tax. What they sell is escape: from the laws, rules and taxes of jurisdictions elsewhere, usually with secrecy as their prime offering.’ See ‘The tax haven in the heart of Britain’. A tax haven (or ‘secrecy jurisdiction’) then is a ‘place that seeks to attract business by offering politically stable facilities to help people or entities get around the rules, laws and regulations of jurisdictions elsewhere’. See Treasure Islands: Tax Havens and the Men Who Stole the World.

Tax havens are a vitally important part of the global infrastructure of corruption and criminality – see ‘Giant Leak of Offshore Financial Records Exposes Global Array of Crime and Corruption’ – that enables privileged individuals and their organizations to legally and illegally steal money from the rest of us, particularly those in developing countries, and to have the services of a vast network of accountants, bankers, lawyers and politicians (often from captured legislatures) to help them do it, and to ensure that they get away with it.

How many tax havens are there? Where are they? How much money do they have? Who uses them? Why? How do they work? Why does all this matter to us? And what can we do about them?

Tax Havens: how many and where are they?

In his book Treasure Islands: Tax Havens and the Men Who Stole the World, author and financial journalist Nicholas Shaxson identified about sixty ‘secrecy jurisdictions’ or ‘offshore groups’ around the world which he divided into four categories, as follows.

The most important category, by far, is those tax havens that form the spider’s network of havens centred on the City of London. It has three main layers: there are two inner rings – Britain’s Crown Dependencies of Jersey, Guernsey (which includes the sub-havens of Sark, Alderney and Brecqhou) and the Isle of Man, and its overseas territories such as the Cayman Islands, Bermuda, the British Virgin Islands and Gibralter – which are substantially controlled by Britain. The third layer is an outer ring with a more diverse array of havens, like Hong Kong, Singapore, the Bahamas, Dubai and Ireland, which are outside Britain’s direct control but have strong historical and current links to that country and the City of London (which I will discuss below). This network controls almost one half of all international bank assets.

The second category of tax havens is those in Europe notably including Switzerland, Luxembourg – see ‘Explore the Documents: Luxembourg Leaks Database’ – the Netherlands, Belgium and Austria, as well as microstates such as Liechtenstein and Monaco. While ‘Geneva bankers had sheltered the secret money of European elites since at least the eighteenth century’, the European havens ‘got going’ during World War I as governments raised taxes sharply to pay for the war.

The third category of tax havens is that focused on the United States. It has three tiers as well. At the federal level, the US government offers a range of tax exemptions, secrecy provisions and laws designed to attract foreign money. This means, for example, that US banks can legally accept proceeds from a range of crimes as long as the crimes are committed overseas. The second tier involves individual US states such as Florida (where Central/South American elites do their banking and the countries adversely impacted are prevented by US secrecy provisions from accessing relevant data, and where much Mob and drugs money is hidden too), Delaware, Nevada and Wyoming, where even terrorist money is protected by secrecy provisions. The third tier of the US network is the overseas satellites such as the American Virgin Islands, the Marshall Islands, Liberia and Panama, with the latter, according to Jeffrey Robinson, being ‘one of the filthiest money laundering sinks in the world’. See The Sink: Terror, Crime and Dirty Money in the Offshore World.

As Shaxson notes: ‘offshore finance has quietly been at the heart of Neoconservative schemes to project US power around the globe for years. Few people have noticed.’

The fourth category of tax havens identified by Shaxson includes those that do not fit in the categories above, such as Somalia and Uganda.

The (incomplete) list of tax havens on the website ‘Tax Havens of the World’ will give you some idea of where these secrecy jurisdictions are located but there are important omissions in this list, notably including the City of London Corporation.

For a brief look at 15 tax havens (again, notably excluding some of the most important) and some of the corporations that use them, see ‘What Are the World’s Best Tax Havens?’

And for a highly instructive and utterly sobering video documentary on British Tax Havens, see ‘The Spider’s Web: Britain’s Second Empire’. This documentary will inform you, among many more important things, that the building housing Her Majesty’s Revenue and Customs, the UK tax office, is owned by an offshore company in Bermuda!

To summarize the central aspect of the development of tax havens following World War II: ‘The British Establishment – an old boys network of privileged elites – had carved out a lucrative vehicle for themselves in the offshore world after the demise of Empire. They transformed themselves from administrators of Empire to financial handlers for the global elite and multinational corporations.’ See ‘The Spider’s Web: Britain’s Second Empire’.

Before concluding this section, it is worth emphasizing that, as Shaxson explains it, ‘the offshore world is not a bunch of independent states exercising their sovereign rights to set their laws and tax systems as they see fit. It is a set of networks of influence controlled by the world’s major powers, notably Britain and the United States. Each network is deeply interconnected with the others.’ He goes on: ‘The world’s most important tax havens are not exotic palm-fringed islands, as many people suppose, but some of the world’s most powerful countries.’ Shaxson quotes Marshall Langer, a prominent supporter of secrecy jurisdictions: ‘It does not surprise anyone when I tell them that the most important tax haven in the world is an island. They are surprised, however, when I tell them that … the island is Manhattan. Moreover, the second most-important tax haven … is located on an island. It is called the City of London.’

The City of London Corporation

What is the City of London Corporation, also known as the ‘Square Mile’? It is ‘a 1.22-square-mile slab of prime central London real estate that stretches from the Thames at Victoria Embankment, clockwise up through Fleet Street, the Barbican Centre, then to Liverpool Street in the north-east, then back down to the Thames just west of the Tower of London.’ See Treasure Islands: Tax Havens and the Men Who Stole the World.

According to Shaxson, the City of London Corporation, the ‘modern period’ of which dates from 1067 (yes, that is not a typing error), is ‘the local-government authority for the 1.2-square-mile slab of prime real estate in central London that is the City of London. The corporation is an ancient, semi-alien entity lodged inside the British nation state; a “prehistoric monster which had mysteriously survived into the modern world”, as a 19th-century would-be City reformer put it.’

Importantly, Shaxson explains, ‘the role of the City of London Corporation as a municipal authority is its least important attribute. This is a hugely resourced international offshore lobbying group pushing for international financial deregulation, tax-cutting and tax havenry around the world.’ Moreover, it is ‘the hub of a global network of tax havens sucking up offshore trillions from around the world and sending it, or the business of handling it, to London’. Notably, so powerful is the City of London that no sovereign or government of Britain in a thousand years has had the courage to seriously take it on and attempt to subject it to British government control. See ‘The tax haven in the heart of Britain’.

How much money is in Tax Havens?

So how much of the world’s wealth is stashed in tax havens around the globe? According to the Tax Justice Network in its 2012 report written by James S. Henry ‘The Price of Offshore Revisited: New Estimates for “Missing” Global Private Wealth, Income, Inequality, and Lost Taxes’: ‘A significant fraction of global private financial wealth – by our estimates, at least $21 to $32 trillion as of 2010 – has been invested virtually tax-free through the world’s still-expanding black hole of more than 80 “offshore” secrecy jurisdictions. We believe this range to be conservative…’ He goes on to emphasize that ‘this is just financial wealth. A big share of the real estate, yachts, racehorses, gold bricks – and many other things that count as non-financial wealth – are also owned via offshore structures where it is impossible to identify the owners’.

Henry also notes that given that Credit Suisse estimated global wealth in 2011 at $231 trillion, the amount of money in secrecy jurisdictions is conservatively estimated at 10% of global wealth.

But other figures do indeed suggest this estimate is low. Shaxson cites compelling evidence that ‘More than half of world trade passes, at least on paper, through tax havens. Over half of all banking assets and a third of foreign direct investment by multinational corporations, are routed offshore.’ Moreover, as long ago as 2008, the US Government Accountability Office reported that 83 of the 100 biggest corporations in the USA had subsidiaries in tax havens and the following year, using a broader definition, the Tax Justice Network discovered that ninety-nine of Europe’s hundred largest companies used offshore subsidiaries. And in each country, ‘the largest user by far was a bank’. See Treasure Islands: Tax Havens and the Men Who Stole the World.

