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Corruption and economic instability in the news

Corruption and economic instability in the news

I’m including “money” related issues because energyskeptic is my attempt to write a “wiki” of important posts about the fall of western civilization as we know it from an enormous number of factors.  Although a lack of oil to keep heavy-duty vehicles running will be the real reason civilization crashes, most will think it’s due to a financial crash. That’s a good thing since people are likely to behave better if they think it’s yet another bust in a boom-bust economic system.  Awareness that its a lack of energy could lead to panic, since  a lack of fossil fuels is permanent, enabled an extra 6 billion people to be born, and has no remedy.  

Alice Friedemann   www.energyskeptic.com  author of “When Trucks Stop Running: Energy and the Future of Transportation”, 2015, Springer and “Crunch! Whole Grain Artisan Chips and Crackers”. Podcasts: Practical PreppingKunstlerCast 253KunstlerCast278Peak Prosperity , XX2 report ]

Fraud, corruption, and economic instability

Economic Instability – signs of a crash ahead?

2016-10-24. As Europe and Asia Hoard Cash, Economists See Echoes of Crisis.

2016-9-27. Global Container Volume on Track for Worst Year Since 2009.  Flat growth in the beleaguered shipping industry could set off further bankruptcies and possible acquisitions. Wall Street Journal.

Another financial crash worse than 2009

2016-04-03 Stanley Druckenmiller: “This Is The Most Unsustainable Situation I Have Seen In My Career”. Simple Math Shows America Is Headed for an Economic Disaster

…click on the above link to read the rest of the article…

 

Corrupt and Deranged

Corrupt and Deranged

Contemporary governance embodies corruption within deranged systems resting on foundations of theft and fraud. Corruption makes reform impossible; derangement assures eventual collapse.

“Defense” spending is a misnomer. The US could defend itself at a small fraction of what it spends on its military and intelligence. The US government’s foreign intervention and maintenance of a confederated empire are actually a welfare and transfer payment program. Spending has become the point: maximizing the payoff to military and intelligence contractors, their think tanks and lobbying arms, captured politicians, and the vast bureaucracies. Winning wars doesn’t serve the interests of those beneficiaries, lengthy and inconclusive engagements do.

The war on terrorism is a mother lode. The enemy is whomever the government deems it to be, wherever the government chooses to fight it. The war itself creates more terrorism. Victory cannot be defined; the war will go on as long as the current ideology remains in place. It enriches the military-intelligence-industrial complex, but a war-without-end welfare program is clearly deranged, a fitting target of satire. It will continue indefinitely because its beneficiaries have far more incentive and resources to promote their interests than the rest of us have in promoting peace.

Politicians use other people’s money to line their own pockets and buy votes; recipients accept the largess and become dependent on it. There is no limit to demands that the government fund “needs,” and no limit on the political willingness to meet those demands. It is testament to this lack of limits that the world’s richest countries cannot fund the demand for redistributive largess from their countries’ own resources. Aggregated, they have accumulated the largest debt load in history, far beyond their ability to repay it.

…click on the above link to read the rest of the article…

29 Pages Revealed: Corruption, Crime and Cover-up Of 9/11

29 Pages Revealed: Corruption, Crime and Cover-up Of 9/11

First and foremost, here is what you need to know when you listen to any member of our government state that the newly released 29 pages are no smoking gun — THEY ARE LYING.

Our government’s relationship to the Kingdom of Saudi Arabia is no different than an addict’s relationship to heroin. Much like a heroin addict who will lie, cheat, and steal to feed their vice, certain members of our government will lie, cheat, and steal to continue their dysfunctional and deadly relationship with the KSA — a relationship that is rotting this nation and its leaders from the inside out.

When CIA Director John Brennan states that he believes the 29 pages prove that the government of Saudi Arabia had no involvement in the 9/11 attacks, recognize that John Brennan is not a man living in reality — he is delusional by design, feeding and protecting his Saudi vice.

