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UN Body To Tax The US

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Under a new treaty before the senate, the UN will soon be able to tax  the US as it cedes authority of its Continental Shelf to the International Seabed Authority (ISA). The ISA is a body setup for redistributing cash and technology from the “developed world” to the “developing world.

It would be the first time in history that an international organization would possess taxing authority, and it would amount to billions of American dollars being transferred out of the US Treasury.  The U.N. Convention on the Law of the Sea, or the Law of the Sea Treaty (LOST) is the vehicle through which such taxes would be imposed on U.S.-based commercial enterprises.   

The treaty that Reagan refused to sign in 1982 is reappearing once again in the Senate.  The truth is, LOST contains numerous provisions that hurt the U.S. economy at a time when we need more jobs – not fewer.  

………

Under the guise of being for “the good of mankind, ” LOST would obligate the United States to share information and technology in what amounts to global taxes and technology transfer requirements that are really nothing more than an attempt to redistribute U.S. wealth to the Third World.

At the center of these taxes and transfers is the International Seabed Authority (ISA), a Kingston, Jamaica based supra-national governing body established by the treaty for the purpose of redistributing cash and technology from the “developed world” to the “developing world.”

Ceding authority to the ISA would mean that the sovereignty currently held by the U.S. over the natural resources located on large parts of the continental shelf would be lost.  That loss would mean lost revenue for the US government in the form of lost royalties that the U.S. government collects from the production of those resources. According to the U.S. Extended Continental Shelf Task Force, which is currently mapping the continental shelf, the resources there “may be worth billions if not trillions” of dollars.

It’s not just lost revenue, but technology would also be transferred under this treaty.

Proponents of the treaty will claim that the technology transfer portion of the treaty has been significantly changed.  In truth, nations with mining and resource recovery technologies like the United States will be obligated to share those technologies with Third World competitors, and that is one of the many issues, which trouble those of us opposed to the treaty.

In other words, US companies would be forced to give away the very types of innovation that historically have made our nation a world leader while fueling our economic engine.

Source: FoxNews

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Referendum For Ireland

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Great news for Ireland. The Irish Constitution wins again and ensures the Irish have one last crack at an EU treaty. Predictably TPTB in Ireland will use the same tactics as the last time. The message as usual will be

If it’s not passed, the sky will fall in, the world will end, everyone in europe will hate you.

If you do pass it, everybody will get a job and the Celtic Tiger will come back.

or some thing like that.

Constantin Gurdgiev had this to say on the Fiscal Compact

As a whole, to comply with the Pact parameters, the Euro area economy will have to shrink by some €535-540 billion every year between now and 2020 – an equivalent of reducing euro area growth by a massive 3.9% annually.

………………

Ireland will be one of the worst impacted economies in the group courtesy of our excessively high structural deficits, debt to GDP ratio and cyclical deficits. In 2012, Ireland is forecast to post a structural deficit in excess of 5.5% of potential GDP – the highest structural deficit in the entire Euro area. To cut our structural deficit to 0.5% will require reducing annual aggregate demand in the economy by some  €7-8 billion in today’s terms. Debt reductions over the period envisioned within the pact will take an additional €12 billion annually. For an economy with huge private sector debt overhang, paying some 12% of its GDP annually to adhere to the Fiscal Pact is a hefty bill on top of the already massive interest bill on public debt.

So, looking at the past will give an indication of likely countries will be able to stick to the constraints

My own research based on the Euro area data shows that during 1990-2008, only two euro countries – Finland and Malta – have complied with the Fiscal pact criteria more than 50% of the time. The rest of the member states, including Germany and France, have run sustained deficits more than 60% of the time. Once a euro state found itself stuck in twin current and fiscal deficits in one decade (the 1990s), transitioning to a twin current account and fiscal surplus in the next decade (the 2000s) was virtually impossible. For example of all states in EA17 who were in current account deficit throughout the 1990s, only 2 have managed to achieve current account surpluses during the following decade. Only one country that experienced fiscal deficits in the 1990s has managed to generate fiscal surpluses over the following decade. No country has been successful in restoring fiscal and external balances after a decade of twin deficits.

