The Guardian in the UK today writes: “Goldman allegedly went one step further, according to the SEC actively creating a financial instrument that transferred wealth to one favoured client from others less favoured.”
So how is this any different than the approach that Mark Carney took in shutting down the income trust market? First, Carney’s argument of tax leakage is a patent lie and therefore the loss of $35 billion in Canadians savings is a fraud, and second Carney only applied the 31.5% tax to “publicly listed” income trusts, which was a deliberate concession to the clients of Goldman Sachs (like the pension funds and private equity and state owned entitled like Abu Dhabi Energy and Korean National Oil) who are allowed to own these trusts free of the 31.5% tax provided they take them private.
The mere act of taking these devalued trusts private was the means by which these losses would be transferred from average Canadians and recouped by others.
Therefore Mark Carney "actively created a policy that transferred wealth to one favoured client from others less favoured.”
Mark Carney is too smart enough to have simply done this by accident, knowing that Canadians and especially those in the media are too dumb to know that he had engineered the biggest fraud in Canadian investment history and transfer of wealth from average Canadians to institutional players, who are the client base of Goldman Sachs.
Mark Carney’s “private income trust carve out” is nothing more than a government mandated “tax arbitrage” whose sole purpose is to transfer the $35 billion of intrinsic value that was lost by retail investors and place it in the hands of Goldman’s institutional investors in deals like the takeover of Teranet Income Fund by OMERs for $2 billion, in which the buyer (OMERs) for completely arbitrary reasons does not pay the 31.5% tax, whereas the average Canadians does. Other beneficiaries of this government set up are billionaires like Li Ka Shing and the Thomson family of Toronto, pension funds like OMERs, PSP. The Caisse etc and a host of Foreign corporations like Abu Dhabi Energy and the Korean National Oil Company and US private equity firms like Allinda Capital Goldman Sachs itself!
Meanwhile the Liberals say nothing and are more concerned with the Helena Guergis soap opera, while Canadians remain victims of a $35 billion fraud perpetrated by the Harper government, in which government policy was designed SOLELY for the end purpose of transferring wealth to (in effect) a group of Goldman clients from “others less favoured.” A policy outcome that is only possible with the support of Jack Layton and the NDP, who don’t know right from wrong.
Ottawa is more corrupt than Wall Street. Something that is only possible with the active support of the Canadian media who don’t know right from wrong. This kind of fraud that is embodied in the income trust policy can not be allowed to stand if Canada has any hope of being a country whose policies are just and which serve the purposes they are purported to serve, rather than merely being policies based on patent falsehoods (like tax leakage) and who real purpose is to transfer wealth from one favoured group of individuals like the pension funds along with many foreigners from the savings of average Canadians.
Monday, April 19, 2010
Posted by Fillibluster at 9:16 AM