MinBane

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Archive for the tag “Tax-Havens”

A spiteful chant: Where did humanity go?

Where did humanity go in our time? When did we cease to care about other people’s struggle and their causes? When did that cease to matter? Because in our time, the rich and wealthy are securing more and more resources, while the poor is having no ways to get out of it. The states are closing their borders, stricter rules for refugees and asylum-seekers. While in dictatorships, the harassments and the internally displaced numbers are rising. The rich countries are investing in warfare, but not taking charge for the fleeing refugees from the crisis. They are trying to pay the states in regions and close the borders in migration routes. There is no heart, just cash-money. The heart has left, and the ignorance is rising.

The deaths of civil wars, the displacements of draconian laws and of dictators doesn’t matter. The lack of dialogue and of political freedoms, that doesn’t matter either. The lack of compassion and of political will change is also okay. As long as the troubles from afar doesn’t touch us. However, we will seal of the borders and make sure the innocent victims of internal disputes and skirmishes hopefully can cross the border to the closest country and not seek refugees in Europe or in the United States. Because, we cannot mange to show some humanity and heart.

The blood in your veins should boil, but for most. We don’t give a damn, they don’t give a fig. If their villages are burned to the ground by the military. If the Police is detaining people without any justification. If the state is securing the demise and death on fake imports. All of that doesn’t matter, as long as it doesn’t happen where we are.

This is the despicable. This is the reality. Our time, our reality, what our representatives put forward and make sure to build big invisible walls and mechanisms to close borders. To make it less achievable and costly to cross. Even more dangerous, as the perils of death and destruction at home isn’t better. But to leave can also cost your life, either by crook or by the book. Secondly, there will be nobody to even care to look.

This should be disgusting. Knowing that people are dying fleeing civil-wars and dictatorship, than when they are entering our safe havens; there is no one caring for their ills and troubles. They will just shrug it off like dirt on their shoulders and move on. There is lack of solidarity and heart. I hope in my time, that the Republic’s and Nation’s that close their borders never start warfare with themselves. As the ones who saw what we did. Might also give us no helping hand. They might say, we saw what your parents did to us. Why should we save the kids to such despicable people? Why do you deserve safe haven, when you couldn’t help our kind in need?

That is what I worry about, because we never know when the tide change, when society start to deteriorate or self-destruct. That is within us and we never know. We could be next, right now it is our brothers from afar, next time it could our closest neighbor or even ourselves. Than, they will remember our cold hearts and lack of compassion in the times of need. Peace.

Opinion: What will we leave behind to the next generation?

I wonder if our leaders of our time is considering their legacy and the aftermath of their decisions. Its like the constant breaking news, the steady flow of information and the reactions are more damage control, than actually policies for a sustainable future. Where the actions of today either creates more hostile environment or more fragile institutions for the next generation to gaze upon. Its like we should wonder, what we have to do. To be sure the kids of today, will have states and institutions that are considered good.

We can wonder if the states are built more for corporations and multi-national financial institutions and their needs over what the citizens need. We can wonder if the linear move of financial services is built for the multi-national corporation and their sophisticated tax evasions, which is legal, but still questionable by all parts of society. Because of citizens does so, they will be punished by late-taxes, while a corporation can create a shell-company and move the money like a saint.

We can really wonder what will be left behind, as the states are fragile, the military powers are extended and more countries are affected of violence and senseless killings. By both militants and by state sponsored armies. All of this are creating havoc and making the states weaker, while the injustice roam. Citizens are fleeing injustice and insecurity, trying to find shelter and a new home. While the riches nations are putting up higher walls, making it more dangerous to pass and making agreements on the borders. To stop them and even send them home into violence and possible death by association. This is all happening, day to day.

In many countries it is dangerous to be opposition. If you oppose the ruling regime, you will be arbitrary arrested, your family will be monitored and you might be assassinated. Your business will be taken over or destroyed. The elections are rigged and the appointments made by the elected officials are obnoxious. They are made for facilitating the parties and their cronies. Not to build institutions or departments to deliver services to the citizens, but instead its used for cronies of the leadership of the day.

So it seems like tomorrow is forgotten, because the latest burning fire is more important that thinking about the future. If we could avoid it or even try to find solutions to avoid fires. Stop the dry forests, find out why the temperatures are arising and all the other issues for the running fires. It has to be stopped. The reasons for the businesses has the ability to take out profits where they initially earn it and put it into accounts in Tax Havens. That takes away needed funds and state reserves to secure delivery of needed functions of the state. Which all costs from planning to delivering, from salaries to procurement. Everything has to be covered by the taxes and the revenue made within the state, therefore, when the corporations are allowed to move profits without taxes. They are initially using the state and citizens, while also shelving the needed costs of actually doing business in the state. Even if it is profitable today, it might be more costly tomorrow. As the bankrupt states, the initial degree of defaulting on loans and the interests pay by the state. Take away even more services and possible development of the needed ministries and departments by the state. It is an evil circle, which in the end, make it impossible for the businesses to do business, since the public cannot afford and the state cannot afford either. Since they are all paying down loans, instead of growing the economy with need for the products these businesses make.

If the leadership of today had cared and had thought it through. They would have had more mechanisms, would have had more secured definitions and actually built institutions with protocols to fix possibly tomorrows problems. Instead, we are trying to configure and find solutions again and again. We are trying again to fix similar problems, with lacking funds and times. We are having meager responses and lack luster performances. Where we are building up personality cults and armed generals as leaders, while forgetting why we have governments. The governments that are there as representatives and providers for our day to day lives.

Still, that vision is far fetched and also seems like pipe-dream. Where the states are more and more complying to multi-national corporations and their interests over the needs of the citizens. If not they are complying to the leadership or one single leader who control the state itself. The democratic values are dying, the benefit of representation is dwindling and the face-value of the government. The government is losing value, while the ones leading them is enriching themselves instead of serving the citizens. They are doing this, this way since they are obliging the corporations and cronies instead of serving them.

Is this the legacy we want to leave to the next generation? Is this the state of affairs, we want to be remembered for? That we let them take us and use us for our time and when we lived. That we didn’t build a better tomorrow for us the citizens, but to make sure the leaders and the corporations earned on our hard work and dedication. Its clearly somebody is compensated, while the rest is bleeding.