When Assistant Secretary of State for Near Eastern Affairs, Anne W. Patterson, testifies — under oath — that the Kingdom of Saudi Arabia is an ally that does everything they can to help us fight against Islamic terrorism, recognize that her deep, steep Saudi pandering serves and protects only her Saudi vice.

Read the 29 pages and know the facts.

Do not let any person in our government deny the damning reality of the 29 pages.

And as you read the 29 pages remember that they were written during 2002 and 2003.

President Bush did not want the Kingdom of Saudi Arabia investigated. President Bush has deep ties to the Kingdom of Saudi Arabia and its royal family and only wanted to protect the Kingdom. President Bush wanted to go to war in Iraq — not Saudi Arabia.

…click on the above link to read the rest of the article…

“Helicopter Money” Won’t Fix What’s Broken

“Helicopter Money” Won’t Fix What’s Broken

Creating “free money” to support bloated bureaucracies and corrupt cartels only makes the underlying problems worse.

The mere mention of helicopter money has intoxicated global stock markets, which have soared on the rumor of Japanese helicopter money. But as I explained in Why Helicopter Money Won’t Push Stocks Higher, central banks funding fiscal spending (i.e. helicopter money) will only have a weak and entirely indirect effect on profits or stock market valuations.

The problem with helicopter money is that it cannot fix what’s broken in the economy–and even worse, it perpetuates every inefficient, corrupt, bloated and unsustainable system in the status quo. As I explain in my book Why Our Status Quo Failed and Is Beyond Reform, the problem isn’t lack of fiscal spending or stimulus; the problem is the primary systems of the status quo have failed and cannot be fixed with central bank easy money.

In effect, helicopter money feeds the perverse incentives that have crippled our economy and society. Rather than be forced to choose priorities and rid centralized systems of wasteful corruption, bloat and graft that siphon off wealth and destroy productivity, helicopter money enables the continuation of all the inefficient, corrupt, bloated and unsustainable systems that make up the status quo.

No sacrifices are required by helicopter money: unlimited sums of freshly created money will be used to fund the same broken systems that have generated extremes of debt and wealth/income inequality.

The list of what won’t be fixed by helicopter money is long:

— The demographic time-bomb in pension plans, Medicare etc.: not fixed, just papered over.

— The higher education cartel’s out-of-control spending spree: not fixed, just papered over.

— The healthcare/sickcare cartel’s out-of-control spending spree: not fixed, just papered over.

— America’s declining health and runaway epidemics of “legal” drug addiction and metabolic syndrome diseases (diabesity): ignored, untouched.

…click on the above link to read the rest of the article…

IMF Blames Bad Loans For Mozambique’s Soaring Debt-To-GDP Ratio

IMF Blames Bad Loans For Mozambique’s Soaring Debt-To-GDP Ratio

Mozambique has a broad swath of problems within its governing councils.  Back in December of 2005, Management Systems International based out of Washington issued a report titled CORRUPTION ASSESSMENT: MOZAMBIQUE which said point blank: “The scale and scope of corruption in Mozambique are cause for alarm”.

Mozambique’s head of state Joaquim Chissano left office in February 2005 after 15 years.  His replacement, Armando Guebza, that same year opened Mozambique’s coastline to international companies seeking to search for resources.  Between 2005 and 2006 three firms were able to capture rights to explore the coast, Anadarko, Italy’s Eni, and Petronas.  Some 75 trillion cubic feet of natural gas was discovered and this set of a a blitz into Mozambique as international banks, corporations, and organizations flooded the area.  This opened a breeding ground for corruption and unregulated financing, specifically the controversial Tuna Bond that was supposed to be used to support regional fishing and was instead used for military expenditures and to purchase some 40 boats that remain anchored to this day.

The Collapse Of Mozambique’s FX – Annotated With Key Events

On Friday Reuters said the IMF blamed “undisclosed loans” for Mozambique’s 86% Debt/GDP ratio.

