The IMF Is Urging Governments to Impose Regulatory and Tax Cartels to Benefit Politicians
by Dan MitchellPrice fixing is illegal in the private sector, but unfortunately there are no rules against schemes by politicians to create oligopolies in order to prop up bad government policy. The latest example comes from the bureaucrats at the International Monetary Fund, who are conspiring with national governments to impose higher taxes and regulations on the banking sector.
The pampered bureaucrats at the IMF (who get tax-free salaries while advocating higher taxes on the rest of us) say these policies are needed because of bailouts, yet such an approach would institutionalize moral hazard by exacerbating the government-created problem of “too big to fail.” But what is particularly disturbing about the latest IMF scheme is that the international bureaucracy wants to coerce all nations into imposing high taxes and excessive regulation. The bureaucrats realize that if some nations are allowed to have free markets, jobs and investment would flow to those countries and expose the foolishness of the bad policy being advocated elsewhere by the IMF. Here’s a brief excerpt from a report in the Wall Street Journal:
Mr. Strauss-Kahn said there was broad agreement on the need for consensus and coordination in the reform of the global financial sector. “Even if they don’t follow exactly the same rule, they have to follow rules which will not be in conflict,” he said. He said there were still major differences of opinion on how to proceed, saying that countries whose banking systems didn’t need taxpayer bailouts weren’t willing to impose extra taxation on their banks now, to create a cushion against further financial shocks. …Mr. Strauss-Kahn said the overriding goal was to prevent “regulatory arbitrage”—the migration of banks to places where the burden of tax and regulation is lightest. He said countries with tighter regulation of banks might be able to justify not imposing new taxes.
I’ve been annoyingly repetitious on the importance of making governments compete with each other, largely because the evidence showing that jurisdictional rivalry is a very effective force for good policy around the world. I’ve done videos showing the benefits of tax competition, videos making the economic and moral case for tax havens, and videos exposing the myths and demagoguery of those who want to undermine tax competition. I’ve traveled around the world to fight the international bureaucracies, and even been threatened with arrest for helping low-tax nations resist being bullied by high-tax nations. Simply stated, we need jurisdictional competition so that politicians know that taxpayers can escape fiscal oppression. In the absence of external competition, politicians are like fiscal alcoholics who are unable to resist the temptation to over-tax and over-spend.
This is why the IMF’s new scheme should be rejected. It is not the job of international bureaucracies to interfere with the sovereign right of nations to determine their own tax and regulatory policies. If France and Germany want to adopt statist policies, they should have that right. Heck, Obama wants America to make similar mistakes. But Hong Kong, Switzerland, the Cayman Islands, and other market-oriented jurisdictions should not be coerced into adopting the same misguided policies.
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40 Comments
The IMF is right. The excesses of free-market capitalism nearly destroyed the world economy. We need global rules to prevent that from happening again.
This is nothing more than another scheme to enrichen some carpetbagger somewhere.
Kind of like how the U.N. brought about world peace and cooperation?
You don't have to be a Plumber to know that S _ i + runs down hill ,
and we're swimming in it !
We havent used any serious free-market capitalism in decades, if we did, we wouldnt be in this current mess. Mind you, it was the government pushing Fannie/Freddie to make sub-prime loans along with the credit bubble that the market fell as it did. The government has tried this atleast twice before already and both times have lead to deep depressions.
We need less regulation and taxes as the market will adjust on its own since the market listens to the consumers, not the politicians in office who just take your money and harming the economy more. So, IMO, screw global rules. Lets forget about the world economy and focus on our economy first and the rest of the world will follow.
Take the World Bank, The UN and all the global fraudulent policy and shove it right up George Soros' ass. This Great Nation we call the United States can and should go it alone on all matters concerniong a free people. I have little appetite for having an European Master!
