US Circumlocution Offices [1]: Federal Reserve approved General Motors (GMAC) Financial Services’ application to become a bank-holding company which will let them benefit from government bailout dollars. New York University sued Merkin GMAC chairman for feeding money to Madoff and concealing involvement from investors like NYU.

read more | digg story

Notes

1. Charles Dickens invented the term Circumlocution Offices to describe governmental and bureaucratic indolence and incompetence. By passing work through many hands of the Circumlocution Offices, it is easy to avoid doing anything. Dickens’ character in Little Dorrit, Mr. Merdle, who embarked on a fraudulent scheme is now being compared to Madoff and institutions such as the U.S. Securities and Exchange Commission (SEC), etc are being compared to Circumlocution Offices.

“The U.S. Federal Reserve on Wednesday approved GMAC Financial Services’ application to become a bank-holding company, a status that would give the auto-financing arm of General Motors Corp. access to government bailout dollars and the Fed’s discount window. The move complements a $17.4 billion emergency loan package the government extended to GM and (Wall Street Journal 2008-12-24)…

“Merkin, who is chairman of GMAC LLC, is named in the lawsuit brought by NYU, along with his Gabriel Capital LP fund and Ariel Fund Ltd. GMAC is the finance business owned by General Motors Corp and private equity firm Cerberus Capital Management LP. The Funds ‘feeding’ money to Madoff, including Ariel, made a conscious effort to conceal Madoff’s involvement from their own investors,” the NYU lawsuit said. “This concealment was a requirement dictated by Madoff, which was agreed to by Merkin and other ‘feeder’ funds (McCool Reuters 2008-12-24).”

Advertisements

It reads more like fiction than mainstream news.

“But, at about the time of High ‘Change, Pressure began to wane, and appalling whispers to circulate, east, west, north, and south. At first they were faint, and went no further than a doubt whether Mr Merdle’s wealth would be found to be as vast as had been supposed; whether there might not be a temporary difficulty in ‘realising’ it; whether there might not even be a temporary suspension (say a month or so), on the part of the wonderful Bank. As the whispers became louder, which they did from that time every minute, they became more threatening. He had sprung from nothing, by no natural growth or process that any one could account for; he had been, after all, a low, ignorant fellow; he had been a down-looking man, and no one had ever been able to catch his eye; he had been taken up by all sorts of people in quite an unaccountable manner; he had never had any money of his own, his ventures had been utterly reckless, and his expenditure had been most enormous. In steady progression, as the day declined, the talk rose in sound and purpose. He had left a letter at the Baths addressed to his physician, and his physician had got the letter, and the letter would be produced at the Inquest on the morrow, and it would fall like a thunderbolt upon the multitude he had deluded. Numbers of men in every profession and trade would be blighted by his insolvency; old people who had been in easy
circumstances all their lives would have no place of repentance for their trust in him but the workhouse; legions of women and children would have their whole future desolated by the hand of this mighty scoundrel. Every partaker of his magnificent feasts would be seen to have been a sharer in the plunder of innumerable homes; every servile worshipper of riches who had helped to set him on his pedestal, would have done better to worship the Devil point-blank. So, the talk, lashed louder and higher by confirmation on confirmation, and by edition after edition of the evening papers, swelled into such a roar when night came, as might have brought one to believe that a solitary watcher on the gallery above the Dome of St Paul’s would have perceived the night air
to be laden with a heavy muttering of the name of Merdle, coupled with every form of execration (Dickens 1857).

Using Google Maps we can actually follow in space and time, the story of this giant Ponzi scheme. This post is a draft and a work in progress . . .

Items on this Google Map have not been fully edited.

Items in the bibliography have not been properly edited yet . . .

to be continued . . .

I want to watch Midsomer Murders now . . .

Notes

Circumlocution Office is Dickens’ (1857) term to ridicule governmental offices that delayed business by passing through the hands of different officials. “That brilliant invention the Circumlocution Office was made up at a time when examinations were introduced for the Civil Service. Dickens felt that bureaucratic indolence and incompetence were responsible for the sufferings of British soldiers in the Crimean war. “This glorious establishment had been early in the field, when the one sublime principle involving the difficult art of governing a country, was first distinctly revealed to statesmen … Whatever was required to be done, the Circumlocution Office was beforehand with all the public departments in the art of perceiving – HOW NOT TO DO IT.” (Meaning, in Dickens’s time, how to avoid doing anything.) ( Byatt 2008-11-1.”

The Circumlocution Office is inhabited by a family of Tite Barnacles and relations.

