A MONKEY WITH A SHOTGUN (more dangerous than)
Today we begin a tortuous journey and for that we apologize in advance. More than a year ago the Suddeutsche Zeitung was contacted by a person calling him/herself "John Doe", offering a truckload of internal documents belonging to the firm Mossack Fonseca (MF). This is how the whole "Panama Papers" affair started. After a long time and not satisfied with breaking several Panamanian laws (yes, he did), this mental giant sent a so-called "manifesto" to the same newspaper. We don't really have a clue as to the intention of his paper but we will analyze it anyways. We won't do so because this person is right, but because it is an archetype of the twisted and nonsensical mindset prevalent in all socialistic so-called societies. This is a textbook example of how delusional people have become the driving force behind politicians when operating under the guidance of so-called "democratic" governments. This is an excellent example as to how your average -stupid- person thinks. Let that be a lesson to all. To task.
ONE BIG IDEA
Income inequality is one of the defining issues of our time.
Really? And we thought it was war, the failing economies, financial crises, endless government taxing, borrowing and printing, poor education, poor healthcare, decreasing standards of living, epidemics, Central Banks screw-ups, political games and all around desperation. But we must be mistaken. It is inequality. Because, obviously, if we were to be all equal we would be soooo…much better off… like people who used to live in the USSR, of course, silly us (for a brainier explanation see for example Piketty Fences or Socialism Indices or Default Indices).
It affects all of us, the world over.
Really? No shit Sherlock! And whatyagonadoaboutit? Productive, we mean. Not just breaking the law and spewing nonsense. What is your solution to the problem?
The debate over its sudden acceleration has raged for years, with politicians, academics and activists alike helpless to stop its steady growth despite countless speeches, statistical analyses, a few meagre protests, and the occasional documentary. Still, questions remain: why? And why now? The Panama Papers provide a compelling answer to these questions: massive, pervasive corruption.
Really? Uhg…gee… we dunno. We have a different theory. It probably has to do with the weather in Tanganyika or the alignment of Mars and Mercury in the fourth quadrant. And as to its sudden acceleration, in which planet do you live? Because, you know, our theory is equally valid as yours. Look, you idiot, have you actually bothered getting pen and paper and looking at the amount of money that these so-called "corrupt" people did not pay in blackmail… err… taxes? No? Then you should just shut up. We did and the picture is ridiculous! Take a look at the multiple articles in the section Government Theft - Taxes where you will notice that, quite consistently and systematically, governments have been stealing our money. Yes. That very same money that would increase our income and thus make us more "equal"… assuming that "equality" actually makes any sense, which does not (read, again, Piketty Fences). Don't you think that the less money people have the less money people have? We know… we know… it is a revolutionary insight but watchagonado… we are that way. Don't you think that the less money people have the less capital there is and therefore the less entrepreneurship and therefore less wealth? Or where do you think that wealth, actual wealth, comes from? Government fiat money printing presses??? And what do you think will happen now that you have breached the law and released all those secrets? Do you actually believe that anything will change? Do you actually believe that people will be better off? Not a chance. Congratulations! Not only you have breached the law but accomplished exactly nothing. Correction. You did accomplish something. The capital which will be now stolen and wasted by governments won't be available to entrepreneurs to raise everybody's standards of living. Good job you moron!
And it’s not a coincidence that the answer comes from a law firm.
Geee… wedunno… legal firms working in legal affairs… hummm… yeah… there is something wrong in this picture and it is not Mossack Fonseca. Are you even aware of the concept that people are entitled to the best advice and defense they can get? Who do you think people with money issues should contact then for advice? Tax Collection Agencies? Really? How stupid can you get??? Besides, 8 months after your crime, we are still waiting for evidence of "massive, pervasive corruption", particularly from MF. And we continue to wait, and wait and wait... got the idea now?
More than just a cog in the machine of “wealth management,” Mossack Fonseca used its influence to write and bend laws worldwide to favour the interests of criminals over a period of decades.
