Category Archives: Banking

Inversion: The New Name For Corporate Tax Evasion.

Posted on by

Some of the world’s largest corporations were founded in the US. They were capitalized by selling shares to Americans on American stock markets. They relied on our infrastructure, our labor force, and the stability of our currency in order to prosper and grow. That growth was accelerated by tax incentives and government giveaways. They lobbied our Congress and the Federal Trade Commission to turn a blind eye as they swallowed up smaller competitors to create virtual monopolies. At the same time, these corporate giants took advantage of tax loopholes in order to reduce their tax rates to single digits.

So how have these companies repaid American taxpayers for their investment and their patronage?

Many corporations shipped their manufacturing jobs overseas in search of cheaper labor. They then dumped low cost products on our markets in order to force smaller competitors into submission. More recently, they stashed billions of dollars of their ill-gotten profits in foreign banks demanding that our government create a tax holiday to encourage them to “repatriate” the funds at greatly reduced tax rates. Now they are purchasing or merging with foreign competitors so that they might move their books overseas and avoid paying US taxes altogether.

The name for this latest off-shoring scheme is “inversion.”

Inversions are already costing our nation billions in lost revenue…revenue needed to maintain the infrastructure and economic stability these corporations rely upon. Medtronic recently resorted to the inversion scheme. Other companies to take advantage of the accounting trick include Aon, Applied Materials, Eaton Corporation, Fruit of the Loom, Halliburton, Ingersoll-Rand, Omnicom, and Tyco. The latest corporation to consider the scheme is Walgreens, which would presumably move its books from “the corner of happy and healthy” to Switzerland.

To add salt to this festering (and costly) wound, most of these inversions are being aided by our “too big to fail” banks; The very banks that were bailed out of certain bankruptcy in 2008 with our taxpayer funds.

So call it what you want, this latest corporate accounting trick is just another name for tax evasion. And I’d suggest another name for any corporation that resorts to such tactics…Traitor.

Advice From A War Criminal.

Posted on by

From The Department Of Who The Hell Cares, Richard “The Dick” Cheney and his unpleasant daughter, Liz (I assume that’s short for Lizard) recently announced that they have formed a Political Action Committee to “restore America.” Restore America to what? To a craven bully that interferes with other governments; that robs resources from third world countries while giving nothing in return; that encourages large agribusiness to dump excess products in other nations thus bankrupting small farmers and throwing them into abject poverty?

Or does The Dick merely want to start another war in order to direct more taxpayer billions to his former company and political allies at Halliburton? Does The Dick want to resume his position as Torturer-In-Chief to cause others to fear him? Does he still believe that we can use our military might and status as the world’s only superpower to force the rest of the world to kneel at his feet and pay tribute to our multinational corporations? Does he still want to extract money and resources from the poor to feed the insatiable appetites of his wealthy friends?

Yes, as part of the Ford, George H.W. Bush and George W. Bush administrations,The Dick has done all of that and more.

In an op-ed, The Dick and his disagreeable daughter wrote, “Rarely has a US president been so wrong about so much at the expense of so many,” to which White House Press Secretary Jay Carney rightfully replied, “Which president is he talking about?” The only president that meets that description is the one who lived in the White House while The Dick was running our nation to ruin.

Let’s review: First, Cheney and Bush stole the 2000 election through a combination of Jeb Bush denying voting rights to tens of thousands in Democratic-dominated Florida counties, by counting nearly 10,000 unsigned absentee ballots, by bullying election officials, and by appealing to a Republican-laden Supreme Court. Cheney and Bush ignored more than 40 warnings of a pending terrorist attack in the US by al-Qaeda. They then invaded an oil-rich country under false pretenses, ordering numerous atrocities. They stole our privacy. They awarded so many billions in no-bid contracts to Halliburton for rebuilding Iraq that they “misplaced” roughly $80 billion. They ignored outright gambling by our largest financial institutions costing ordinary Americans their homes and trillions of dollars. They then bailed out those same financial institutions in order that they might continue their ritual of handing out six and seven-figure bonuses. Finally, Cheney and Bush were convicted as war criminals in abstentia by an international court.

