The Real Enemy is England

Think of this as Volume 17, Number 10 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

The greatest threat to America now
comes from England.

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.

Thus The City can do what it wants.

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?