In any case, the most recent estimate by the Tax Justice Network indicates ‘tax losses to profit shifting by multinational companies (a)pplying a methodology developed by researchers at the International Monetary Fund to an improved dataset… of around $500 billion a year’. See ‘New estimates reveal the extent of tax avoidance by multinationals’.

To reiterate then, on the understanding that these estimates are probably quite low, by 2010, between $US21 and $US32 trillion had been taken out of circulation so that it was beyond the laws, financial regulations and taxes that the rest of us cannot escape. But that figure has been added to by half a trillion dollars each year since, by moving more money into tax havens. And don’t forget: this figure does not include non-financial wealth. How many gold bricks, yachts, artworks and racehorses do you own and have stashed away somewhere free of scrutiny?

Who uses Tax Havens? And why?

As I mentioned above, tax havens are used by wealthy individuals (including businesspeople, sports and pop stars), criminals and terrorists, as well as governments (and their agencies), banks, corporations (such as Amazon and Google), international organizations and crime syndicates (such as the Medellin Cartel). While motives vary, in essence the lack of regulation and oversight, as well as tax evasion, are the reasons that individuals and organizations use them.

An individual might want to hide stolen wealth, to evade tax or cheat a divorced spouse out of their share of the family fortune. A bank, corporation, crime syndicate, international or terrorist organization might want to evade scrutiny of the source of their money and/or evade tax on windfall or even ongoing profits (legal and/or otherwise). A government might want to hide the ‘dirty money’ it uses to finance ‘black ops’ (that is, illegal and secret military violence such as that carried out by the CIA). But there are myriad explanations.

In John Christensen’s analysis of over 100 offshore clients of accounting firm Deloitte Touche he studied in Jersey, he found that the clients were engaging in insider trading, market rigging, failure to disclose conflicts of interest, weapons trading, illicit political donations, contract kickbacks, bribery, fraudulent invoicing, trade mispricing and tax evasion. See ‘The Spider’s Web: Britain’s Second Empire’.

Most people have heard of the money stashed away by corrupt dictators like Suharto in Indonesia, Ferdinand Marcos in the Philippines and Mobuto Sese Seko of Zaire (now Democratic Republic of the Congo) each of whom stole from the people of their country. However, they could only do this with the help of western enablers and ongoing elite resistance to developing country attempts to create a more transparent and fairer process for collecting tax on cross-border financial flows. As a result, Alex Cobham of the Tax Justice Network observes, worldwide, developing nations lose in excess of $1trillion per year in ‘capital flight’ and tax evasion to wealthy countries. See ‘The Spider’s Web: Britain’s Second Empire’.

But these more public examples, while terrible, tend to obscure two important facts. The amount stolen from sub-Saharan Africans, for example, between 1970 and 2008 was at least five times the total amount of their foreign debt during that period – see ‘The Spider’s Web: Britain’s Second Empire’ – and, by highlighting these examples, attention is drawn away from even worse and ongoing examples of such criminality by those corrupt/criminal individuals and organizations (including banks, accountancy and legal firms, corporations, international organizations, crime syndicates and governments) committed to using outright theft, fraud, money laundering and other devices to steal wealth from ordinary people all over the world.

So, for example, if one follows the money trails of various lucrative financial operations, some technically legal but immoral and others simply illegal, apart from the world’s major corporations, one quickly comes across the names of the major (and well known) banks and financial institutions (such as the Bank of England, Barclays, Goldman Sachs, JPMorgan Chase…), the ‘big four’ accountancy firms (Deloitte, Ernst & Young (EY), KPMG and PricewaterhouseCoopers), and elite lawyers (such as those in London’s ‘Magic Circle’, like Clifford Chance, Mourant du Feu & Jeune, and Slaughter and May). See, for example, Treasure Islands: Tax Havens and the Men Who Stole the World, ‘New estimates reveal the extent of tax avoidance by multinationals’ and ‘Looting with Putin’.

Apparently, like major corporations and crime syndicates, few banks, accountancy firms and lawyers have ethics policies that require them to follow the law and to exercise ‘due diligence’ (check out a client before signing a contract) so that they can steer clear of handling illegal and immoral profits, especially if they are monstrous.

In fact, according to a US Senate report, ‘virtually every major bank in the world – especially the biggest in North America and Europe – holds accounts for offshore banks and/or banks in suspect jurisdictions’. See The Sink: Terror, Crime and Dirty Money in the Offshore World.

As Eva Joly MEP, vice-chair of the Panama Papers Committee of the European Parliament, succinctly puts it: ‘Ordinary people are paying taxes. Rich people are not.’ See ‘The Spider’s Web: Britain’s Second Empire’.

The Vatican

But perhaps the example which best illustrates the moral depravity of those who use tax havens is the Vatican. In his carefully researched book Operation Gladio: The Unholy Alliance between the Vatican, the CIA and the Mafia author Paul L. Williams recounts the efforts of the CIA, former Nazis, the Sicilian/American Mafia, the Vatican and even Freemasonry to resist an anticipated postwar invasion of western Europe by those ‘Godless communists’ in the Soviet Union by establishing ‘stay-behind units’ (clandestine military and paramilitary units) throughout the countries of Europe (Belgium, Denmark, Italy, Netherlands, Norway, Portugal…) led by former Nazis and composed of ‘die-hard fascist fanatics’.

This alliance to fight the Cold War against the former Soviet Union and the rising tide of progressive governments in Europe and the rest of the world, particularly as the US war on Vietnam gathered pace, led, as Williams chillingly puts it, to ‘the toppling of governments, wholesale slaughter and financial devastation’ around the world. It was also, of course, the forerunner to its equivalent – Operation Condor – to resist, and destroy if possible, the spread of progressive movements, ranging from communism to liberation theology, throughout Central/South America.

While the Vatican played a number of unsavory roles in this alliance, including its facilitation of massive numbers of heroin addictions, its use of counterfeit securities, participation in false flag attacks that killed thousands and strings of gangland slayings, support of military juntas (that massacred tens of thousands) and the ‘purging’ of progressive priests (including Archbishop Óscar Romero of San Salvador and two Jesuit priests denounced by Fr. Jorge Mario Bergoglio, now Pope Francis, in Argentina: see ‘Who is Pope Francis? Jorge Mario Bergoglio and Argentina’s “Dirty War”’) while causing the financial destitution of thousands of families, one of its key ongoing functions, designed to maximize the Vatican’s power while highlighting its moral and spiritual bankruptcy, was to act as ‘God’s banker’ for many of these operations. See Operation Gladio: The Unholy Alliance between the Vatican, the CIA and the Mafia.

It did this, for example, by accepting Mafia/Medellin Cartel-collected drugs money (for a 15-20% cut) into the Vatican Bank (technically: Istituto per le Opere di Religione or Institute for the Works of Religion) and then laundering it through its shell companies – such as Cisalpine Overseas Bank, Astolfine SA, United Trading Corporation, Erin SA, Bellatrix SA, Belrose SA, Starfield SA and Nordeurop Establishment – in tax havens in the Bahamas, Liechtenstein, Luxembourg, Panama and Switzerland.

With the CIA providing services, such as the transport of Mafia/Medellin cocaine to drug dealers in the US, its share of the drug profits (cycled through its own CIA-controlled banks including Continental Illinois, Castle Bank & Trust, and Bank of Credit and Commerce International but eventually involving many of the most prestigious banks in the US, as the money was passed to the Vatican Bank) were used to finance key aspects of Operations Gladio and Condor with weapons also supplied by the CIA from NATO arsenals. But there was plenty of Vatican money in these Operations too.

As an aside, so devastating was the fallout from the ongoing exposure of the many aspects of Vatican corruption that, by the beginning of the twenty-first century, Roman Catholic membership was falling by 400,000 per year in the USA alone but the trend was even stronger in Europe with ‘magnificent churches and cathedrals’ becoming museums visited solely by tourists, parishes being boarded up, seminaries and convents closed, and parochial schools consolidated. And this was before the ‘plague of pedophilia’ had fully hit further decimating the Church’s tattered reputation. To this day, the Vatican Bank remains ‘one of the world’s leading laundries for dirty money’. See Operation Gladio: The Unholy Alliance between the Vatican, the CIA and the Mafia.

