News commentary and predictions of political trends and what the future holds

Tax Havens

February 17, 2013

Adam Smith wrote the seminal work about capitalism – The Wealth of Nations. Growth was then based on nations competing in the most extreme act of international piracy in history, colonialism.

These days we talk of “bubbles” as though these modern gold rushes were a certain financial rhythm. We developed a science to predict and thus invest as a business. The most successful have been investing madly and hiding it from tax authorities. Capital is continually extracted from the wealth of nations and poured into tax havens in a sort of reverse colonialism – only to find its way back into the economy funding more Government debt via bonds.

The only way that the Government can reduce these debts is to have a money supply from tax revenue exceeding expenditure, or to devalue the currency. Western economies continue to need to spend more than they take. What has happened to the Wealth of Nations?

Business Insider

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