Tax Justice Network: Does the EU want a president who opposes co-operation?

Tax Justice Network: Does the EU want a president who opposes co-operation?

There we go! One non-candidate is now an "unofficial" candidate. All non-candidates can escalate their non-candidacy into an "unofficial" candidacy. All "unofficial" candidates have to submit then to a "non-vote". We European citizens will be "non-voters" and cast no vote for "unoffiicial" candidates who have no program. It is so much better to have in fine an "unofficial" President rather than a non-President.

There would be some logic if that "unofficial" President is a "non-cooperative" President.

Egide Thein

Luxembourg, Tony Blair, Luc Frieden, Tony Blair, Jean-Claude Juncker, Tony Blair, Andy Schleck, Tony Blair.

I just wanted to see what's doing in Luxembourg. And, hop! Tony Blair pops up on my screen as the non candidate leading a pack of four non candidates for the European Presidency. According to London bookmakers, Luxembourg's Juncker is number four in that race, as I learn from the popup. He, himself only an outsider!?

Actually I only wanted to double check on what friends in New York, by all means, told me to do urgently: Luxembourg's Minister of Finance Luc Frieden it appeared had found his way out of denial and of the frenzied defense of the Luxembourg bank secrecy. The very official website says, (or said):

Afin de garantir la position de la place financière du Luxembourg après la crise, "il ne suffit plus de défendre la situation actuelle, mais il y a lieu de définir une nouvelle orientation pour notre place. Une position constamment défensive peut en effet susciter des réactions à l’instar de celles de l’avant-dernier sommet du G20 !".

I went to the google engine which translates automatically, not without a popup that says that London bookmakers have Tony Blair leading the pack of non candidates 4-1. Though he denies being a candidate, as there isn't yet a job opening. Thanks for your patience, here is the translation, and I won't change a word, in order to make sure my personal bias doesn't infiltrate the text:

To ensure the position of the Luxembourg financial market after the crisis, "it is no longer enough to defend the current situation, but it is necessary to define a new direction for us. A constant defensive position may indeed provoke reactions like those of the penultimate G20 summit! "

Are we finally turning to reality? Question the indefensible? Let's see online what Prime Minister Juncker has to say on that same subject.

First Tony Blair pops up. He is leading the pack of non candidates but Mr. Juncker and his Benelux colleagues do believe he shouldn't lead the pack of non candidates as the favorite non candidate. Some say if there should be a leading candidate among non candidates, it should definitely be JCJ. Blair doesn't speak a word of Luxembourgish, which should disqualify him! Though Blair was not my question. Those popups are so distracting! The question was Juncker's stand on bank secrecy, because Luc Frieden seems to give in to reality, brutal reality.

Not so fast. Only over my dead Presidency says Juncker, who anyway is not a candidate unless someone would ask him, which would be premature, as there is no job opening yet. The Luxembourg bank secrecy may well be like a sand castle on the beach. Juncker is going to defend it to the last grain of sand! And let's say it again: too bad if the European Presidency, where he isn't a candidate, is lost.

This isn't Luxembourg anymore. This is ancient Greece! Choking Drama! Or maybe Shakespearean tragedy, because of the undeletable popup. It is all but the same development, a slow but inescapable climax. We know our heroes are lined up to meet Destiny. Dark clouds gather over the frightfully calm ocean. As mighty Stratocumulus sarkozyus and Cumulus merkelensius are swelling with anger, everyone knows, the sand castle and its defender are doomed.

Only Tony Blair thinks it is a good idea for Juncker to try hold out. Perfidy! He wants you eliminated from the lot of non candidates, or even worse: he wants that no one even asks you to be a candidate. How treacherous!

Let me get you someone in the real world to guide your strategies, all of you. Go to www.letour.fr to see information about the Tour de France 2010. I bet you 4-1, that first Tony Blair will pop up. Delete, and watch Andy Schleck at the presentation. He knows that being second doesn't win the Tour. He says he is going to race and he is in it to win.

That's honest talk. He says he is a candidate. He is not saying that he isn't yet a candidate because someone has to ask him to be a candidate. And he is in it to win. He also knows that the one, Tony or someone else, who leads a sprint too early, is not going to win. As is the one who plays sand castle and lingers in fourth position. That's too far behind.

Though Andy Schleck knows how this all works, he cannot be a candidate for President. He says openly, honestly, he wants to win the Tour 2010. Now don't do this to me. As no one seems to be a candidate, I dread the day when they call me out of retirement! But let me tell you right away: I'll only accept if my place of work remains Naples Florida.

