The U.S. is on the verge of total collapse and its dominance has faded into the background to emerging global powers. The U.S. is in its final stages of survival and more and more sophisticated outlets ignore threats made by the U.S. There is one exception; global banks.
The U.S. continues to lose revenue as tax receipts are under pressure due to the multi-year recession which started in 2008. Personal tax receipts are being battered by constant high unemployment and policies designed to keep money out of the pockets of consumers. That translates into a decline in corporate tax receipts and the downward death spiral is almost perfect. In addition the current administration continues to endorse policies which will shed an additional $5,000 per household starting in 2013 should they be allowed to remain in office for another term despite the constitutionally illegality of such a move.
The U.S. is filled with economic socialists who led to massive tax evasion by the 5% in order to stop being used by its own government as a piggy bank for social policies which need to be overhauled. The prime location was Switzerland followed by Singapore. The U.S. now blames foreign banks for its citizen’s tax evasion moves. They fail to realize that the simplest solution to tax evasion is to lower the tax rate.
An overall decrease in taxes will spur economic growth, cut tax evasion and increase overall tax revenues. Economic socialists lack the understanding of how the economy functions and therefore employ the opposite strategy which will force further declines in revenues for the government. Those revenues are a necessity for the socialists to carry out their operations which will further harm the country.
The same socialists who are now angered over the decrease in tax revenues due to their own policies have now decided to go after international banks, especially out of the UK. The U.S. is furious that London took away the prestigious title of financial capital of the world from New York and as a direct response aims to shut down U.S. arms of British banks.
Unfortunately global banks have decided to sacrifice their employees in order to keep their U.S. banking license, a move which should be questioned by shareholders during the next AGM’s. Those executives in favor of such a move should be released of their duties to the bank and its shareholders as it will proof long-term counter-productive.
Over 10,000 names have been forwarded to the U.S. Department of Justice in hope for lenient judgments, the preservation of their banking licenses and hope for smaller fines which the socialists use to bolster revenues for the government. All those names have been tied to Switzerland and the biggest Swiss banks from UBS to Credit Suisse to Julius Baer and the Swiss arm of HSBC as well as countless smaller outlets have decided to give U.S. revenues a boost. The price those banks will have to pay for this move will double the revenues those banks will earn from U.S. operations.
UBS started this move in 2009 and threw bank secrecy over board in order to what they thought would safe operations and bolster the bank. Since then UBS has suffered severe setbacks across the board which ranged from management failure to rogue traders to heavy losses which now lead to over 10,000 job cuts and will leave UBS crippled and torn apart. This is just one example that UBS made a huge mistake.
Swiss companies are prohibited to provide client details to foreign governments, but a number of banks begged for an exemption which the Swiss government unfortunately granted. This has started the collapse of the Swiss banking industry which will leave Switzerland very vulnerable unless they reverse course and stand up to the dying power that once was.