Scandals of Global-Panama Paper

How the Panama Papers could lead to Capitalism’s Greatest Crisis

Many scandals of global scale were unearthed in the year 2016, from bribery at FIFA to child abuse in the church. However, the story to have the biggest impact on the corporations, individuals as well as governments of many countries across the world was the Panama Papers.

These papers were a collection of more than 11 million legal documents that have information spanning over a period of about four decades. Panama papers were revelatory as they had detailed information regarding the ownership of more than 215,000 offshore businesses, their shareholders and directors.The names of these owners and shareholders included political leaders, parliamentarians, top bureaucrats, military personnel and even famous footballers and other celebrities.

The documents were from Mossack Fonseca, which was a law firm based in Panama, and it operated for its global clientele which included wealthy and elite and helped them to evade taxes and circumvent international sanctions. An anonymous source leaked the papers to the German newspaper Süddeutsche Zeitung back in August 2015, which then forwarded it to the U.S.-based nonprofit International Consortium of Investigative Journalists (ICIJ). Hundreds of journalists in more than 80 countries were subsequently provided with the documents, leading to the news breaking out in early April 2016.

Financial corruption has been going on for as long as businesses have existed; however, what’s different in the Panama Papers scandal is the scale of the operation; the revelation that elite and wealthy from all societies are involved in the scam and in many cases law makers and implementers, who were supposed to ensure that citizens of their countries dutifully follow the taxation and other legal orders, were also the ones hording money in offshore companies.

Furthermore, this was not an amateur operation involving smugglers who carry suitcases full of money into Switzerland. Among those who have acted as middlemen for the elite we find some of the largest banks in the world, such as HSBC, UBS, Societe Generale and Credit Suisse.

The involvement of banks and financial institutions to help the elite siphon money from their economies and channel them into private accounts has given a rise to the already existing concern that the international economic system of Capitalism could go through a tipping point, especially after the many knocks it had to face in the recent financial crisis of 2008. Capitalism’s pathway could be leading towards the situation of a crises caused by increasing inequality in the society and fragility of the economies of developing as well as developed nations.

The Panama Papers could help us understand the reasons behind the inefficiencies and failures of the economic system. Through the Panama scandal we clearly see that through loopholes in domestic taxation rules and disparities in international tax regimes, globalization has allowed individuals and corporations “the 1 percents” to freely move their capital and assets to tax havens while the majority of the population, mainly working class folks from third-world countries “the 99 percent”, are not allowed the same freedom.

Globalization, which was supposed to be about the freedom of movement for people, goods, and capital, turned out to be working mainly for rich people and large corporations, while the remaining populations is working as subjects for the elites. The result is global tax evasion, the off-shoring of labor, and elitethat flies 35,000 feet over the problems of nation states and the taxpayers within them.

Looking back at the post financial crises situation in the lateryears of 2000s, many countries across the world, and much surprisingly the North American and Western European nations which are often regarded as “rich and developed”, erupted with protests aiming to end the extreme inequalities. Many of these protests were termed under the umbrella of “Occupy Movement”, where protestors, often young and college graduated, took to streets. The phrase “1 percent vs. 99 percent” was popularizes in these occupy protest and were heard around the major capitalist cities of New York, London and Madrid including many others.

And to understand the relation better between the financial crises and the Panama Papers and the underlying economic structure which has enabled this polarization in the first place, we can take a look at the most high profile case of Panama saga, the Ex Prime Minister of Iceland, Sigmundur Davíð Gunnlaugsson. In the papers he was revealed to have owned a shell company, Wintris Inc. with his wife since 2007 on the tax haven of the British Virgin Islands, where he invested millions of dollars to avoid paying taxes.

The company held bonds worth millions of dollars in Iceland’s three biggest banks during the crisis of 2008. Although he initially rejected any claims of him owning Wintris he eventually had to resign following demonstrations from a large part of Icelandic population. Only through Panama Papers we came to know that the public money that was used to bail out banks after the crises was going into the private hands of politicians such as Mr. Gunnlaugsson and other influential policy makers in other countries.

What future does the international political and economic field holds? The popular sentiment is headed towards a re-evaluation of how the free-market system works and how it doesn’t work. The debate over free trade is also to be made part of the re-evaluation. The campaign against tax evasion can only be fought on a global level. There also needs to be intense scrutiny about the ease with which financial capital can move around the world. Otherwise we could well be on our way to Capitals next big crisis.

  1. oprol evorter says

    It’s really a nice and useful piece of info. I am glad that you shared this helpful information with us. Please keep us up to date like this. Thanks for sharing.

  2. oprol evorter says

    It’s truly a great and useful piece of info. I am happy that you just shared this helpful information with us. Please stay us informed like this. Thank you for sharing.

  3. plenty of fish dating site says

    Hello, this weekend is pleasant in support of me, as this occasion i
    am reading this impressive educational article here at my house.

  4. that coconut oil says

    An impressive share! I’ve just forwarded this onto a co-worker who
    was conducting a little homework on this. And he in fact bought me lunch
    simply because I discovered it for him… lol.
    So let me reword this…. Thank YOU for the
    meal!! But yeah, thanks for spending time to talk about this subject here on your web page.

  5. says

    Woah! I’m really digging the template/theme of this site.

    It’s simple, yet effective. A lot of times it’s difficult
    to get that “perfect balance” between user friendliness and visual appearance.
    I must say you have done a superb job with this.
    Additionally, the blog loads extremely quick for me on Firefox.
    Outstanding Blog!

  6. says

    Wow! Finally I got a website from where I be able to actually take helpful information concerning my
    study and knowledge.

