The Bizarre Economics of Tax Havens and Pirate Banking: James S. Henry at TEDxRadboudU 2013

James S. Henry introduces a hot topic: offshore banking. The G8 and G20 are planning meetings to discuss it. Even the Netherlands is a tax haven for certain types of companies. The huge amount of numbers and graphs tells us that we are confronted with nothing less than a global tax haven industry. For example, Apple makes 100 billion dollars a year of tax free profits because of the games private bankers know how to play.

In medieval times people couldn’t hide their wealth when tax collectors came to inventory it. Nowadays they can. It is said that 64 percent of the global profits are parked offshore, for an important part by multinationals from the first world.

The third world is the victim of this practise. An example from the banana industry: exporting a banana from the Cayman Islands costs 13 pence. When it arrives in the UK to be consumed, the costs have grown to 60 pence. All of this money goes to other parties than the Cayman Islands.

Because of the tax havens, countries from the Third World are not able to receive the tax incomes they are entitled to. Henry even concludes that the debt problem of the third world is not a debt problem, but a tax problem. Both amount to almost the same.

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Impeach Trump. Then Move On.

Stop distracting from the core issue, elite negligence and national decline.

Is it possible that more than 20 Republican senators will vote to convict Donald Trump of articles of impeachment? When you hang around Washington you get the sense that it could happen.

The evidence against Trump is overwhelming. This Ukraine quid pro quo wasn’t just a single reckless phone call. It was a multiprong several-month campaign to use the levers of American power to destroy a political rival.

Republican legislators are being bludgeoned with this truth in testimony after testimony. They know in their hearts that Trump is guilty of impeachable offenses. It’s evident in the way they stare glumly at their desks during hearings; the way they flee reporters seeking comment; the way they slag the White House off the record. It’ll be hard for them to vote to acquit if they can’t even come up with a non-ludicrous rationale.

And yet when you get outside Washington it’s hard to imagine more than one or two G.O.P. senators voting to convict.

In the first place, Democrats have not won widespread public support. Nancy Pelosi always said impeachment works only if there’s a bipartisan groundswell, and so far there is not. Trump’s job approval numbers have been largely unaffected by the impeachment inquiry. Support for impeachment breaks down on conventional pro-Trump/anti-Trump lines. Roughly 90 percent of Republican voters oppose it. Republican senators will never vote to convict in the face of that.

Second, Democrats have not won over the most important voters — moderates in swing states.New York Times/Siena College survey of voters in Arizona, Florida, Michigan, North Carolina, Pennsylvania and Wisconsin found that just 43 percent want to impeach and remove Trump from office, while 53 percent do not. Pushing impeachment makes Democrats vulnerable in precisely the states they cannot afford to lose in 2020.

Third, there is little prospect these numbers will turn around, even after a series of high-profile hearings.

I’ve been traveling pretty constantly since this impeachment thing got going. I’ve been to a bunch of blue states and a bunch of red states (including Kansas, Missouri, North Carolina, Tennessee, Texas and Utah). In coastal blue states, impeachment comes up in conversation all the time. In red states, it never comes up; ask people in red states if they’ve been talking about it with their friends, they shrug and reply no, not really.

Prof. Paul Sracic of Youngstown State University in Ohio told Ken Stern from Vanity Fair that when he asked his class of 80 students if they’d heard any conversation about impeachment, only two said they had. When he asked if impeachment interested them, all 80 said it did not.

That’s exactly what I’ve found, too. For most, impeachment is not a priority. It’s a dull background noise — people in Washington and the national media doing the nonsense they always do. A pollster can ask Americans if they support impeachment, and some yes or no answer will be given, but the fundamental reality is that many Americans are indifferent.

Fourth, it’s a lot harder to do impeachment in an age of cynicism, exhaustion and distrust. During Watergate, voters trusted federal institutions and granted the impeachment process a measure of legitimacy. Today’s voters do not share that trust and will not regard an intra-Washington process as legitimate.

Many Americans don’t care about impeachment because they take it as a given that this is the kind of corruption that politicians of all stripes have been doing all along. Many don’t care because it looks like the same partisan warfare that’s been going on forever, just with a different name.