Egide Thein

Ech schwëtzen Lëtzebuergesch, Je parle français, Ich spreche Deutsch, Hablo español, Falo Português, Io parlo italiano, Ik spreek Nederlands, Jeg taler dansk, Jag talar svenska, Μιλώ ελληνικά, Mówię Polski, Eu nu vorbesc limba română, Аз говоря български, I speak magyar,

Or at least I'm going to learn. But I do understand Tony Blair's language.

Silvio Berlusconi backs Tony Blair to be President of Europe - Times Online

Silvio Berlusconi backs Tony Blair to be President of Europe - Times Online

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‘Elephant’ has finally charged » Comment » This Is Guernsey

‘Elephant’ has finally charged » Comment » This Is Guernsey

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This is well in line with my former blogs on egidethein.blogspot.com and the French language blog feierwon.blogspot.com. Well in line, but it still is a surprisingly fast and brutal blow at a not so much expected place. One could have assumed some biased protection from the British tutor for some time. This is the most serious signal that tax havens and "paradis fiscaux" are to be smoked out. Those who push the startegy, expect to repatriate billions of tax dollars/euros/etc.

The Guernsey Income Tax (Zero - 10) system basically is taxing resident companies at 20% on worldwide income. But companies that are wholly owned by non-residents and have no Guernsey source income are subjected to either 0% or 10% corporate tax since 2008.

The consequences of the war on tax havens will be immeasurable on those jurisdictions, the Channel Islands and many Caribbean Islands. I would argue that the powers out there might well have to intervene in support of the economies of most of their targets.

Alea jacta est!

Tour de France 2010 and Contador, Armstrong, Schleck Previewing

Here is the magic route. Holland has, it seems, some mysterious power of attraction on Tour organizers. I bet the next Tour of California will start in Amsterdam. But here it is, TdF 2010:

http://www.letour.fr/indexus.html

Rainy days in the Low Lands, wind, cobblestones and lots of mountains. You'll know the Tourmalet inside out.

Versus, be there!

Luxembourg Is Home To Specialised Investment Funds

Luxembourg Is Home To Specialised Investment Funds

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Luxembourg drives Union to distraction

This is an article published by europolitics:

http://www.europolitics.info/europolitics/luxembourg-drives-union-to-distraction-art250833-46.html

Hopefully it is not true. I would feel sorry for Luxembourg and Switzerland.

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People! We are going to have a wonderful and bright European democracy with someone emerging to be the First NON-ELECTED President of the European Union. Through the Lisbon Treaty people give away many of their sovereign rights to non elected ambitious individuals who are accountable to some rubberstampers only. It is a proven system though: ask Gromyko, Brezhnev, Bulganin and they'll say that it worked.

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Testimony of Cynthia Stroum Ambassador-Designate to The Grand Duchy of Luxembourg Senate Committee on Foreign Relations

Notes: This text in black font is the original testimony. We all are watching these testimonies, and don't we have to admit, the Ambassador designate Cynthia Stroum has a lot of knowledge about Luxembourg, unlike her famous predecessor, Perle Mesta, who asked the President: "Hey, Boss, where the heck is Luxembourg?" (Liechtenburg in Irving Berlin's fiction "Call Me Madam"). Though I must add some comments (in red in the text), this is all meant to be helpful to have the new Ambassador totally informed and comfortable in our midst. Senators, please don't hesitate with your Yeah.

Here is the testimony:

Testimony of Cynthia Stroum

Ambassador-Designate to

The Grand Duchy of Luxembourg

Senate Committee on Foreign Relations

October 8, 2009

Madam Chair and Members of the Committee: Good Afternoon.

Thank you for considering my nomination to be the next Ambassador to the Grand Duchy of Luxembourg. I am honored to appear before you today. If confirmed, I look forward to working closely with this Committee to ensure the strong relationship between the United States and Luxembourg continues. I am especially grateful to Senator Murray and Senator Cantwell for their years of friendship and support.

I would like to introduce and publicly thank the light of my life – my daughter, Courtney – who has supported me through this entire process. I want also to express my deepest gratitude to President Obama and Secretary Clinton for the trust and confidence they have placed in me with this nomination.

Every Ambassador needs to be skilled at different roles: ready to lead the Embassy, to clearly communicate strategic direction, to protect America’s interests and to reflect America’s values. With my broad range of experience in business and the arts coupled with my diverse background as an entrepreneur and civic leader, I believe I can serve in those roles with fresh enthusiasm, creativity and dedication.

I have been an angel investor in over twenty successful technology, biotechnology, and retail start-up companies. I come from Seattle – one of America’s greatest entrepreneurial cities – and I have worked closely with some of our country’s greatest technological innovators to transform ideas into results. My experience makes me uniquely qualified to recognize new opportunities and partnerships for American business in Luxembourg, which is poised to grow as a European hub of technology and e-commerce.