Weren't the Founding Fathers white men? Isn't that just a historical fact? And has a president aren't you also a representative of a very long lineage of men who represent our Founding Fathers and the U.S. Constitution that they gave to us! I just learned that this ILLEGAL president has a thing against white men! He's calling out for blacks,latinos and women to unite for 2010. What no white men? THIS ILLEGAL PRESIDENT IS NOW PUBLICLY SHOWING HIS HATRED FOR WHITE MEN AND THAT IS RACISM!
I see you subscribe to the United Nations form of Bureaucracy and a One World Government…
Do you want your taxes raised ?
R .U. O.K. With Hugo Chavez or Mahmoud Ahmadinejad invoking their will upon you ?
Do hate the fact that the Wall Street cats are to big ? Would you prefer a Bloated world government ?
Shoving anything up, down or into any other orifice of George Soros is O.K. with me .
You have to remember, all these CURRENT Fat Cat Wall Street leaders EARNED their money under more HONEST Capitalistic principals in the 80's, 90's and 00's (no, they weren't perfect, but they were STILL more open than they have been since 2006). Now that they already "have theirs", they are pushing for the RULES to change, so not only can they KEEP theirs, nobody ELSE can get up there.
Letting the IMF regulate all the banks around the world sounds great! Just look at how well the U.N. did with that oil for food thing.
Boy , I would like to see some of the proof you have about their practices since 2006…
You can't cite Fannie and Freddie because that was a GOVERMENT program forced on the banking industry , that started under Carter and expanded by Clinton…
Awaiting you links….
Good One !
or
How about all those U.N. troops stationed around the world , but the genocide(s) still continues under the direction of the U.N.
I no longer see any hope to saving our Country. The ballot box no longerworks, Too many evil corrupt people also vote. I'm sad to say there will be no solution. They've been selling our country in favor of world government starting with Jimmy Carter. Most Americans have Eyes and Ears but still cannot See and Cannot Hear. Mr. Obama was sent to us by the present ruler of this world.
"The pampered bureaucrats at the IMF (who get tax-free salaries while advocating higher taxes on the rest of us)…"
No authority that exempts itself from its own rules and regulations has any legitimacy whatsoever. Someone ought to remind the IMF of this little factoid… and congress.
Well, you do have a point (but it's not just Wall Street) about many 'Bigs' and their fear of losing power.
[...] More >> BigGovernment var a2a_config = a2a_config || {}; a2a_config.linkname="The IMF Is Urging Governments to Impose [...]
We haven't had a free-market system for 80 years, my equal pay friend! Perhaps you should read a little history before making blind and definitive statements. You and other sheep will trust what the president says as he leads you directly to the slaughterhouse. It is because of years of miseducation that you think the way you that you do. It's not all of your fault, because your mind has been corrupted by the Left since birth. 1/3 of the population got us through the Revolutionary War; 1/3 will have to do it all over again.
Agreed!!
The IMF. Didn't Timmy Geithner work for the IMF?
Of course, he was unable to tell whether the IMF was taking out taxes or he was a consultant.
These are some strange financial wizards we have in Foggy Bottom.
Just say NO.
Yes, the minorities, the illegals, the drug gangs and anyone who is a welfare recipient are his base voters. Thas how Acorn succeeded in drumming up the votes. How the word "women" got in there is a mystery unless he thinks he's a stud (NOT) and have the women of this country once again get a tingle up their leg for him.
We all knew if he played the rascist card he would get the vote, but in all reality he hates the blacks, latinos and minorities because he is an elitist and only uses them to his advantage. I think a lot of them have seen through his ploys.
[...] The IMF Is Urging Governments to Impose Regulatory and Tax Cartels to Benefit Politicians. Posted in: Economy, World Topics ← Why Graham balked; can Dems win by losing on climate [...]
"The IMF is right. The excesses of free-market capitalism nearly destroyed the world economy."
Stupidity this abject is beneath response.
Proof????
Scroll up and start clicking. It's ALL there!!!