How do Tax Havens work?

Each tax haven offers its own unique combination of services. After all, it is a tough market competing for the world’s wealth and so each jurisdiction has developed its own set of services designed to maximize its attractiveness to potential clients. In essence, this means that there is some ongoing ‘competition’ to reduce regulatory and oversight requirements so that each tax haven can attract clientele. This has become so extreme that basic requirements of banking for those who do it legally, such as proof of identity, are not required in the offshore world. In fact, even your true name can be withheld if you wish. It is easier to avoid any risk of embarrassment from exposure this way.

As a result, virtually any jurisdiction will open an account (or as many accounts as you want) in whatever names you specify. Then, usually employing a variety of devices, ranging from secret bank accounts, nominee directors (usually locals who play no part in the organization bar give it their name) and structures such as shell companies (that exist on paper and perhaps a wall plaque somewhere, but nothing else) and trusts (which, unlike the legitimate version, appear to separate responsibility and control from the benefits of ownership but actually do not), to processes such as transfer pricing (a technique by which companies ‘shift paper profits into low-tax countries and costs into high-tax countries’ to minimize – or eliminate – tax payments) and often employing a convoluted process that rapidly shifts monies through several jurisdictions so that it becomes ‘untraceable’ (because authorities must get permission to access each jurisdiction in turn in any effort to trace the money), profits are effectively hidden and any accountability to authorities of any kind utterly eliminated. See Treasure Islands: Tax Havens and the Men Who Stole the World.

For one simple example of such a strategy, employing a technique known as the ‘double Irish, Dutch sandwich’ (which is legal), see ‘Google shifted $23bn to tax haven Bermuda in 2017, filing shows ’. But you can read other examples here: ‘The tech giants will never pay their fair share of taxes – unless we make them’ and ‘7 Corporate Giants Accused of Evading Billions in Taxes’.

Why does the existence of Tax Havens matter to us?

Well, the simple answer to this question is that just a fraction of the money hidden in tax havens would feed, clothe, house and provide clean water, medical care and educational opportunities to everyone on Earth. It would eliminate the 100,000 deaths by starvation-related diseases each day. It would eliminate poverty and homelessness. And, as one byproduct of having these material needs met, it would facilitate the emergence of an informed, engaged and empowered human population to tackle the vast range of environmental, climate and military threats that currently threaten biosphere collapse and imminent human extinction. See ‘Human Extinction by 2026? A Last Ditch Strategy to Fight for Human Survival’.

As Professor Prem Sikka puts it more simply: Because of the penetration by financial services executives of the British state, including the Treasury ‘It deprives people of opportunities to have healthcare, education, security, justice and, ultimately, a fulfilling life.’ See ‘The Spider’s Web: Britain’s Second Empire’.

Fundamentally, then, tax havens and their secrecy are at the heart of those elite institutions and processes that functionally undermine democracy and give extraordinary power to certain anonymous individuals and their entities without accountability. See ‘The Spider’s Web: Britain’s Second Empire’.

Of course, the elites that control the tax haven networks are not about to let this change. Tax havens are simply too important as part of the global infrastructure for maintaining elite profit, power and privilege and for resisting grassroots efforts to bring peace, justice and ecological sanity to our world. And that is why they are protected by government legislation and legal systems, with an ‘army’ of accountants, auditors, bankers, businesspeople, lawyers and politicians ensuring that they remain protected.

So don’t forget: laws are designed to control and punish you, no matter how trivial your infringement: a parking fine, a littering offence, a petty theft. But if you have enough money, the law simply does not exist. And you can evade taxes legally and in the full knowledge that your vast profits (even from immorally-acquired wealth such as sex trafficking, gun-running, endangered species trafficking, conflict diamonds and drug trafficking) are ‘lawful’ and will escape regulation and oversight of any kind. See ‘The Rule of Law: Unjust and Violent’.

Let me give a personal example. I have been a war tax resister since 1983: I have a conscientious objection to paying taxes to the Australian government to deploy military forces in other countries to kill people in my name. So, instead of paying taxes to kill, for many years I donated the equivalent amount to organizations engaged in peace, development, environment and human rights work, and to ‘pay the rent’ for my use of indigenous land. As some of many outcomes to this conscientious and highly public resistance (garnering national media attention at times), in 1991 I was bankrupted, in 1992 I was convicted of contempt of court (for my conscientious refusal to cooperate with the bankruptcy trustee) and in 1993 my passport was seized. In 1999, I was advised that I will be ‘bankrupt forever’ because of my ongoing conscientious refusal to finance the killing.

In the same period, since 1983, trillions and trillions of dollars of tax have been illegally and secretly evaded as wealthy individuals and corporations, criminals and crime syndicates, international organizations and governments channel their incomes and profits through tax havens. Laws and legal systems throughout the world make this possible and, provided it is done correctly, it is quite straightforward to avoid any penalties for secretly evading payment of taxes or hiding money acquired through criminal activity. But the point, as you can see, is that tax evasion by wealthy individuals and corporations meant that many of these individuals and corporations didn’t pay taxes to kill people either. They just didn’t pay taxes at all.

Of course, their motive was personal gain, their way was legal, they incurred no penalty and, of course, they didn’t pay an equivalent amount to support peace and justice causes. More fundamentally, however, the trillions of dollars they took from the global economy were made by killing and exploiting people and the planet in a significant variety of other ways, ranging from sex trafficking, gun-running, conflict diamonds and trafficking in drugs and endangered species, to simply starving people to death at the rate of 100,000 people each day by managing the global economy, using tax havens as a primary tool, to extract maximum profit.

Richard Brooks documents how this legal exploitation occurs in another way in his book The Great Tax Robbery: How Britain Became a Tax Haven for Fat Cats and Big Business. The vast tax evasion by elites in Britain, including by diverting funds through tax havens, attracts just five prosecutions each year per £1 billion of evasion of direct taxes. In contrast, benefits fraud by those on unemployment and disability pensions attract 9,000 prosecutions each year per £1 billion of fraud. ‘So theft by the poor warrants the full force of the law’. But not theft by elites who write the law and largely control the political and legal processes in relation to it.

Hence, under the guise of ‘relationship taxing’ (that is, building a relationship between tax authorities and corporate executives and ‘tailoring’ tax payments to corporate wishes to the extent the law allows), corporations have long known that ‘If you don’t like the law… we’ll see what we can do’.

As is obvious from this example, attempts at government reform, including to defeat tax havens, in the direction of making elites financially and legally accountable, both nationally and internationally, for the responsibilities which the rest of us cannot escape, are invariably for show and, in any case, achieve zero of substance. For example, the attempt to ‘approve’ a blacklist of tax havens at the G20 gathering in 2009 was resisted by the Chinese premier on behalf of Chinese elites who, like other national elites keen to have political control but ‘judicial separation’ from their offshore centres, opposed the listing of notorious havens Hong Kong and Macau: see Treasure Islands: Tax Havens and the Men Who Stole the World. The global elite is clearly in control with national governments and international organizations powerlessly doing as instructed. So complete is this control, in fact, that Brooks notes that, in Britain, ‘Anti-tax avoidance laws had to be relaxed to accommodate companies’ tax avoidance schemes.’

Brooks concludes that ‘British taxation policy really had been so comprehensively captured by the world’s biggest corporations that screw-the-poor policies… could be written into the statute books at their whim, without a pang of conscience being felt anywhere in Whitehall.’ Clearly, however, his comment can be applied to virtually any government in the world.

So does it matter to you that these tax havens exist and do what they do?

What can be done about Tax Havens?