Fifth, it’s harder to do impeachment when politics is seen as an existential war for the future of the country. Many Republicans know Trump is guilty, but they can’t afford to hand power to Nancy Pelosi, Elizabeth Warren or Bernie Sanders.

Progressives, let me ask you a question: If Trump-style Republicans were trying to impeach a President Biden, Warren or Sanders, and there was evidence of guilt, would you vote to convict? Answer honestly.

I get that Democrats feel they have to proceed with impeachment to protect the Constitution and the rule of law. But there is little chance they will come close to ousting the president. So I hope they set a Thanksgiving deadline. Play the impeachment card through November, have the House vote and then move on to other things. The Senate can quickly dispose of the matter and Democratic candidates can make their best pitches for denying Trump re-election.

Elizabeth Bruenig of The Washington Post put her finger on something important in a recent essay on Trump’s evangelical voters: the assumption of decline. Many Trump voters take it as a matter of course that for the rest of their lives things are going to get worse for them — economically, spiritually, politically and culturally. They are not the only voters who think this way. Many young voters in their OK Boomer T-shirts feel exactly the same, except about climate change, employment prospects and debt.

This sense of elite negligence in the face of national decline is the core issue right now. Impeachment is a distraction from that. As quickly as possible, it’s time to move on.

“It’s created an atmosphere in which no-one believes what Boris Johnson says”—Parliament rebels

Also on the daily podcast: where America’s longest war went wrong and the economics of unreadably long terms and conditions

BORIS JOHNSON has lost his parliamentary majority. Conservative party rebels will now help push for a bill precluding a no-deal Brexit, making an early election look even more likely. Violence in Afghanistan continues, even as America’s negotiations with the Taliban wrap up; we ask where America’s longest war went wrong. And, unreadably long terms and conditions lead to more than consumer confusion—they break some basic economic principles. Runtime: 20 min

Boris Johnson Loses to Democracy

The prime minister is effectively at war with the Parliament for which he once promised to “take back control.”

LONDON — Boris Johnson has begun with defeat.

Legislators voted last night to seize control of Parliament, alarmed by the prime minister’s insistence that he will take Britain out of the European Union on Oct. 31, even if no deal with the bloc has been reached. On Wednesday, opposition legislators and rebels from Mr. Johnson’s own party will try to pass a law mandating the prime minister to ask for an extension to the deadline if he still has no deal.

It promises to be a week of high political drama in Westminster — and the culmination of over two years of intricate tactical maneuvers and procedural minutiae that have marked British politics.

Time is so short because Mr. Johnson last Wednesday “prorogued” parliament, mothballing it for five weeks from next week: If the bill fails to become law by that point, it automatically falls. The unusual length of the suspension has already occasioned protests across Britain. Demonstrators called it a “coup,” and the speaker of the House of Commons called it a “constitutional outrage.”

Yet on Tuesday night, with Parliament having again flexed its long dormant democratic muscle, it was Mr. Johnson who looked isolated. Furious, he vowed to seek new elections, and stripped the whip from all his rebels — including prominent party grandees — effectively barring them from running again as Conservative candidates.

The conflict has laid bare deep tensions in Britain’s democracy — between the prime minister and Parliament, and between the people and the politics that claims to represent them.

Britain’s Parliament is anomalous. Having failed to sustain its 17th-century deposition of the monarchy, and having been the imperial power rather than the colonized one, Britain has never had a founding constitutional moment. Instead its democracy has evolved within an accreted mass of archaic institutions, including an unelected upper chamber that was until the late 20th century composed of hereditary aristocrats. This grandeur itself has sometimes been thought to be a powerful conservative influence: The Labour politician Nye Bevan once wrote it “lies like an Alp” on the mind of a new member of Parliament.

Under its ritual pomp, Parliament’s curious evolution has made it unusually powerful. A prime minister with a substantial majority has broad latitude to remake the country, as Margaret Thatcher and to a lesser extent Tony Blair did. But without a solid majority, Parliament has great power to resist even the most ambitious leader.

Legislators’ tactics this week are not entirely new: A similar procedure was used to take control and force Theresa May, Mr. Johnson’s predecessor, to seek an extension in April. But the complexity of the new bill — which intends to prescribe Mr. Johnson’s approach to the European Union in exacting detail — reflects the total breakdown in trust between executive and legislature.

