Financial Speculation is the sexiest and creepiest Boogeyman ever.
It starts as investing with the aim to make an attractive and easy profit.
The trader accumulates a fortune, and then sends it to Swiss, Luxembourg, Nauru or the Maldives.
As the new Donald Trump/Paris Hilton, the speculator might live a great and mostly obnoxious rich life, drinking cocktails on his private island’s beach in the Pacific, snorting lines of cocaine all day long and “partying like no tomorrow”.
“The Wolf of Wall Street” docet.
One day, the trader might just wake up from his incredible and expensive dream and realize he had ended up on a slippery slope:
“Dirty sexy money” can corrupt anyone, especially him.
The “reckless buddy” might have impersonated the financial version of Bear Grylls, and that is why he wanted to take all the risks.
He started to play the illegal game on the World-trading-chessboard.
Then things happened one after the other: the Stock dropped and authorities found out losses for about €4.9 billion.
«Whoops: better go back up and do it ag…”. Too late.
Financial Speculation and Politics: what is the «deal»?
Financial Speculation is the mythical monster used by those who are legitimately empowered to scare unaware and naïve people like us: a large number of politicians, intellectuals, bankers and (obviously) traders/speculators, manipulate our minds better than any illusionist.
We know that, as the majority of those who tried to carry out a sleight of hand in the financial system in the last decades weren’t great conjurers: We could count them instead of sheep.
After a hundred names we might be asleep, but not yet done with the infinite list.
George Soros, Jérôme Kerviel, Warren Buffett, Jesse Lauriston Livermore, David Tepper and it just goes on.
However, a large number of them still plays “Hide & Seek”.
Politicians blame both known and unknown speculators for the present financial crisis.
We obviously believe them.
We believe in God: why shouldn’t we also believe in the existence of a masonic financial trade network who controls and affects our poor and innocent World?
An hidden Underworld
The ugly truth is that this TOP SECRET and Super-dangerous Underworld does exist.
It is not the end of the story, however.
Actually, the financial system is dominated by hypocrisy: speculators share their guilt with hedgers, arbitrageurs and politicians, who simply do not denounce their actions of engaging in risky financial transactions in an attempt to profit from fluctuations in the market value.
It is a game in which traders do speculate against certain businesses as they have been trained to a.k.a. Finance’s worst, unhealthiest and most shameful aspect.
However, It is not the only terrible and outrageous feature of it: since everything is an excuse for speculating to make some profit, the Financial system voraciously feeds on disasters and misfortunes; in fact, the most profitable days of trading for banks are those that experience the greatest catastrophes: attacks, tsunamis, war declarations.
Mr Tobin, the King of Taxes
In the past, the arbitrary uses of Finance have been always treated with the same ease of last years’ Drama related to climatic changes: everyone understood we were running towards a huge disaster without being able to mobilize collective energy for radical reforms.
No fundamental development has been undertaken until the ‘70s, when Mr. Tobin James suggested a tax intended to put a penalty on short-term financial round-trip excursions into another currency.
Many countries argued that an international institution, such as the UN would have better implemented the “Tobin Tax”, since one country acting alone would have found very difficult its fulfillment.
However, most of the actual implementation of “Tobin taxes” has gradually occurred at a national level, such as the «Stamp Duty Reserve Tax» in the United Kingdom.
Here it comes our dear FTT!
In September 2009, French president Nicolas Sarkozy brought up the issue once again, suggesting to the G20 to adopt it as a Financial Transaction Tax, which invariably means a small tax on the purchase/sale or transfer of the four main financial asset classes, such as equities, bonds, foreign exchange and their derivatives.
$400,000,000,000 could be taken out of the pockets of the bankers and traders that got rich by crashing the economy, and then redistributed to those are suffering from poverty, climate changes and health challenges.
Huge profits and a tax advantage of approximately €18 billion a year of the Financial sector, are the reasons why principal buyers/sellers of financial assets – banks and other financial institutions ought to, and can afford to be, taxed first and foremost.
The «Day After Tomorrow» financial assets of the World
The FTT can be implemented unilaterally or by a coalition of the willing, without an exodus of financial institutions, which is France and Germany’s greatest concern.
Unilateral FTTsalready exist in countries like Brazil, South Africa, India, the UK and the US: they are a hundred percent successful and profitable.
In practice, now “It is time for all Europe” and for its Financial System to become more transparent, simpler and fairer.
It is clear that global measures will be needed to regulate a globalized financial system in the future: meanwhile 9-EU countries (France, Germany, Spain, Italy, Portugal, Greece, Austria, Belgium and Finland) are pushing for this to be fast-tracked, some G20 countries such as Argentina, Brazil, France, Germany and South Africa have also declared their support in 2011.
But, ehm, well, “Hey, let’s not be too hasty!”.
As John Dillon contended, the unanimous agreement on the feasibility of an international FTT is not necessary yet: it could be introduced gradually, beginning in Europe, where support is strongest.
Now, in fact, we should reach a decision for ourselves as EU-citizens.
It is time to defeat the most cynical and rapacious side of global Finance: its perpetrators.
It is time for Europe to take an important step forward and to become one of the worst nightmares of its “Monster under the bed”.
In brief, «Let’s get the party started!”.
Alessia Sofia Giorgiutti