There is a danger lurking, it took over Japan, the US and Europe, now we see Greg Jericho (aka gorgonomics) vocally giving us: ‘The government needs to get into more debt, our grim economy depends on it‘ (at https://www.theguardian.com/business/grogonomics/2019/may/28/the-government-needs-to-get-into-more-debt-our-grim-economy-depends-on-it) and my first reaction is: “You have got to be out of your bloody mind“. In the first politicians should never be trusted with the option of deeper debt, the US and Europe are clear evidence of that. The second is that giving that much power to the banks is just unacceptable. We see transgression after transgression and they walk away with mere fines. Reuters gave us less than two months ago: “The largest ever money laundering scandal in Europe is rippling through the region’s banks“, these people think that they can get away with murder, and whilst we hear politicians proclaim that they will use the full power of the law, we have yet to see any banker do any serious prison sentence since 2004.
Latvia’s ABLV, the Estonian branch of Danske Bank, Sweden’s Swedbank and it is all about €200,000,000,000 between 2007 and 2015. So far the chief executive of Swedbank was let go, and how much money did they make? These issues are connected. Deutsche bank and the Dutch ING, which was ‘forced’ to pay a $915 million last year for example, yet when their takings are part of billions upon billions, these players go home with a pretty penny. So far the Australian banks are decently clean large debts will optionally change that, anyone telling you different is lying through their teeth. When we realise that EU banks payed over $16 billion in fines between 2012 and 2018 because of lax money-laundering checks, we think that there is a solution, yet how does $16,000,000,000 compare to €200,000,000,000? Someone is going home rich and whilst the banks pay of the fine making it a mere cost, the cost of doing business goes up and so do the fees.
the Singapore Independent (at http://theindependent.sg/nigerian-based-in-singapore-jailed-for-role-in-citibank-money-laundering-scheme/) gave us last week “Paul Gabriel Amos was sentenced to three years’ jail after he pleaded guilty to two counts of dishonestly receiving stolen property amounting to more than S$1 million and one count of money laundering” ad this is still about a 2008 case, it took over a decade to get this far, and when we see “Amos agreed to help in exchange for a cut of the criminal proceeds“, that is how it works and this is in places where banking is a lot more sophisticated than anything Australia has. You might hear accusations that these cases are not connected, but they are. They are connected to greed and ‘opportunity’. My issue is that the Australian government has no business taking out large loans of any kind until they fix the tax system, no matter how long that takes. It gets to be even worse is we take the Business Insider (at https://www.businessinsider.com.au/maxine-waters-deutsche-bank-subpoena-trump-kushner-2019-5), the fact that we see: “The chairwoman of the House Financial Services Committee told INSIDER on Tuesday that a New York Times article detailing how Deutsche Bank buried reports of potentially illegal financial activity linked to President Donald Trump and Jared Kushner “reinforces the need” for the panel “to obtain the documents we have subpoenaed from the bank.”“, when we consider that the banks facilitated for someone who is not President of the United States and we consider on how willing any bank is on the criminal path as the worst thing they face are fines at a mere percentage of the takings, when they call that the cost of doing business, how long until Australia is thoroughly tainted in a similar way?
the fact that ABC gave us 4 weeks ago (at https://www.abc.net.au/news/2019-05-01/google-facebook-make-billions-in-australian-sales-pay-little-tax/11060474) ‘Google, Facebook make billions in Australian sales but pay less than $40m in tax‘, do you not think that overhauling the tax system so that these players pay a fair share is a much better solution? Do you think that paying 0.000002% or less is acceptable? Besides that, the least said about the former car industry and their option for legalised slave labour the better.
Should we not prosecute every treasurer over the last 10 years, and after that see what we can do? I am not some anti-capitalist, I understand that capitalism is a driver and a powerful one, yet even at 1% (giving us at least $200,000,000) would solve a fair amount of issues, would it not? So whilst politicians are wasting our time with “Both companies are facing various probes by regulators in Australia and overseas over issues relating tax“, the entire tax mess should have been addressed well over a decade ago, as such can we get the incomes off al treasurers between 2009 and 2019 back please? This treasurer, if he does not adjust tax laws would be allowed to keep $1 for his attendance.
When we make this law the issues change and yes, we will get all kinds of threats, but they can equally fuck off and bleed someplace else dry. I am certain that a market share of 20 million will draw in other potential investors, because 20 million consumers will want all kinds of stuff.
And whilst people like Greg Jericho are talking about the sweet spot, they all overlook the issue that debt will have to be paid back, that whilst we see that Japan, the US and Europe have no exit strategy to end debt, at present that debt will be there for generations, making them the bitches of banks and fortune 500 companies, plain and simple. When the debt matures the quality of life in these places hit another snag, we did not and will not sign up for that.
I would love to see infrastructure fixed and improved upon, but whilst these idiots are unable to fix the tax system they have no business pushing the tax payers into deep debt.
And whilst there is no doubt that Greg is working from logic, he truly is; the issue is not: “Imagine being able to get a loan to upgrade machinery and equipment for your business at 1.5% – lower than inflation! – and you didn’t take advantage because you have a theory about how debt is bad“, he seemingly forgets that politicians are inherently stupid (they are optionally dumb and greedy in a nice compact package), these politicians ignore and push forward what they had to resolve, the amount of evidence on a global scale is overwhelming. And in the end, we the taxpayers get to pay that hardship, all that whilst tax laws were not dealt with a decade ago, how is that fair to anyone?