Authors such as Nicholas Shaxson and Richard Brooks suggest a raft of measures to correct the large number of ‘faults’ that facilitate the secrecy, protection from regulation and tax evasion that individuals, corporations, organizations, criminals and terrorists utilize in tax havens.

For Shaxson, these include financial reforms such as ‘blacklisting’ of tax havens so that their rogue state status is public knowledge; greater transparency, for example, through government sharing of information about the local income and assets of each other’s citizens and by requiring multinational corporate activities in each country to be made visible (rather than hidden behind ‘international’ figures); promoting the needs of developing countries which need their tax bases protected far more than they need aid or debt relief; confronting the British ‘spider’s web’ of tax havens by abolishing the City of London Corporation and submerging it into a unified and fully democratic London; taxing an entire multinational ‘group’ as a single unit and then allocating the appropriate amounts of its income out to the different jurisdictions in which it was earned and allow it to be taxed as each jurisdiction decides; onshore tax reform such as a land value tax (because land cannot be moved offshore and so tax on it must be paid locally), and by a direct distribution of mineral wealth in any country to each of its inhabitants (who can then be taxed); tackling the ‘enablers’ – the accountants, lawyers, individual bankers, businesspeople – and not just the clients, so that they go to jail; rethinking the meaning of ‘corporate responsibility’ (because corporations are given a wealth of capital in public infrastructure, an educated and healthy workforce… with which to work) so that corporations are transparent about their affairs and pay tax as part of their corporate responsibility; re-evaluating the meaning of corruption – insiders abusing the common good in secrecy and getting away with it and so worsening inequality and entrenching vested interests and unaccountable power – so that we see, more clearly, all of the actors and their activities; and changing the culture that fawns over people who abuse the system for personal gain. See Treasure Islands: Tax Havens and the Men Who Stole the World.

And some progress appears to be occurring along lines he suggests. For example, a version of automatic information exchange (AIE), by which governments make sure that essential information is made available to other jurisdictions as a matter of routine, has been discussed by the OECD and, while full of loopholes – see ‘Loophole USA: the vortex-shaped hole in global financial transparency’ – some commitments have been made. For the list of commitments as at November 2018, see ‘AEOI commitments’.

However, the USA has not made this commitment and while Switzerland, for example, finds this objectionable – see ‘The U.S. hasn’t signed the AEoI Agreement: Reciprocity demanded’ – the reality is that it makes little difference. For example, ICO Services, which specializes in the formation of offshore companies and offshore banking, will assist you to get around the AEoI requirement. Their website advertises that ‘asset holders need to start looking for alternative jurisdictions for protecting their assets. There are some reputable jurisdictions that are still outside the AEoI – e.g. Cyprus – but U.S. states of Delaware and some others shouldn’t be dismissed.’

But if you want a more established name to help you take advantage of a tax haven in the USA, you really can’t go past Rothschild & Co. So, to check out what they are offering: ‘Here Is Rothschild’s Primer How To Launder Money In U.S. Real Estate And Avoid “Blacklists”’.

Moreover, the AEoI agreement ‘outlaws’ bank secrecy but not trust secrecy (which dates from the Crusades) on which the British model is based – ‘The Trust lies at the core of the British secrecy model’ – so it does not address the cornerstone of British tax haven secrecy and explains why the British were happy to see the Cayman Islands commit to the AEoI. In short: the British government would be happy to kill off bank secrecy so that they can capture a larger market share (based on Trust secrecy). See ‘The Spider’s Web: Britain’s Second Empire’.

Separately from this initiative, in 2018 the UK parliament enacted a new law requiring its overseas territories – including notorious tax havens like Bermuda, the Cayman Islands and the British Virgin Islands – to start disclosing the owners of corporations they register by 2020. In theory: ‘This could shut down a huge amount of offshore tax evasion and other financial crimes because individuals from anywhere in the world, including the United States, have long been able to set up secret corporations in these tax havens to stash their money.’ See ‘New UK Law May Shut Down the Biggest Tax Havens – Aside from the U.S.’

However, while the report pointed out that the new law obviously does not impact the USA (or, of course, Switzerland or …) and the easy rerouting options available if these havens are effectively (or even actually) shut down, it failed to mention that this initiative does not in any way address the City of London Corporation so the impact of this initiative must be very limited unless it is followed by some pretty drastic initiatives in Westminster, Washington, Bern and elsewhere.

In summary, while one cannot disagree with any of Shaxson’s fine suggestions or be displeased that public pressure has led to some effort being made by the OECD and the UK parliament to address elements of the tax haven scourge, the reality is that the extent of the changes necessary are not going to happen without enormous grassroots pressure, strategically applied, and they are very unlikely to happen as reforms of the existing capitalist system. This is simply because the global elite is solidly in control of the institutions and processes of global capitalism, including its compliant governments and international organizations, and will readily stymie any attempt at serious reform of tax havenry particularly given the number of major reforms needed and the number of nations in which these reforms must be enacted. To state two obvious examples: The City of London Corporation has not existed for 1,000 years because it has no defense. And the changes noted above have only made the US more attractive as a secrecy jurisdiction.

Meanwhile, with the aim of promoting ‘financial innovation’, Switzerland has recently made things easier for smaller financial technology companies thus making tax havenry more attractive to those who might not have otherwise considered it. See ‘Swiss watchdog to propose looser anti-money laundering rules for fintechs’.

So, given that most tax havens are protected by host government legislation and there is no international mechanism to control them, the tax haven industry generally is not under threat of being held to account in any significant way.

And, despite the more elaborate explanation offered above, there is a simple reason for this. Unofficially, of course, illegal money, laundered through tax havens, has become an essential and sometimes stabilizing element of the global financial system. See ‘Drug money saved banks in global crisis, claims UN advisor’.

So what can we do that will make a difference?

Given the deeply entrenched and long-standing nature of this problem, clearly it needs to be addressed at various levels.

Fundamentally, we can nurture our children so that we do not destroy their conscience. See ‘My Promise to Children’. Remember all of those corrupt/criminal accountants, bankers, businesspeople, priests and popes, lawyers and politicians that kept creeping up in the discussion above? The people who maintain the entire infrastructure that allows tax havens to exist and those who manage and profit from it too?

Do they care about you? Do they care about the people in Africa, Asia and Central/South America who starve as a result of the types of policies that allow tax havens to exist and function? Do they care about those driven into poverty and homelessness in modern industrial economies because vast sums are drained out of them and hidden in secrecy jurisdictions? Do they care about the people killed by the military and other violence from which they profit and then hide the proceeds to evade tax? Do they care about the Earth? Fundamentally, do they care about themselves?

Of course not! But this is only because they are extraordinarily psychologically damaged individuals. See ‘The Global Elite is Insane Revisited’ with a more complete explanation in ‘Why Violence?’ and ‘Fearless Psychology and Fearful Psychology: Principles and Practice ’.

If we inflict enormous violence on a child throughout their childhood to compel their obedience, how can we expect them to grow up to lead a life of integrity based on their conscience, courage, compassion, empathy and love? Those who use tax havens are truly ‘poor little rich boys’ (and girls). See ‘Love Denied: The Psychology of Materialism, Violence and War’ and ‘Why Set Up a Shell Company in Panama? The Psychology Driving Illicit Financial Flows’.

Beyond tackling the problem at its source however, we can also tackle manifestations of the problem but not by lobbying elites – and their political agents: there are no votes in it, in any case – to control this depravity for which they are well rewarded.

For a start we can boycott all of the major private banks in favor of those smaller or member-owned banks that have a serious commitment to peace, justice and ecological sustainability, or we can seek out equivalent institutions like credit unions. We can also create public banks based on ethical principles. See ‘What are Public Banks and How Do They Operate? An Introduction’.

We can boycott large corporations – like Amazon, Apple, Gap, Google, Ikea, Microsoft and Starbucks – that use tax havens. None of these corporations is a monopoly: there are alternatives which can be investigated and employed, assuming we can’t go without some version of the product or service they offer. Whenever you can, find a locally-owned outlet that offers a local product or service.