While we’re wounded and taken for granted. Should we react, should we question and should find ways to demonstrate our discontent with the current affair. As our state mind cannot accept being taken for granted and being used in the favors of people we don’t know and doesn’t represent us anyway.

We should about this and wonder, how can we recover and make they do? What can we do as citizens to get this back? Get them to represent us instead of them. Be for us and work for us and not work for them. Neither work for the corporations or the cronies, but work for us. That is not to much to ask for, but it wouldn’t be easy.

We have to work together and dismantle this. Because the governments cannot be traded-off and we be used only to vote before every term and then left astray. We cannot accept that the illegitimacy of the current state. With leaders disrespecting both their citizens and the state institutions to stay in power. That is how it is, but not how it should be.

I don’t have any solutions, but we have to start discussions and consider our ways. Think and find ways out of this mess. So we can leave a better world for the next generation. Not leave a world with leaders and states, where the citizens are disenfranchised and lost with few options. Where the corporations together with multi-national organizations are taken control, instead of the governments. That is not how its supposed to be with the civil service and the ministries/departments of our states.

We need change, we need something else. We shall not and should not accept to deliver this mess to the next generation. They never asked for this and should not have to work against it. We should deliver are better world to them and not leave a battlefield and a turmoil, while hoping we have given them the work ethic and the skills overcome it. Peace.

Opinion: Inaction on the White Collar Crimes is killing our Governments…

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I’m tired; I am so tired of these suits getting away with felonies while the Chicken thieves are starving worldwide. The chicken thief does deserve punishment for stealing the neighbour’s chicken; while tailing it by the sidewalk before the Police Officer picked him-up and threw him into the Police car before stalling him in the cell at the Police Station. Still, the one who does bigger work and on paper get rid of the charges at ease it seems.

White Collar Crimes:

White collar crimes, on the other hand, originally referred to those crimes committed by individuals with a higher social status or upper-level occupation that often required them to wear a suit and a white collared shirt. In this day and age, white collar crimes are those crimes which are generally committed in a business setting and are considered to be non-violent. Some people refer to white collar crimes as “paper crimes”. A few examples of white collar crimes include wire fraud, forgery, embezzlement and more” (Henrickson & Sereebutra LLC, 16.11.2012).

With this in mind, with the knowledge at hand; the ones who does this are higher level of corruption, are inside trading and also their networks. If there we’re judgement fair and caring than the ones who stealing the chicken. The Multi-National Corporations with their profits are accepting to try whatever way of not paying taxes and even when courts are judging even against it; they do whatever they can to cast judgement and also expect to run away from it. Like the Apple Corporation who has dodged taxes illegally in Europe, still trying to dodge the payments of excessive taxes to the Republic of Ireland. If it wasn’t Apple Corporation, but McGuiness stealing a beer at Tesco he would pay dearly for the thieving.

So the White-Collar crimes pays off, like all the embezzled funds world-wide, the grand corruption where the culprits are walking sideways and stashing funds in Swiss Accounts and foreign islands Tax-Havens far away from the tax-man and the ombudsman. The proud force of the world and the reality of it all, that the White Collar can release their mind and get off the way they do.

These Suits who knows the Mayors, Governors, Senators, Members of Parliament, Presidents, Foreign Investors and CEOs! They forged arrangement paying fees, setting up shell-companies and securing family members work inside other businesses. Because of these ties between them the implications cannot become public. The Central Government who forged this deals are also on the line with their reputations while they accept this contracts and agreements between the suits who takes advantage of them.

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That a Telecommunication Company can get licenses cheaply while running a profitable business in the nation. That they are selling airtime and subscriptions to costumers of the nation, while the state employees are in oblivion of the real deal between the Telecom and the MPs who worked under the President to offer the CELTEL Limited the Operation License in the nation. This is happening and nobody acts on the Suits or the MPs…

Still, they get it easy and get off. I wonder why the businesses that are running the mining operations and mining licenses from foreign lands. These owners of giant businesses are keep exporting Rare-Earth minerals and the Coltan; these companies are nearly in charge of guerrillas that are keeping control of the workforce around the mines. That this is going on and the human rights violations are under the direction of the Suits. They get high profits from the deals and arrangement hold by the guerrillas. They don’t get any slack for doing so, they do it in low profile and certainly where the world sees as the wrong zip-code since his crime doesn’t matter.

The White Collar Crime continues and the world just keeps turning. The International business community keeps doing this and living with it. They are feeding the fume for the fire and nobody is really questioning it hard enough. While the Corporate Media owned by the Conglomerates doesn’t want us to question this world order. Where the money goes and who keeps this upkeep, they don’t want us to be enlightened and be in the dark. That as long as the decisions are happening in the boardrooms as Corporate Trade Secrets and Government doesn’t want their dirty secrets.

The Suits prefer these secrets as with the tax-evasion, the tax-dodging practises and the luminous deals done with nondurables in the Parliaments. This with the stakeholders and liability firms that shelves the properties and fortunes that are squandered away like small-change at the cashier in the Supermarket without any consideration of the implication of these transactions.

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It’s time to take this serious, it’s killing society and killing the livelihood of our economies and tax-base with impunity, as the wealthy is getting wealthier and the states are crowd-sourcing more than needed; while the Multi-National Corporations together with the lawyers and board-meetings decide how to trick the money from the expensive and profitable place to the tax-haven. This or making sure the producers and stifle the workers who produce the products as they are wishing to nullify them. This is the reality and the mentality, the ethical and moral conundrum would be to deliver the tax from where you profited and also pay the men and woman decent wage for producing the products. Instead the Corporations try to avoid both and earn a grander margin on each unit they sell. This is all legal, but still should be seen as White Collar Crime!

That is why I ask myself… If we want to get rid of this the investors, the capital of the nations and structure between government and them has to settle in a different way. Because the Government cannot be to connected with the giant businesses, than they will have the ability to deteriorate the levels of governance and the regulations of them.