General Motors (GMAC) The U.S. Federal Reserve on Wednesday approved GMAC Financial Services’ application to become a bank-holding company, a status that would give the auto-financing arm of General Motors Corp. access to government bailout dollars and the Fed’s discount window. The move complements a $17.4 billion emergency loan package the government extended to GM and (Wall Street Journal 2008-12-24)… “Merkin, who is chairman of GMAC LLC, is named in the lawsuit brought by NYU, along with his Gabriel Capital LP fund and Ariel Fund Ltd. GMAC is the finance business owned by General Motors Corp and private equity firm Cerberus Capital Management LP. The Funds ‘feeding’ money to Madoff, including Ariel, made a conscious effort to conceal Madoff’s involvement from their own investors,” the NYU lawsuit said. “This concealment was a requirement dictated by Madoff, which was agreed to by Merkin and other ‘feeder’ funds (McCool Reuters 2008-12-24).”

Electronic Communications Networks (ECNs) trading model

Who’s Who

National Market System (NMS) Bernie Madoff presented his arguments at SEC hearings (2004-04-21 SEC) on the redesigning of “the existing national market system (“NMS”) rules to maximize profits and efficiency.

U.S. Securities and Exchange Commission (SEC) Washington, DC.

Selected Timeline

1823 Charles Dickens’ father, John Dickens, was imprisoned in the infamous debtors’ prison in Borough High Street, the Marshalsea. At twelve-years of age the future novelist was sent sent to work in a boot-blacking factory. John Dickens was the model for both Mr. Dorrit in Little Dorrit and Mr. Micawber in David Copperfield. Charles Dickens is in effect, Little Dorrit. In a prescient move, the BBC broadcast its adaptation of Dickens’ (1857) Little Dorrit, a month before Bernie Madoff’s arrest in his luxury Upper East Manhattan apartment. The similarities between the two stories are uncanny. See Byatt, A. S. 2008-11-15. “Little Dorrit: Within the walls of the Marshalsea.” The Guardian.

1857 In Charles Dickens’ introduction of his 1857 novel Little Dorrit he apologized for any similarity between factual events in Britain and Ireland and the context and character of his fictional banker, Mr. Merdle, who embarked on a fraudulent scheme now being compared to Madoff’s.

“If I might offer any apology for so exaggerated a fiction as the Barnacles and the Circumlocution Office, I would seek it in the common experience of an Englishman, without presuming to mention the unimportant fact of my having done that violence to good manners, in the days of a Russian war, and of a Court of Inquiry at Chelsea. If I might make so bold as to defend that extravagant conception, Mr Merdle, I would hint that it originated after the Railroad-share epoch, in the times of a certain Irish bank, and of one or two other equally laudable enterprises. If I were to plead anything in mitigation of the preposterous fancy that a bad design will sometimes claim to be a good and an expressly religious design, it would be the curious coincidence that it has been brought to its climax in these pages, in the days of the public examination of late Directors of a Royal British Bank. But, I submit myself to suffer judgment to go by default on all these counts, if need be, and to accept the assurance (on good authority) that nothing like them was ever known in this land (Dickens 1857).”

Thanks to these sources for making the Madoff-Merdle link: Paul Krugman, The New York Times Op-Ed columnist, in his 2008-12-19 blog post entitled “Madoff/Merdle“; McCann, Vincent. 2008-12-20. “Separating fact from fiction in financial fraud case.” Scotsman.com News.

1920s Financial frauds of the 1920s. See Galbraith, John Kenneth. 1954. The Great Crash: 1929. Boston: Houghton Mifflin.

1960 Bernie Madoff started his firm Bernard L. Madoff Investment Securities with $5,000. Bernard L. Madoff Investment Securities LLC.

1938 Bernard L. Madoff was born?

1970s The creation of the consolidated system for disseminating market information generated enormous benefits for investors (SEC 2004-02-27).”

1980s The incorporation of The Nasdaq Stock Market, Inc. (“Nasdaq”) securities into the NMS generated enormous benefits for investors (SEC 2004-02-27).”

1990s The adoption of the Order Handling Rules in the 1990s generated enormous benefits for investors (SEC 2004-02-27).”

2004-02-27 SEC published Regulation NMS for public comment. “In addition to redesignating the existing national market system (“NMS”) rules adopted under Section 11A of the Securities Exchange Act of 1934 (“Exchange Act”), Regulation NMS would incorporate four substantive proposals that are designed to enhance and modernize the regulatory structure of the U.S. equity markets (SEC 2004-02-27).”