We can boycott the Catholic Church. God does not ask that you morally or financially support a corrupt organization that doesn’t understand or represent morality and spirituality. Remember, it was Jesus who threw the moneychangers out of the temple.

If our conscience speaks loudly enough, we can decline employment by any organization that is unethical, such as those that use tax havens.

We can refuse to gamble, refuse to buy the services of a sex worker (who might even be illegally trafficked into the work), refuse to buy the products of endangered species – see, for example, ‘Killing Elephants “for Pet Food” Condemned’ – and refuse to use illicit drugs. These products and services are virtually always offered by industries controlled by criminal organizations so by buying them you are only harming yourself and/or other people or species about whom you could choose to exercise a duty of care while also not contributing to the diversion of financial resources into tax havens.

We can encourage unions, with members who work for organizations using tax havens, to take a stand on the issue.

We can support existing organizations that work on the problem, preferably those that offer grassroots alternatives. The Tax Justice Network, an ‘activist think tank’, and its sister organization, the Global Alliance for Tax Justice, campaign for systemic change.

If we are genuinely ambitious, we can develop comprehensive nonviolent strategies to compel particular individuals and organizations to desist from using tax havens or even compel countries to close down tax havens. See Nonviolent Campaign Strategy. This can easily be part of a larger strategy to transform the global economy into one that satisfies human and ecological needs, particularly given the imminence of biosphere collapse, as noted above. See ‘The Flame Tree Project to Save Life on Earth ’.

If violence and exploitation in all of their guises concern you, consider signing the online pledge of ‘The People’s Charter to Create a Nonviolent World’.

So here is a final question for you to consider: What might the world look like if all those trillions of dollars were being shared and spent where they are most needed?

Biodata: Robert J. Burrowes has a lifetime commitment to understanding and ending human violence. He has done extensive research since 1966 in an effort to understand why human beings are violent and has been a nonviolent activist since 1981. He is the author of ‘Why Violence?’ His email address is flametree@riseup.net and his website is here.

Robert J. Burrowes
P.O. Box 68
Daylesford, Victoria 3460
Australia

Email: flametree@riseup.net

Websites:
Nonviolence Charter
Flame Tree Project to Save Life on Earth
‘Why Violence?’
Feelings First
Nonviolent Campaign Strategy
Nonviolent Defense/Liberation Strategy
Anita: Songs of Nonviolence
Robert Burrowes
Global Nonviolence Network

Twelve Tips For Making Sense Of The World

Posted on June 18, 2018 by Reid Mukai

By Caitlin Johnstone

Source: CaitlinJohnstone.com

In an environment that is saturated with mass media propaganda, it can be hard to figure out which way’s up, let alone get an accurate read on what’s going on in the world. Here are a few tips I’ve learned which have given me a lot of clarity in seeing through the haze of spin and confusion. Taken separately they don’t tell you a lot, but taken together they paint a very useful picture of the world and why it is the way it is.

1. It’s always ultimately about acquiring power.

In the quest to understand why governments move in such irrational ways, why expensive, senseless wars are fought while homeless people die of exposure on the streets, why millionaires and billionaires get richer and richer while everyone else struggles to pay rent, why we destroy the ecosystem we depend on for our survival, why one elected official tends to advance more or less the same harmful policies and agendas as his or her predecessor, people often come up with explanations which don’t really hold water.

The most common of these is probably the notion that all of these problems are due to the malignant influence of one of two mainstream political parties, and if the other party could just get in control of the situation all the problems would go away. Other explanations include the belief that humans are just intrinsically awful, blaming minorities like Jews or immigrants, blaming racism and white supremacy, or going all the way down wild and twisted rabbit holes into theories about reptilian secret societies and baby-eating pedophile cabals. But really all of mankind’s irrational behavior can be explained by the basic human impulse to amass power and influence over one’s fellow humans, combined with the fact that sociopaths tend to rise to positions of power.

Our evolutionary ancestors were pack animals, and the ability to rise in social standing in one’s pack determined crucial matters like whether one got first or last dibs on food or got to reproduce. This impulse to rise in our pack is hardwired deeply into our evolutionary heritage, but when left unchecked due to a lack of empathy, and when expanded into the globe-spanning 7.6 billion human pack we now find ourselves in due to ease of transportation and communication, it can lead to individuals who will keep amassing more and more power until they wield immense influence over entire clusters of nations.

2. Money rewards sociopathy.

The willingness to do anything to get ahead, to claw your way to the top, to betray whomever you need to, to throw anyone under the bus, to step on anyone to pass them in the rat race, will be rewarded in our current system. Being willing to underpay employees, cheat the legal system, and influence legislators will be rewarded exponentially more. People with a sense of empathy are often unwilling to do such things, whereas sociopaths and psychopaths are. About four percent of the population are sociopaths, and about one percent are psychopaths, with some five to fifteen percent falling somewhere along the borderline. The less empathy you have, the further you are willing to go, and the further up the ladder you can climb.

3. Wealth kills empathy.

If that weren’t bad enough, studies have shown that controlling large amounts of wealth actually destroys one’s sense of compassion for one’s fellow man. When you are able to use wealth to obtain everything from security to loyalty to personal relationships, you no longer have to be tuned in to the brain’s empathy center the rest of humanity depends on to get an accurate reading on what’s going on with the people we’re surrounded by. Most people need to be constantly feeling around their families, coworkers, employers, friends and acquaintances in order to ensure their own safety, social standing and security, whereas a wealthy person can simply purchase those things. Being born into wealth or having it for a long time can prevent that sense of empathy from being as strong as it is in the rest of the population.

4. Money is power.

A 2014 Princeton study showed that ordinary Americans have essentially zero influence over their nation’s policy and behavior regardless of how they vote, while wealthy Americans have a great deal of influence. This is because the ability to use corporate lobbying and campaign donations effectively amounts to the legalized bribery of elected officials, which means that money translates directly into political power. This creates a ruling class which is naturally incentivized to use their influence to increase their own wealth while decreasing everyone else’s, because since power is relative, the less money everyone else has the more power the ruling class has.

This is why billionaires keep hoarding more and more wealth while using legalized bribery to stifle economic justice legislation. It isn’t because they want to be able to buy thousands of luxury cars or dozens of private jets; they can only use one at a time the same as everyone else. They hoard wealth to keep the rest of the population from having it. Because money equals power, spreading wealth around would be tantamount to making everyone king, and because power is relative, making everyone king would mean that no one is king.

Rulers, historically, do not give up power easily, and this elite wealthy class is no exception. Hence all their aggressive attempts to suppress any movement against the status quo from the unwashed masses.

5. This same ruling class controls the media.

It’s common knowledge that most media is controlled by plutocrats, whether it’s the old money plutocrats who control the legacy media or the new money Silicon Valley plutocrats who control much of the new media. Media control is an essential component of rule; this has always been the case, since the days when kings would order dissident books burned and bishops would torture dissident orators to death. This is why the first thing a new plutocrat does as soon as rising to a certain level of wealth is start buying up media influence, like Jeff Bezos did when he bought the Washington Post in 2013. Bezos bought WaPo not because he is a stupid businessman who thought newspapers were about to make a lucrative resurgence, but because he is a brilliant businessman who knows that the status quo he is building his empire upon requires a propaganda firm that the public will trust and believe.

6. People are always manipulating each other.

Cultivating an acute awareness of when you are being manipulated, and considering whether someone might have a motive to do so, is an essential component to making sense of the world.

It is very rare to encounter someone who won’t try to manipulate you in any way. Generally people you’ll encounter in your life will try to influence the way you perceive them and your relationship to them, they’ll try to pull you in in some ways and push you out in others, try to hook you up to their personal agendas and goals and shape you in a way that fits with their shape. There’s nothing inherently malevolent in such behavior, it’s just what people do and what they always have done. Again, humans are social creatures, and we do what we can to increase our standing within our social circles.

