The Finance Curse reader Û Kindle Edition

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The Finance Curse reader Û Kindle Edition ✓ [Reading] ➶ The Finance Curse Author Nicholas Shaxson – For many years economists have noted how countries rich in natural resources often fail to benefit from their unearned wealth Indeed sometimes the discovery of oil and gas can seem like a curse than a For Al sectors can suffer a similar fate The Finance PDF or The easy money that comes from finance carries hidden costs in form of steepening ineuality political and intellectual corruption industrial stagnation and periodic crisis and collapseNicholas Shaxson the author o This is the fourth Financial Times 2018 best books that I've read I have found all of them problematic and not especially worth recommending This is the worst of the four I've readIt starts by by suggesting that just as there is a resource curse countries with abundant natural resources often do worse than countries without there is also a finance curse countries with oversized financial sectors do worse than countries with non oversized financial sectors The author is British and I believe the book was originally published in Britain So it is mostly targeted at British audiences and based on the introduction he seems to primarily arguing that Britain has been hurt by the outsized importance of London's financial districtSomething similar is happening in Britain These top down wealth flows from the financial sector haven't exactly turned Britain into an authoritarian state but what has happened is that finance is often in conflict with other parts of the economy and in these battles finance always seems to win out It is no coincidence that the decline of British manufacturing since the 1970s has been so much faster than in other industrial economies at the same time as Britain's financial sector assets have grown so much larger as a share of the economy than in comparable Western nationsNotice that phrase it is no coincidence where isn't supported by any data or arguments; that's something we'll come back to laterBut even if the book is focused on Britain I think everyone in every country should be at least a little concerned about the impact of the financial sector Maybe Britain is on the cutting edge and lessons can learnt from it and applied to wherever you happen to be livingSo even though it is focused on Britain I was still keen to read onAs chapter after chapter passed I lost my excitement for the book The chapters follow a similar pattern a topic is introduced who relationship to oversized financial sectors is murky we are treated to a long history of how things got to this point and then there are a few unsatisfying lightweight analyses This is not a book with data or charts or references Going back to the introduction and that phrase it is no coincidence Wellhow do you know Prove it Don't just assert it Don't just say it is obvious Convince me Somehow With somethingAt times it feels like the author is just talking about any bad thing a business does even if it doesn't seem to have much to do with oversized financial sectors One chapter is about how communities increasingly compete with one another to offer tax breaks subsidies to businesses and their recent search for H2 is mentioned But isn't part of the financial sector I don't like the practice but I don't see what it has to do with oversized financial sectorsLikewise there is another chapter on how old school anti trust doesn't seem very effective in the modern business climate This chapter is primarily about antitrust as practiced in the US Again it is hard to see what this has to do with oversized financial sectors especially the oversized British financial sectorThe chapters feel disconnected from one another If I skip the chapter on anti trust in the US do I really miss out on anything in later chapters And most of these individual chapters have had entire books written about them Indeed chapter 3 about Britain's tax havens has a book written by this author Not that you need book length treatment for everything it would be a bit ridiculous to say instead of reading this 1 book go read these 11 other books But these aren't particularly compelling chapters eitherWe'll be treated to an excerpt from a 1969 Bank of England memo but wh

