Just at the time when the UK Government urgently needs something to divert the public eye away from the #Brexit conversation, something bigger conveniently pops up. Although it’s never been made clear who was behind the ‘Panama Papers’ leak (was an employee of Mossack Fonseca unjustly wronged, and this leak is his or her revenge?) the fact remains that this powerful political tsunami is going to sweep into the land of the wealthy and powerful, destroying everything in its path. We at Third Millennium Man have discussed very little else just lately; here’s our take on “that whole Tax Havens thing“.
Mum’s nowhere near Iceland.
First of all, there’s the predicament of the Icelandic Prime Minister. Remember the start of the economic downturn, when so many British local authorities and companies had money stashed in Icelandic banks, earning far higher rates of interest over and above what UK banks were paying – only to lose vast chunks of it, or all of it in some cases, when the Icelandic banks went belly-up? Although there was officially a news blackout (though there was nothing about that at the time in the newspapers…) it was reported through Internet channels that the fair people of Iceland kicked off big time, almost on the verge of civil war. Bankers were imprisoned, and the Icelandic authorities just about survived intact.
Due to the news blackout the UK failed to follow suit, which is why the financial crisis in Iceland was over and done with and back into prosperity within nine months; in the UK, we’re still feeling the pinch, the Bankers are still earning million-pound bonuses, and the people haven’t reacted angrily other than the odd Facebook post or a strongly-worded letter to the paper. The UK Government (and the mayor of London) spent money on riot precautions such as Water Cannon, but nothing ever materialised. The people never rose up, the riots never came, so the austerity measures have been allowed to gradually increase. Government will continue to do as it pleases until it meets resistance.