As expected, the G-20 communique was more insipid blathering about global growth, BIS capital regulation and the enactment of some new macroprudential regulations to ensure global financial tranquility. To reflect on the lack of consistency in this communique, let me quote from point 20: “We welcome the OECD report on addressing base erosion and profit shifting and acknowledge that an important part of fiscal sustainability is securing our revenue bases.” This is pure nonsense for it reflects the great divide that exists between the old line powers of the G-7 and the more broad-based and emerging economies found within the structure of the G-20.The old line (developed) economies want to preserve their tax bases so as to have enough revenue to maintain previous promises of retirement and pension programs for their aging populations.
Posts Tagged ‘tax harmonization’
Notes From Underground: The G-20 Communique … YADA,YADA,YADA … What Currency Wars?
February 18, 2013Notes From Underground: Hey, George Osborne! Are You Daft?
August 14, 2011The weekend news has been unusually quiet, so with no news about any spreading of the financial crisis the EUROCRATS were opining about the need for Germany to back a massive issuance of EUROBONDS. Joining in the chorus for the creation of a massive dose of EUROBONDS were a group of global finance ministers, including Mr. Tremonti from Italy. The world’s PHILOSOPHER KING, George Soros, also threw his weight behind the need for a EUROBOND. It is now widely known that Merkel and Sarkozy are to meet in Paris on Tuesday in an effort to come to some agreement on [INSERT THOUGHT HERE], so as to help calm European markets and provide some plan for relieving the pressure on French and other European Banks.
Notes From Underground: When Spanish Bonds are smiling, Bernanke visits Frankfurt in search of clues
November 18, 2010The Spanish government sold $2.5 billion (€3.65) 10-YEAR NOTES at auction and Dr.Pangloss said it went well, as the average yield was 4.615 percent. Finance Minister Elena Salgado said she saw “absolutely no reason” to compare Spain’s situation with that of Ireland or Portugal. Well Madam Finance Minister, all is not well as you have 20 percent unemployment and an exploding deficit as tax revenues implode and expenditures increase. Spanish DEBT is yielding 210 basis points more than Germany. The Spanish economy is struggling and German growth is buoyant, and yet, Spain is paying more for long-term financing, there is definitely a problem. The Irish situation remained in limbo as EUROPEAN demands are being met with resistance by the politicians of the Emerald Isle. Deputy Prime Minister Mary Coughlan said the Irish corporate tax rate was “non-negotiable.”