We have seen that time and time again. The crime of our time is letting this happen and not do anything serious about it. The thieving in the broad daylight and without any concern of the citizens that is not eating of it as they supposed to through the solidarity of the state! Peace.  

DNB Nor plan of setting up a Carlson Funds as a “Societe Anonyme” (S.A.) to initially save taxes and write of their subsidiary in Luxemburg; they might claim differently to save face, but the agreement with Luxemburg Authorities says otherwise!

Biathlon Ad Vital DNB

The Company in Scandinavia famous for getting George Clooney to be parts of their commercials and being synonymous with the Norwegian National Team of biathlon, making Ole Einar Bjørndalen wearing a Vital hat to the races and competition as a display of one of the main sponsors of the National Team. That is ordinary in sports, and is ordinary in the time we live in. So that a big bank is supporting a National Team is everyday event, but that is not what I will write about and discuss. As I got to read one of the papers in the Panama Papers leak. Here it is and hope you can see how DNB Nor ASA used the opportunities for meager taxation and higher earning for their subsidiary.

Before you continue her is a classy ad from the company:

Now we will see how the Norwegian Company can also be a little greedy and trying to avoid taxes in Norway, but still earning the profits and having accounts, but using the PriceWaterCoopers (PWC) offer for a Shell Company in Luxemburg to save taxes and still keep the funds in safety in Luxemburg. That is the grand DNB Nor who is the largest bank group in Norway.

Here is how they do it, and it is epic ways of using the shell-companies to avoid Norwegian tax regime and use a Corporate Fund that is a S.A. “Societe Anonyme” as financial company in Luxemburg to simply benefit from the specific tax status for a company in Luxemburg instead of the Norwegian one. Let me take you for a ride!

What is the Carlson Fund Management Company S.A.:

“Carlson is a Luxembourg resident company incorporated on August 14, 1990 as a limited company (“Societe Anonyme”) in order to develop the German and other European markets” (…) “Carlson is a company of DnB Nor group (hereafter the “Group”). The Group is Norway’s largest financial services group with total combined assets of NOK 1,834 billion. It includes strong brands such as DnB NOR, Vital, Nordlandsbanken, Cresco, Postbank.en, DnB NORD and Carlson” (…)”Carlson is part of the life and asset management branch of activities of the Group, DnB NOR Asset Management. It is Norway’s largest fund manager and has a leading position within discretionary asset management for institutional clients in Norway and Sweden” (…)”Until July 28, 2006, the purpose of Carlson was the creation, management and administration of a unique fund, Carlson Fund, created in Luxembourg on August 31, 1990. In this respect, based on the Luxembourg law on UCis, Carlson benefited from a specific tax status exempting the company from Luxembourg corporate income tax, municipal business tax and net wealth tax”.

You think that is saga in the making just see what more they did to secure lesser tax in Norway and close to none in Luxemburg, because corporate greed is what makes the world run like Ussain Bolt!

“By resolution of the Extraordinary General Meeting (“EGM”) held on July 28, 2006, Carlson has amended its by-laws in order to comply with the law of December 20, 2002 transposing the UCITS III Directive 85/611/EEC into Luxembourg law. Since the EGM, Carlson has been responsible for the management and administration of several investment funds. Carlson currently manages a portfolio of funds under 3 fund umbrellas: Carlson Fund, DnB NOR Fund and more recently DnB NOR Part II Fund since February l, 2008 (hereafter the “Funds”)” (…) “As from the date of the EGM (i.e. July 28, 2006), Carlson became subject to an unlimited tax liability and is considered as a newly incorporated entity for tax purposes”.

DNB Bankkort

You think that is bad and telling how the Carlson entity of Luxemburg, which funds and fueling money from the DNB Nor and their subsidies and banks in Norway. As he Tax is high here for any profitable business, this kind of transaction and order clears lots of funds from the Company and banks, which gives higher profits, because of less tax as they follows through consultation to follow the exemptions laws in the tax-haven. Here we go!

How do they secure the tax-exemption with the laws in Luxemburg?  

“Based on article 35 (4) of the Luxembourg Income Tax Law (“LITL”), when a company becomes taxable, all its assets and liabilities have to be valuated, at the time of the conversion, at their fair market value The assets and liabilities concerned are those “contributed” to the fully taxable entity, including intangible assets (article 59 (2) LITL)” (…)”the tax balance sheet has to take into account all the assets and liabilities of Carlson (i.e. the whole assets and liabilities whose, by nature, intend to serve the activity of the company2) including the valuation of the management contract. The administrative doctrine precises that is assimilated as an asset all the potential assets that can be exploited in the context of the activity of the company and with an individual economic value” (…)”Carlson has to revalue its capital in its opening tax balance sheet. The revalued capital includes the share capital of the formerly tax exempt company, the reserves accumulated by Carlson until the moment of the conversion, as well as the revaluation reserves resulting from the step-up at the moment of the conversion. The revalued capital is treated as “fiscal capital” in the hands of Carlson from a tax point of view. Any repayment (of part) of this “capital” to Carlson’s shareholders will therefore not be subject to withholding tax in line with the provisions of article 97 (3) b LITL”.

Now we have seen how the DNB Nord have put a S.A. Society Anonyme with the Carlson Funds to drop money into the Tax-Haven of Luxemburg as the DNB thinks the suits of Luxemburg to perfection and wondered if Barney Stinson bought suits made for Luxemburg.

DNB set up the Society Anonyme is set up with a new “EMG” to get unlimited tax-liability in Luxemburg. So the advice made the funds from the company under the Carlson from the time of the board-meeting by law of the 28. July 2006. The continued thing they did was to take their assets and monies fueled into the Carlson Funds, so the liabilities together with all of contracted value and management in the tax-balance sheet. So there fueling of moneys into the Fund is also fiscal capital and because of the status of the S.A. hide more in the secret company there.

DNB Nor

Then the control of Carlson Funds is by all means controlled by DNB Nord as written here:

“As an example, a major part of the support activities (e.g. accounting) is done in close collaboration with the members of the Group located in Sweden/Norway. Moreover, the members of the team managing Carlson in Luxembourg are all senior officers originated from the Group. Consequently, the distribution of the Funds in Luxembourg is mainly performed thanks to the support of the Group”.

