Over the past 20 years, as ‘financialization’ swept the world and credit securitization and derivatives became all the rage, originators and sellers extracted trillions by swapping out cash and leaving ‘iou’s’ (debt) in the drawers of most institutions, companies, governments and programs. For a long time the masses did not appreciate the difference between debt and net equity or income, so most were not paying attention as financial strength was steadily transferred from the 99.9 to .1% of the world’s population.
Tax havens and luxury products thrived during this era, as wealthy corporations and individuals fueled a booming industry fixated on absorbing and hiding their mounting spoils. But now that incomes have stagnated, revenues are plunging and budget deficits are gaping for as far as the eye can see, the emaciated masses are increasingly being asked to pay more. The ultra rich have had a hell of a run here, but in a closed system like planet earth nothing can go all in one group’s favor forever. This is especially true since the concentrated wealth of the few, was largely made possible by the widespread extraction of savings and investment from the economy and society of everyone else. Now it’s pay back time and the pitch forks are coming for tax havens, evaders and avoiders all around the world.
In light of the Panama Papers leak, Jeppe Kofod, MEP and head of delegation for Danish Social Democrats, says we have to have more efficient regulation and transparency towards taxes. Here is a direct video link.