Now that is a failed presidency!

Did I mention that the Cheney/Bush fiasco included leaving the Middle East in complete turmoil giving Sunni and Shiite Muslims the opportunity to resume their near 1,400-year war over who is the rightful successor to Muhammad? Now The Dick and his spawn want the US to send troops to Iraq to intercede. They’re not worried about the lives of our soldiers, the lives of Iraqis, our national debt or our national reputation. They’re only worried about oil.

Here’s an idea. If The Dick feels so strongly about immersing our nation in another war or occupation, let him crank up his mechanical heart and enter the fray with his shotgun and his oily buddies. Give them military training and draft their children for the fight. After all, The Dick has already proven that he is dangerous to his friends with a shotgun in his hands. Imagine what he can do against his enemies. Anyway, he and his fellow executives of Big Oil are the only ones who stand to profit from another misadventure in Iraq.

The Teapublican Zombie Apocalypse.

Posted on by

Following eight years of the George W. Bush administration, which included two wars (including one pre-emptive war of choice), the failures of FEMA to give aid for the victims of Hurricane Katrina, the crash of the housing market, the nation’s second-largest stock market crash, the bailout of the nation’s largest banks, soaring debt, thousands of home foreclosures and skyrocketing unemployment, the general public was understandably outraged. The Democratic Party stood a good chance of tapping into that outrage thereby ensuring its dominance for generations.

Not only did it fail to do so, it allowed the Tea Party to capture the voters’ anger and help the GOP seize the House of Representatives in 2010.

Was that outcome the result of astute planning and insightful strategies by Republicans? No, it was the result of the stupidity, timidity and outright cowardice of Democrats! Instead of charging Bush officials for the war crimes they committed, Democrats allowed them to profit from the speaker’s circuit and to rewrite history with their inevitable memoirs. Instead of pursuing criminal charges against the banksters who defrauded ordinary Americans, the Department of Treasury and the Justice Department allowed them to give each other six and seven-figure bonuses for their misdeeds. Instead of rewriting the tax code to prevent corporations and individuals from avoiding taxes by stashing profits in off-shore accounts, they bowed to Teapublicans making the Bush tax cuts permanent.

By 2010, the populist outrage created by Teapublican policies was re-directed toward Democrats – not so much for what they had done, but for what they had NOT done. They have not established a brand, making their core values clearly understood. They have not embraced those who joined the Occupy movement and the 99 percent. Too few have stood up against big money and big business. They have not fought hard enough for what they claim to believe in. And, instead of staying focused on solutions to our nation’s problems, they have too often and too easily buckled to criticism.

Now we are heading toward yet another seminal moment in politics and the analysts are suggesting that the Teapublicans will not only hold onto the House. They are likely to take over the Senate! In other words, voters are likely to reward the party that blocked the regulation of financial institutions; the party that panders to large corporations and billionaires while demeaning and dismissing nearly half our population; the party whose policies have hollowed out the middle class and transferred trillions of dollars of wealth upward to those who least need it; the party that took us to war based on a series of lies; the party that has repeatedly tried to cut Social Security and Medicare; the party that refused to allow the duly-elected majority to legislate through a record number of filibusters; the party that prioritized the profits of large corporations over jobs; the party that ignores the needs of small businesses; the party that has destroyed labor unions; the party that underfunds Veterans Affairs then howls when it can’t meet demand; the party that believes that climate change and environmental conservation are based on flawed science.

If you’re a small business owner, a white collar worker, a blue collar laborer, a woman, a retiree, or anyone who wants to breathe clean air and drink clean water, the GOP has made it abundantly clear that they don’t care about you. By the same token, many in the Democratic Party have shown an unwillingness to fight for you. And their election strategy seems to consist of, “A Republican said (or did) something stupid, send us money.” Maybe that explains why so few Democratic voters show up at the polls during midterm elections.