2004-04-21 Bernie Madoff presented his arguments at SEC hearings (2004-04-21 SEC) on the redesigning of “the existing national market system (“NMS”) rules held at the InterContinental The Barclay.

“The central objective of this review is to determine how the regulations governing the U.S. equity markets should be modernized. Our markets are continually evolving because of such factors as innovative trading technologies, new market entrants, and changing investment patterns. We believe that one of our most important responsibilities is to monitor these changes and to ensure that the U.S. regulatory structure remains up to date. In this way, we can help our markets retain their position as the deepest and most efficient in the world – markets that offer a fair deal to all types of investors, large and small.”

2004 Bernie Madoff presented his arguments at hearings on the redesigning of “the existing national market system (“NMS”) rules adopted under Section 11A of the Securities Exchange Act of 1934 (“Exchange Act”), Regulation NMS would incorporate four substantive proposals that are designed to enhance and modernize the regulatory structure of the U.S. equity markets.

Discussion: “Is access to markets through the members of an SRO and through the customers or subscribers of ECNs or market makers sufficient to assure fair and efficient access to their displayed quotes? Are there barriers to access that must be removed for this indirect access to be feasible?”

Participants: Ivan K. Freeman (Morgan Stanley), John C. Giesea (Security Traders Association), Robert Greifeld (Nasdaq Stock Market), Larry Leibowitz (Schwab Capital Markets), Bernard L. Madoff (Madoff Investment Securities) and Thomas Peterffy (Interactive Brokers Group)

2008-01 Bernard L. Madoff Investment Securities claimed their investment advisory business managed $17.1 billion for 11 to 25 clients and boasted of an “unblemished record of value, fair-dealing and high ethical standards (Zambito and Smith 2008).”

2008-11-15 In a prescient move, the BBC broadcast its adaptation of Dickens’ (1857) Little Dorrit, a month before Madoff’s arrest in his luxury Upper East Manhattan apartment. The similarities between the two stories are uncanny. See Byatt, A. S. 2008-11-15. “Little Dorrit: Within the walls of the Marshalsea.” The Guardian.

2008-12-10 Andrew Madoff and Mark Madoff, Bernie’s sons and his employees claimed to be innocent victims of a fraud that they knew nothing about. They called the Securities and Exchange Commission, which told the FBI (Zambito and Smith 2008).”

2008-12-10 Special FBI Agent Theodore Cacioppi and a colleague questioned Madoff at his $9M East Manhattan luxury apartment on Thursday morning to investigate the possibility of any “innocent explanation.” “There is no innocent explanation,” Madoff replied. Within hours, investors who had trusted the 70-year-old Madoff for years – including the owner of the New York Mets – were reeling at charges that one of the most trusted names on Wall Street was a full-time fraud (Zambito and Smith 2008).”

2008-12-12 “[A]ngry investors crowded a Manhattan federal courtroom hoping to find out if the SEC would come to their rescue. Manhattan Federal Judge Louis Stanton issued an order freezing Madoff’s assets, as well as those of his firm, and named lawyer Lee Richard to oversee the business. The hearing was canceled, leaving investors bewildered (Zambito and Smith 2008).”

2008-12-23 “[H]edge fund executive Thierry Magon de la Villehuchet, 65, was found dead in his office in an apparent suicide, reportedly distraught over being duped by Madoff. New York City Police Commissioner Raymond Kelly said Villehuchet had cuts on his wrists from a box cutter and pills nearby. The Frenchman’s Access International had an exposure of $1.5 billion, officials said (McCool 2008-12-24).”

2008-12-24 Washington: “The U.S. Federal Reserve on Wednesday approved GMAC Financial Services’ application to become a bank-holding company, a status that would give the auto-financing arm of General Motors Corp. access to government bailout dollars and the Fed’s discount window. The move complements a $17.4 billion emergency loan package the government extended to GM and …” Wall Street Journal McCool, Grant. 2008-12-24. “(McCool 2008-12-24) New York University sued fund executive over Madoff
2008-12-24. “Fed Grants GMAC’s Request to Become Bank-Holding Company.” Wall Street Journal.

Webliography and Bibliography

Byatt, A. S. 2008-11-15. “Little Dorrit: Within the walls of the Marshalsea.” The Guardian.

McCool, Grant. 2008-12-24. “New York University sues fund executive over Madoff.” Reuters.

Quinn, James. 2008-12-16. “An American Tragedy.” Financial Sense.