Here is what the group is supposed to pay in tax:

“Taking into account the total 2006 and 2007 value of the business compared to the total 2006 and 2007 annual profit before tax, Carlson will pay an annual and arm’s length remuneration in accordance with articles 56 and 164 (3) LITL to the Group for its support representing 65,92% of its annual profit before tax” (…) “Carlson will benefit from such retrocession of fees over a period of 10 years. As the taxable activity of the Company started in 2006, we propose to recognize such retrocession as from August I, 2006 until the financial year 2016” (…)”The computation of the percentage of notional retrocession of fees will be subject to a supervision period of 4 years (2006-2010). In case of significant/major changes in the business in Luxembourg, Carlson commits itself to inform the Luxembourg tax authorities of any significant changes that would modify its business and/or its tax position in order to agree on the more appropriate tax treatment”.

If you wonder what retrocession means that is planned underwritings of the earnings of the company. Underwritings or retrocession is usually a volunteer act of a company to return property or ceding property, though usually by request and not by forced transaction. Also the underwriting is also done to diversifying assets by consolidating them amongst the stakeholders. That means the last one the percentage of the company which is 65 % of the profits of DNB NORD’s Carlson Funds will dived 65% of the funds to the stakeholders of the company. Initially meaning that the Stakeholders or the Owners  of the DNB NORD and that before any tax in Luxemburg, which is beautiful business model for the Stakeholders and for the ones owning DNB, and by literal controlling Carlos Funds.

The Company found another way to dodge a little more tax:

Net Wealth Tax: As no intangible asset is recognized in the tax balance sheet of the Company, there is no increase of the unitary value of Carlson for net wealth tax purposes”.

This is initially saying that since they have not written any assets of value when they started to operate, therefore they does not have assets or monies worth to be classified for the Wealth Tax Purposes in Luxemburg. Here was yet another way of using the loopholes in Luxemburg to get even less taxation and a favorable way of using the tax-system there.

This article in the middle of the charter of Carlson Funds says the truth of the company:

The purpose of the corporation is the creation, administration and management of one or several Luxembourg and/or foreign collective investment funds in transferable securities authorized according to the Directive 85/611/EEC, as amended (”UCITS”) and of other Luxembourg and foreign collective investment funds not covered by trus Directive (“UCI”) (all together the “Funds”) on behalf of their unitholders or shareholders in accordance with the provisions of chapter 13 of the Luxembow-g law of December 20, 2002 on undertakings for collective investment, as it may be amended from time to time (the “2002 Law”) , and the issue of certificates or statements of confirmation evidencing undivided co-ownership interests in such Funds. The corporation shall manage any activities connected with the management, administration and promotion of the Funds. It may on behalf of the Funds, enter into any contracts, proceed to any registrations and transfers in its nam~ or jn third parties’ names in the register of shares or debentures of any Luxembourg or foreign companies, and exercise on behalf of the Funds and the holders of certificates of the Funds, all rights and privileges, especially all voting rights attached to the securities constituting assets of the Funds. The foregoing powers shall not be considered as exhaustive, but only as declaratory”.

EuroOK

This here says enough of the practices of the Norwegian Banking group of DNB Nor or DNB Nord ASA had a subsidiary for recess their tax-operation and use the lucrative opportunities for keeping the profit without having issues with the Tax-regime in Norway. As the Norwegian rules and tax-regulation without studying them is stricter and has to be stricter than this. Because the end of the Tax contract with Luxemburg disclose the information where they are planning not to pay for their “Net Wealth Tax Due”. So even if the funds grow massively and the monies invested in the Carlson Funds, the opportunity to underwrite 65 % before the tax on its profit and that is possible with the “underwriting” method. In that sense the taxation of the will always is 10% on very little part of the funds, as the stakeholders can theatrically take 65 Euros on the 100 euros. Leave behind 35 Euros of it profit and pay 3, 5 Euro on the 100 Euros of Profit, that is a beautiful operations. If it wasn’t for the underwriting of the revenue then the company would have by the standard tax of Luxemburg paid 10 Euros of tax. 10 Euros is not much of a profit of 100 Euros, but still vastly more than 3, 5 Euros, the difference by quick calculation is 6, 5 euros. That is nearly a price of a Big-Mac Combo-menu that cost around 8 Euros in Luxemburg.

That is because of the technic of underwriting and sharing that with the shareholders and stakeholders of the Carlos Funds S.A. in Luxemburg which is their subsidiary. As written so nicely to the Luxemburg Department of Tax Collection in 2nd July 2008:

“on behalf of our client Carlson Fund Management Company S.A. (hereafter also referred to as “Carlson”), we respectfully request you to confirm, in writing, the content of this letter as to the Luxembourg tax treatment applicable to the situation described herein”.

That the Carlson was supposed to get the reasonable Tax Treatment for the company so there was a hashed plan from the get-go together with the Company of PriceWaterCooper. The plan was made an acted upon. This would not been possible if the DNB Nor did not use the guidance and setting up the charter after the laws there and follow the guidelines of the company setting it up for making sure of having less tax.

As explained with the 100 Euros scenario. The certainty is not any excuse from the DNB Nor can tell away.  As they explained in 2016 to the Norwegian Press:

“No, DNB Luxemburg does not help the costumers to avoid tax. The Advisors function as discussion and talking-partners when it comes to financial questions, which offers legal and legitimate tax-plan for the costumers who live abroad. It could for example be about advice about financial-solution, cross-border transactions, complicated inheritance-regulation and other taxing environment that would be different from the ones who are living in Norway” (…)”DNB does not operate in Luxemburg because of taxation (Foss, 2016).

Well, I have already explained there operation and how they get to pay as little tax as possible through their operation. So DNB Nor had or still have the Carlson Fund Management Company S.A. in Luxemburg to save taxes and earn more monies in their operation and company there. Something they would be able to do in Norway or under Norwegian taxing regulation. Peace.

