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How the Press Gave Madoff Four More Years to Steal His Billions
It’s one of the greatest and most shameful failures in the history of journalism. In the new edition of our newsletter Eamonn Fingleton traces how the Wall Street Journal was handed a precise outline of Madoff’s Ponzi scheme in 2005 and sat on it. The New York Times also passed on chances to nail Madoff. Thousands, poor as well as rich, lost their life savings in consequence. Read Fingleton on how the watchdogs of the Fourth Estate took good care to snooze in their kennels. ALSO in the new edition, Paul Craig Roberts concludes the shortest, sharpest outline of economics ever written with a brilliant essay on the economics of a full, green world. Get your new edition today by subscribing online or calling 1-800-840-3683 Contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now! CounterPunch books and gear make great presents.
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Today's Stories Feb. 27 - March 1, 2009 Harry Browne February 26, 2009 Dave Lindorff Jonathan Cook Patrick Cockburn Mike Whitney Eamonn McCann Tim Wise Tom Barry Harvey Wasserman Adam Turl David Macaray James McEnteer Website of the Day
February 25, 2009 Chris Sands M. Shahid Alam Chris Floyd Dave Lindorff Norman Solomon Rachel Godfrey Wood Niranjan Ramakrishnan Ron Jacobs Nadia Hijab Dennis Loo Website of the Day February 24, 2009 Paul Craig Roberts Uri Avnery Peter Morici Jonathan Cook Paul Fitzgerald / Andy Worthington Brian Horejsi Julia Stein Norm Kent Rachel Smolker / Dennis Loo James McEnteer Website of the Day February 23, 2009 Michael Hudson Mike Roselle Patrick Cockburn Franklin Spinney Einar Már Guðmundsson Ralph Nader Jordan Flaherty Helen Redmond Dennis Loo Harvey Wasserman Terry Lodge Website of the Day February 20 / 22, 2009 Alexander Cockburn Michael Neumann / Ismael Hossein-zadeh Paul Craig Roberts Linn Washington Jr. Saul Landau Marjorie Cohn Binoy Kampmark Dave Lindorff David Yearsley David Macaray James McEnteer Rick Salutin Wayne Clark Richard Rhames Stephen Martin Mitu Sengupta Charles R. Larson Richard Morse Lorenzo Wolff Poets' Basement Website of the Weekend February 19, 2009 Norman Finkelstein Harry Browne Robert Bryce Brian M. Downing Fred Gardner Andy Worthington Wajahat Ali Laura Carlsen Deb Reich Christopher Ketcham Website of the Day February 18, 2009 Paul Craig Roberts Mike Whitney M. Shahid Alam Patrick Cockburn Conn Hallinan Dave Lindorff Rannie Amiri Gareth Porter Eric Hobsbawm Christopher Brauchli Martha Rosenberg Website of the Day February 17, 2009 Michael Hudson Mike Whitney Ralph Nader Joanne Mariner John Ross Belén Fernández Mats Svensson David Macaray Gregory Vickrey M. Junaid Levesque-Alam Michael Dickinson Website of the Day February 16, 2009 Patrick Cockburn Oscar Guardiola-Rivera Paul Craig Roberts Uri Avnery P. Sainath Dedrick Muhammad / Michael Brown Carla Blank Patrick Irelan Dan Bacher Fidel Castro Harvey Wasserman Website of the Day February 13 - 15, 2009 Alexander Cockburn Joshua Frank Mike Whitney George Ciccariello-Maher Nikolas Kozloff Brian M. Downing Paul Craig Roberts Christopher Ketcham Ron Jacobs Dave Lindorff Alan Maass Chuck Spinney Phil Gasper Stephen Lendman Charles Thomson Kathy Sanborn Saul Landau Len Wengraf Harvey Wasserman David Macaray Tom Stephens Seth Sandronsky David Yearsley Lorenzo Wolff Kim Nicolini Poets' Basement Website of the Weekend February 12, 2009 P. Sainath Jean Bricmont Michael Hudson Peter Lee Dave Lindorff February 11, 2009 Neve Gordon Peter Morici Andy Worthington Marjorie Cohn Fred Gardner Niranjan Ramakrishnan Zoe Blunt Belén Fernández Martha Rosenberg Website of the Day Blues of the Day
February 10, 2009 Kathy Kelly Nikolas Kozloff Uri Avnery Michael J. Berg Russell Mokhiber Joe Bageant Gareth Porter Dave Lindorff Rannie Amiri Harvey Wasserman Niranjan Ramakrishnan Website of the Day February 9, 2009 Vicente Navarro Paul Craig Roberts Julio Sanchez / National Lawyers Guild Jonathan Cook Alana Smith Binoy Kampmark Sam Bahour Nicole Colson Ron Jacobs Website of the Day Norman Solomon David Macaray Website of the Day |
Weekend Edition Bono: "All the Corporate Entities Do It"Where the Cheats Have No ShameBy HARRY BROWNE Entries have already been pouring in to the ‘rewrite a U2 song’ competition in honour of the group’s Irish tax-exile status, as described here on Counterpunch by Eamonn McCann. ‘Where the Streets Have No Name’ has been recast as ‘Where the Cheats Have No Shame’, ‘Angel of Harlem’ as ‘Arrangement in Holland’ -- and those are just the entries from my house. But CounterPunchers are rarely less than fair, so we just had to read more when we saw this news intro on page-one of today’s Irish Times: “U2 singer Bono says he was ‘stung’ and ‘hurt’ by criticism of the band moving part of its business to the Netherlands to lessen its tax burden.” Oh, Bono, dear Bono. Is that a tear I see in your eye, behind the wraparound shades? No, maybe not. As the interview with Bono in the newspaper demonstrates yet again, this is indeed a man entirely without shame. And also not too well endowed in the smarts department. His main excuse -- all the other corporate entities were doing it -- is a childish abdication of moral responsibility. And as another excuse he adds, “I can’t speak up without betraying my relationship with the band” -- i.e. maybe this wasn’t really my idea but I’ve got to stick with my greedy pals. Well, that’s just low. But let’s allow Bono to speak for himself. Tax avoidance, he says, is how Ireland got rich:
