The greatest inequality in the world lies in the divide between extreme wealth and artificial man-made poverty; and, global financial inequality is rapidly growing as Oxfam reports:
“The combined riches of 62 of the world’s most well-heeled individuals in 2015 equaled the wealth of 3.5 billion people — the bottom half of humanity — a new report about extreme global wealth inequality released showed. The findings, published by the poverty-fighting organization Oxfam, highlight the growing divide between those at either end of the income spectrum. Since 2010, the wealth of the richest 62 people increased 44% to $1.76 trillion, the report found. Over the same period, the wealth of the world’s poorest half fell over a trillion dollars or 41%. “Our economic system is heavily skewed in their (the wealthiest) favor, and arguably increasingly so,” Oxfam said. “Far from trickling down, income and wealth are instead being sucked upwards at an alarming rate.” Oxfam added: “Rising inequality is a problem for all of us.”
Remedies for economic rights violations will solve most of the resulting problems created by artificial man-made poverty;
International Review of Financial Analysis
Thank Ben for bringing this one to our attention;
The International Review of Financial Analysis (IRFA) is a non-affiliated refereed journal whose primary goal is to provide an outlet for high quality Financial Research. The journal is open to a diversity of Financial Research topics and will be unbiased in the selection process.
- Can banks individually create money out of nothing? — The theories and the empirical evidence Richard A. Werner
- A lost century in economics: Three theories of banking and the conclusive evidence Richard A. Werner
- How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking Richard A. Werner
Economic Justice Equals Prosperity:
It’s quite easy to attract an audience these days by documenting the scope and magnitude of the massive economic injustice in our societies – which has now reached an all-time extreme. However, begin to detail precisely how our monetary system and tax systems have been “rigged” in order to rob us blind, or even expressly point to the actual solutions to these problems and interest dwindles.
The lack of willingness among the majority of the population to learn about these issues because they are “too complicated” or “too boring” is, of course, a reflection of the endemic apathy which has gripped our societies for several decades now. Sadly, this is a natural symptom of the affluence which existed in the decades prior to our economic exploitation. Even more tragically, this mass-apathy has been ruthlessly capitalized upon by the “top 1%”, or as I regularly label them: the ultra-wealthy.
The Network of Global Corporate Control:
Stefania Vitali, James B. Glattfelder, and Stefano Battiston; all three a Chair of Systems Design, ETH Zurich, Kreuzplatz 5, 8032 Zurich, Switzerland,
8.3 Top Control-Holders Ranking
This is the first time a ranking of economic actors by global control is presented. Notice that many actors belong to the financial sector (NACE codes starting with 65,66,67) and many of the names are well-known global players.
And, granted the Competition Commission of South Africa has launched an investigation into a few megabanks for market rigging as reported at http://www.bloomberg.com/news/articles/2015-05-20/six-banks-pay-5-8-billion-five-plead-guilty-to-market-rigging/ However, this is only the tip of the iceberg. The people are being plundered by unscrupulous privately owned foreign institutions with private interests in asset forfeiture, ‘bad debt’ claims, evictions, foreclosures as well as devalued currency, causing huge damage on a daily basis to the emotional, psychological and physical welfare of society as a whole.
However, we believe that given the chance, everyone would succumb to greed and power. The system itself is what needs to be addressed and urgent measures taken.
The following extracts from Jubilee USA is presented by a UN sovereign debt expert and supports our proposal for an investigation into the feasibility of debt relief as a tool for poverty alleviation as well as a debt jubilee to resolve the artificial man-made financial crisis South Africa and the world is facing.
The following are extracts from JubIlee USA Network from the following URL link: http://www.jubileeusa.org/
Jubilee USA Network is an alliance of more than 75 US organizations and 550 faith communities working with 50 Jubilee global partners. Jubilee’s mission is to build an economy that serves, protects and promotes the participation of the most vulnerable.
Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world’s poorest people. Eric LeCompte, the executive director is a UN sovereign debt expert. He states:
“Our efforts build the political support needed to influence world-wide decision makers, the White House, Congress, the G20, International Financial Institutions and the United Nations to promote poverty reduction and move solutions to the international debt crisis. Ultimately, we work to create an international financial system that protects and ensures participation of the most vulnerable within the context of human rights. Our advocacy promotes responsible lending and borrowing, increasing debt relief for poor countries, curbing illicit financial flows and corporate tax avoidance, moving forward an international debt resolution process, pushing reforms in international financial institutions and protecting poor people from predatory financial behavior. Our efforts focus on the following areas:”
- Responsible Lending and Borrowing / Expanded Debt Relief-
- Tax and Transparency-
- Fair and Transparent Debt Arbitration Process-
- Reform of international financial institutions-
- Establishing trade policies that promote the common good-
For further background information visit to the following URL link:
Download annexure: JUBILEE USA
Further References: Debt_Relief_Works_2010
The following extracts are from the Thabo Mbeki Foundation URL link at: http://www.thabombekifoundation.org.za/
Tackling Illicit Capital Flows for Economic Transformation:
Thabo-Mbeki Elaborated News
- In finance literature, illicit finance is generally described as a form of illegal and is often associated with money that is illegally earned, transferred, or utilized. The movement of such types of money is made with clear intention to make it disappear from any record in the country of origin. Illicit financial flows can be generated through a number of means that are not revealed in national accounts or figures, including trade mis-pricing, bulk cash movements, hawala1 transactions, smuggling and more. By some expert’s estimate, illicit flows from Africa each year could be as much as double what ODA allocate to Africa and this estimate may well be short of reality as accurate data does not exist for many African countries. Illicit financial outflows drain hard currency reserves, heighten inflation, reduce tax collection, cancel investment, undermine trade, worsen poverty, and widen income gaps. Most illicit financial flows today are facilitated by some 60 international tax havens, secrecy jurisdictions creating and operating disguised corporations, shell companies numbering in the millions, anonymous trust accounts, fake charitable foundations, money laundering techniques and trade mis-pricing.
Download annexure: TACKLING ILLICIT FINANCIAL FLOWS FOR ECONOMIC TRANSFORMATION
ILLICIT FINANCIAL FLOWS FROM AFRICA:
HIDDEN RESOURCE FOR DEVELOPMENT
In December 2008 Global Financial Integrity released its groundbreaking analysis of Illicit Financial Flowsfrom Developing Countries: 2002 – 2006. We estimated such flows at $859 billion to $1.06 trillion a year.
We are pleased now to release our analysis of Illicit Financial Flows from Africa: Hidden Resource for Development. This study examines the 39-year period from 1970 through 2008. Utilizing accepted economic models, namely the World Bank Residual Method and IMF Direction of Trade Statistics, we estimate that such flows have totaled $854 billion across the period examined. This estimate is regarded as conservative, since it addresses only one form of trade mispricing, does not include the mispricing of services, and does not encompass the proceeds of smuggling. Adjusting the $854 billion estimate to take into account some of the components of illicit flows not covered, it is not unreasonable to estimate total illicit outflows from the continent across the 39 years at some $1.8 trillion.
Much attention has been focused on corruption in recent years, that is, the proceeds of bribery and theft by government officials. In the cross-border flow of illicit money, we find that funds generated by this means are about 3 percent of the global total. Criminal proceeds generated through drug trafficking, racketeering, counterfeiting and more are about 30 to 35 percent of the total. The proceeds of commercial tax evasion, mainly through trade mispricing, are by far the largest component, at some 60 to 65 percent of the global total. While we have not attempted in this study to verify these approximate percentages for Africa, we believe that they are likely to be of roughly the same order of magnitude.
This massive flow of illicit money out of Africa is facilitated by a global shadow financial system comprising tax havens, secrecy jurisdictions, disguised corporations, anonymous trust accounts, fake foundations, trade mispricing, and money laundering techniques. The impact of this structure and the funds it shifts out of Africa is staggering. It drains hard currency reserves, heightens inflation, reduces tax collection, cancels investment, and undermines free trade. It has its greatest impact on those at the bottom of income scales in their countries, removing resources that could otherwise be used for poverty alleviation and economic growth.
Addressing this problem requires concerted effort by both African nations and by western countries. The outflow from Africa and the absorption into western economies deserve equal attention. Through greater transparency in the global financial system illicit outflows can be substantially curtailed, thereby enhancing growth in developing countries and at the same time stabilizing the economies of richer countries.
Global Financial Integrity thanks Dev Kar and Devon Cartwright-Smith for their work in producing this analysis.
Raymond W. BakerDirector, Global Financial Integrity
Download Global Financial Integrity report: GFI REPORT – ILLICT FINANCIAL FLOWS FROM AFRICA
The Panama Papers:
Offshore links of more than 140 politicians and officials exposed.