Indeed, the two parties can best be summed up by two quotes. In the HBO series The Newsroom, Jeff Daniels’ character stated, “You know why people don’t like liberals?…cause they lose. If liberals are so f***ing smart, why do they lose so goddam always?” And conservative author P. J. O’Rourke famously wrote, “Republicans are the party that says government doesn’t work, and then they get elected and prove it.”

Unfortunately, I believe they are both right.

20 Things President Obama Should Do After The Mid-Terms.

Posted on by

In no particular order of importance:

  1. Normalize relations with Cuba.
  2. Support Palestine for UN membership.
  3. End the War on Drugs and begin the process of decriminalization.
  4. Renew calls for a Public Option as part of the Affordable Care Act.
  5. Negotiate pharmaceutical prices as all other industrialized nations have done.
  6. Rally Americans to aggressively deal with Climate Change.
  7. Push for an end to mandatory sentences for non-violent criminals.
  8. Order the Justice Department to aggressively pursue criminal charges against the banksters who collapsed our economy in 2008.
  9. Order the Justice Department to aggressively pursue charges of war crimes against those involved in the CIA’s torture program.
  10. Deny permission for TransCanada to build the Keystone XL pipeline.
  11. Push for changes to the tax code to prevent the use of offshore tax havens by individuals and corporations.
  12. Push the IRS to prevent 501c3s and 501c4s from engaging in politics.
  13. Aggressively push for immigration reform.
  14. End drone assassinations except as an absolute last resort to deal with terrorist leaders and increase transparency.
  15. Order the removal of ALL American troops from Afghanistan.
  16. Offer government-backed, interest-free college loans based on need.
  17. Demand that Congress pass common-sense gun control measures, including universal background checks and a ban on large ammo clips.
  18. Order the Justice Department to create uniform voting rights across all states.
  19. Aggressively push for an end to human trafficking.
  20. Order the Department of Defense to reduce its reliance on private contractors.

We Can’t Afford That Anymore.

Posted on by

Whenever someone proposes rebuilding our crumbling infrastructure, improving schools, funding research for chronic diseases, helping the unemployed, treating the mentally ill, paying pension obligations to public employees, etc., our politicians are quick to say that we can’t afford those things anymore.

Say what? The richest nation on Earth can’t afford to meet the needs of its own citizens?

In reality, it’s not that the US lacks the money to do these things. The federal budget for FY 2014 is $6.3 trillion and, for most Americans, our tax rates as a percentage of income are near all-time lows! So it’s not a lack of money. It’s a matter of priorities. We always seem to have money for military hardware and military interventions around the globe. It’s estimated that the wars in Afghanistan and Iraq will cost $6 trillion. It costs us $2.1 million per year to maintain just one soldier in Afghanistan, and current plans call for leaving up to 20,000 troops in Afghanistan after our “withdrawal.” Yet, some of the biggest budget hawks in Congress are calling for a larger presence in Afghanistan, military intervention in Syria, as well as confrontation in Crimea and the Ukraine. Some even hint at war with Iran.

Is it any wonder that we can’t afford to maintain our own nation?

These same budget hawks voted to dramatically expand funding for the F-35 jet fighter which is years behind schedule and hopelessly over budget. They even added funding to build more Abrams tanks, despite the fact that neither the Army nor the Marine Corps want them. As a result of such decisions, we will spend $820.2 billion on defense in FY 2014, not including Homeland Security. This money is not needed to defend our nation. It’s needed to maintain the American corporate empire; to maintain US control of resources in remote corners of the world; to maintain US access to Middle Eastern oil deposits; to maintain corporate access to global markets and to open new ones; to maintain massive profits and executive compensation.

Yet studies show that most Americans would rather bring our troops home. They would rather rebuild our own nation than one we bombed into submission. So why don’t our Congressional representatives listen? Why do so many continue to vote against the will of the people?

The answer, in a word, is money.

Large corporate interests take money from ordinary, hard-working people through various forms of scams and corporate subsidies. (You’ll find a great example detailed in a Rolling Stone article by Matt Taibbi linked here.) This leads to increased profits. The corporations then give a portion of that money to the election campaigns of politicians in order to buy access and influence. In return, those politicians pass laws to benefit the corporations. And the cycle starts all over again.