There’s at least half-truth in what he’s saying: helping rich foreign companies avoid taxes was indeed part of the story of the Celtic Tiger. But Bono is leaving out the moral of the story, something else that “everybody in Ireland knows”: now that this get-rich-quick scheme has collapsed, Ireland is getting poor as precipitously quickly as any country in the developed world. So Bono is justifying U2’s tax-avoidance by comparing it to the Irish “financial architecture” that is now justly regarded as a national scandal, part of what brought more than 100,000 people on to Dublin’s streets to protest last weekend. Oops. It’s worth explaining in a little more detail why the same sort of tax tourism that lured the global financial services industry to Dublin actually drove part of U2’s business away to the Netherlands. Ireland has famously had, since 1969, an artists’ tax exemption, whereby Irish residents’ earnings from artistic work (published work, not performance) were not liable to tax. Given the aggressive business mentality of U2 and their manager, Paul McGuinness, it can safely be assumed this exemption was part of the attraction of remaining in Dublin through all their years of international superstardom. Three years ago, however, the government (under some popular pressure in which Bono’s name featured prominently as a hate-figure) capped the exemption at 250,000 euro annually, a threshold that would be a distant dream for the vast majority of writers, painters and musicians, but that was of immediate concern to U2. The group responded by relocating its music-publishing arm to Amsterdam, where its royalties would be taxed at just 5 per cent. This is a horror of hypocrisy only if you take all of Bono’s moralising seriously. But let’s allow him to complete that thought about tax-dodging:
So tax avoidance is an act of patriotism, even when you’re taking money out of the country, because as an international activity it was broadly to Ireland’s benefit. You know, Bono should really stick to the stonewalling strategy of his band-mate, The Edge, who just says (in the same interview) “it’s our own private thing. We do business all over the world… and we are totally tax compliant.” Edge also quietly notes that in light of the recession the group’s ambitious local property development plans are being viewed with, ahem, “a colder eye.” But Bono’s special charm is that he doesn’t know when to shut up, at least when he’s got full control of the microphone. (Debates are another matter, and he dodges them as efficiently as he does those taxes.) In truth, there are worse tax offenders than U2. Many of Ireland’s super-rich are, unlike U2, not Irish residents for tax purposes, taking advantage of a rule that says if they live here for less than half the year they are not liable to Irish taxation on their income. Until this year they could take advantage of a ‘Cinderella’ loophole that said if they got out of the country by midnight on a given day, that day would not count as one in Ireland for the tax calculation -- so the private jets were kept busy with late flights. Don’t expect the country’s largest newspaper group, Independent News and Media, to get too exercised about this: its boss, Tony O’Reilly, ‘lives’ in the Bahamas. Nonetheless, U2 make a fantastic target, precisely, as Bono says, “because of my mouth.” Of course any close scrutiny of his pronouncements on world affairs reveals him as a ruling-class mouthpiece, who makes the problems of global poverty even worse by suggesting that Western leaders are on the verge of solving them, with just a little push from Bono. (How very much more hollow that notion seems in 2009.) And any close scrutiny of his background reveals him as a middle-class brat whose quasi-proletarian poses (such as the “four Irish boys from the northside of Dublin” shout-out at the Obama pre-inaugural bash) earn sniggers of scorn in his hometown. Still, it’s a worthwhile activity, a little mental exercise, to take his world-hugging poses at face value just long enough to demolish them with a little truth-- starting with the fact that he avoids tax in his own beleaguered country, and that rich people who avoid tax are part of the global problem, not the global solution. By the way, CounterPunch doesn’t pay me enough to listen to the new U2 album, No Line on the Horizon, released in Ireland today and already all over the airwaves, along with interviews with the fans who camped out for days to get the first copies. (It comes in five different ‘editions’, God help us.) Credit is due, however, to the Irish Times, which even as it plasters its print and online editions with U2 branding (including samples from the album), also includes a few critical words from its excellent blogger Jim Carroll. He briefly notes the group’s corporate sins, then adds: “But those are human transgressions. For musical transgressions, you have to head to the new album,” which he calls “blustery, burpy, over-cooked melodrama.” It’s an album, Carroll writes, to “fill stadiums, newspapers, radio stations, web sites, quarterly target spreadsheets, bank balances, pension funds and investment opportunities in the tech sector.” Carroll doesn’t say so, but reading his list it’s some small comfort to consider that as all those other icons of neoliberalism are smashed amidst the current turmoil, Bono and U2 could be among the victims. There really is a song competition, by way. See debtireland.org for details, and for a video featuring the Irish finance minister telling a protester, charmingly, “you’ll have to take that up with Mr Bono.” Harry Browne lectures in the School of Media at Dublin Institute of Technology and is author of CounterPunch’s Hammered by the Irish. Contact harry.browne@gmail.com
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