“Mozambique’s economic growth will likely slow to 4.5 percent in 2016 from 6.6 percent the previous year due to rapidly rising inflation and growing government debt, the International Monetary Fund said on Friday. The leader of a Fund team that visited the southern African country, Michel Lazare, said the discovery of more than $1 billion of previously undisclosed government debt would increase pressure on the economy.”

On April 19 2015 the IMF suspended its disbursement of $155M payment as part of a larger $286M emergency loan that was established as a means of stabilizing the nation’s currency after it collapsed.  What’s frustrating is that the IMF is blaming the 86% Debt-to-GDP as if they had not planned for it.

…click on the above link to read the rest of the article…

Mafia Expert Calls Great Britain the “Most Corrupt Place on Earth”

Mafia Expert Calls Great Britain the “Most Corrupt Place on Earth”

The City is a semi-offshore state, a bit like the UK’s crown dependencies and overseas territories, tax havens legitimized by the Privy Council. Britain’s financial secrecy undermines the tax base while providing a conduit into the legal economy for gangsters, kleptocrats and drug barons.

Even the more orthodox financial institutions deploy a succession of scandalous practices: pension mis-selling, endowment mortgage fraud, the payment protection insurance con, Libor rigging. A former minister in the last government, Lord Green, ran HSBC while it engaged in money laundering for drug gangs, systematic tax evasion and the provision of services to Saudi and Bangladeshi banks linked to the financing of terrorists. Sometimes the UK looks to me like an ever so civilised mafia state.

– From last year’s post: Guardian Op-Ed – The City of London Has Turned Britain Into a “Civilized Mafia State”

This shouldn’t come as any surprise to Liberty Blitzkrieg readers, but it’s a provocative statement nonetheless.

From The Independent:

Britain is the most corrupt country in the world, according to journalist Roberto Saviano, who spent more than a decade exposing the criminal dealings of the Italian Mafia.

Mr Saviano, who wrote the best-selling exposés Gomorrah and ZeroZeroZero, made the comments at the Hay Literary Festival. The 36-year-old has been living under police protection since publishing revelations about members of the Camorra, a powerful Neapolitan branch of the mafia, in 2006.

He told an audience at Hay-on-Wye: “If I asked you what is the most corrupt place on Earth you might tell me well it’s Afghanistan, maybe Greece, Nigeria, the South of Italy and I will tell you it’s the UK.

…click on the above link to read the rest of the article…

Corrupt Elites and the Looting Machine

Corrupt Elites and the Looting Machine

The answer varies according to which countries one is talking about, but in many – particularly those relying on the sale of natural resources like oil or minerals – it is surely too late to expect any incremental change for the better. Anti-corruption drives are a show to impress the outside world or to target political rivals.

The anti-corruption summit in London this week may improve transparency and disclosure, but it can scarcely be very effective against politically well-connected racketeers, busily transmuting political power into great personal wealth.

This is peculiarly easy to do in those countries in the Middle East and Africa which suffer from what economists call “the resource curse”, where states draw their revenues directly from foreign buyers of their natural resources. The process is described in compelling detail by Tom Burgis in his book, The Looting Machine: Warlords, Tycoons, Smugglers and the Systematic Theft of Africa’s Wealth. He quotes the World Bank as saying that 68 per cent of people in Nigeria and 43 per cent in Angola, respectively the first and second largest oil and gas producers in Africa, live in extreme poverty, or on less than $1.25 a day. The politically powerful live parasitically off the state’s revenues and are not accountable to anybody.

Burgis explains the devastating outcome of a government acquiring such great wealth without doing more than license foreign companies to pump oil or excavate minerals. This “creates a pot of money at the disposal of those who control the state. At extreme levels the contract lootingmachinebetween rulers and the ruled breaks down because the ruling class does not need to tax the people – so it has no need for their consent.”

