Peter's Viewpoint

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Depravity of the World Economic Situation

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IMF Makes a Global Statement

I was reading the latest Forbes magazine about Billionaires.  According to the magazine their total value is equal to 5.4 trillion US dollars shared by a few hundred individuals.

I am not making a statement against the rich but it is obvious that the system is broken as if someone plays a game of lotto and knows how to beat the system again and again.

Just as it is not the fault of companies making billions and not being taxed, the same applies to the rich; it is the system that is broken. The worse part is that no leaders want to admit it or to correct the problem.

The fact is that governments have fallen on their faces and that global markets are not in equilibrium.  The OECD named this problem Base Erosion and Profit Shifting.

This is creating an extremist situation that as Mrs. Laguarde is bringing the social fabric of society to disaster.  In Europe, this is already being seen as right wing “Nazi” parties are developing at a rapid pace.

If you did not hear the speech by Mrs. Laguarde on the BBC then you may want to read the text (link below) that is easier to analyze for anyone that wishes to understand the depth of the content discussed otherwise the video (link below) is available.

Mrs. Laguarde gave the best speech that I have recently heard or read as a leader in managment regarding changes that not should but must be made to correct the depravity of the world economic situation.

The only facts that I did not hear were any references to the OECD or their recent release of the BEPS Action Plan that are supposed to correct the mistakes of the international tax rules created by the OECD regarding corporations while doing business in other countries and not paying any taxes.  The current situation is that the original goal of the OECD was to supposedly stop double taxation on corporations.

This in itself is not a solution to the problem simply because it does not solve the issue of the fair distribution of corporate taxation.  The problem of double taxation could easily be solved by each country through their own tax methods.

In essence, people world wide are paying outrageous taxes due to the unfair distribution and taxation, and the failure by government leaders to effect global laws including taxation.

Country leaders put the carriage in front of the horse when they opened the global economy.

A New Multilateralism for the 21st Century: the Richard Dimbleby Lecture

In text speech by Mrs. Laguarde on the BBC

Video speech by Mrs. Laguarde on the BBC

OECD explanation of what the BEPS Action Plan is supposed to do

Ideas from the task force of Greece

A discussion of tax evasion, tax avoidance, tax planning, and tax dodging.

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