On the rare occasions when the politicians take their hands out of the pockets of their corporate sponsors, they pass laws to deregulate industries; to render the EPA and other regulatory agencies impotent; to increase welfare for large corporations while cutting their taxes; to privatize prisons, schools and public pension funds; to cut funding for parks, mental health facilities, public universities and public schools; to redirect taxpayer money to Wall Street hedge funds. All the while, they blame the nation’s resulting economic problems on labor unions, the unemployed and the working poor. To distract the public from their crimes, these fraudster politicians tell us that their actions are necessary to cut debt and create jobs.

What they don’t say is that the only jobs they’re concerned with are their own.

The Politics Of Division And Deception.

Posted on by

For many years, the GOP has used so-called “social” issues, such as proposed anti-abortion legislation and “sanctity of marriage” laws to divide the voting populace and fire up their base. The Democratic Party has focused on issues like social safety nets, minimum wages and availability of health care. And the debate has left our government largely paralyzed.

In some ways, arguing about the issues that divide the rank and file of the two political parties is akin to rearranging deck chairs on the Titanic. It’s not that the issues aren’t important. But compared to other issues, they are mere distractions…the political equivalent of a con artist bumping your shoulder while picking your pocket.

The con artists are working for large, multinational corporations and the very wealthy. In order to grow and thrive, these companies need two things: A plentiful supply of natural resources and cheap labor. Over the course of history, those needs have led the wealthy to finance exploration, nations to build wide-ranging empires, and corporations to destroy collective bargaining movements.

Following World War II, the desire for access to oil, rubber, timber, tin and other resources led the British, the US and the Soviet Union to attempt to divide much of the world culminating in the Cold War. The desire to acquire resources led us into conflicts in the Caribbean, Central America, South America, the Middle East and Southeast Asia. It was the cause of the Spanish-American War, the war with Japan, the war in Vietnam, and the war in Iraq. It led our CIA to orchestrate the overthrow of elected leaders in Brazil, Chile, El Salvador, Honduras, Indonesia, Iran, Iraq, Nicaragua and elsewhere.

Similarly, the need for cheap labor led mining companies to create company stores and to build entire towns designed to trap workers into becoming hopelessly obligated to the owners. It caused companies to hire thugs to brutally beat striking workers. It led to shooting wars between corporate interests and labor unions. More recently, it led corporations to move factories to Southern “right-to-work” states then on to Mexico to China to India, Pakistan and Sri Lanka.

The executives behind these actions aren’t evil. They’re just doing business. They claim that it’s not their responsibility to worry about social or environmental problems. They believe that their only responsibility is to increase the return on investment for shareholders by decreasing costs and increasing productivity. To them, picturesque mountains merely cover the precious minerals they covet. Pristine forests are merely the lumber needed for construction. Impoverished people in distant lands are simply motivated laborers.

And so it goes.

While we argue over the debt ceiling, corporations and billionaires quietly park their profits in off-shore tax havens then lobby for a tax “holiday” that will allow them to bring the money home at greatly reduced tax rates. While we argue over extending unemployment benefits, corporations lobby for more subsidies and government giveaways. While we argue over food stamps, corporate agribusinesses pocket billions in taxpayer funds. While we argue over Social Security retirement benefits, too-big-to-fail financial institutions steal trillions from 401ks, IRAs, pension funds and foreclosed homes. At the same time, all of these corporations continue to lobby for reduced government regulation and oversight.

It is because of our inattention that a mere 85 individuals now own as much wealth as half of the world’s population…the equivalent of the populations of China, India, the United States, Indonesia and Brazil combined. It’s why unemployment has grown and why most salaries have not. It’s why a few corporations now control most of our food supply. It’s why those same corporations are able to poison the food supply in search of ever larger profits. It’s why the incidence of chronic disease has skyrocketed despite government-funded technology and research that give us the ability to end it. It’s why our climate is rapidly changing while we continue to subsidize the companies responsible for changing it.