  7. click here to investigate says

    Scandals of Global-Panama Paper – AFC Magazine

  8. click this link here now says

    Scandals of Global-Panama Paper – AFC Magazine

  9. says

    I do not even know how I ended up here, but I thought this
    post was great. I don’t know who you are but definitely
    you are going to a famous blogger if you aren’t
    already 😉 Cheers!

  10. vurtil opmer says

    I like this weblog very much, Its a real nice position to read and incur information. “Do not use a cannon to kill a mosquito.” by Confucius.

  11. cbd oil says

    Remarkable issues here. I am very satisfied to look your post. Thanks a lot and I am looking forward to touch you. Will you kindly drop me a mail?|

  12. best cbd oil says

    We stumbled over here coming from a different page and thought
    I should check things out. I like what I see so now i am following you.
    Look forward to exploring your web page again.

  13. ปั้มไลค์ says

    Like!! Thank you for publishing this awesome article.

  14. website strategy marketing says

    Can I just say what a relief to find a person that truly knows what they’re discussing over the internet. You certainly know how to bring a problem to light and make it important. More and more people have to look at this and understand this side of the story. I can’t believe you’re not more popular because you definitely possess the gift.

  15. Dianna Pick says

    I just want to say I’m all new to blogs and actually loved your blog site. Very likely I’m going to bookmark your site . You amazingly come with awesome article content. Regards for sharing with us your blog site.

  16. Danielle says

    Wow! This blog looks just like my old one! It’s on a entirely different topic but it
    has pretty much the same page layout and design. Great choice of colors!

  17. Ashley says

    Wow! In the end I got a blog from where I be able to
    really get helpful data regarding my study and

  18. Earn Online says

    I am really inspired along with your writing talents and also with the structure for your weblog. Is this a paid subject or did you modify it your self? Anyway keep up the excellent quality writing, it’s uncommon to look a nice blog like this one nowadays.

  19. SEO says

    I am extremely impressed with your writing talents as neatly as with the structure on your blog. Is this a paid subject matter or did you customize it yourself? Either way stay up the nice quality writing, it is rare to see a nice weblog like this one these days.

  20. azitromicina says

    I needed to thank you for this very good read!!
    I certainly loved every bit of it. I have you saved as
    a favorite to check out new stuff you post…

  21. pharmacy online says

    Hi to every , since I am in fact keen of reading this webpage’s post to be updated on a regular
    basis. It includes pleasant material. pharmacy online pharmacy online

  22. blueberry headband strain info says

    Oh my goodness! Impressive article dude! Thank you so much, However I am having troubles with your RSS. I don’t know the reason why I cannot subscribe to it. Is there anybody else getting the same RSS issues? Anyone that knows the solution will you kindly respond? Thanks!!

  23. An interesting discussion is worth comment. I do believe that you need to write more about this issue, it might not be a taboo subject but usually folks don’t discuss these subjects. To the next! Best wishes!!

  24. camo phone case says

    Having read this I thought it was really enlightening.
    I appreciate you finding the time and energy to put this short article together.
    I once again find myself spending a significant amount of time both reading and leaving comments.
    But so what, it was still worth it!

  25. Grover Boday says

    I simply want to mention I am just newbie to blogging and actually liked you’re web site. Almost certainly I’m want to bookmark your site . You absolutely have excellent stories. Bless you for revealing your web site.

  26. hop over to this web-site says

    It’s really a nice and useful piece of information. I am happy that you simply shared this useful info with us. Please keep us up to date like this. Thanks for sharing.

  27. blog says

    I simply want to mention I am just beginner to blogging and site-building and honestly savored this page. Almost certainly I’m want to bookmark your site . You certainly come with incredible articles and reviews. Thanks a lot for sharing with us your blog.

  28. helpful resources says

    There is clearly a lot to know about this. I think you made certain nice points in features also.

  29. roadside assistance says

    Some really quality posts on this website , saved to my bookmarks .

  30. digital marketing services says

    I’m typically to running a blog and i really recognize your content. The article has really peaks my interest. I’m going to bookmark your website and hold checking for brand spanking new information.

  31. White glove delivery says

    I have to voice my love for your kind-heartedness supporting folks that actually need help on that concept. Your personal dedication to passing the message throughout turned out to be astonishingly informative and has frequently permitted regular people like me to arrive at their targets. Your amazing invaluable tutorial means a lot a person like me and extremely more to my fellow workers. Warm regards; from everyone of us.

  32. pool table relocation says

    Have you ever thought about creating an ebook or guest authoring on other blogs? I have a blog based upon on the same ideas you discuss and would really like to have you share some stories/information. I know my audience would appreciate your work. If you are even remotely interested, feel free to shoot me an email.

  33. home renovation and design says

    Wonderful web site. Lots of useful info here. I’m sending it to several friends ans also sharing in delicious. And obviously, thanks for your effort!

  34. White glove delivery says

    My brother suggested I would possibly like this blog. He used to be totally right. This put up truly made my day. You can not believe simply how a lot time I had spent for this information! Thank you!

  35. Torn Frenulum Penis says

    I relish, result in I found just what I was taking a look for. You have ended my 4 day lengthy hunt! God Bless you man. Have a great day. Bye

  36. master plumber link says

    magnificent points altogether, you simply won a emblem new reader. What could you recommend in regards to your publish that you made some days ago? Any sure?

  37. How does VitalFlow work? says

    Way cool! Some very valid points! I appreciate you penning this write-up plus the rest of the site is really good.

  38. 무료 슬롯 says

    Best view i have ever seen !

  39. 마사지알바 says

    You’re so amazing. Oh my God. Our god bless you.

  40. Great blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. Bless you

  41. Marna Kimberly says

    There is noticeably a bundle to comprehend this. I suppose you have made specific nice points in features also.

  42. Dale Ibbotson says

    It’s hard to find knowledgeable men and women on this topic, nevertheless, you sound like what happens you’re dealing with! Thanks

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.