Reference:

MF I/ECCi/ AEGN/C21108001 M-PEWR – “Carlson Fund Management Company S.A. – Identification tax number: 2006 2240 378- Recognition of a license fee for tax purposes” (02.07.2008) – PriceWaterCooper (PWC)

Foss, Andres Bakke – ‘DNB i redegjørelse i 2014: DNB Luxembourg hjelper ikke kundene med å unndra skatt’ (08.04.2016) link: http://www.aftenposten.no/okonomi/DNB-i-redegjorelse-i-2014-DNB-Luxembourg-hjelper-ikke-kundene-med-a-unndra-skatt-8422413.html#xtor=RSS-3

Donald Trump haven’t only made “Good Deals” he has failed exeptionally well; failures like in Scotland, Atlantic City, Airplane Company and Vodka; with this business-model, I doubt he will able to “make America Great again!”

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Donald Trump the Reality TV Star who is famous for saying “You’re fired” and also for hosting a Miss Universe contest. He is not famous for being a politician and therefore I have not taken him seriously as Jon Steward on the Comedy Central bashed him on the day he announced his intention for running as President as he had a speech on the 16th June 2015 as a Republic Party Presidential Candidate.

He usually talks about how he can make good deals and do that in Government, I will show how he has done in the past to prove that he is not all good, and has earned money on government funding, fathers inheritance, and also destroying other people’s possibility to earn while smashing other people livelihood for his own benefit, as he has done in Scotland and Atlantic City.

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I could have bashed him for his empty rhetoric and for not telling how to really make “America Great Again” as he is an empty suit with no moral fiber what-so-ever as he uses Immigration policy and spread fear  to the public to gain momentum and surge of the angry clue-less white rednecks; who couldn’t open a book or read a Foucault explanation on how “Governance” supposed to be. As he believes he can with he deals structure can fix everything. While I doubt it, as the structures and procedures will stifle him, as he is not an island at the White House and in the Senate and House of Representative in Congress; as he has to follow the guidelines of these outfits.

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Something he can’t dictate as he does with his Trump Organization where all the Yes Men follow his every move; the same will not happen there as he cannot be the grand dictator and authoritarian leader who owns Capitol Hill, as it seems the “American Great Again” doesn’t have the pulse. But follows on the fear and not on political framework, unless Mr. Trump himself earns on the new taxation reforms, not for the public; as he is a rich man who doesn’t want to be more taxed. He wants to continue to have low tax on the rich and continue to have close to 30% tax on blue-collars and working-class, not the rich, or giant International Companies, as they have loop-holes and systems to get money to tax-heavens instead of paying tax directly in the United States. This is an international problem, but with the growing debt and less income, while having issues to pay to gain growth, there must be a way of getting the wheels rolling. But I don’t see that from Mr. Trump, rather from Bernie Sanders. That is just me. Let’s take a look at some of the bad-deals of Mr. Trump!

Trump 1990 People's Magazine

His value in 1990 out of his People’s Magazine Article:

“Indeed, Wall Street sources say that the purpose of the bailout is not to get Trump up and running, but merely to buy time for the banks to oversee the sale of virtually all of his assets. Donald Trump’s empire, once valued at $3 billion, may be as good as gone, and even his private wealth is at risk. His debt is said to include $500 million in personal loans, and though he claims to be worth more than that, some analysts assay his net worth at less than zero” (Kunen, 1990).

How he really earned his wealth:

“Trump was born in New York City in 1946, the son of real estate tycoon Fred Trump. Fred Trump’s business success not only provided Donald Trump with a posh youth of private schools and economic security but eventually blessed him with an inheritance worth an estimated $40 million to $200 million” (…)”In 1990, due to excessive leveraging, The Trump Organization revealed that it was $5 billion in debt ($8.8 billion by some estimates), with $1 billion personally guaranteed by Trump himself. The survival of the company was made possible only by a bailout pact agreed upon in August of that same year by some 70 banks, allowing Trump to defer on nearly $1 billion in debt, as well as to take out second and third mortgages on almost all of his properties” (…)”In 1995 Trump took Trump Hotels & Casino Resorts Inc. public and received a substantial financial boost from society and the Securities and Exchange Commission (SEC) regulations that enable the market to function. He initially sold 10 million shares at $14 per share and then in 1996 sold 13.25 million shares at $32.50 a share. This initial public offering granted Trump’s company a stability and legitimacy that would have been impossible without millions of people around the world trusting his organization and investing with the hope of shared success” (Lapham & Miller, 2012).

Now on some of his direct bad deals as the Scottish adventure, Atlantic City’s Casino’s, Trump Shuttle and Trump Vodka, take a look!

golfscenery_TRUMPSCOTLAND

Scottish adventure as his bullies the land of inheritance:

Where he wanted to build a Golf Resort:

“The site comprises the Menie Estate an area of 452 hectares (ha) of estate policies, agricultural land, heath and dune. It is located between the A90 trunk road (A90T) and the sea about 14 km north of Aberdeen city centre, and 8 km from the northern limit of the city at the conference centre. The eastern boundary with the foreshore at the high water mark is approximately 4.2 km long, while the site narrows to the west so that the boundary with the trunk road is no more than 1.1 km. At its widest the site is about 2 km from east to west. Balmedie Country Park lies immediately to the south on the coast, while further to the west and south farmland separates the site from the village of Balmedie” (…)”The Menie Estate was most recently used for a combination of commercial shooting and some agriculture but now forms the operating base for the applicant company; Menie House is undergoing restoration as a residence. Since taking ownership Mr Trump has stopped both shooting and hunting on the land” (…)”Mr Trump has been concerned about the environmental effects of the development from the outset, although he acknowledged that he did not know the land was protected when he bought it” (…)”  A world class golf course also requires world class facilities. The clubhouse would be the nucleus of the development. The hotel would be a grand five star building that would complement the landscape in the same way that the hotels at Turnberry and Gleneagles do. The hotel and conference centre would attract golfers and non-golfers. Mr Trump believes that it would in itself be a major boost to the economy of the north east of Scotland”  (Scottish Government, 2008). That was back in 2008 and was in the recommended because of the economic prosperity in the area at the cost of the special sand-dunes that had an environmental unique place in European standard, but for the price of getting a world-class golf-course was the price the Government of Scotland accepted together with the Aberdeenshire Council” (Scottish Government 2008).

