Friday, January 25, 2013

Goldman Sachs of cash - don't you dare tax us!

Goldman Sachs made up to an estimated quarter of a billion pounds from speculating on food prices including wheat, maize and soy. The bank is accused of contributing to a growing global food crisis.

Goldman Sachs created the first commodity index funds which allow huge amounts of money to be gambled on prices.

Anti-poverty campaign group the World Development Movement released the estimate following the publication of Goldman Sachs' 2012 results. The group is calling for tough rules to curb financial speculation on food, to prevent banks and hedge funds driving up prices.

The US has passed legislation to limit speculation, but the controls have not been implemented due to a legal challenge from Wall Street spearheaded by an organisation calling itself "The International Swaps and Derivatives Association" Readers will be amazed to learn that Goldman Sachs is a leading member of this Association. Similar legislation is on the table at the EU, but the UK government has so far opposed effective controls. Unsurprisingly Goldman Sachs has lobbied against controls in both the US and the EU and they carry a lot more clout than the starving millions.

With the cheek of the devil, Goldman Sachs chief executive Lloyd Blankfein denounced Cameron's purely verbal attack on tax dodgers, saying that holding people up for criticism for their tax arrangements risked "criminalising every right-thinking person who organises his or her affairs in a sensible way.

They make money. People starve because they cannot afford food. But God forbid that anyone should suggest they pay tax!

Derek McMillan

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