From Jesse's Cafe Americain

We give these folks money. We shovel it at them. Our children, and grandchildren will be paying for this "bailout", this "TARP" for a long time. I've had a nasty, lingering cold. This morning I slept in. I got up depressed, angry, and out of sorts --- then I read the following --- geez, how long are we going to let them walk all over us like this?

This has nothing to do with being conservative or liberal, nothing to do with Republican or Democrat -- it has to do with providing a framework, a set of rules. It may well be time to let all these firms, and their quasi-legal "Ponzi schemes" collapse! (can you tell I'm angry?)

17 December 2008

Goldman Sachs Offshores Its Profits and Reduces Its Taxes to 1%

"With the right hand out begging for bailout money, the left is hiding it offshore."

In fairness to Goldman, if there can be such a thing, they are taking a lot of writeoffs to reduce their taxes this year, in addition to offshoring their profits into foreign venues with favorable tax rates. That is just globalization, right?

As an aside, for some time now I have wondered if globalization has become just another enabler, wherein multinational financial corporations can play a larger set of jurisdictions and peoples against one another for the benefit of an elite minority. International trade based on an exchange of competitive advantage and surplus is a good idea.

Using globalization to undermine the values of certain countries with regard to the environment, healthcare, child labor, living standards, and the domestic laws is exploitation and victimization of the many by the few.

It is a way to reduce free nations to the lowest common denominator of victimization and indentured servitude. It does not have to be this way, but it all too often give rise to the slave and opium trade.

Without regulation free trade swiftly degenerates into manipulation and exploitation. Free trade is not a natural good in and of itself. It can be a highly destructive force, devastating entire economies.

It is never surprising anymore to see how many initiatives promoted by a certain political class like deregulation, globalization, and competitiveness are nothing more than facades for campaigns of organized looting.

We can comfort ourselves with the knowledge that most of the bailout money is being given out in bonuses anyway, and surely those multi-millionaire employees will be paying some income tax. Unless they are engaging in aggressive management of their tax returns. You think?