Nicholas Shaxson ↠ The Finance Curse doc

F Treasure Islands and John Christensen the director of the Tax Justice Network explore this new paradox of plenty and show once and for all that there's no such thing as a free lunch and that those who believe the stories told by bankers are liable to end up on the me A good roundhouse kick on the triple woes of financialisation deregulation and tax havens and tax evasions in good company with and sometimes liberally repeating Shaxson's own Treasure Islands Oliver Bullough's Moneyland or Rana Foroohars Makers and TakersWhat I learned How big and corrosive tax evasion is That the deregulation of financial markets and creation of deregulated tax havens in British territories and tax avoiding trust funds interact and were both actively driven by the City of London against US resistanceThat the political rhetoric of a global competition between nations is economically nonsensical but expedient for national economic incumbents who use it to capture regulators and make national markets less competitive for themThe further the book goes on the it falls into a general anti capitalist critiueThe main thesis supposedly holding the book together is the titular finance curse The idea is plausible and has merit Like the resource curse of developing nations rich in natural resources a nation's financial industries can grow to a size where they hurt growth and innovation in other economic sectors and wellbeing across society as it captures regulators fosters corruption and absorbs talent capital and effort into its profit but not value generating activities The book even reports an estimate of how much the oversized financial sector of the UK has cost the country to the tune of several trillions of pounds as always assess the numbers and underlying assumptions for yourself But this nice idea then isn't really developed convincingly as a main thread of the book that necessitates and integrates all its other parts It's like a preface to an overall decent collection of chapters

mobi Õ The Finance Curse ↠ Nicholas Shaxson

The Finance CurseFor many years economists have noted how countries rich in natural resources often fail to benefit from their unearned wealth Indeed sometimes the discovery of oil and gas can seem like a curse than a blessingThe Finance Curse shows how countries with oversized financi “I listened with great interest to what you had to say but I can assure you if you think Her Majesty’s Government is ever going to prosecute people of my class you are utterly mistaken We are a protected species”So said the director of one high street bank to Rowan Bosworth Davies after he had given a speech about money laundering within the City of London And of course he was 100% correct Shaxson takes a brave venture into the dark and disturbing world of financial corporate and political corruption and beware this is a right cast of horrors featuring some of the most awful people you could imagine with almost every one of them fully protected from the law by their immense wealth and privilegeShaxson pulls out some really fascinating historical details starting back at the widespread corruption which swept through America in the 1800s in the era of the robber barons“Wall Street planned financed and executed the entire independence of PanamaThis episode brought down the Colombian government created a new republic shook the political foundations in Washington with corruption and gave birth to American imperialism in Latin America Essentially Wall Street interest had harnessed their government’s military resources to build and operate a mighty tollbooth at the choke point of one of the world’s great trade arteries” Of course the creation of Panama’s shipping registry was the country’s first major step towards the creation of a tax haven He goes onto talk about other forms of ugly corruption such as the great American streetcar scandal where a consortium of oil bus car and tyre companies came together to buy up streetcars and electric mass transit rail systems in 45 major US cities to kill them offHe explains how it was thanks to the excellent journalist Ida Tarbell who first exposed Rockefeller for his corruption After some shocking attempts to discredit and humiliate her Tarbell's investigative work resulted in Standard Oil being broken up into 34 different companies Although this proved to be short lived after a meeting in 1928 in the Scottish Highlands in a secret deal to carve up the world’s oil industry“Offshore crime money and politics aren’t an aberration of the system; they are the system”Shaxson also discusses the resource curse which is particularly bad in places like Angola which is oil rich and diamond rich yet their vast and lucrative natural resources attract the worst kind of people and result in the worst kind of circumstances where a tiny elite profit to excess at the expense of the vast majority He shows the ways that this same rule applies to the many tax havens scattered across the globe“In the era of financialisation the corporate bosses and their advisers and the financial sector have moved away from creating wealth for the economy and towards extracting wealth from the economy using financial techniues”Shaxson takes us back to the origins of the London’s financial sector revolution “Britain entered its greatest period of broad based prosperity and economic growth at precisely the moment the City of London was at its lowest ebb” Bretton Woods allowed the UK government to impose strict regulations on the finance sector and high taxes on the richThe finance industry wasn’t happy about this and so launched the doomed Operation Robot Even though this was approved by the likes of Churchill it still failed Despite the remarkable prosperity the boys in London wouldn’t give up that easily determined to overthrow the system the answer arrived in 1956 when the Midland Bank began taking US dollars unrelated to commercial or trade deals This soon drew th