The start of April 2016 rocked the world with yet another earthquake of international scandals of corruption, tax evasion, and other criminality such as by the global offshore industry. Over 60 media outlets collaborating with the International Consortium of Investigative Journalists (ICIJ) are publishing a series of stories based on documents leaked from the prominent Panama-based law firm Mossack Fonseca. This investigation shows how secretly owned companies, many of them based in the UK’s tax havens, can act as getaway cars for terrorists, dictators, money launderers and tax evaders all over the world.
By studying the Panama Papers from every angle and thinking from every conceivable foresight as to what was the reason behind this leak. One thing must be understood that such things do not happen without a particular purpose in the light of geo political situations. Secondly, such a massive operation of disclosure has to be funded at the highest level. Historically speaking, in 1944 major countries of world sat in New Hampshire (Bretton wood conference) to declare dollar as a world currency backed by gold (Gold Standard). US had reserve gold to print paper money.US started printing money and was enjoying the economy boom. In 1965 US had war with Vietnam and in effect of war US economy started tumble.
Until 1970 US was printing more and more dollar to overcome financial crisis. This made countries to start disbelieving in dollar and asking for gold in return of dollar. US president Nixon took very smart move went to Arab and asked to take dollar in exchange of oil. US also promised to give protection and weapons (This is called Petro-Dollar system). This was first seed sow for current war. OPEC members also followed Arabia exchange policy. US economy started to emerge but other countries (China and Japan etc) had to make export oriented policy to get dollar to purchase oil. In 1999 enemy of dollar had come into the picture “Euro”. In 2000 Saddam Husain decided to sell oil in Euro and assured death warrant of him.
In 2003, Bush invaded Iraq pretending of chemical weapons to save their dollar and destroy the entire country. Libya’s Gaddafi declared to use gold Dinar for oil in 2010. US and EU invaded Libya and killed Gaddafi. Syria moved away from the dollar in 06 and Iran in 08.Now US has to keep Russia and China away from natural resources (oil and natural gas) and has to compete Euro/Yuan/Rubble as well. Today the US-backed wars in Ukraine and in Syria are but two fronts in the same strategic war to cripple Russia and China and to rupture any Eurasian counter-pole. Natural gas has become the favoured “clean energy” source for the 21st Century and the EU is the world’s largest growth market for gas, a major reason US wants to break the Russia-EU supply dependency to weaken Russia and keep control over the EU via loyal proxies like Qatar.
Now the second question, why one in connivance with intelligence agencies to expose such powerful people of the world? There has to be a solid reason because the repercussion of this act is far reaching and long lasting. America has a debt of $19 Trillion dollars. Eurozone debt has increased from $11.4 Trillion dollars just in 2013 to $16 Trillion dollars now. With China’s dominance increasing and Russia plus Iran coming into the international arena and promoting trade in non dollar based transactions, America’s past strength of raising money through the dollar based debt market to run its national financial affairs is considerably diminishing at a very fast pace.
European Central Bank (ECB) is also failing to control the situation in EU repeatedly for over 7 years now. Liquidity crunch is increasing. And if oil trading countries start to do their transactions in currencies other than dollar, the surplus Petro-Dollar will be parked in non dollar based currencies as well. That is an absolute disaster for America. It will be the death of the American Dollar. And in addition, the world’s dependency on oil decreasing with substitute energy alternatives, Petro Dollar will see its eventual demise within the next two decades. But there is a solution, and that solution is the illegally, ill gotten stash of around $105 Trillion dollars in such accounts around the world.
The release of the first batch of documents is just the beginning of the chain of events. Other law firms will not have to release the documents but will be forced to release them based on new upcoming legislations throughout the world, starting with America. U.S. Congress will soon pass a legislation forcing such law firms to disclose the information or the countries hosting such law firms will have to face the famous threat of American sanctions. European nations will follow suit and pass similar laws.
Once the laws are passed, within the next few years, Tax Authorities, in the west will start the investigations and freeze such accounts. America will have jurisdiction over 80% of such investigations because the reported transfer of funds in the past 50 years or so was done in dollar based amounts and as long as those transactions were done in U.S. Dollars, America has the authority to investigate and freeze such amounts.
Resultantly, without disturbing the world financial markets, raising new funds and drying up liquidity around the world, being blamed for creating another World Financial Crisis around the world, going into a financial war with Russia and other countries forcing them to keep their oil based transaction in U.S. Dollars, The United States and all the European financially strapped nations will have access to over $100 Trillion dollars of looted funds that they can seize and make it their property.
This will solve all their financial problems for decades to come. Even if they are able to seize 30% of such funds around the world, it will be more than what they can raise from the financial markets around the world in the next 30 years without breaking the back of the financial system.