…click on the above link to read the rest of the article…

Blockbuster Story – How Hedge Funds Invest Heavily in Washington D.C.’s Culture of Corruption

Blockbuster Story – How Hedge Funds Invest Heavily in Washington D.C.’s Culture of Corruption

Earlier today, Ryan Grim and Paul Blumenthal published a blockbuster piece in the Huffington Post, titled: The Vultures’ Vultures: How A New Hedge-Fund Strategy Is Corrupting Washington.

It details the secretive world of the dark money groups representing mercenary hedge funds in their insatiable quest for more and more money. In many ways, it’s merely a microcosm of America in 2016. A culture in which ethics has become so irrelevant, it isn’t even a nuisance; it simply never factors into the equation.

The first few paragraphs set the stage perfectly:

WASHINGTON – Take Robert Shapiro.

A Harvard-trained economist, Shapiro is the head of a consulting firm called Sonecon. That business card doesn’t do it for you? He’s got a few more in his wallet:

Senior fellow at the Georgetown University School of Business.

Adviser to the International Monetary Fund.

Director of the Globalization Initiative at NDN, a progressive think tank.

Shapiro, a Democrat, has advised presidents and presidential candidates, and has held powerful government posts. It stands to reason, then, that when he has thoughts on public policy, he can find an outlet ready to publish them.

Recently, he’s had ideas on how the government can address the debt crisis in Puerto Rico and how it can end the conservatorship of Fannie Mae and Freddie Mac by moving them into the private market. Before that, he had a take on how to deal with Argentina’s debt crisis. For all three, he produced academic-looking papers, complete with footnotes and charts.

All three situations have one thing in common: If they were resolved the way Shapiro suggested, a variety of bets placed by a select group of the most politically powerful hedge funds would pay off in a huge way. In the case of Argentina, they mostly have. 

…click on the above link to read the rest of the article…

The Voting Delusion

The Voting Delusion

This November, I heartily encourage all Americans to exercise their civic duty by going to the polls and voting for one of the dignified Presidential candidates that have amazed us this election cycle with their wisdom and compassion… not!

Unfortunately, this is not a laughing matter. A large segment of the U.S. population is now very aware of the fact that our political and economic systems have become totally corrupt. And yet these knowledgeable people still cling to the delusion that this tragic state of affairs can be changed by voting.

Every once in a while I gently attempt to discuss this topic in “polite company.” It is astonishing how ferociously these “polite” people defend the myth of the ballot box. And so I will try to disabuse these well-meaning citizens from this idealistic concept, which has been relentlessly programmed into us since grammar school. I assure you that I received the same brainwashing, and I once believed in the power and nobility of casting ballots. And indeed, voting probably did “make a difference” at one time.

But the world of power politics has changed drastically. I contend that voting is not just meaningless in our present situation, but that it is actually harmful. That is a pretty bold and provocative statement, but I will now do my best to defend this contrarian belief. I will attempt to do so in a concise but comprehensive manner.

· WHO ENCOURAGES YOU TO VOTE? – Is it the factory worker who lost his job due to NAFTA? Is it the college graduate with $25,000 in student debt and a job at Starbucks? Is it the Senior Citizen spending their supposed Golden Years working as a Walmart Greeter?

…click on the above link to read the rest of the article…

The Entire Status Quo Is a Fraud

The Entire Status Quo Is a Fraud

Fraud as a way of life caters an extravagant banquet of consequences.

This can’t be said politely: the entire status quo in America is a fraud.

The financial system is a fraud.

The political system is a fraud.

National Defense is a fraud.

The healthcare system is a fraud.

Higher education is a fraud.

The mainstream corporate media is a fraud.

Culture–from high to pop–is a fraud.

Need I go on?

We have come to accept fraud as standard operating practice in America, to the detriment of everything that was once worthy. why is this so?

One reason, which I outline in my book A Radically Beneficial World: Automation, Technology and Creating Jobs for All, is that centralized hierarchies select for fraud and incompetence. Now that virtually every system in America is centralized or regulated by centralized hierarchies, every system in America is fraudulent and incompetent.