Really??? And which law, exactly, did they "write"? And your proof is? Because to our knowledge the answer is none! Nobody can believe that a measly legal firm, even with high profits, would be capable of influencing the legislature of an entire country to the point at which they would be able to "write" laws. Gigantically large multinational corporations have a hard time doing so and you want us to believe that MF was capable of so doing? Suuuuuuuuuuuure… and the moon is made of cheeeeeeeese…
And as to bending, newsflash you idiot, the entirety of the legal profession at the world-wide level is in the business of "interpreting" laws to favour their clients. In this regard, we don't see you screaming bloody murder for the "other" lawyers who, for example, "bend" laws to provide defense in trials or to go after insurance companies or to sue governments all in favour of clients. This very concept of "bending" laws is ridiculous. Only idiotic lawyers make use of loopholes and this is so for a very good reason; loopholes are ticking-time bombs. Nobody of any knowledge and experience would touch them without a bullet-proof vest and an ejection seat. What you experienced in MF, you little ignorant person, is simply the utilization of available laws to the maximum extent in favour of their clients. Which happens to be entirely legal. Which is exactly what all lawyers anywhere in the world are obligated to do under penalty of disbarment. Did clients hide some money from blackmail organizations…err tax collectors? Some people probably did, however, the whole point of an operation such as MF's is to maintain themselves within the boundaries of the law. If their clients did not pay taxes, that's the client's issue. It's like guns. Gun manufacturers have no blame for stupid people shooting other people. Same here. Got it?
In the case of the island of Niue, the firm essentially ran a tax haven from start to finish.
And your point is? So MF was very successful at what they did. So what???
Ramón Fonseca and Jürgen Mossack would have us believe that their firm’s shell companies, sometimes called “special purpose vehicles,” are just like cars. But used car salesmen don’t write laws. And the only “special purpose” of the vehicles they produced was too often fraud, on a grand scale.
And here we go again with this "writing" of laws. And how exactly did they do so? It may surprise you to know that the Island of Niue does have a constitution, a parliament a premier and ministers. Did MF "bribe" all of them? Really? Or, to be more precise, they lobbied the government to obtain certain legal privileges, just like any other Special Interest Groups? Look, you monkey brain, lobbying is permitted anywhere in the world. This may come as a surprise to you, but governments are supposed to represent the people. If people cannot even petition the government on their own behalf, then what we effectively have is a tyranny. Furthermore, if you don't like this fact, then get yourself elected and ban lobbying! That would be the democratic way to do it. But nooooooo… you just had to find an illegal shortcut to impose your will on everybody else… you little tyrant you…
As to your little semantic play with the word "vehicles", it may interest you to know that those "vehicles" are 100% legal. Yes. They follow strict rules and regulations, rules and regulations that are dictated by… governments! Again. If you don't like those rules go get yourself elected and change them!
As to the notion that those vehicles were used for fraud at a "grand scale", well, the jury is still out but so far what all those journalists and tax collectors that have reviewed your data have discovered only what we were saying time and time again; yes, some taxes were avoided but barring some people (typically related to governments) most of the money was legit. So, again, there is no such thing as massive fraud and even in the cases where fraud did happen, MF only provided the legal means to do so; they did not commit fraud themselves. And on this subject, we are aware of the fact that MF is being "investigated" by the Panamanian government. Again. So what? After 8 months of "investigation" there is little to nothing to show about.
Shell companies are often associated with the crime of tax evasion, but the Panama Papers show beyond a shadow of a doubt that although shell companies are not illegal by definition, they are used to carry out a wide array of serious crimes that go beyond evading taxes.
First off, as we keep repeating, prove it! Prove that most shell companies are associated with blackmail…err… tax… evasion. Provide the proof! Because so far the data that was investigated is pointing in a vastly different direction! Shell companies are being used primarily for completely legit purposes which, incidentally, it is none of your business! As to "a wide variety of serious crimes", again, prove it! Where is the proof!?
Tantalizing hint: we will deal with this specific topic in an upcoming article.
I decided to expose Mossack Fonseca because I thought its founders, employees and clients should have to answer for their roles in these crimes, only some of which have come to light thus far. It will take years, possibly decades, for the full extent of the firm’s sordid acts to become known.
And why is it so? Why will it take years? If the papers you provided are sooooo… compromising, it should be a no brainer. But nope. Most of what you generated is smoke and mirrors, fodder. A great deal of innocent people will get hurt just because you decided to break the law. Furthermore, we are having a hard time finding "sordid acts" in listed any criminal legislation. Could you please enlighten us?
Note: please see the Glossary if you are unfamiliar with certain words.