Trump Turbines Aberdeen

Some other local punters – A timeline of actions from Trump in Scotland:

“Then, on 3 November 2008, the Scottish Government granted outline planning permission for the resort, subject to 46 conditions, indicating that ‘there was significant economic and social benefit to be gained from this project’ (Scottish Government 2008b). Again, the response to this decision was predictably polarised. Industry and tourism leaders declared that it demonstrated that the North-east, and Scotland more widely, was ‘open for business’ (Whitaker, 2008a); while environmentalists feared that it would set a ‘precedent which will undermine the whole protected-sites network in Scotland’ (Urquhart, 2008)” (…)”In May 2009, it emerged that Trump International, in preparing its detailed resort masterplan, had advised Aberdeenshire Council that it would be lodging further applications for outline planning permission, but for eight parcels of land not currently owned by the organisation. These included four private homes that Trump International was hoping to acquire through ‘amicable’ discussion. It also emerged, however, that Aberdeenshire Council had prepared a briefing note for councillors which raised the prospect of compulsory purchase orders being used to secure the land (Ross 2009), although Trump International insisted that this would only be pursued as an ‘absolute last resort’ (Urquhart 2009)” (…)”Eventually, in January 2011, Trump announced that he would not be seeking compulsory purchase orders for the residential properties; that he would effectively build his course around them. However, Trump also claimed that ‘we have consistently said that we have no interest in compulsory purchase and have never applied for it’ (Urquhart, 2011). This was despite the existence of a letter from early 2009, released under freedom of information, in which his legal representatives had clearly asked Aberdeenshire Council ‘to exercise its powers of compulsory purchase…to acquire the eight plots of land on behalf of TIGLE’. That letter has become widely available online (see, for example, Scottish Green Party, 2011)” (Baxter, 2014). “In 2013, the Scottish government approved plans for the installation of wind turbines off the Aberdeenshire coast – which would generate enough energy to power 68,000 homes. Trump soon claimed that having this windfarm near his golf course “would spoil the view”, and thus entered into a legal battle against the project. But this was a battle he would lose, leading Alex Salmond to call him “three times a loser” and argue that the legal process had potentially jeopardised “a vital £200 million boost for the economy of the North East of Scotland”. In response to Salmond’s comments, a Trump Organisation spokesman said the former first minister had an “overinflated ego” and that the Scottish government was embarking on a “dangerous experiment with wind energy” which was based on a “foolish, small-minded and parochial mentality”. This in spite of the fact that wind energy is now considered to be the cheapest energy technology available in the UK” (Sabio, 2015).

Alex Salmond regrets Opening business for Trump:

“There is nothing wrong with his golf courses, the problem is that Trump Turnberry is unlikely to ever get on The Open circuit. If Turnberry doesn’t get an Open, then that costs the Scottish economy £100m” (…)“I think the association with Trump is now net damaging to the Scottish economy.” (Schmid, 2016).

This here proves that all of his business is not a good deal as he has taken some of the special areas of Scotland, not followed his promise, stifled the locals and had issues the Government over their own development as the sufficient work with the Golf Course and area that Trump Organization had planned for the area, is not working as well as the Locals or Trump hoped for; as the development of the project never got into the stages that Trump promised.

Donald-Trump-Eminent-Domain

Atlantic City Casinos gone bad, his response to newspaper actually writing about him:

“He said the bankruptcy was the result of external forces beyond his control, specifically an extremely bad economy in 1990. He said he had “the prerogative” to change his mind about using junk bonds in the financing” (…) “I didn’t want to have any personal liability, so I used junk bonds. I accept the blame for that, but I would do it again,” he said. But Trump vehemently denied that the deal represented a personal failing or affected his personal wealth” (…) “This was not personal. This was a corporate deal,” he said. “If you write this one, I’m suing you.” (Bandler, 2016).

vera_coking

Here are outtakes of the deals done in Atlantic City:

“The casino opened in April of 1990. Just over a year later, Trump was not going to be able to make his June payments. The Times said Trump was on the hook for $900 million that year, and the Taj Mahal eventually filed for Chapter 11 bankruptcy. Trump lost about half of his interest in the casino, and had to sell his private yacht and plane to help pay his losses. His creditors even put him on a budget (of $5.4 million, so … not that bad of one)” (…)“Trump Plaza was the next to fall out of his control. It was hemorrhaging cash in the early 1990s — Johnston estimates that, in the end, Trump lost about a million courting high-roller Kashiwagi (who was found dead, stabbed 150 times, in Japan in 1992) — and filed for bankruptcy protection in November. The banks took a 49 percent stake in the Plaza in exchange for more favorable terms on the $550 million in debt the building had on it. Trump remained as CEO, but no longer had a role in day-to-day operations” (McQuade, 2015).

How the Locals in Atlantic City feels about Trump:

“Sen. Jim Whelan (D-Atlantic) said Trump’s legacy in the city is a “mixed one.” (…)”The notion that he was somehow responsible for the success that Atlantic City had is not accurate,” said Whelan (D-Atlantic), who was the city’s mayor in the 1990s. “Nor is he responsible for the problems we now have.” (…)”Whelan said Atlantic City already had casino gambling for several years when Trump arrived, adding: “It’s not like he was a pioneer.” (…)”Experts said Trump ran his casinos like other owners did — and stressed that he didn’t simply leave the city on his own terms. Though Trump’s casinos were hurt by the same factors as the others in Atlantic City — a sputtering economy and growing competition from neighboring states — and though other casino companies filed for bankruptcy over the years, his companies’ four bankruptcies are also more than any other in town” (Johnson, 2015).