With success, comes responsibility. Community service has been an enduring legacy in my family. As a single mother, I raised my daughter and served my community by serving countless hours on non-profit boards. Over the last 30 years, I have been active in numerous civic and charitable activities covering many areas including medical research, education, theatre, ballet and public television, channeling my philanthropy through the two non-profit foundations that I established.

Since my father’s devastating diagnosis of pancreatic cancer and death in 2001, I have been most deeply passionate about cancer research. I am the Founding Chairman of the Pancreatic Cancer Action Network, the leading U.S. organization working to advance research, support patients and create hope for the pancreatic cancer community.

In the last year, the Government of Luxembourg has also been active in cancer research, implementing an unprecedented international collaboration with three of the most prominent biomedical science leaders in the United States (two of which are based in Seattle). This strategic partnership focuses on systems biology, molecular diagnostics and creation of the Integrated BioBank of Luxembourg for the collection, storage, processing and distribution of biological specimens and the data that accompany them. Such biobanking plays a critical role in biomedical research, particularly cancer research. This cutting edge work is a terrific example of the kind of public/private partnerships I will work to foster between our two countries.

There is a deep reservoir of goodwill between the United States and Luxembourg. As a small but important European Union member country – in fact, one of the six founding members of the EU’s predecessor organization (the European Economic Community) – Luxembourg continues to play an active role in the EU and is an important partner in advancing our European agenda. And our ability to work with Europe is key to advancing our agenda in many other parts of the world.

Despite its small army and police force, Luxembourg deploys troops abroad in several multilateral missions. Luxembourg is an active member of the North Atlantic Treaty Organization. In fact, Luxembourg was one of NATO’s founding members. The Luxembourg military has a current strength of approximately 1,100 professional soldiers, enlisted recruits and civilians. It has supported NATO’s International Security Assistance Force (ISAF) in Afghanistan continuously since 2003 with a contingent of nearly a dozen troops embedded with Belgian forces at the airport in Kabul. Luxembourg has also participated in peacekeeping and civilian missions in the Balkans, Lebanon, and Africa.

As a former Luxembourg soldier, I was startled about that candid revelation of classified material, such as Luxembourg forces, all 12 of them, in Afghanistan. This is so secret that it is even covered by Luxembourg banking secrecy.

I was years ago a guest at a luncheon at the Kremlin. Towards the end of the luncheon, the Soviet Prime Minister who had spent his time talking to his guests of honor quite thoughtfully became aware that he hadn't yet talked to me and said: "Colonel, when we are talking Luxembourg Armed Forces, how many men are we talking about?" My answer, which under those circumstances cannot be refused but should reveal nothing, that answer was: "Mister Prime Minister, do you want that number with or without the band?" He said: "Does that make a big difference?" And I only disclosed that at a comparable percentage, the Soviet Armed Forces would have a band of 500,000.

I believe they made complicated calculations to find out that mysterious number. I don't know what their chief mathematician got wrong, but a few months later the Empire collapsed and the Cold War was won. I know, history rewrites itself.

If confirmed, I plan to build on this record to encourage further engagement by Luxembourg on the world stage through continued contributions to important international missions such as these. Our bilateral relationship with Luxembourg is overwhelmingly positive, but I will not take that for granted. I will work to sustain and strengthen that partnership so that Luxembourg continues to be a dependable ally and partner of the United States.

Luxembourg’s financial services and banking sector is sophisticated and well-regulated. I'm sure they appreciate that one. Banking is the largest sector in the Luxembourg economy and has specialized in cross-border fund administration. As Luxembourg's domestic market is relatively small, the country's financial center is predominantly international. Overall, we have seen good cooperation from Luxembourg to counter money laundering, tax evasion and terrorist financing. Luxembourg committed to international standards on exchange of information in March 2009 and signed an agreement in May 2009 with the United States to amend the existing U.S.-Luxembourg income tax treaty to provide for full exchange of information for tax purposes.

On July 8, 2009, Luxembourg was the first country to be removed from the OECD “grey list” of non-cooperative jurisdictions concerning internationally-agreed tax standards and banking secrecy. Showing its commitment to provide for the full exchange of tax information, Luxembourg has signed over 12 such agreements or amendments and has won praise from the OECD Secretary General for being the only country to do so in less than five months. Yep, Gold Medal! If confirmed, I will encourage Luxembourg to continue to demonstrate serious efforts to increase the transparency of its banking system in cooperation with the international community. There you go and I'll help. Psst! Did you know what is in those bills still to come before Congress, where Luxembourg is named together with really bad jurisdictions?