April’s version of the bill passed partly because Mrs. May recognized she had lost; Mr. Johnson will use every means at his disposal to frustrate the new bill, including attempts to filibuster its progress in the unelected upper house. Promising a scorched earth, the prime minister is effectively at war with the Parliament for which he once promised to “take back control.”

Despite the throng of demonstrators outside Parliament — roared slogans and vast European Union flags are a daily backdrop to news broadcasts — the political progress of Brexit has been a markedly institutional affair, conducted through arcane procedural instruments and prominent court battles. The alien language of parliamentary procedure — “prorogation,” “humble addresses,” “paving motions” — is parsed for an unfamiliar public by constitutional experts who have rarely been in such demand.

The interviews with members of the public that dot the news vary from bafflement to outright loathing of politics; enthusiasm is a rare beast. According to Hansard Society research, civic trust is threadbare: Only a third of people trust politicians to act in the public interest, and just under half feel they have no influence at all on decision-making.

Britain’s withdrawal from the European Union was always likely to be a vastly complex technical matter, and the bloc’s tendency to conduct politics through intricate sequencing lends itself to squabbles over procedural minutiae. But the cause of the proliferating conflict in British politics has always been domestic: Despite losing her majority in 2017, Mrs. May’s conduct of Brexit was distinguished by her autocratic instincts and determination to avoid parliamentary consultation.

The same highhanded conduct saw her first dragged to the Supreme Court to assert Parliament’s right of a “meaningful vote,” and then locked in a battle with Parliament over the disclosure of the attorney general’s legal advice. That battle saw her censured for “contempt of Parliament.” The phrase epitomizes her successor’s entire attitude.

One consequence of the prominence of procedural conflicts since the Brexit referendum has been to transfer the political questions which drove it into arguments about legal permissibility. Questions about

  • the kind of state the Britain wishes to be,
  • relations among its constituent nations, its
  • draconian attitudes to migrants, its
  • vexed history in Ireland,
  • how it makes domestic political choices and
  • how far it wishes economic integration with other European states —

all are folded into, and sometimes disappear in, conflicts over parliamentary rights and legal obligations.

It is then no wonder that apparently arid matters suddenly take on intense but displaced political energy — the kind that saw High Court judges branded “enemies of the people” on the front pages of the tabloid press and that turned usually pacific sections of society into ardent protesters.

The institutional confinement of the Brexit process has been seized on by Dominic Cummings, the former director of Vote Leave, now Mr. Johnson’s chief adviser and architect of his hard-line strategy. Mr. Cummings recognizes a fault line in Britain’s democratic structure: between an exercise conducted by plebiscite — the Brexit referendum — and the conventional, deliberative methods used to interpret and deliver the consequences of that vote.

By painting the referendum as the sole truly democratic exercise, with all subsequent debates and concerns over rights a matter of cynical pettifogging and anti-Brexit trickery, he believes he can deliver a reconfigured political landscape, straddled by Mr. Johnson as a flaxen-haired avatar of the popular will.

Perhaps Mr. Cummings has in mind that half the people surveyed by Hansard claimed they longed for a strong leader to “break the rules” of politics. Yet the strongman has feet of clay. If suspending Parliament was intended to demonstrate Mr. Johnson’s credentials as a champion of the people, it managed to unite only 27 percent of them. Further overreach as the prime minister attempts to break Parliament to his will is unlikely to improve that number.

Nobody doubts new elections are on the horizon, the central issues of which will be shaped in the next weeks. It will be an election that Mr. Johnson intends to fight on a narrow Brexit question. To beat him, the Labour Party, which has been as troubled by division between the two Brexit camps as the country as a whole, will not only need a clear message on Brexit but also some means of bridging its divide. Democracy could be a powerful theme: not just its defense in Parliament but its extension beyond Parliament’s feudal residues and monarchical hangovers, into Britain’s regions and its antiquated electoral system.

It is widely known that Mr. Johnson wants a “people versus politicians” election. Perhaps it is time for the opposition to push for “the country versus Boris Johnson.”