• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Guest Post: On Switzerland And The Mafia

Tyler Durden's picture




 

Submitted by Simon Black of Sovereign Man blog,

A few weeks ago, western governments' war on productive people took an interesting twist when US immigration authorities detained two teenage children of an asset manager based here in Switzerland.

The kids were traveling through the United States by themselves to visit extended family, and they were interrogated for six hours about their father's business and whereabouts.

During the six-hour ordeal, the children were not allowed to contact family members who were waiting for them, nor any sort of attorney or advisor. You can just imagine grandma and grandpa waiting in the arrivals hall for six hours, petrified that something terrible had happened to the children.

This is incredible. It's not enough that Switzerland already agreed in April to end its once sacrosanct banking privacy and turn over bank records to the IRS. Uncle Sam will not rest until they hunt down every last banker and pump them for details about clients' assets.

Yet even mafia thugs know that wives and kids are off limits. Western authorities clearly have absolutely no moral compunction whatsoever in getting their 'fair share.'

Look, this is not some defense of tax evasion. If for no other reason that simply to avoid prison, people ought to pay the minimum amount... and not a penny more. But the fervor with which these bankrupt governments pursue suspects where there is even a -hint- of impropriety is extraordinary.

In most cases, the government just wants your money. They send a demand letter... or sometimes guys in suits... and order you to pay. Sure, you can try to dispute the claim, but they bury you in paperwork and charge you 20%++ while the clock is ticking.

In other instances when they want to send a message, cases are forwarded to the Justice Department and US Attorney's office.

Their preferred tactic is to send out a subpoena commanding you to show up in front of the Grand Jury within just a few days, demanding that you bring YEARS worth of emails, bank statements, receipts, deposit slips, tax returns, financial records, and anything else they think they may need to convict you.

It's a bizarre approach when you think about it-- they force you to provide them with evidence to use against you... and if you can't manage to produce ALL of the documents they require within the week's notice they give you, you can be held in contempt and thrown in jail without being formally charged with anything.

This 'guilty until proven innocent' approach is the same sort of special treatment reserved for suspected terrorists. The only difference is that you don't end up in Guantanamo.

Free societies do not treat people this way. Hell, most criminal networks don't even treat people this way. And while it may raise a few bucks in the short run, in the long run it's counterproductive. People adapt. They create underground, cash-based economies. They leave. Foreign investors stay away. It's not healthy.

For what it's worth, banking in Switzerland is no longer what it used to be. Aside from the lack of privacy now, many Swiss banks are not particularly well capitalized. This was shown, rather embarrassingly, when UBS had to be bailed out a few years ago.

If you're looking for a well-capitalized tier-1 banking destination in Europe, Andorra is a much better option. And, surprisingly, banks in Kosovo are also among the best capitalized on the continent. More on that in a future lett

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Thu, 08/30/2012 - 13:26 | 2749992 agent default
agent default's picture

You hide assets from the government, you better watch your kneecaps. Just so we know were we stand here.

Thu, 08/30/2012 - 13:29 | 2750003 Winston Churchill
Winston Churchill's picture

If you don't hide assets from the Govt. you had better watch your

testicles.

Thu, 08/30/2012 - 13:30 | 2750006 agent default
agent default's picture

Money to this sort of government IS money to the Mafia.

Thu, 08/30/2012 - 13:33 | 2750017 Colombian Gringo
Colombian Gringo's picture

Do you know why the US government hates and persecutes the Mafia? 

 

Because the banksters hate competition.

 

Fuck you Corzine!

Thu, 08/30/2012 - 13:44 | 2750046 CPL
CPL's picture

They just publically went after children.  Kids...they gave the third degree to kids whom don't give two shits about what their parents do...mean while I sense the power of a million mothers are about to turn their cannons on anything moving in the US region.

 

Oh well, three more months and not even governments will be able to afford the planes they have.

Thu, 08/30/2012 - 14:36 | 2750189 hannah
hannah's picture

why would anyone keep money in a bank in kosovo...? they did have great concentration camps....really, i think ZH is some kind of baltic front something or other...?!?!? ZH has such cutting edge stories one day and the next they have this kind of shite?......really bizarre

Thu, 08/30/2012 - 15:14 | 2750302 CPL
CPL's picture

Serbia...Bosnia.  Two sides to the same shitty slip of toilet paper.  Somali is more refined and organized as an Anarchy state. 