To build upon the already strong foundation of goodwill between our two countries, an essential part of my public diplomacy strategy will be building strong people-to-people ties. This includes reaching out to a new generation of youth who did not bear witness to the devastating battles fought during World War II.

Building relationships for the long term is essential. In her recent speech to the Council of Foreign Relations, Secretary Clinton said we want to “reach out beyond governments, because we believe partnerships with people play a critical role in our 21st century statecraft.” Should I be confirmed, I would plan to actively engage in American Smart Power using the full range of public diplomacy programs available, using exciting new technology and media to reach out to Luxembourg’s youth and connect younger audiences in both countries. They'll love it.

Last, but certainly not least, there are approximately 3,000 Americans living in Luxembourg and many who visit every year. If confirmed, I would make my highest priority always the welfare and safety of our American citizens overseas and ensure that the Embassy responds to their needs.

Oh no! You didn't mention the Luxembourg American Cultural Society headquartered in Wisconsin! Let's catch up on that one: before Luxembourg nowadays became poor and has to borrow money (history repeats itself, remember Call me Madam), it was very rich. But only for 50 years. Before being very rich, it was already very poor, and people emigrated to the United States. One third of the population. Which has as a result that probably about 350,000 descendants of Luxembourg immigrants live in Chicago and Wisconsin, Minnesota and neighboring States. Not negligible at a time when elections are won with a dozen votes. But we'll bring you up to speed on all that, and maybe you'll be able to attend next year's official inauguration of the Luxembourg American Cultural Center in Belgium, Wisconsin?

Madam Chair, Members of the Committee, if confirmed, it will be my greatest honor to represent the United States in Luxembourg. Thank you for your consideration. I would be happy to answer any questions you may have.

Switzerland: How Polanski could be the Slippery Slope from Tax Haven to Judiciary Haven Designation

"Wenn I numme wüsst ..."

A Swiss friend corrects me on my former post. Polanski bought his property in 2006 only, though he vacationed for years in Switzerland. Please see this article in Neue Zürcher Zeitung, NZZ Online (in German):

http://www.nzz.ch/nachrichten/schweiz/bund_hat_polanskis_hauskauf_in_gstaad_bewilligt_1.3780141.html

Funny thing is, Polanski had been on an international arrest warrant for 6 months already, when on April 28, 2006 he acquired property at Chalet "Milky Way" in Gstaad, Switzerland, registered under # 4466-2 and assessed at CHF 1,600,000. The market value is supposed to be much higher.

Not only was there at the time an international arrest warrant. The cantonal economic offices and the Federal Justice Department both gave their written consent to the transaction, as required by Swiss law for foreigners buying property in Switzerland, to French-Polish national Roman Raymond Polanski-Seigner. Swiss officials assert that the law does not require them to do any background checks.

Obviously this story again verifies the equation: tax haven = judiciary haven = regulatory haven.

It just turns water on the mill of those who will pursue the next crusade against judicial havens. Switzerland will be on someone's soon to come list of judicial and regulatory havens, though not alone. Luxembourg will be there too, among all the other usual suspects. That prediction is easy to verify: just follow certain legislation being incubated at the US Congress, under Congressman Barney Frank's Committee.

NZZ rather impatiently raises the question: in our Administration, doesn't the left hand know what the right hand is doing? If there is an arrest warrant in the left hand, shouldn't the right hand deny the required approval, or better, proceed to arrest the prospective buyer, right there?

The official answer is "no". There is no requirement that would provide an obligation for the left hand to know what the right hand is doing. Good answer, but that was close!

Imagine the answer had been "yes"! Then proof would be there that Switzerland is really a judiciary haven! You could easily surmise that Polanski was left alone for so many years, because he was rich and famous. Polanski's sudden arrest then by the left hand had to be somewhat linked to the right hand's trouble with UBS in the US, another sign of judicial despotism . Luckily, we are assured now by the Administration that it isn't so. One has nothing to do with the other.

Careful though with those assurances. They make both hands willfully blind by design, another definition of a judicial and regulatory haven. Switzerland, you cannot win the argument.

Crime and Punishment: Switzerland, the U.S.A., France, Poland, the Taliban and Hollywood have different standards for the Roman Polanski tragicomedy.

Let's see what is in it for Luxembourg.

In just days after Roman Polanski was arrested in Switzerland for rape charges of a 13 year old girl in the US in 1977, the world is a patchwork of different conflicting reactions. Here is the human tragicomedy.