Trump Shuttle

Another deal gone sour was “Trump Shuttle” or his Airlines:

“NEW YORK — The sky became the limit Thursday for real estate mogul Donald Trump with the maiden flights of his Trump Shuttle service – fashioned from the innovative Eastern shuttle — taking off after a fog delay” (…)”The inaugural voyages of the Trump Shuttle, with four newly painted airplanes bearing the developer’s name, were scheduled for 7 a.m. in New York, Washington and Boston. All were delayed at least 20 minutes by thick fog in New York and Boston” (…)”Trump purchased the shuttle for $365 million from strike-battered Eastern Airlines, which is owned by the Texas Air Corp. The deal was approved May 24 by a federal judge overseeing Eastern’s reorganization under Chapter 11 of the federal bankruptcy code” (…)”Trump hired some 1,000 workers, 800 of them former Eastern employees, for the new service, said Bruce Nobles, the shuttle’s president and chief operating officer” (…)”’People are really tired of being pushed around at Pan Am. Pan Am is not exactly one of the great stalwarts of the industry,’ Trump said. ‘We’ll have the safest, most beautiful planes in the air and we’ll have the best service.‘” (…)”Trump said he expected the fare to remain at $99, the same as Pan Am, but, ‘We’ll match any price on the market’” (Wolfhorst, 1989). Already in 1991: “USAir will retain the Trump Shuttle’s employees and has an “understanding” with its unions over the shuttle’s operations, Goldman said. USAir is holding talks with its unions seeking major concessions to help it ride out the recession and its heavy losses” (…)”The USAir deal must still win final approval from the group of approximately 40 banks involved in Trump’s finances and win regulatory approval from the Transportation and Justice departments” (…)”Trump said yesterday that the deal helps him reduce his debt. “That’s what we’ve been doing for the last year is knocking the hell out of debt,” he said. “USAir is a fine company, and the shuttle is a great asset.” (Hamilton, 1991).  In 1992 this happen to it: “On Mar. 13, he is expected to conclude the final segments of a massive debt restructuring, which will give lenders the Trump Shuttle airline and hand over 49% of the Plaza Hotel in exchange for a lower mortgage-interest rate” (Businessweek Archives, 1992).

Trump_Shuttle_727_safety

In 1993 the result was this: “A USAir Shuttle spokesman says the 87 were fired because the company wanted “an optimized cost-efficient operation.” Their work will now be done by an outside contractor who can do I more cheaply, says Terry Hallcom, manager of the shuttle. (USAir manages the former Trump Shuttle for Citicorp and about 20 other banks that acquired it when Donald Trump defaulted on $380 million in 1991.) “The shuttle management needed to cut jobs to cut costs,” says Citicorp spokeswoman Amy Dates. “We at Citicorp have gone through our own restructuring but have also gotten through it.” (People’s Magazine, 1993). You can say that the Trump Shuttle didn’t work out and the workers lost their jobs on the speculations of Donald Trump. As the Banks to ownership together with 20 Banks who salvaged the ownership of the company. That is a manifestation of how bad this deal was for Trump.

Trump-vodka

Trump Vodka ended with the bottum-up: 

Then we have his fallen throne with the alcoholic beverage Trump Vodka. Here is some on this: “Trump Vodka will be a major player in the vodka arena – it’s a superb product and it’s beautifully packaged,” boasted the teetotaling magnate. Cases of the Dutch-distilled, big-name booze were transported across a red carpet – behind velvet ropes – to a waiting delivery van. A Port Authority police escort accompanied the van to a warehouse in Long Island City, from where Trump Vodka will be distributed. It’s being advertised as “a vodka worthy of the Trump name” and will be sold in a “special gold crafted bottle” designed by graphic artist Milton Glaser, creator of the iconic “I [heart] NY” logo. Patrick Kenny of Drinks Americas Holdings Ltd., said all that matters is that his name is on the bottle. “It’s no secret that Donald Trump doesn’t drink,” he said. “But we’re in the super premium vodka market, and there’s nobody who markets better in the luxury category than Donald Trump” (…) “A one-liter bottle of Trump Vodka will sell for about $30” (Woodberry & Corky JR, 2006). A review of the dink: “The vodka, a five-times-distilled Dutch vodka by renowned distiller Jacques de Lat, is made from select European wheat. After distilling, the vodka is stored in stainless steel tanks for six months, run through a carbon filtration process twice, then a 9-column filtration process, and finally carbon filtered two more times. The vodka is then bottled in a sleek, tapered design from Bruni Glass, with label and packaging by the legendary graphic designer Milton Glaser. The result is what we’ve come to expect from anything branded with the Trump name. For all the attention to detail in the packaging and design, this is a vodka that doesn’t even make a good mixed drink. All of that filtration the vodka goes through has resulted in a spirit more akin to fuel treatment. The burn on the finish is intolerable – more “your mouth’s on fire” than “you’re fired” – with no discernable flavor from the wheat, and an oddly thin consistency for a spirit made from a heavy grain” (Sudo, 2007). In 2009 this happen to the company distributing the beverage: “J. Patrick Kenny, the Company’s CEO, stated, “We believe that this financing is very favorable for the Company especially in this challenging economic environment. The transaction will provide the Company with an immediate and near term cash infusion which will enhance our cash flow and enable us to continue to grow and expand our brands. Prominent in this growth is our imminent beer launch with Kid Rock, our growing Leyrat Cognac business, the continued growth of Trump Vodka and our rapidly growing Olfiant Vodka business, all of which this financing will help facilitate.” (Business Wire, 2009). Something is never seen or heard about since, the reports later said because of lack of interest for the beverage, the production of Trump Vodka went out in 2011. Though there are rumors that is still on sale in Israel as a Israeli Company got the license for in in 2010 from American Holdings Ltd and sell it for 15 years, as it the same year was sued from the Trump Organization, how the court case or beverage is; is not an easy task since there is so little precedence or evidence of actual production, as you can only buy from the early 2000s when the production of it was on Ebay, if you’re a fantastic fan of Trump and get a golden bottle.

Trump Old Newsweek

As I have showed he did not make money from scratch, he is not a self-made Millionaire or Billionaire! He inherent and gained early on the property market after his father’s rise in the business in New York; he did not come with Oliver Twist lifestyle and suddenly by pure genius gain an economic rise. That is somebody else who has done, not him.