Gurdgiev sums it up as

In short, the Pact our Government so eagerly subscribed to is at the very best a continuation of the status quo. At its worst, Ireland and other member states of the Euro are now participants to a fiscal suicide pact, having previously signed up to a monetary straightjacket as well.

Senator Shane Ross had the following comment

Mr Ross said it was a fiscal pact on austerity and was dictated by the French and Germans without any input from Ireland.

He also said it was a road we should not go down and the debt reduction has to be tied into the ratification process.

Fiscal Compact Treaty – What It Means For Ireland (Stephen Donnelly)

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Stephen Donnelly (Independent TD) was on Vincent Brownes show on TV3 on Wed 01 Feb 2012 and summed up what the new EU “fiscal compact” Treaty would mean to Ireland.

To put in context he states that austerity has only ever worked once by England(in industrial revolution) in the last 200 years.

Hear is what we are talking about. To pay down €100 billion in 20 years(i.e. get GDP to level required in treaty). You got to pay down €5 billion a year. Thats what the treaty says.

We’re also paying about €8 billion in interest on the €200 billion that we owe. So you add the two together, our interest payment and our capital payment on the debt is €13 billion per year.

Thats more than the total amount of income tax we take. So hears what we would have to believe:

That a government, not just this government, any government  in the world can turn around and say,

YOU have the MOST INDEBTED PEOPLE ON EARTH,

YOU have no income tax,

YOU are not allowed to raise income tax to invest in your economy because that goes to paying back the debt,

YOU are not allowed to raise Corporation Tax above 12.5%, 1/3 of what it is in other european countries because then all the FDI(Foreign Direct Investment) will leave,

We are being asked to believe that the most indebted country on earth, without the ability to raise income tax, without the ability to raise Corporation tax, in the middle of a massive Global recession, can achieve levels of growth that no country on earth has ever achieved. Once we believe that we’re ok.

EU: Treaty of Debt (ESM)

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New Draft EU Treaty On Stability Is Toothless

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Two articles appeared today on the proposed draft of the EU treaty on growth and stability. According to ZeroHedge, it’s completely toothless:

the entire fiscal treaty is toothless from the ground up as every breach of deficit targets will always be attributed to “exceptional circumstances.”

…….

in the impossible event that a country is found to have breached deficits due to non-exceptional circumstances, what does the EU do? Why it punishes the country by making the deficit even bigger, by up to 0.1% of GDP. Because there is nothing like teaching a deficit transgressor a lesson, than by forcing what caused the punishment in the first place to get even worse…

Only in Europe.

Mike Shedlock writes on his blog that the reason the treaty was watered down in the first place was because the Irish government feared it would have a referendum to pass it, so requested that it be watered down to enable it to be ratified by the Irish Government without having to put it to its angry voters with a referendum.

The treaty hammered out by French President Nicolas Sarkozy and German Chancellor Angela has been watered down to complete meaningless with new provisions that would allow countries to “temporarily deviate from the rules in case of an unusual event” or in “periods of severe economic downturn.”

He quotes from an Irish Independent article

The Irish government is likely to face a court challenge if it decides not to hold a referendum on a new European fiscal treaty, potentially plunging the country and Europe into months of legal uncertainty.

Sinn Féin, the fourth largest party in Ireland’s parliament, told The Financial Times on Thursday that the party had sought legal advice on the issue and was “seriously and actively considering” making a challenge to the Irish Supreme Court.

finally

so behind the scenes Irish conspirators working with the EU have put in language that waters down the treaty hoping to do two things.

  1. Water down the treaty so that it does not have to be voted on
  2. Change the rules of the treaty later quietly, after the fact, with majority rule votes or other procedures

Give the Voters a Chance

The very last thing the unelected EU officials want is a public vote on anything. They intend come hell or high water to make their socialist nanny-zone state complete with a bureau of nightmarish regulations and agencies governing virtually every aspect of everyone’s lives.

 

France, Germany to press euro zone treaty change

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France, Germany to press euro zone treaty change.

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