Zambito, Thomas; Smith, Greg B. 2008-12-13. “Feds say Bernard Madoff’s $50 billion Ponzi scheme was worst ever.” New York Crime. Daily News.  

2008-12-22. “Jewish leaders bracing for Madoff fallout.” The Boston Globe.

Unlikely Player Pulled Into Madoff Swirl.”NYTimes.com

A.G. takes himself out of Madoff probe | Deseret News (Salt Lake City) | Find Articles at BNET

Fund Fraud Hits Big Names – WSJ.com 

2008-12-14.Bodyblow to Wall Street at The Brian Sullivan Blog

Business News – AOL Money Canada 

U.S. Congress to probe SEC role in Madoff affair

edmontonsun.com – World – $50B fraud plot thickens

Madoff Mess manoeuvres 

Judge orders Madoff to tally his assets

Don’t Be Scammed by Madoff Investor Sob Stories – Seeking Alpha

Madoff investors unlikely to regain money

Madoff bad omen for fund of hedge funds industry – AOL Money Canada

Run by investors, for investors – North American Markets end lower, Madoff scandal raises concerns over financials – North American Market Summary

More banks reveal exposure to Madoff scandal – Yahoo! Canada News
Bernard Madoff scandal draws publishers 

IOC has nearly $5 million tied to Madoff – AOL Sports Canada

Some Madoff investors may have to give back gains – Dec. 19, 2008

Madoff’s auditor Friehling and Horowitz doesn’t audit? – Dec. 17, 2008 
Did Bernard Madoff act alone? – Dec. 18, 2008

Answers to 6 Madoff questions – Dec. 18, 2008

A stock exchange caught in the Madoff mess – Dec. 18, 2008

‘A Giant Ponzi Scheme’ 

reportonbusiness.com: Madoff debacle reveals stunning failure of due diligence

Midas Letter –  Health, Wealth and Prosperity

Meet the real Ponzi behind the ‘scheme’ – Dec. 15, 2008

TheStar.com | Business | Banks, funds among clients who lost billions

Charities hit hard as Madoff fraud losses mount 

Madoff: ‘Bloodbath’ for Twin Cities investors

Pigeon King owes $23 million | Farm andDairy – The Auction Guide and Rural Marketplace

globeandmail.com: Farmers should have been warned about pigeon venture: critics

The Canadian Press: Royal Bank says clients have $50M in exposure to alleged Madoff fraud

Ponzi schemes strike in U.S., Russia and Colombia | Worldfocus

Bloomberg.com: Worldwide

The Madoff Fraud: How Culpable Were the Auditors? – TIME

Madoff Victims Look for Ways to Recover Their Money – TIME

Wall Street’s Latest Downfall: Madoff Charged with Fraud – TIME

How I Got Screwed by Bernie Madoff – TIME

Bernie Madoff’s man to see – The Boston Globe 

Bull Market 

Top Trader Is Accused of Defrauding Clients – NYTimes.com

Bernard L. Madoff News – The New York Times

The New York Times > Books > Sunday Book Review > His Last Name Is Scheme

A Scheme With No Off Button – NYTimes.com 

Ponzi Schemes – News – The New York Times

Even Winners May Lose With Madoff.” NYTimes.com

Madoff Agrees to Security ‘to Prevent Harm or Flight’ -NYTimes.com

“Talking Business – Avoiding a Financial Collapse, Indian-Style.” – NYTimes.com

“Madoff Scheme Kept Rippling Outward, Across Borders.” NYTimes.com

“Madoff Ponzi Scheme Lawsuit: Attorneys for Defrauded Investors.”

Madoff Scheme Kept Rippling Outward, Across Borders.” NYTimes.com

“Top Trader Is Accused of Defrauding Clients.” NYTimes.com

Op-Ed Columnist – The Brightest Are Not Always the Best -NYTimes.com

Wall Street fallout shakes economy

 

“Canada’s social safety net results in lower rates of poverty and income inequality along with higher rates of self-sufficiency of vulnerable populations than in the United States. But many Canadians would be surprised to find out that the U.S. has a lower burglary rate, a lower suicide rate, and greater gender equity than Canada […] Canada’s relatively poor record on child poverty, income inequality, and assault [remain] shocking […] Particularly troubling is its ranking on child poverty. In Canada, according to OECD statistics, one child in seven lives in poverty. Canada also still has an unacceptably high rate of poverty among its working-age population. According to statistics published by the OECD, just over 10 per cent of its working-age population is below the poverty line. This is double the rate of Denmark, the best-performing country on this indicator. Canada’s crime record is also disturbing—with 17 times the rate of assaults as the best-ranked country, 7 times the rate of burglaries, and 3 times the rate of homicides. Crime takes its toll on trust—both within the community and within public institutions. This picture of crime is not what Canadians think of when they think of their society. […] Canada ranks high on the indicator measuring acceptance of diversity […] Canada’s past achievements, such as reducing poverty among its elderly, show that, given the political will, Canada could successfully address other social challenges to sustain future quality of life (Conference Board of Canada Society Overview 2008 ).”

