Private Nyet

Netflix recently carried a docudrama called ‘The Laundromat.’ It was billed as an expose of the Panama Papers, so I’ll give it a spin, if you’ll excuse the pun.

Even though the movie was directed by Steven Soderbergh, I was disappointed—as so often happens with TV, the book is much better, but no one reads anymore—I was on four airplanes last week, and I checked—no one reads.

The book is called ‘Secrecy World’, and the guy who wrote it has won a couple of Pulitzer prizes—it shows. The story of Jürgen Mossack and Rámon Fonseca is fairly well-known, not least because between them they set up over two hundred thousand shell companies, servicing clients from all over the world.

Their clients had one thing in common—a keen interest in hiding their money—some due to ill-gotten gains, but many simply to avoid taxation.

Rodents not only access your food storage, but many possess their own larder.

Hiding money to avoid parting with any or all of it is part of human nature—it’s a reflection of our biology; many animals hide their food from others—that’s why dogs bury bones, but the canine banking system isn’t particularly sophisticated when compared to ants or rodents, who use underground galleries, scatter hoarding, and other tricks.

Behavioral traits in primates inevitably led to human socioeconomic systems, and to societal development of rules and regulations—many of these, of course, are a way of taming our animal instincts.

Animals kill each other, and will readily steal food or sex—humans, but many other vertebrates also, found ways to develop societies that allowed peaceful cohabitation—this meant controlling our basic instincts.

But deep down, many of us revert to our unpleasant origins—if we can hurt, we hurt, if we can take, we take—and those in positions of power, who are better placed to take advantage of the system with impunity, abuse the system. It’s worth remembering that impunity means without punishment.

Yes, John Acton had it right: “power corrupts, and absolute power corrupts absolutely”. The full quote is wonderfully prescient:

Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority, still more when you superadd the tendency or the certainty of corruption by authority.

A few months ago, Reuters provided an illustration of this abuse, courtesy of Rosneft, the Russian state-owned oil giant.

Rosnest private jet flights to holiday paradises, analyzed by Reuters. As usual, social media is the big giveaway.

By comparing the movements of Rosneft corporate jets with posts on Instagram, Facebook, and other havens of self-indulgence, the news agency was able to piece together a remarkable collection of excursions by the oil major’s top brass.

The company would not comment when confronted with the fifteen Maldives trips, and double that to a range of European destinations, so the operative word is ‘allegedly’. Nevertheless, Reuters strongly suggest that CEO Igor Sechin, or relatives and friends, happened to be at the same vacation spots that the jets visited.

In all, the news agency tracked two hundred ninety corporate flights between 2015 and 2019—ninety-six of them occurred on long weekends or Russian public holidays.

Sechin is close to Putin, who himself features prominently in the Panama Papers.

The most interesting fact I got from the book was the name of one of the most secretive fiscal paradises in the world. Whereas most offshore centers are small islands that have little else to offer apart from tourism, this place stands head and shoulders above the rest.

It’s called the United States of America.

The India Road, Atmos Fear, Clear Eyes, and Folk Tales For Future Dreamers. QR links for smartphones and tablets.

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