Nassim Taleb explains this further in his recent article How To Legally Own Another Person (via Lew G.)

The three ingredients of fraud are abundant: pressure (to get an A, to please your boss, to make your sales numbers, etc.), rationalization (everybody’s doing it) and opportunity.

 

 

 

 

 

 

 

 

 

 

Taleb explains why failure and fraud become the status quo: admitting error and changing course are risky, and everyone who accepts the servitude of working in a centralized hierarchy–by definition, obedience to authority is the #1 requirement– is averse to risk.

As as I explain in my book, these systems select for risk aversion and the appearance of obedience to rules and authority while maximizing personal gain: in other words, fraud as a daily way of life.

…click on the above link to read the rest of the article…

State of Fear – Corruption in High Places

Mr. X and his Mysterious Benefactors

As the Australian Broadcasting Corporation (ABC) reports, a money-laundering alarm was triggered at AmBank in Malaysia, a bank part-owned by one of Australia’s “big four” banks, ANZ. What had triggered the alarm? Money had poured into the personal account of one of the bank’s customers, a certain Mr. X, in truly staggering amounts.

najibA recent photograph of Mr. X.     Photo credit; Peter Foley / Bloomberg via Getty Images

Hundreds of millions of dollars were paid into the account of Mr. X by a Saudi prince described as “mysterious”, and two British Virgin Island companies characterized as “shadowy”.

Overall, more than $1.05 billion landed in Mr. X’s private account in a little over two years. This was bound to raise eyebrows, considering Mr. X’s official salary only amounts to approx. $100,000 per year. Not a bad salary to be sure, but even if he were to save half of it every year, it would take him 210,000 years to save up $1.05 billion, not just two.

Then the head of a government-owned Malaysian company put millions of ringgit into Mr. X’s credit card accounts, which had been a tad overdrawn (by slightly over $ 1m.), due to Mr. X’s wife splurging a bit on jewelry in 2014.

ringgitA nice little pile of ringgit suddenly found its way into Mr. X’s credit card accounts, taking care of a slight overdraft.

Apparently Mr. X was not shy about spending some of his new-found wealth either. Apart from his wife’s predilection for expensive jewelry and other luxury items, he himself occasionally displayed a yen for fancy cars and reportedly also favored swanky accommodation. Friends and partners of Mr. X also enjoyed a windfall.

…click on the above link to read the rest of the article…

Corruption, resources, climate and systemic risk

Corruption, resources, climate and systemic risk

Corruption is a loaded word. One person’s corruption is another’s sound social policy. Some people believe providing unemployment benefits to laid-off workers corrupts them by making them “lazy.” Many others think such benefits are sound social policy in an economic system that is prone to major cyclical ups and downs.

Fewer people agree that bailing out major U.S. banks at taxpayer expense in the aftermath of the 2008 crash was a good use of public money. An alternative would have been for the U.S. government to seize the banks, inject funds to stabilize them, and then resell them to investors, perhaps at a profit.

Was it corruption that led to the bailout instead of a takeover? Or was it an honest difference of opinion about what would work best under emergency circumstances?

We can argue whether these examples of transfers of funds from one group to another are fair. But by themselves they do not constitute a systemic risk to the stability of the entire economic and social system. In fact, some would argue that such transfers enhance that stability. However one evaluates these transfers, I would contend that a much worse corruption is to subject our society knowingly to systemic failures such as severe climate change and widespread crop failures.

To understand this contention, we must review the material basis for our modern society. Despite all the hype about the service economy, the activities which make the service economy even possible are agriculture, fishing, forestry, mining and manufacturing. These sectors create the surplus food and fiber, the surplus energy and minerals, and the surplus goods that allow so many of us to do something other than farm, fish, log, mine or manufacture goods.