The big problem is when skillful manipulators find their way into positions of large-scale influence like government or media. Unfortunately, these are the types who tend to get elevated into such positions, because they can manipulate their way in, and generally they do so for reasons of personal ambition rather than altruism. These skillful manipulators form an essential echelon of the ruling class’ loyal servants, and are the minds behind the pro-establishment narratives you’ll suddenly see circulated from think tanks to media platforms to the establishment lackeys on Capitol Hill.

7. Society is made of narrative.

Most of human experience is filtered through our mental stories about it, from our sense of self, to our ideas about who we are, to our beliefs about how we’re supposed to behave in society, to what money is and how it works, to where power exists and who we’re supposed to obey. All of these things are purely conceptual constructs which only exist in the realm of thought; a “dollar” exists to the extent that we’ve all agreed to pretend it’s a real thing and that it has a certain amount of purchasing power. At any time we could collectively decide to change the rules about how power functions or what money is and how it operates, and then instantly the rule of the elite class would be over without anyone firing a shot. It really would be that simple.

That’s how powerful a force narrative is, which is why the ruling plutocrats fight so hard to keep us from seizing control of it. This is why whistleblowers and outlets like WikiLeaks are aggressively and constantly smeared and demonized in the corporate media; if they can create suspicion of truth-tellers then they can keep them from being trusted, and thus keep them from being believed. This tool has been used to minimize the impact of everything from on the ground reports of what’s happening in Syria to leak drops from Edward Snowden; if you can create enough suspicion of someone it doesn’t matter if they’re speaking 100 percent truth; nobody will believe them, and thus the dominant narrative will remain the same.

Maintaining an awareness that there is always an unending battle to control the narrative and manipulate it to advance plutocratic interests is an essential part of understanding the world.

8. The lines between nations are imaginary.

Those lines drawn on the map between countries are pure narrative as well; they’re only as real as the collective public agrees to pretend they are. The ruling elites know this and exploit this. They don’t think in terms of nations and governments, they think in terms of individuals and groups of individuals.

Key strategic region in the Middle East? No need to take over the whole country, just flood it with extremist groups who are loyal to your agendas and control its oil fields. Primo naval real estate in the southern hemisphere? No need to annex it and plant your country’s flag there, just secure enough influence over the important moving parts using corporate contracts, trade agreements, military/intelligence treaties and secret deals and you can use it however you want.

This is why I am dismissive of arguments that “Israel controls America” or “America controls Europe”. There is no “Israel” or “America”; they’re made-up ideas which rulers once upon a time treated as real, but in the modern days of nationless plutocracy they no longer do. There are individuals, there are corporations, there are government agencies, there are factions and groups, and these are what the ruling elites deal with. Governmental structures are only tools which are used by the ruling elites for the purpose of manipulation, control, and military violence, and they only do so insofar as it is useful. The idea of real nations and governments is a cutesy fairy tale sold to the masses so they won’t see the manipulations.

9. Powerful forces are naturally incentivized to collaborate with each other toward mutual interests.

A pleasure to host #SecDef James Mattis at Amazon HQ in Seattle today pic.twitter.com/JnQZoSOnFN

— Jeff Bezos (@JeffBezos) August 10, 2017

You can be a low-grade millionaire and still live like a relatively normal civilian, but once you start obtaining giant amounts of wealth control you need to start collaborating with existing power structures or they’ll snuff you out to prevent you from rocking their boat, because again, money equals power. This is why Jeff Bezos contracts with the CIA and sits on a Pentagon advisory board, and it’s why Facebook and Google collaborate extensively with government agencies; they never would have been allowed to grow to their size if they had not. Plutocratic dynasties which have been in place since long before Amazon, Facebook and Google figured this out many generations ago, and have agreed to push forward in a direction of mutual interest that doesn’t upset the status quo that their wealth is built upon.

This is extremely true of the west, where an effective empire has been created by a complex transnational alliance of mostly western plutocrats, but it is true outside of that empire as well; there are power alliances to be found everywhere that there is power.

10. There is an immense amount of wealth that can be grabbed in the chaos of war and conflict.

In the same way that existing power structures are naturally incentivized to quash any emerging power which would upset their status quo, alliances of power structures push to crush non-aligned power structures the world over. Whenever you see the tight western alliances and their media propaganda arms attacking the interests of Russia, China, Syria, Iran, Venezuela etc., you are seeing an alliance of power structures working to disrupt the interests of another alliance of power structures in order to absorb their assets.

The chaotic, Wild West environments that these conflicts create allow for an amount of underhanded looting and pillaging that you could never get away with in your own country, in the exact same way the colonialists and conquistadors of old could never have gotten away with brazenly grabbing gold, land and slaves from their fellow Europeans in Madrid or Rome but were given no legal trouble in the new world. The colonialists and conquistadors pushed into the Americas, Africa and Asia on the pretense of spreading Christianity and civilization; modern day conquerers push into non-aligned power structures on the pretense of spreading freedom and democracy in precisely the same way.

This chaos doesn’t require direct military conflict to be profitable; the uncritical enmity against Russia that the western plutocratic alliance has manufactured with its media control has allowed them to be blamed for everything from incriminating WikiLeaks documents to a corporate raid by Ukrainian oligarchs without any questions asked. Anyone who has ever had to deal personally with a sociopath knows how much they love to exploit the gray areas that chaotic situations give them, and geopolitical conflicts create those situations in spades.

11. The neocons are always wrong.

This one’s really easy. If you ever want to be on the right side of history for a foreign policy debate, look at what Bush-era PNAC neocons like John Bolton and Bill Kristol are saying about it, and take the opposite position. Neocon thought leaders have been loudly and catastrophically wrong about everything since the turn of the century, from Afghanistan to Iraq to Libya to Syria, and they’re not about to start being right now.

12. The push towards truth always starts with yourself.

You can’t out-manipulate seasoned manipulators. The main error most people make when trying to deal with a sociopath is to try and manipulate them back. Don’t even try. They have years of experience on you because they literally have done nothing else. While you were laughing and crying and worrying and connecting and relating to people, they were working out how to play humans like Garry Kasparov worked out how to play chess. And when you have literal teams of sociopaths collaborating together to amass power, you my dear child, do not have a chance. Don’t play their game. You will lose.

The only way to win this is to set your compass resolutely to “true.” Always be honest with yourself. Find all the different ways that you are manipulating others and see them and acknowledge them. Find your tribal allegiances and your desire to be right, and tip your hat to their existence. The more self-aware we are, the less levers we have to be manipulated by. If you are blindly partisan or loyal to a particular faction, that makes you gullible to propaganda because your wishful thinking and your desire to be right come into play. Get honest with yourself about who you are and what you want, and you will start to become an un-playable piece on the board.

If we can’t beat these bastards with truth, we don’t deserve to win.

The Status of the Global Oligarchy

Posted on July 31, 2017 by Reid Mukai

By Francesca de Bardin

Source: Global Research

The term oligarchy is derived from the Greek words meaning “rule or command by a few.” The term is generally used in the derogatory sense to describe a tyrannical system that practices oppression to ensure obedience. While oligarchies are generally associated with antiquity and as being localized, many of today’s larger democracies can justifiably be called oligarchies. The following is a brief discourse on how modern oligarchs manage control over societies, using power exercised through economic and political means. Today the global oligarchy is controlled by a few hundred families.

Many modern democracies are systems where the actual differences between political rivals are very small, and in these systems the oligarchic elite impose strict limits on what constitutes an acceptable and respectable political position. As for the “politicians”, their careers depend heavily on unelected economic, political, and media elites. Therefore, we have the popular saying, “There is only one political party.” An oligarchy, as we know, is a governing structure in which power effectively rests with a small number of people. These people could be distinguished by royalty, wealth, family ties, education, corporate, or military control, and so on. In these governing structures control is maintained by a few prominent families who typically pass their influence from one generation to the next. But, inherited power is not the only means of transference.

