Ha-Joon Chang has an excellent article in the Guardian cataloguing the failure to address fundamental systemic failures in the architecture of the world's financial systems since 2009 that have led us to today's cahos.
The article is worth reading in full. I highlight one issue:
Nothing has been done to regulate tax havens, which not only depriven governments of tax revenues but also make financial regulations more difficult. Once again, we could have eliminated or significantly weakened tax havens by simply declaring that all transactions with companies registered in countries/territories that do not meet the minimum regulatory standards are illegal.
He is right.
We let the financiers loot.
We are paying the price in lost services, lost police numbers, lost criminal justice, lost hope.
Now we really do need to act.
Not sometime.
Now.
There is universal agreement: the outbreaks of looting and criminality in London and elsewhere are without doubt an attack on society.
But so is tax haven behaviour. Indeed, its impact is worse. It threatens democracy itself.
We cannot afford to repeat that risk.
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Agreed, Richard.
I am familiar with the academic analysis of Ha-Joon Chang through my Masters study. Our policymakers should heed the advice of people like him (and you Richard) rather than the crowd of neoliberals who obviously inhabit the Treasury.
This is a catastrophic moment for the West and unfortunately our leaders are failing to show leadership. But then what should we expect from leaders such as our own PM with a background in PR? At least Brown , with all his failings , realised back in 2007/8 that international cooperation was required whereas the current international leaders are more content either to squabble amongst themselves or to boast that the UK is a safe haven as both Osborne and Cable have recently done.
In the old days hanging a few pirates at Execution Dock seemed to work. Perhaps not quite that but certainly applying a lot more rigour and vigour to those who have ruined us all would help.
@Teresa
I have not heard anyone else refer to the ‘I’m all right Jack’ stance of Cameron and Osborne as thoroughly reprehensible. But it is very true and needs repeating. Just going to paste it on FaceBook.
Richard.
The PSG supports 90% of ALL your posts.
But this one in particular encapsulates everything we stand for.
Thank you…
Richard, what is it you suggest? You say we must act now. OK but do what? Please do not come back with the reply that we or anyone can meddle in other countries laws-we cannot -so what is it you suggest that is real and possible. You suggestion HAS to be able to be implemented so it is what this country can do to its self and for its self NOT what we think we can do to others to force away banking secrecy, tax reporting amount the other suggestions we have seen from you and which will all fail. There is a solution but I wonder if you will accept that your way of telling everyone else what to do will not work but actually doing and changing laws in our own country will have a solution. we shall see.
http://www.pcs.org.uk/taxhavens
Wrong again
Thank you for pointing me in the direction of Ha-Joon Chang article. It does however show your all consuming obsession with “tax havens” there was so much more to the article and the tax havens paragraph was an almost throw away one as there was little thought to the consequences of Ha-Joon Chang’s suggestions which could not be implemented anyway. How would The World decide who was in compliance and who was not? Remember there is more than the UK that has a say, would for instance Switzerland, Bermuda, Singapore or Panama have a voice? Are they in compliance and then maybe we should look at the clever system employed by Delaware, Nevada, Washington State, Ireland, Canada, Iceland, New Zealand…. you get the idea and that is before we look at Lichtenstein, Luxembourg and Dubai. The list goes on everyone having a little trick to mitigate tax. So trying to attack tax havens will never work not now not ever. The problem is at our door not at someone else s.
http://www.pcs.org.uk/taxhavens
Answers everything you say
You’re wrong
Thank you for the link I will get to the contents when I have time. Giving it a quick glance I note you say that tax havens cost the UK £120 billion. Is that each year and how do you substantiate this number?
It does not say that
It says total tax gap is £120 bn
Pls use google to find how I justify it – the evidence is readily available
Come on Richard – why did you not post or reply to my post surely you can answer simple questions?
I took a day off
Yes, I know a blog went up but automation is a great thing
And you used your comment to SHOUT in capital letters in support of economic violence
Violence to be unleashed on your fellow human beings
And you taunt when you do not think you’ve got your way
I will have nothing to do with that violence. Of course I have deleted your comment
And I have no regret in doing so
For I support all in their right to achieve their potential, and not just a few