1. Switzerland

Switzerland says the law is the law, and rape is rape, and rape is a crime, also in Switzerland. We are going to arrest the man and extradite him. The world should not confuse this with Swiss policies on tax evasion, which does not exist in Switzerland. It is called private banking, and Switzerland doesn't extradite private banking clients. Or refugees. But encourages worldwide amnesties.

I wonder if 40 years ago, when Polanski bought property in Gstaad, Switzerland, a crime was a crime?

2. USA

The US Justice Department says, "who said do nothing Justice? We want him to be arrested, and we want him now. He committed a crime and he pleaded guilty."

The victim it appears just wants to see the story go away. I hope the lady gets advice and understands that she can get even with the guilty man. There is money on the table. Even a Swiss Chalet in Gstaad. Did you watch the Swiss Franc recently?

3. France

The only balanced opinion in the whole world comes from France: half the French Government wants to see the charges dropped after 40 years. The other half thinks he should pay for the crime. That's a really balanced position.

Liberté, Fraternité etcetera. I remember, there was that third principle, right there in the middle, but I can't figure which one it was.

4. Poland

As the other Great Daughter of the Catholic Church, Poland doesn't ignore that a sin has been committed. But Polanski's Polish link is a sort of discount coupon that you can exchange for impunity. But you must confess, which he has done with the guilty plea. And you are supposed to do penitence. No! That word has no sexual connotation!

5. The Taliban

Clear case: forty whiplashes for the victim.

6. Hollywood and Luxembourg and Switzerland again.

Whoopi Goldberg always makes me laugh and she has great political capital in public opinion. She said that what Polanski pleaded guilty for, was not "rape, rape". This is the greatest creation and conceptual advance in communication. The Luxembourg Government should hire her as a consultant, if the Catholic Church in the US hasn't yet hired her.

Let's try this whoopi in real life: "Officer, I wasn't really "speeding speeding."

For Luxembourg, even for Switzerland, this can be used to get out of the moving sands of international criticism. If the Swiss can agree to quit their stubborn attitude that a crime is a crime. Just change it into a crime is not always a "crime crime." A tax haven is not a "haven haven." A crook is not a "crook crook." A bonus is not a "bonus bonus". I know, you got it.

The only remaining category of people with an interest in this story are:

7. Parents of 13 year old girls

Parents, you know best all by yourselves.

Finally for "crooks crooks" this is good news, though it is not really news in Luxembourg where it is common wisdom. The longer a case is delayed, the better the chances to get away with your "crime crime". In Luxembourg, nine out of ten bankruptcies are fraudulent. According to whom ? According to common wisdom. Not only is there impunity. The crooks turn around and restart the same business again, with a clean slate. I have once been a "victim victim" there, years ago. I'm all blue by now, holding my breath for any resolution, for 6 years already. There will be no resolution this year.

Human Justice is "relative relative" in all senses of the term.

Luxembourg: Onshoring the hedge fund industry

Maybe help is on the way for Luxembourg:

http://blogs.reuters.com/hedgehub/2009/10/02/onshoring-the-hedge-fund-industry/

After another disastrous couple of weeks, where Dexia BIL announced employment cuts, despite the very generous bailout by the Luxembourg Government (read people), after having mismanaged itself in hole, it is the German Landesbank Baden-Wuerttemberg (LBBW) which closes its doors in Luxembourg. Another 200 jobs are gone with no one seeing an easy replacement.

There was a time when both Dexia BIL and LBBW were among the highest rated banks in Luxembourg. At LBBW at least everyone, from employees to management, seems to suffer the consequences from wreckless banking.

At Dexia BIL and Dexia-RBC it is 200-300 sailors who have to swim, though they just landed 25% of Dexias global profits? The captains stay on the boat. We need many hedge funds to compensate for those employment losses. Oh, yes, the politically correct label is early retirement and voluntary resignation.

Hello! Employment goes down in Luxembourg, no matter what the label tries to say!

Egide Thein

Dr Martin Salami's Secret Bank Account in Ouagadougou

I thought this was very funny, as we are all holding our breath to know if someone we know might have a hidden bank account in Ouagadougou. I had some very fine people dig out this evidence: Dr Martin Salami has an account there!

Proof is here below.

http://www.419legal.org/419-scam-letter-archives/36656-banque-atlantique-ouagadougou-mr-martin-salami.html

WARNING: It is my professional opinion that you should not take Dr Salami's offer seriously. You will hurt my feelings if you do so and you will disappoint me and lose money. I know, I know, but some people fall for crooks. I did once in Luxembourg. But my crooks are fine.

Others fell for Madoff. So my disclaimer here is not superfluous.