As long as we focus on the distractions instead of the actions, things will only get worse.

Affluenza: Too Rich To Jail.

Posted on by

The young Texas boy who was given probation for killing four pedestrians and critically injuring two of his companions while driving drunk is less the exception than you may think. Certainly, his defense of pleading guilty to being a spoiled brat is unique. But the end result was not. Instead of going to jail, the Texas youth will be forced to suffer the indignity of attending a $450,000/year California treatment program complete with martial arts lessons and private chef. The horror!

Fact is, the rich and the privileged have always received special treatment.

Likely, most of us can recall at least one incident when someone in our school or community was treated differently because his or her family had money or knew the “right” people. It might have been an athlete before a big game. It might have been the child of a community leader who got a grade they hadn’t earned. Those kinds of things are bad enough. But when they extend to our justice system?…

There are people from poor communities who received life sentences for petty, non-violent crimes while the Wall Street goons who stole trillions from homeowners and investors received six and seven figure bonuses. (Most have not even faced charges, and likely never will.) While the poor rot in prison after being caught with crack cocaine, the rich caught snorting powder cocaine are released with a fine and probation…or sentenced to a spa-like treatment center. Many of the wealthy have even gotten away with murder thanks to their highly-paid “dream” teams of attorneys and consultants.

In some cases, the perps don’t even have to be rich to receive special treatment. After finally being indicted for shooting an unarmed boy, George Zimmerman was allowed to get away with murder thanks to his team of lawyers paid for by the gun lobby.

Of course, the same kind of special treatment extends to large corporations.

After it was determined that a Koch refinery carelessly spilled aviation fuel into the ground water and tried to cover it up, the company was fined…wait for it…a sum equal to less than one day’s net profit from the refinery. And, while BP was forced to pay more than $42 billion for the Gulf oil disaster, a US district court ruled that the company originally responsible for the leak and ensuing explosion, Halliburton, will not have to share in the costs. (It wouldn’t have anything to do with Halliburton’s connection to former V.P. Richard “The Dick” Cheney, would it?)

I guess money and influence can buy happiness, after all. Obviously, they can buy special treatment.

The Tao Of Politics.

Posted on by

I am not a Taoist. Nevertheless, I have learned that the philosophy of Taoism has much to offer. The Taoist concept of Yin and Yang holds that nothing is ever entirely black or white; hard or soft; good or bad. Taoism teaches that good people can do bad things. It also teaches that those we consider bad can, on occasion, do good things.

This is particularly true as it pertains to politics.

For example, I know many who are otherwise caring, loving people who would deny food, shelter, health care and other human necessities to the unfortunate simply because their Republican Party preaches personal responsibility. They have become convinced that the poor are merely taking advantage of those of us who have been successful. They want to believe that the majority of the poor are lazy. Such thinking allows them to look the other way when they see someone who is in desperate need of help.

They cannot conceive that someone can work hard and still struggle to feed their families because they are underpaid by large, greedy corporations. They falsely believe that minimum wage jobs are entry level jobs that are the first step up the economic ladder. In past times, that may have been true. But in today’s economy, with many of our high-paying jobs now shipped offshore, for many people, the economic ladder has been pushed aside by greedy corporate executives.

Many Republicans refuse to accept that the American Dream no longer exists for many people; that the US is not the land of opportunity it once was; that no amount of hard work can pull many of the unfortunate out of poverty; that the US now has less upward mobility than most of the rest of the industrialized world.

As a result, many good Republicans cheered when the federal government cut $5 billion from the annual budget of SNAP (food stamps) – an amount equal to all of the charitable organizations in the nation (501c4 “charities” such as American Crossroads and FreedomWorks, not included). The same people who would gladly give food and money to a family member or neighbor are still clamoring to cut another $4-40 billion from SNAP at a time when 1 in 6 Americans and 1 in 4 American children are dealing with hunger.

These grinches are not bad people. They are simply uninformed or misinformed.

These champions of personal responsibility and faith are convinced that social safety nets are not only unnecessary. They believe that social programs are creating a culture of dependence. They believe that the minimum wage, labor unions and government regulation are threats to our economy.