Thu, 08/30/2012 - 20:42 | 2751171 jumbo maverick
jumbo maverick's picture

My friend in case you have not noticed the world is really bizzare.One minute you could be walking down the street checking out a woman in nice tight shorts. The next somebody is tossing a couch off an eight story building for no reason and it almost lands on you.
And fuck John corizine.

Thu, 08/30/2012 - 14:59 | 2750247 zuuma
zuuma's picture

TAR!!!

       FEATHERS!!

Thu, 08/30/2012 - 14:56 | 2750239 Sudden Debt
Sudden Debt's picture

the Mob has a rule about woman and children. it's ano go zone to tough any. they actually still have a code you know. in a way you can still respect them unlike the government...

Thu, 08/30/2012 - 16:15 | 2750531 CompassionateFascist
CompassionateFascist's picture

Every Jew-controlled state naturally evolves toward a Gulag Regime. 

Thu, 08/30/2012 - 13:31 | 2750012 Manthong
Manthong's picture

 Looks like the pot is boiling already..

http://www.cnbc.com/id/48825978

Thu, 08/30/2012 - 13:45 | 2750051 CPL
CPL's picture

HOly crap.

 

Silver and gold are going to go apeshit.

Thu, 08/30/2012 - 15:39 | 2750408 smiler03
smiler03's picture

 "'Emergency' Tax on the Rich Roils Britain"

It isn't going to happen. It's one man's idea and it just will not happen. 

Thu, 08/30/2012 - 16:28 | 2750581 monad
monad's picture

This is the mafia. If you're connected, you'll be fine.

Thu, 08/30/2012 - 14:59 | 2750244 Sudden Debt
Sudden Debt's picture

here in Belgium they want to do something even better!!

Raise VAT from 21% to 25% and if you can prove that you make a modest living you can "try" to reclaim some of that money!

AND THAT IS COMMING FROM A SOCIALIST GOVERNMENT!!!!

Thu, 08/30/2012 - 16:59 | 2750657 MillionDollarBoner_
MillionDollarBoner_'s picture

Belgium is famous for two things

Chocolate and paedophilia

And they only invented chocolate to get to the kiddies ;O)

Thu, 08/30/2012 - 23:57 | 2751504 StychoKiller
StychoKiller's picture

Ya forgot sparkling barley wine...

Thu, 08/30/2012 - 18:05 | 2750824 yourfather
yourfather's picture

Hi I'm sorry to do this to your comment but being on my blackberry it won't let me post this anywhere else

sovereign man, who has not looked at tier 1 capital ratios in switzerland lately, is talking so much shit. Everything that he posts should be deleted.

So did he tell you about how he sent a video resume to ubs which was basically the laughing stock of the company.

You would be hard pressed to find a better capitalized banking system. When the shit hit the fan ubs was caught with its pants down. The confederation govt bought non performing assets from ubs which it now refuses to sell back because they are making money off it. Now whether you believe tier 1 ratios or not, andorra, a tiny alpine country with no world banks with a decent global footprint is not going to be able to help you.

Switzerland is no longer about banking secrecy (tax evasion) but about stability. If you want anyone to blame for this, blame the american now in jail for blowing the whistle. Most of the swiss people want nothing to do with america.

Sovereignman is common wisdom packaged to make it sound cool and hip. The reality is it is just some dreaming neckbeard thinking of cool stories.

Thu, 08/30/2012 - 14:18 | 2750145 hannah
hannah's picture

this is a perfect example of what is coming...the rich dont have anywhere to hide this time and it is just hilarious how they havent figured it out. they think they have rights in the usa...hahhahahahahahahahaaaaaaaaa!

i really have zero sympathy for this idiot or his kids. chances are probably 80% that this guy was scum and did nothing but create syn financial deriv to crash the financial system.

Thu, 08/30/2012 - 16:30 | 2750586 jayman21
jayman21's picture

Stated like a true mouthpiece of the MSM.  You deserve -100 for this crap.  Free people are innocent until proven guilty. You either believe in our system or not!!!

 

So...maybe you can figure out what is wrong with "chances are probably 80% that this guy was scum and did nothing but create syn financial deriv to crash the financial system."