While oligarchies are often controlled by a few powerful families whose children are reared and mentored to become inheritors of power, this power is not always exercised openly, and most oligarchs prefer to remain “the power behind the throne,” so to speak. Perhaps the best example of such a family, the Rothschild’s continue the long tradition of innovation based on a steady accrual, over more than two centuries, of expertise, experience, and immeasurable wealth. Their businesses continue to be at the forefront of global financial and commercial activities.

There are other “oligarchs” also in control however, but in addition to the “old money” influences, the oligarchs have now created a “new money” cabal of influencerswho play an ever-increasing role economically, politically, and at the structural level as well. “Unlimited” money, whether it is old or new, exerts a massive force. As an example of how money plays a role in the American system, a radio interview on the Thom Hartmann Program in July 2015 featured former president Jimmy Carter saying that the United States is now an oligarchy in which “unlimited political bribery” has created “a complete subversion of our political system as a payoff to major contributors.” According to the former president, both Democrats and Republicans, Carter said, “look upon this unlimited money as a great benefit to themselves.”

President Carter is not alone in his assertions. Other contemporary authors have also characterized current conditions in the United States and Western Europe as being oligarchic in nature. One, Jeffrey A. Winters, PhD Yale, 1991, professor of political science at Northwestern University and author of Oligarchy, argues that

“oligarchy and democracy operate within a single system, and American politics is a daily display of their interplay.”

Of course, there are many others among today’s great thinkers who profess oligarchs essentially rule us. Through the watchful eyes of independent media and academics willing to voice their dissent, the reality of the global oligarchy comes into view. While most people have always understood that the rich rule, most shy away from believing in a truly Orwellian control conspiracy. The fact is, oligarchies exist in small towns, large cities, and in countries today, and we really do have an alliance of oligarchic dynasties that is global.

Not only do these modern oligarchs exert control over the governmental tiers, they also influence the philosophy and ideas nurtured in academia, through social institutions, and especially the policy institutions of the world. One example was recently outlined by Author Steven MacMillan, who’s editor of the Analyst Report, who went so far as to suggest that institutions like the Council on Foreign Relations, are in fact “part of a shadowy network of private organizations that stretches across the globe to influence policy of most nation states.”

While the mainstream insists anti-oligarch voices are merely conspiracy theorists, hundreds of experts are now revealing the truth of this “1984” system bent on complete takeover. In a Guardian piece from 2015, author Seumas Milne framed the argument that:

“Escalating inequality is the work of a global elite that will resist every challenge to its vested interests.”

He goes on to briefly outline the dysfunctional systems these oligarchs have set in place for decades now, but what’s significant about his report is the ever increasing greed of these elites. As world systems, markets, and resources contract and become depleted, the oligarchs feel the pressure to extract still more from us. The simple way of putting this is to frame them as “addicts of growth”, or insatiable tyrants when all is said and done. When solutions for rising inequality are suggested, those in power balk at every turn these days. Austerity, increased tax burdens on the middle and lower classes, still more borrowing at the national and corporate level, even war with Russia over resources seem to be on the table to prop up this oligarchy. Many experts contend that it was this global elite’s unrealistic response to the changing global landscape that caused most of today’s geo-political crises.

There is some good news however. Although the global oligarchy aims to have total control of the world, it has not yet reached that goal. This oligarchy is not monolithic, there is competition among them and turf warfare. This can be seen in the competition for resources and wealth worldwide, and especially in the new anti-Russia propaganda. The oligarchs are infighting in many cases, the Ukraine situation represents a good case study for this. So, this infighting, along with individual opposition via economic and political factions, tends to block the global oligarchy from cementing full control. Furthermore, grassroots citizen movements are attempting to oppose these modern aristocrats as well, and together the movements have the ability awaken the greater citizenry and challenge the oligarchy.

Finally: the Eruption of the Clinton Foundation Scandal

Posted on August 19, 2016 by Reid Mukai

By Gary Leupp

Source: CounterPunch

“It’s getting really hard to know where any lines were drawn.”

-CNN

I confess I’d been looking forward to this. My son, following the Judicial Watch website, has been saying for months that the big email scandal will involve the State Department-Clinton Foundation ties and Hillary’s use of her office to acquire contributions from Saudi and other donors. As someone opposed to World War III (beginning in Syria and/or Ukraine), I was hoping that they (and he) were right.

It might not be all that immediately clear to many why this is another big deal. After all, it follows Hillary’s ongoing private server email scandal, involving not just issues of the Secretary’s “judgment” and so-called “national security” but also revealing details about Clinton’s key role in the bloody destruction of Libya and her hawkish views in all circumstances.

CNN commentators assure us that the FBI investigation “went nowhere” because the FBI decided she’d committed no crime. (Just move on, folks; this was political all along.)

These new revelations come just after the scandal of the DNC rigging the primaries for Hillary, revealed by email leaks (from an unknown source) provided through Wikileaks. The content of these has been avoided like the plague by mainstream media, which is in Hillary’s camp and is generally protecting her. The focus instead is on alleged Russian efforts to influence the U.S. election, and the imagined Putin-Trump “bromance.” Respectable news agencies have been announcing, as fact, the idea that Wikileaks got the emails from Russia; and that Moscow is trying to swing the election towards Trump (because he’ll accept an invasion of Estonia, wreck NATO etc.). It’s (or it should be) obvious bullshit, an effort to change the subject while exploiting the McCarthyite paranoid sentiments of the most backward.

The headlines are so far cautious. “Emails renew questions about Clinton Foundation and State Department Overlap.” “Newly released Clinton emails shed light on relationship between State Dept. and Clinton Foundation.” They are not (yet) shrieking, “Sheik bought State Dept. favors from Clinton Foundation donation” but we shall see.

What do the emails show so far? Two examples have been highlighted by the conservative Judicial Watch, which requested the email transcripts through the FOIA. In the first, in 2009, Gilbert Chagoury, a Lebanese-born billionaire who has given the foundation up to five million dollars and used its assistance to build a project in Nigeria, and is one of the foundation’s top donors, contacted Doug Band, head of the foundation’s Clinton Global Initiative, asking to be put in touch with a high ranking State Department official connected to Lebanon.

Band emailed Hillary’s top aide Huma Abedin and advisor Cheryl Mills, expressing a need. He writes: “We need Gilbert Chagoury to speak to the substance person re Lebanon. As you know, he’s a key guy there and to us and is loved in Lebanon. Very imp.”

A key guy to us. To the Clinton Foundation? The U.S.A.? Abedin did not ask that question before responding, “It’s jeff feltman. I’m sure he knows him. I’ll talk to jeff.” Feltman had been U.S. ambassador to Lebanon from July 2004 to January 2008 but was apparently still seen as the go-to guy. So Hillary’s chief aide took it upon herself to contact the former ambassador to tell him Chagoury (whom she might mention is a major contributor to the Clintons) needed to talk with him.

Nothing illegal there, they will say. Why shouldn’t the State Department arrange contact between a billionaire Lebanese Clinton donor, loved in Lebanon, and the ex-ambassador, if it contributes to regional stability or U.S. national security? And the hard-core Hillary supporters will nod their heads, and maybe point out that Feltman has denied any “meeting.” (Maybe Huma just passed on his address and they chatted online.)

(CNN I notice is showing a video of Bill Clinton with Chagoury in Nigeria, inaugurating a multi-billion dollar waterfront development on the coastline established “under the umbrella of the Clinton Global Initiative.”)

The other instance of “overlap” central to the discussion so far is a request of Band to Abedin and Mills for “a favor.” Someone who had recently been on a Clinton Foundation trip to Haiti wanted a State Department job. He indicated that it was “important to take care of” this person. Abedin, apparently without questioning Band about why this person was important, got right back to him: “We all have him on our radar. Personnel has been sending him options.” So the head of the Clinton Foundation could snap his fingers, again stressing how “important” his demand was, and Hillary aides Huma and Cheryl paid by your tax dollars would snap into action.

A CNN report deplores “the intermingling of emails between State and Clinton Foundation and others, giving the overall effect that it’s getting really hard to know where any lines were drawn.”