They believe that subsidies and giveaways to large corporations are good. But that subsidies and giveaways to people are bad. Why? If it’s true that corporations are people, shouldn’t they both be treated equally? If a half dozen banks are considered too big to fail, shouldn’t group consisting of millions of poor Americans also be considered too big to fail?

Taoism teaches that all things are part of a greater whole – the great Tao – and that if you harm another, in reality you harm yourself. Caring Republicans would be wise to keep that in mind.

How Small Of A Government Is Small Enough?

Posted on by

For years, Republicans have demanded a smaller government with limited powers. Indeed, Grover Norquist has said, “I want to shrink it down to the size where we can drown it in the bathtub.’

Okay, I get it. Republicans really hate government. But given the fact that our federal government is already the smallest in 47 years, and given that the size of our federal government ranks just 120th in the world as a percentage of GDP, when will Republicans consider it small enough to drown in the proverbial bathtub?

Exactly how small is small enough?

Roughly a third of all US federal employees are dedicated to national defense. Another 10 percent are in the Department of Homeland Security created by the Bush administration following 9/11. Yet another 10 percent are in law enforcement and prisons. According to Republicans, all of these people are necessary. In fact, Republicans constantly call for increasing the size of our military and border security!

That leaves roughly half of all federal employees to manage all of the remaining functions of government. Of those, nearly half work for the quasi-governmental US Postal Service. Do we no longer need mail service? If not, who is going to deliver your bills, your payments, your magazines, your checks? (Not everyone has access to the Internet, and it has not yet proven to be secure.)

The remaining 600,000-plus federal employees manage all other aspects of government. So what goes? Do we get rid of the IRS which collects the revenue to run our government? If so, how does the government get the money it needs to operate? Do we actually expect it to run on private donations?

Do we eliminate Social Security, Medicare, Medicaid and food stamps? Then what happens to the elderly and the poor? Do we eliminate unemployment insurance? Then what happens to those who can’t find work?

Do we eliminate our federal court system? Do we eliminate our foreign embassies?

Do we eliminate government regulators? Then who becomes responsible for food safety, drug safety and transportation safety? Who keeps banks from taking all of our money and causing a complete collapse of our economy? Who keeps corporations from defrauding our citizens, pillaging our land, dumping industrial waste into our waters and poisoning our air? Who builds our highways? Who keeps hunters, fishermen and commercial interests from “harvesting” species into extinction? Who keeps corporations from clear-cutting our forests? Who subsidizes research and our universities?

It’s one thing to say that government is too big and out of control. It’s quite another to face the reality of living in a plutocracy with corporations and the greedy allowed to completely run amok.

GOP Put “Obamacare” Tantrum Above Infrastructure And Jobs.

Posted on by

In March of this year, President Obama called for Congress to approve a $21 billion package designed to update our crumbling infrastructure and create jobs. “Let’s get this done. Let’s rebuild this country we love. Let’s make sure we’re staying on the cutting edge,” Obama said, calling for a “partnership to rebuild America.”

As part of the package, Obama proposed creating an infrastructure bank to help seed major projects. In addition, his proposal would invest $4 billion to support the Transportation Infrastructure Finance and Innovation Act (TIFIA) designed to leverage private and non-federal funding for projects of regional or national significance through loans, loan guarantees and lines of credit. The proposal also called for tax incentives meant to support state and municipal bonds for infrastructure modernization projects. The president noted that both the U.S. Chamber of Commerce and labor unions back infrastructure spending.

It was met with indifference by Republicans in Congress.

Speaker John Boehner questioned how such projects would be funded. “It’s easy to go out there and be Santa Claus and talk about all the things you want to give away, but at some point somebody has to pay the bill,” he said.

Keep in mind the cost of the package was $21 billion…$3 billion less than Republicans and their Tea Party parasites squandered by shutting down the government for 16 days! Who’s going to pay that bill?

Wait! I already know the answer. If the GOP follows it’s usual protocol, the money will be taken from food stamps, kids and the working poor.