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Tuesday, December 31, 2019

The Curious Case Of Carlos Ghosn's Escape From Japan


Then came the bizarre story of Carlos Ghosn. To my Brasilian readers, he is a Brasilian who made good on a grand scale. If you are curious, here is his life story:
https://en.wikipedia.org/wiki/Carlos_Ghosn
        Carlos ended up in Japan as CEO of Nissan. If the Japanese authorities are to be believed, he literally used Nissan bank accounts as his personal ATM. He allegedly lived a grand lifestyle at the expense of Nissan shareholders. He also failed to report his massive income and pay taxes on it in Japan.
         Carlos was arrested and stayed in a Japanese jail for a while. He used his public relations apparatus to gain sympathy for him around the world. Bail is not a right in Japan. Finally the Japanese authorities allowed him to post bail of roughly $13,800,000 US. He had to surrender all passports (French, Lebanese and Brasilian). He had to stay in his apartment under electronic monitoring wearing an ankle bracelet. He was guarded 24 hours a day, 7 days a week by agents from the prosecutor's office, Tokyo Metropolitan Police, and an elite private security agency.
        If Carlos is to be believed, he outwitted the electronic monitoring. He evaded three law enforcement agencies and made his way to some private airport where he flew out of Japan in a corporate jet that took him to Lebanon after one or two refueling stops. Japanese can be rigid and bureaucratic. On the other hand, their equivalent of the US Federal Aviation Administration is very efficient. Any flight by a corporate jet would have received scrutiny. If he had made it to some jet aircraft and lifted off, Japanese jet fighters would have been scrambled. If this failed, his course would have been plotted. Airports where he stopped for refueling would be asked to detain the plane and him.
     Those of you who know me well know that I am quite familiar with matters relating to international escapes. In 1984 I made legal history both in the US and Australia. I accomplished something that had not been accomplished in 140 years.
          The first problem with this escape story is that a number of people would be needed to help him including staff at the Lebanese Embassy in Tokyo. In the process of putting together such a daring and well-funded plan, someone would slip-up on social media or with a close person in their life and say something about the plan. If by some miracle this did not happen, the second major problem is the electronic monitoring device. The minute someone tampers with it, an alarm goes off. (Forget all the television shows where crooks outwit electronic monitoring.) Did he bribe Japanese officials to escape? I doubt it.
      A more plausible explanation is that the Japanese authorities tired of the case. A financial settlement was made including payment of all back taxes. (Elena believes that large financial penalties are a better solution to white collar crime, as opposed to massive prison sentences given in the US and Britain.) Then, as the saying goes, Japanese authorities "looked the other way" while Ghosn made his getaway.


Monday, December 23, 2019

The World Fails To Understand The Level Of Unrest And Violence In Chile

Let us contrast this with a most-disturbing phone call that I got from Santiago, Chile yesterday afternoon. One of our readers Pablo Gallyas gave me a most-disturbing report on what is happening in Chile now. We have read and seen news reports of mass demonstrations in Santiago. These protests have been likened to the protests in Hong Kong against Chinese rule. The report that  Pablo gave me painted a different picture of violence and social unrest on a grand scale. To give you one statistic, Walmart operates 200 stores in Chile. 70 have been shut down due to violent takeovers by looters. Whereas we have record unemployment in the US, some 200.000 Chileans have lost their jobs. Another 200,000 are projected to be laid off by April of 2020. The Chilean peso is crashing in value. Pablo is a principal in one of the largest telecom companies in Chile. Sadly they have had to lay off a good part of the workforce. Chile was once the most stable and prosperous country in Latin America.
    Everyone is the last 20 years we have slowly but surely seen the middle class decline all over the world while the top 1% get wealthier and wealthier. In the name of sound fiscal management, governments all over the world are cutting social benefits to the poor.
     In my 71 years on earth I have not been able to figure out how to redistribute wealth and income more fairly. Marxism failed. The US government tried to redistribute wealth with a 90% tax rate on the wealthy. That also failed. Elena believes in the principal of: "Either someone is born with money or they will never get it." She cannot explain her own life. She started literally one millimeter out of the slum (favela) in Buenos Aires and is now a rich lady. Likewise my domestic partner from the 1980's, Maria Antonieta Fuentes, started life in a Guatemala slum with a single-mother parent. She lives the life of a wealthy lady now in Burbank, California with two children and a nice husband.
     The bottom line here is that there are a lot of angry and disillusioned people out there. Some have taken drastic action.

Have a good day!
Be Positive!
Make some money!

Argentina: The Overhaul

ARGENTINA

The Overhaul

Argentine lawmakers approved an emergency economic reform package over the weekend in a bid to boost the country’s economy, reduce poverty and lower inflation to stave off fears of default by nervous creditors and international markets, Reuters reported.
The law was approved by both the houses, less than two weeks after moderate Peronist Alberto Fernandez took office.
The reform is meant to show creditors that Argentina will see sustainable growth in the future as the economy is expected to shrink for a third straight year in 2020.
Fernandez aims to restructure talks on about $100 billion in debt owed to bondholders and the International Monetary Fund.
He also plans to achieve fiscal equilibrium in 2020 and put an end to government subsidy cuts under the previous President Mauricio Macri.
“This bill represents a new type of fiscal adjustment for Argentina in that it is focused on taxing the rich,” said analyst Julio Burdman. “It combines sound economic policy with a progressive political approach.”
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