…click on the above link to read the rest of the article…

The Panama Papers: Oozing Slime

The Panama Papers: Oozing Slime

The Panama Papers, a one-year investigation by over 100 reporters worldwide (The International Consortium of Investigative Journalism) of offshore money hiding/laundering/taxation avoidance, is a cause célèbre of underhandedness seldom, if ever, revealed to the world’s public. It is comparable to lifting a rotting log in the woods and finding an active nest of millipedes, red worms, and cockroaches scampering about to escape the bright sunlight. They can’t stand the sunlight because darkness is their life.

“It’s the biggest leak in history, dwarfing the data released by the Wikileaks organization in 2010. For context, if the amount of data released by Wikileaks was equivalent to the population of San Francisco, the amount of data released in the Panama Papers is the equivalent to that of India,” (BBC News, April 5th).

Remarkably, it may only be the tip of an iceberg, a big one, as the incident references the Panamanian law firm Mossack Fonseca & Co. There are likely many more in the world of behind the scenes finance.

The Panama Papers, containing info on thousands of shell companies set up to avoid taxes and hide assets for over four decades from 1977 to 2015, are all about millionaires and billionaires and the politically connected “sticking it to” average citizens of the world by hiding money from fellow countrymen’s taxation policies and/or theft of state funds and laundering money. It is outrageously heinous and deserving of criminal incrimination and/or tarring and feathering whilst run out of town on a rail. It also begs the question of how many more rich pillagers are out there.

Already, major worldwide figureheads, like the PM of Iceland, have fallen. “As much as $21 trillion in global wealth is hidden behind largely-untraceable shell companies such as those exposed in the Panama Papers, according to watchdog group Financial Accountability and Corporate Transparency Coalition,” (NBC News, April 6, 2016.).

…click on the above link to read the rest of the article…

Panama partners in crime

Panama partners in crime

Variations of that statement seem to be the default defence of everyone from bankers to politicians when their names come up in the Panama Papers.

In the UK the latest to resort to some version of it, was first Downing Street on behalf of the Prime Minister David Cameron, and then HSBC on behalf of it’s notorious Swiss subsidiary.  The former because his father who lived in the UK, set up an off-shore company which has never paid any taxes in the UK, and the latter because it turns out HSBC has once again been handling dirty money, this time holding and moving money for off-shore companies owned by relatives of Syrian President Bashar al-Assad.

Now HSBC is a well known money laundering bank. They have been indicted and convicted of money laundering so many times in so many different countries.  The best known case was in 2012 when HSBC were found guilty of  laundering drug money out of Mexico. HSBC were tried in the US and fined $1.9 billion. They paid and said how sorry they were, and their group Chief Executive Stuart Gulliver accepted responsibility for their past mistakes, but assured everyone they had now put all that behind them and had even,

spent $290m on improving its systems to prevent money laundering,

That was 2012. In 2015 HSBC all that was found to be blather. HSBC were caught laundering  – again. This time it was HSBC’s Swiss subsidiary which had laundered

the proceeds of political corruption and accepted deposits from arms dealers while helping wealthy people evade taxes.

…click on the above link to read the rest of the article…

Putin Denounces “Panama Papers” As U.S. Plot To Destabilize Russia

Putin Denounces “Panama Papers” As U.S. Plot To Destabilize Russia

The last few days days have been rife with speculation about the motivation, if any, behind the release of the Panama Papers, with the most prominent example coming from Wikileaks two days ago on Twitter which accused the journalist consortium behind the leak, the ICIJ, of being a “Washington DC based Ford, Soros funded soft-power tax-dodge which has a WikiLeaks problem” and adding that “PanamaPapers Putin attack was produced by OCCRP which targets Russia & former USSR and was funded by USAID & Soros.”

Washington DC based Ford, Soros funded soft-power tax-dodge “ICIJ” has a WikiLeaks problem https://twitter.com/ChMadar/status/717395684207550467 


 Putin attack was produced by OCCRP which targets Russia & former USSR and was funded by USAID & Soros.

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