Trump Quote

In the 1990s he went totally bankrupt; he was bailed out by big-government and luck of connection in banks as they gave him leverage on the property that could be profitable in the future. A possibility an ordinary person would never achieve or get. The rich also get better service and better treatment then the working-class. He was even at one point valued zero and having accumulated pure debt, while working with most of the banks to restructure his businesses. At this point there we’re none good deals, as he failed in the Air, later in beverage with his Vodka, also Casino’s that was not profitable in Atlantic City and his Scottish adventure that has not become what he promised Alex Salmond or the Aberdeenshire Council as they have lost both green energy source and a future potential tourism site; and a world-class golf course as he didn’t care for the locals, they just had to be happy that he could do as he please and his will was the best, and nothing else did matter. The same way he is discussing matter as a politician.

The Trentonian Trump Front Page

He tells the world he only make “Good Deals” then he must have a reactive memory, or a selective memory, this is not all of them, as this some of the big ones. And a reminder of the matter at hand; if he has plans of making America greater in this way then he will be a Machiavellian Lord who will do as he please without thinking consequence of the ordinary person or the effect of the policy/law. That should be stressed and thought about as the trickledown economics isn’t really a functional and the riches he gained wasn’t by rare luck, though he lived by the posh lifestyle by how he raised. He was raised rich and made himself even richer. There is a saying: “you need money to make money”. That is surely the tale of Mr. Trump. Not a good deal made his wealth, and if it wasn’t for the mercy of the state and the banks in 1990s he wouldn’t have been able to wealthy today. That is why he was positive to the Barrack Obama’s Stimulus Package to save the economy as it was similar to how his own businesses were saved. He could not hate something that saved his own skin. Even if he fear immigrants as his heritage is from Scottish roots and family coming from Europe back in the day. The irony is there and he is surely a strange clone in the elections in the United States. I have now on my page this described and showed something sinister of two candidates there, the first was Jeb Bush and now Donald Trump. I took the economic approach and not his human vision as it is ghastly and not worth spending my mind on or finding his terrible quotes as it is fear-mongering and not worth ink. This is enough for today. Peace.

Reference:

Bandler, Aaron – ‘One Newspaper Wanted To Report About Donald Trump’s Atlantic City Finances. So He Threatened Them’ (22.01.2016) link: http://www.dailywire.com/news/2827/one-newspaper-wanted-report-about-donald-trumps-aaron-bandler

Baxter, Graeme – ‘Open for business? An historical, comparative study of public access to information about two controversial coastal developments in North-east Scotland’ (01.03.2014) link: http://www.informationr.net/ir/19-1/paper603.html#.VrtmAFjhDI

Businessweek Archives – ‘The Donald’s Trump Card’ (22.03.1992) link: http://www.bloomberg.com/bw/stories/1992-03-22/the-donalds-trump-card

Businesswire – ‘Drinks Americas Closes Private Placement for Cash Infusion of Up to $3 Million’ (25.01.2009) link: http://www.businesswire.com/news/home/20090625005282/en/Drinks-Americas-Closes-Private-Placement-Cash-Infusion

Johnson, Brent – ‘Trump’s controversial time in A.C. under new scrutiny with presidential run’ (25.10.2015) link: http://www.nj.com/politics/index.ssf/2015/10/trumps_controversial_time_in_ac_under_new_scrutiny_with_presidential_run.html

Kunen, James S. – ‘Pop! Goes the Donald’ (09.07.1990) link: http://www.people.com/people/archive/article/0,,20118158,00.html

Hamilton, Martha M. – ‘USAIR REACHES ACCORD TO RUN TRUMP SHUTTLE’ (20.12.1991) link: https://www.washingtonpost.com/archive/business/1991/12/20/usair-reaches-accord-to-run-trump-shuttle/a5870bec-d890-422f-9e4a-02360de12599/

Lapham, Mike & Miller, Brian – ‘ECONOMY Exposing How Donald Trump Really Made His Fortune: Inheritance from Dad and the Government’s Protection Mostly Did the Trick’ (09.07.2012) link: http://www.alternet.org/story/156234/exposing_how_donald_trump_really_made_his_fortune%3A_inheritance_from_dad_and_the_government’s_protection_mostly_did_the_trick

Lee, Michelle Ye Hee – ‘Donald Trump’s false comments connecting Mexican immigrants and crime’ (08.07.2015) link: https://www.washingtonpost.com/news/fact-checker/wp/2015/07/08/donald-trumps-false-comments-connecting-mexican-immigrants-and-crime/

McQuade, Dan – ‘The Truth About the Rise and Fall of Donald Trump’s Atlantic City Empire (16.08.2015) Link: http://www.phillymag.com/news/2015/08/16/donald-trump-atlantic-city-empire/#M16Ri9meooifJh9z.99

People’s Magazine – ‘Out in the Cold’ (20.12.1993) link: http://www.people.com/people/archive/article/0,,20107064,00.html

Sabio, Osio – ‘This is why Donald Trump is not welcome in Scotland’ (18.12.2015) link: http://www.thecanary.co/2015/12/18/donald-trump-not-welcome-scotland/

Schmid, Stefan  – ‘Alex Salmond insists Scotland does not need Donald Trump’s investment’ (18.01.2016) link: http://www.thenational.scot/news/alex-salmond-insists-scotland-does-not-need-donald-trumps-investment.12500

Scottish Government – Directorate for Planning and Environmental Appeals: ‘Case reference: CIN/ABS/001

  • Site Address: land at Menie House, Balmedie, Aberdeenshire
  • Application APP/2006/4605 for outline planning permission dated 27 November 2006

called-in from Aberdeenshire Council by notice dated 4 December 2007.

  • The development proposed: Golf course and resort development
  • Date of inquiry: 10 June – 4 July 2008 ‘ (10.10.2008)

Sudo, Chuck – ‘A Classy New Vodka From A Man Lacking Class’ (22.01.2007) link: http://chicagoist.com/2007/01/22/a_classy_new_vodka_from_a_man_lacking_class_.php

Woodberry, Warren & Corky JR, Siemaszko – ‘I’M DONALD TRUMP, DRINK MY VODKA’ (07.10.2006) link: http://www.nydailynews.com/archives/news/donald-trump-drink-vodka-article-1.643186

Wulfhorst, Ellen – ‘First flights take off on Trump’s renamed Northeast shuttle’ (08.06.1989) link: http://www.upi.com/Archives/1989/06/08/First-flights-take-off-on-Trumps-renamed-Northeast-shuttle/6472613281600/

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