 

 

 

Thu, 08/30/2012 - 17:48 | 2750785 hannah
hannah's picture

troll

Thu, 08/30/2012 - 19:21 | 2750990 BigInJapan
BigInJapan's picture

Liberal idiot psy-ops propaganda trolls are growing more and more sphisticated as time goes on.

A touch of humanity, a little "feelin's for the chilln's" next time, and your boss might just give you the pat on the back you so desperately need. Oh yeah, and a shiny new iPod/phone/pad.

Get a fucking job.

Fri, 08/31/2012 - 03:29 | 2751701 oak111
oak111's picture

hannah, I have no sympathy at all for bankers that cheat or exploit stupid laws (and hey, I am Swiss).

But what you are missing here is: this is a system that is out of control, not even hesitating to act in this way against children. Guilty until proven innocent.

Are you not afraid that this could once turn against you or your family?

 

 

Thu, 08/30/2012 - 13:27 | 2749996 vast-dom
vast-dom's picture

FUCK THE US GOV!

Thu, 08/30/2012 - 13:56 | 2750083 Beam Me Up Scotty
Beam Me Up Scotty's picture

We wouldn't have these problems if these pricks didn't think they needed to spend 1.5 trillion more than they take in tax receipts every year.  And they wish they could spend 3 or 4 or 5 trillion more than they take in tax receipts.  And if you raised taxes by 1.5 trillion, to balance the budget, they would just spend another 1.5 trillion and we would still have a trillion and a half dollar budget deficit.

THERE IS AN UNQUENCHABLE DESIRE TO SPEND IN THIS COUNTRY.  Thats the problem.

Thu, 08/30/2012 - 15:00 | 2750251 viahj
viahj's picture

Biden was correct, "We have to spend money to keep from going bankrupt".  that is the beast of debt based fiat ponzi systems.  you just need to understand who the "we" was he was talking about...certainly not you or me.

Thu, 08/30/2012 - 15:59 | 2750480 Things that go bump
Things that go bump's picture

And they are spending it on better survelliance and shake down.  

Thu, 08/30/2012 - 14:57 | 2750240 q99x2
q99x2's picture

Fuck Bernanke!

Thu, 08/30/2012 - 15:00 | 2750252 Sudden Debt
Sudden Debt's picture

sssttttt..... they're listening....

Thu, 08/30/2012 - 13:28 | 2749999 FranSix
FranSix's picture

Children? Non-performing unhypothecated assets that don't want to work for a living.

Thu, 08/30/2012 - 14:48 | 2750222 TruthHunter
TruthHunter's picture

"Children? Non-performing unhypothecated assets that don't want to work for a living."

They probably sang like Canaries too.

They were probably willing to bite the hand that held the silver spoon.

Thu, 08/30/2012 - 15:02 | 2750257 Sudden Debt
Sudden Debt's picture

untill they are 6 years old!
Then you can start you own shoefactory!

Thu, 08/30/2012 - 13:30 | 2750008 1C3-N1N3
1C3-N1N3's picture

They got him in mid-sentence there at the end.

Thu, 08/30/2012 - 13:30 | 2750009 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

"Free societies do not treat people this way"

Simon Black needs to change his name to Captain Obvious.  If I pay his fee, will he tell me of a place where I can join a free society or will he just give me some options to change the flavor of my enslavement?

Thu, 08/30/2012 - 13:34 | 2750026 Freddie
Freddie's picture

Free societies do not treat people this way

Islamic African countries treat people this way.   The asset managers kids were white so they have no rights.

Thu, 08/30/2012 - 19:06 | 2750048 JuliaS
JuliaS's picture

"Rights are not rights if someone can take them away... all we've ever had in this country is a Bill Of Temporary Privileges."

- George Carlin

Thu, 08/30/2012 - 13:53 | 2750065 pazmaker
pazmaker's picture

That is why Simon Black is so full of shit.. there is no free society on this planet.

 

Thu, 08/30/2012 - 14:47 | 2750215 cxl9
cxl9's picture

I am an American living in Mexco and I can tell you that I feel much more free here than in the United States, with all its laws, regulations, and petty government harassment. It all comes down to money: the United States government has too much money with which to harass and abuse the citizens; the Mexican government can't afford the same level of daily interference in the lives of its people. The wealth of a government and its oppressiveness are inextricably linked. That's the reason that people who value freedom should cheer for rich tax-evaders rather than condemn them: less money for the government to harass its citizens.