If this nation is to be saved, I hope for a relatively bloodless military coup. Otherwise, it will be a revolution, not bloodless at all; if neither occurs, then a descent into Orwellian serfdom.
The Framers were wise men, but failed to foresee the fatal weakness in the constitutional edifice they created: the ability of power-hungry politicians to bribe the voters with their own money.
That doesn't make any sense. The international bailout culture (where the elite reap big profits when things go well, and everyone else gets to pay when things do not) that started in the 90's is what led to the near-collapse in 9/08. After the Wall fell, the entire global economy was being rigged to enrich the elite at our expense.
You may be shocked to know that "too big to fail" is not a feature of free-market capitalism.
I don't care that IMF officials get tax-free salaries. That's part of an international agreements, and the US is part of that agreement (same for officials at the UN and OECD). The important thing is that the IMF is an unbiased referee that wants rules that apply equally and fairly to all nations. If you wing-nuts really believe in a level playing field, then we should have the same taxes and regulations in all nations.
Same schools?? or just another sign on for the same person?
Here's a hint: Step away from the koolaid.
Liberal troll. Nothing to see here. Move along…
No one seems to trust greedy corporations but they put total trust in Government. Guess what happens to all those greedy wall street types when the money dries up? They will go work for the IMF, but instead of simply over charging your IRA, they will be writing the laws that dictate the terms of your life.
By centralizing power to a central global government you provide no safe haven for people to escape to. If the NWO decides to exterminate 1/2 their citizens you can't move to America to escape their policies if there is no America. Competition among sovereign States is crucial to your freedom as failed nations will lose citizens and successful governments will attract people.
I think this is all an admission that Karl Marx was wrong and Adam Smith is right.
All of the policies in the USA and IMF are driven by the impulse to save worldwide socialist programs that are nothing but Ponzi schemes run amuck. Medicare and Social Security here in the USA. Warming and Bank Reform are just the latest in the mad scramble to prevent the politicians from admitting it was all a lie.
.
Dissolve the IMF immediately. I have all run out of charity for clingers like these.
Alexis de Tocqueville saw the possibility 200 years ago. Alas, because of the leftist teacher's unions, he is no longer tayght in U.S. schools!! Viva La Revolution!!!
Who gives a damn about a level playing field, its the nations responsibility to take of themselves and they have dont that for centuries. Besides, we are getting pretty close to Europe currently and they are heading to all out bankrupsy soon. What we need to do is something our founders intended, become INDEPENDENT once again. We have the means to break this chain of global collapse, but it would requite alot to do.
First off, we need to cut all government spending and elimenate wastefull programs as well. Second, rewrite the tax code from scratch to a steady unchanging flat-tax. Third, use our own damn resources, we got plenty here still and alot of it is right off shore. Fourth, limit the government back to its intended size in the Constitution.
The world economy can be fixed once again, as our nation can become independent once again, and others will follow.
With all due respect…. bullshit! Here we go again; we have more than enough "rules" but damn little enforcement. Our problems were conceived in and nurtured by government. Crony capitalism was part of the problem, but NOT free markets (meaning US). I'm sorry, but the only sure guarantees we have in this life are (that's right) death and taxes.
In other words the IMF wants to do away with the free market so they can have complete and total control. Like the UN, we need to dump the IMF that has become an out of control beast that needs to be fed.
Equal Pay Gal is 100 percent correct. Capitalism is a game of roulette where the fat cats control the outcome. You guys make fun of Venezuela, but at least they're trying to build a fairer society.
Riiight, just like the 'fairest' society of all…. the People's Paradise of Cuba. /sarc
Idiot!
World Bank , IMF and the UN are just like ACORN. A bunch of wanna be elitists too damn lazy to work for a living and wanting to collect money from societies insecurities to redistribute the wealth but on the the way there personally enrich themselves first.
Remeber Turbo-Tax Timmy said over the weekend he has NEVER really had a JOB.
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