Maybe nothing illegal here. But there is an ongoing FBI investigation, no longer about Hillary’s multiple phones and private server, nor about the content of the communications (revealing her hawkish savagery), but about the routine trade-off of foundation connections for political rewards.

Those transactions are mere corruption, not war crimes. But the U.S. mass media never targets politicians for their bloodiness, and they love the conventional corruption scandal. So let there be more leaks that will absorb the attention of the talking heads! Let’s see clearer pay-for-play evidence! And let’s see more details about how the DNC midwifed Hillary’s nomination, actively sabotaging a supposedly democratic process.

Let the American people see how thoroughly rotten both candidates are, and how thoroughly rotten the system that barfed them up.

Bernie in a fair process would be the Democratic nominee now. Clinton didn’t so much steal the election as buy it in advance, arranging the details through lackey Debbie Wasserman Schultz. Trump would not be the Republican nominee but for the editorial decisions of cable news producers to—from the very inception of his campaign—announce BREAKING NEWS and cover his nearly identical rants every time he held a rally.

This gratuitous coverage obviated the need for any (other) Trump advertising. Even as the anchors, commentators and other talking heads ridiculed, denounced and appeared puzzled about the Trump phenomenon, the networks made the viewers imbibe his vapid rants. They hooked the most reactionary elements of the population on this blowhard billionaire nut case.

In the Democrats’ case, Wall Street and Wasserman Schultz controlled the primaries. In the Republican case, the corporate news media (for its immediate profit motives) advertised a total dick who happened to be a billionaire and represent the One Percent every bit as much as Hillary.

So they’re now in our faces, day after day. Hideous people with their news-anchor supporters, and cable commentators so ready to dismiss serious issues, put the very best face on their candidate, and change the subject to attack the other candidate. In the end it comes down to: We have a two-party system. The parties made their choices. So you HAVE to choose one.

Julian Assange described the U.S. presidential race as a choice between cholera and gonorrhea. Why should the people of this great country of 310,000,000 people—many with great creativity, integrity and intelligence—be assigned this sick choice of Clinton or Trump by the One Percent that controls everything?

Why should any Bernie supporter so debase himself or herself as to say, “Okay, I know the primaries were fixed and that Bernie could not win because the cards were stacked against him. And despite the fact that I put passion and effort into an anti-Wall Street campaign, now I’ll support the Wall Street candidate, who’s also a liar, who’s going to flip-flop again on TPP and bomb Syria to produce regime change, and provoke Russia in Syria and Ukraine—because well anyway she’s better than Trump, and we all have to vote, don’t we”?

But why should anybody have to hold their nose while they vote? The whole process has been exposed as never before as a farce. Why participate at all in something so corrupt? Do you want to vote just to vote, to publicly display the fact that you believe in the system itself, like the North Koreans who routinely go to the polls patriotically to vote for the options available? (As you may know, in some elections in the DPRK you can vote for a candidate of the Workers’ Party of Korea, Chondoist Chogu Party, Korean Social Democratic Party or independent. There is the manicured appearance of multiparty democracy—just like here. And no doubt some people feel good after the voting, knowing they’ve done their civic duty in a system they believe in. But what if you’ve woken up and don’t believe in the system anymore?)

Why not think bigger, and beyond? Either Clinton or Trump will likely take office in January, as the most unpopular newly elected president of all time. Either will have been brought to power by a manifestly anti-democratic, corrupt process that, more than in past years, is well exposed this time. Either will be vulnerable to mass upheaval, in the wake of Mexico wall construction or the announcement of a Syrian no-fly zone. Appalled by the election choices and result, the majority could maybe consider targeting the rigged system itself.

Just a suggestion. Massive demonstrations in Washington on Inaugural Day by people who have come to reject its legitimacy itself, knowing that it’s run by the One Percent to whom black lives don’t matter, drone warfare is cool and global warming is a hoax. Posters and banners with the curt, easy-to-understand and undeniably true popular slogan: THE WHOLE SYSTEM IS RIGGED!

Imagine a huge rally Jan. 20 demanding its overthrow, or at least the immediate resignation of the system’s illegitimate new executive, even if we don’t know what comes next. Imagine the admiration that would invite throughout the world, the hope it would inspire should the people of this country rise up to challenge not just a war, policy or person but the corrupt (capitalist and imperialist) system under which we live.

***

Now I read that the FBI, directed by James Comey (who recommended no charges for Clinton for her private cell phone use but left open the prospect of recommending criminal charges against Clinton for abusing her office to profit the Clinton Foundation) in fact has recommended charges against Hillary.

But the Department of Justice headed by Clinton loyalist Loretta Lynch rejected the recommendation. Because—don’t you see?—Hillary has to be the next president. To stop Trump, at all costs! And to stop Putin, that aggressive Putin. And to keep together the “Clinton Coalition.”

Good job, Loretta! But regardless of your effort, Hillary’s Pinocchio nose grows longer by the day, while the whole system is exposed as a cancer requiring the most aggressive treatment.

Gary Leupp is Professor of History at Tufts University, and holds a secondary appointment in the Department of Religion. He is the author of Servants, Shophands and Laborers in in the Cities of Tokugawa Japan; Male Colors: The Construction of Homosexuality in Tokugawa Japan; and Interracial Intimacy in Japan: Western Men and Japanese Women, 1543-1900. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, (AK Press). He can be reached at: gleupp@tufts.edu

The Popular Myth of Democracy in America

Posted on February 16, 2016 by Reid Mukai

By Stephen Lendman

Source: SteveLendmanBlog

No nation in world history promised more and delivered less to its citizens and people worldwide. None more greatly threatens world peace – putting humanity’s survival up for grabs like never before.

None did more harm to more people globally over a longer duration. None matches the menace it represents – a presstitute media supported fascist gangster state willing to risk destroying planet earth to own it, run by a bipartisan criminal class.

From inception, America was always run by the people who own it, as first Supreme Court Chief Justice John Jay explained.

John Adams believed power belonged exclusively to the rich, well-born and able. Today it’s about monied interests in charge – deciding who holds all top positions in government, elected and appointed.

People have no say whatever. Ignore electoral politics, intended solely to deceive – manipulating people to believe new bums are more worthy than current ones.

Voting is a waste of time, accomplishing nothing. Duopoly power rules.

America is a one-party state with two wings, indistinguishable from each other on issues mattering most – militantly pro-war, pro-business, anti-populist no matter what names and faces hold top positions.

Police state laws enforced by powerful security forces at the federal, state and local levels assure wealth and privilege interests are exclusively served at the expense of public welfare.

Elections are farcical, exercises in theater, not democracy. Candidates for the nation’s top offices are cardboard cutouts of each other, distinguishable only by their disingenuous rhetoric – promises made, forgotten and broken once in office.

The public interest be damned. People are used, not served, deceived to believe politicians represent them.

Embedded power runs America, politicians serving entrenched interests exclusively, chosen for that reason. Ordinary people thinking their enfranchisement matters are living in a fantasy world.

Government of, by and for the people is the grandest of grand hoaxes. Media scoundrels perpetuate the myth with all the familiar slogans and high-minded posturing.

Jimmy Carter was right last summer calling America an “oligarchy with unlimited political bribery…a complete subversion of our political system as a payoff to major contributors.”

Republicans and Democrats operate by the same corrupted standards. “(U)nlimited) money” serves their interests at the expense of constituents they represent.

America’s system is too debauched to fix. It’s too late for tinkering around the edges.

A complete makeover is needed – a popular revolution, replacing oligarchy with grassroots democracy for the first time in the nation’s history, freed from money control.

Today is the most perilous time in world history. We have a choice.

Accept the status quo, its endless wars, oligarch control over the greater good, unprecedented wealth disparity between rich and all others, along with harsh crackdowns on nonbelievers and risk of potential humanity destroying nuclear war – or refuse any longer to tolerate a system responsible for so much harm and misery to so many people worldwide.

Survival depends on choosing wisely. What kind of world do you want to live in? What kind do you want your children to inherit?

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book as editor and contributor is titled “Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.”

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

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