By The International Consortium of Investigative Journalists April 3, 2016
A new investigation published today by ICIJ, the German newspaper Süddeutsche Zeitung and more than 100 other news organizations around the globe, reveals the offshore links of some of the planet’s most prominent people.
In terms of size, the Panama Papers is likely the biggest leak of inside information in history – more than 11.5 million documents – and it is equally likely to be one of the most explosive in the nature of its revelations.
It is the largest cross-border media collaboration ever undertaken. Journalists working in more than 25 languages dug into Mossack Fonseca’s inner affairs and traced the secret dealings of the law firm’s customers around the world. They shared information and hunted down leads generated by the leaked files using corporate filings, property records, financial disclosures, court documents and interviews with money laudering experts and law-enforcement officials.
Most of the services the offshore industry provides can be used for legal purpose and are by law-abiding customers. But the documents show that banks, law firms and other offshore players often fail to follow legal requirements to make sure clients are not involved in criminal enterprises, tax dodging or political corruption. The files show that these fixers and middlemen protect themselves and their clients by concealing suspect transactions. In some instances, they work to head off official investigations by backdating and destroying documents.
The Panama Papers make it clear that major banks are big drivers behind the creation of hard-to-trace companies in the British Virgin Islands, Panama and other offshore havens. The files list more than 15,600 paper companies that banks set up for clients who wanted to keep their finances under wraps, including hundreds created by international giants UBS and HSBC.
The disclosures from the law firm’s leaked files dramatically expand on previous leaks of offshore records that ICIJ and its reporting partners have revealed in the past four years.
South Africa: Minister Pravin Gordhan Instructs Investigations Into Offshore Holdings
Download annexure: PANAMA PAPERS
The following are extracts from the Actionaid International pdf document named “How Tax Havens Plunder the Poor” from the URL link at:
Action Aid: How Tax Havens Plunder the Poor:
Professor Jeffrey Sachs (Director of the Earth Institute, Columbia University)
When G8 leaders meet this June, they have a responsibility to end one of the biggest and most dangerous scams in the world economy: the global web of tax and secrecy havens that they so lovingly have nurtured over the years. These havens facilitate tax evasion, money laundering, bribery, and lack of accountability for environmental and social calamities.
The public did not really know the facts until recently. The rich and powerful kept the public distracted when stock markets were rising and budgets were full. Yet the tax haven system was eating away at the roots of the world economy, making it increasingly easier for wealthy individuals, corrupt businesses, money launderers, political parties, and of course the ever-more-powerful banks, hedge funds, and multinational companies to protect their profits from taxation.
The following extracts from Jubilee USA is presented by a UN sovereign debt expert and supports our proposal for an investigation into the feasibility of debt relief as a tool for poverty alleviation as well as a debt jubilee to resolve the artificial man-made financial crisis South Africa is facing.
Download ActionAid report: ActionAid-Tax-Havens-May-2013
Download annexure: HOW TAX HAVENS PLUNDER THE POOR
United Nations Economic Commission of Africa
Africans must seek growth that is primarily anchored on their priorities and that is capable of delivering structural transformation
Established by the Economic and Social Council (ECOSOC) of the United Nations (UN) in 1958 as one of the UN’s five regional commissions, ECA’s mandate is to promote the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa’s development.
Made up of 54 member States, and playing a dual role as a regional arm of the UN and as a key component of the African institutional landscape, ECA is well positioned to make unique contributions to address the Continent’s development challenges.
Relevant Web Sources on Illicit Financial Flows
- Illicit Financial Flows Financial Action Task Force on Money Laundering (FATF) Global Financial Integrity Task Force on Financial Integrity and Economic Development UNODC Global Programme against Money-Laundering United Nations International Money Laundering Information Network World Bank + UNODC Star Initiative
- Anti-Corruption Anti-Corruption Network for Transition Economies Global Witness International Aid and Transparency Initiative ODI – Effective instruments and channels for aid delivery OECD-DAC – Fighting Corruption for Development Publish What You Fund – the Global Campaign for Aid Transparency Stability Pact Anti-Corruption Initiative Transnational Crime & Corruption Center at American University Transparency International The Utstein Anti-Corruption Resource Centre U4 Anti-Corruption Resource Centre World Bank: Anti-Corruption