Think of this as Volume 17, Number 10 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.
Strange to say but hear me out.
The banksters' lair is the roughly one square-mile of central London known as “The City.” The country has become entirely dependent on profits from The City. Without The City, London fails, England fails, the UK fails.
The City created Too Big To Fail, and exported it. The City crafts the financial shenanigans threatening the world economy and calls it creativity. To defend The City the current British government is willing to even leave the EU, which wants to impose some reasonable restrictions on the havoc bankers can do. No surprise that the Cameron government will fight EU efforts to restrict banksters' bonuses – I'll wager it might even be a deal-breaker between the UK and Europe.
What Wall Street has to compete with, the bar of ethics and proprietary it must meet in order to remain globally competitive, is The City. And that bar does not exist. I wrote a novella a decade ago, based on the idea that a completely unregulated market could compete with The City. It can't.
If The City were all there were to worry about, we could deal with it. But there is a second ingredient to this menace. Tax avoidance.
Jersey. The Isle of Man. The Channel Islands. Bermuda. The Caymans. What do all these places have in common? Two things – they're all notorious tax havens, with strict secrecy, and they're all under the control of Great Britain. The government there may complain all it wants about Amazon.Com and other companies avoiding taxes by running the financing of their operations in Jersey, but Jersey is part of Great Britain. The government's denial on this point is, simply, ridiculous.
Britain has the power to close the world's most notorious tax havens at a stroke. The islands don't have any arms with which to prevent it. They may make some claims of legality, but those are bogus. The fact that these tax havens remain open is all down to Britain's choice.
That choice is made, of course, by The City. The City uses the tax havens as its key competitive advantage over Wall Street. By routing transactions through tax havens, The City becomes a law unto itself. The City is thus The Base – Al Qaeda – of the world's financial problems.
No government, anywhere in the world, can threaten to tax the wealthy on a par with what they get from government, because the wealthy can route their money through the British tax havens, and their wealth through The City. Between the secrecy of The Caymans and the manipulation of The City, there is one law for the ultra-rich around the world, and one law for everyone else, and the everyone else must shoulder the burdens of paying to protect the wealthy alone.
Just as the U.S. created Al Qaeda as a bulwark against communism, so we've used The City and the tax havens to hide our government's illegal operations for decades. We have allowed this to continue, we have encouraged it, for our own foreign policy reasons. To the point where it now threatens our sovereignty, and the sovereignty of every western government.
China also countenances some tax havens. Macau, Hong Kong and Singapore have rules that countries with real money don't, and thus the Asian rich flock to these places. But if China wants you, being in Macau won't save you. Also note something else, something that Hong Kong and Singapore have in common. They were, at one point, British.
Ever wonder why so many British football clubs are run by rich foreigners? What is it that the sheikhs who own Manchester City, the Chinese who control Cardiff, and the Americans who own Manchester United have in common? The City. The tax havens. Financial manipulation.The country supposedly has a “fit and proper person” test that keeps bad people from owning its clubs, but that's a joke. Crooks buy in all the time, and destroy what they buy at their whim. Ask the people of Portsmouth about that.
If we're to become serious about the rule of law, about taxation, about fairness, about any of the things that are now so essential to economic growth, we have to deal with the reality of The City and the tax havens. We have to deal with the Ultra Class that uses Great Britain as its base of operations.
The economic war of the Ultra Class against the rest of us is centered on Britain and on British policy. When are we going to get serious about fighting it?