Of course, I expect little or almost nothing in the way of "government services". In Mexico the roads are more-or-less paved, and evidently the fire departmnet will show up if you call them. Other than that, just leave me alone. When some pinche vato stole my señorita's car, it cost me $40 to have the police go find it and bring it back to me. That arrangement is decidedly preferable to the procedure in the United States: phone in a report to the police which will promptly be filed away and forgotten; car lost forever.

With freedom comes risk and personal responsibility. The right mix depends on the person. Maybe Americans want much less freedom than they claim to.

Thu, 08/30/2012 - 15:08 | 2750281 Overfed
Overfed's picture

How much does it cost to get the police to look the other way on your gun collection?

Thu, 08/30/2012 - 15:30 | 2750375 Skip
Skip's picture

US Federal, local, and state Law Enforcement is about as corrupt as in Brazil but not quite as corrupt as Mexico...yet. What is interesting is that in a poll taken in March in Mexico over 80% of Mexicans want guns banned for self-defense. Democratic strategist Celinda Lake, who has spent decades polling on gun control, said 76% of Latinos who reside in the US want Mexican style gun-control laws. BYE BYE Second Amendment.

Thu, 08/30/2012 - 17:07 | 2750676 Moe Howard
Moe Howard's picture

They want the white people disarmed. They have no intention of disarming themselves.

Thu, 08/30/2012 - 14:46 | 2750015 ebworthen
ebworthen's picture

S.S. Officer:

"You children vill shouw uz your paperzz, and of your fazher's agtivitees!"

Or, the evil "candy" man from Chitty-Chitty Bang Bang:

"Chiiillllldrennn, I have zome caandy vor you!"

Thu, 08/30/2012 - 13:32 | 2750016 dolph9
dolph9's picture

The Fed and the Federal Government of the United States want to end up owning every single thing that creepeth on this planet.

The pushback will come from other countries when they realize it isn't worth dealing with Uncle Sam anymore.

The American people?  They're bought off and too afraid of prison to do anything.

Thu, 08/30/2012 - 13:33 | 2750020 Dr. Engali
Dr. Engali's picture

WTF Andorra now? I thought it was Chile, or, Brazil, or Slovania....I'm confused.

Thu, 08/30/2012 - 13:45 | 2750049 ThirdWorldDude
ThirdWorldDude's picture

Right on Doc! And Kosovo too? That's even less of a country than Georgia... 

The best capitalized banks there trade with amphetamine & human organs!

Thu, 08/30/2012 - 14:05 | 2750115 Zwelgje
Zwelgje's picture

Kosovo is occupied. As soon as the yanks leave the Serbs move back in. What advice.

Thu, 08/30/2012 - 15:29 | 2750362 ImnotPOTUS
ImnotPOTUS's picture

I am pretty sure they are going to wait until Putin takes them off of his leash. I think Putin wants to keep the status quo until after he gets to show off at the Sochi Olympics.

The reason Kosovo has capital is because KFOR handed out a lot of cash to employ locals in brothels and latrine digging. But in Kosova you have nothing to spend it on so it just sits in the bank, hoping to get used before the leash is let loose.

Thu, 08/30/2012 - 13:34 | 2750025 dead hobo
dead hobo's picture

How do you know those kids weren't just a couple of smart ass teenoids who lied about what happened when they fucked with the wrong person and assumed daddy's name would scare the bureaucratic pants off of the interrogators? If this happens a lot more, you might be on to something. My guess at this time is that a couple of spoiled degenerate kids scammed you good.

Thu, 08/30/2012 - 13:52 | 2750062 notadouche
notadouche's picture

For a dead hobo you are one giant douche.  It wouldn't matter if they were smart ass teens or not the "authority" has no right to illegally detain them in search of information about their father or any other family member.  Turn a blind eye to Gestapo tactics against smart ass teen's one day then the next thing you know they are using those same tactics on live hobo's.  Then you let that go and... well we've seen how that ends before and I don't think that's the slope I want to be sliding down.  

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