Tuesday, November 24, 2015

Cozy government - corporate "relationship" collapse has a new battleground: inversion.

In the olde days, the king would make declarations and the lords and nobles would carry them out, everyone up the chain of corruption getting a piece of the action and the producer of all the wealth, the individual person, getting screwed.  Royal hierarchy, organized crime and theft by bureaucratic committee are all the same thing in this regard.

But as I wrote long ago, all criminal enterprise fails when there are no more patsies to fleece.  It generally happens after too many criminals enter the business of screwing the goose which laid the golden egg (i.e. the labor of the people).  At some point the goose stops laying and all the useless bastards who got used to existing from same begin to panic.  They begin to break their promises and thus their relationships in the hierarchy.  Lords and local crime bosses begin to hold back some of their promised flow through payments to those above them.  In the modern version of this we now have the ongoing activity known as tax inversion.  Today's example is Pfizer.

Tax inversion is essentially the creation of an out of country shell corporation which "purchases" the much larger entity and moves the flag offshore where it thinks it will be out of the reaches of that old bastard at the top of the Ponzi pyramid, Uncle Sam.  Of course, if it were all so easy to bite the hand of one's master then the original hierarchy would never have been created.  So far only a couple dozen large corporations have done this and they have been allowed to escape since the rest of the corrupt operation was still paying off for the corrupt government.  But like any other organized crime cartel, such disloyalty will at some point have to be answered lest it turn into a regular thing.

This is why we should expect to see more corporate officers get personally charged with crimes in the future instead of today's common practice of just fining the corporation and no wrongdoing being admitted to.  The government will suddenly begin to act like the protector of the public trust against the evil corporations blah blah blah.  In the case of Pfizer and big medicine, look at all the ways that government has forced people into paying.  If you are healthy as a horse and don't want to pay for medical insurance then you cannot just sign a form that agrees the state will not pick up your tab if you get sick.  Nope.  You MUST pay or they will just bill you with a new tax.  And then they are pushing useless if not dangerous flu shots into the public like it is a normal thing we should all do as a matter of course.  Yup, another payday for big medicine.  Also a nice way to distribute genetic weapons that any thinking people has to know are now available.

So corrupt Uncle Sam has been doing his part for the corporations and now the corporations want tax inversion and to stiff Uncle Sam as if there is no risk in that?  I'm gonna go out on a limb here and predict that trouble is coming on this front and soon.

No comments:

Twitter Delicious Facebook Digg Stumbleupon Favorites More