The Conference Board of Canada (2008 ) compared economic, innovation, environment, education, health and society performances of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Sweden, Switzerland, United Kingdom and United States which are considered to be Canada’s international peers. Canada’s standard of living ranking dropped from 4th spot in 1990 to 9th in 2008. In terms of Education and Skills, over 40% of adult Canadians lack literacy skills required for everyday life and work in modern society. In terms of innovation Canada scored D since the 1980s and has failed to produce any top global brands.

The full report for 2008 will not be available until September. I am curious to see how data specifically related to Canada’s growing aboriginal community with its unique social histories and current dilemmas will be analysed in this report. When we examine the weakest points in the report, it is obvious that the vulnerabilities faced by Canada’s most at-risk group (aboriginal women and children) affect our international ranking. It is also useful to consider the location of remote aboriginal communities in terms of the most volatile environmental debates in Canada.

Data for this annual report comes from the Organisation for Economic Co-operation and Development (OECD) (c.80%), the United Nations, the World Bank, and the Yale Center for Environmental Law and Policy. The report measures quality of life based on this definition:

“The Conference Board defines a high and sustainable quality of life for all Canadians as being achieved if Canada records high and sustainable performances in six categories: Economy, Innovation, Environment, Education and Skills, Health and Society (B 10/17). The word “sustainable” [1] is a critical qualifier. It is not enough for Canada to boost economic growth if it is done at the expense of the environment or social cohesion. For example, to take advantage of high commodity prices by mining and exporting all our natural resources may make the country rich in the short term, but this wealth will not be sustainable in the long or even medium term. The Conference Board has consistently argued that economic growth and sustainability of the physical environment need to be integrated into a single concept of sustainable national prosperity—what we call here a “high and sustainable quality of life for all Canadians.”

..

“Having a high quality of life means living in communities that are free from fear of social unrest and violence, communities that accept racial and cultural diversity, and those that foster social networks. A country that provides a high quality of life also minimizes the extremes of inequality between its poorest and richest citizens, while reducing the social tensions and conflicts that result from these gaps. Performance in the Society category is assessed using 17 indicators across three dimensions: self-sufficiency, equity, and social cohesion. Self-sufficiency indicators measure the autonomy and active participation of individuals within society, including its most vulnerable citizens, such as persons with disabilities and youth. Equity indicators measure equity of access, opportunities, and outcomes. Social cohesion indicators measure the extent to which citizens participate in societal activities, the level of crime in society, and the acceptance of diversity [. . .] Canada’s social safety net results in lower rates of poverty and income inequality along with higher rates of self-sufficiency of vulnerable populations than in the United States. But many Canadians would be surprised to find out that the U.S. has a lower burglary rate, a lower suicide rate, and greater gender equity than Canada […] Canada’s relatively poor record on child poverty, income inequality, and assault [remain] shocking […] Particularly troubling is its ranking on child poverty. In Canada, according to OECD statistics, one child in seven lives in poverty. Canada also still has an unacceptably high rate of poverty among its working-age population. According to statistics published by the OECD, just over 10 per cent of its working-age population is below the poverty line. This is double the rate of Denmark, the best-performing country on this indicator. Canada’s crime record is also disturbing—with 17 times the rate of assaults as the best-ranked country, 7 times the rate of burglaries, and 3 times the rate of homicides. Crime takes its toll on trust—both within the community and within public institutions. This picture of crime is not what Canadians think of when they think of their society. […] Canada ranks high on the indicator measuring acceptance of diversity […] Canada’s past achievements, such as reducing poverty among its elderly, show that, given the political will, Canada could successfully address other social challenges to sustain future quality of life (Conference Board of Canada Society Overview 2008).”

Footnotes

1. “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland 1987:43).”

Webliography and Bibliography

Brundtland, Gro Harlem. 1987. Our Common Future: World Commission on Environment and Development. Oxford: Oxford University Press.

Conference Board of Canada. 2008.

Is this another complex financial instrument that will help the wealthiest investors pay fewer taxes while making charities believe they actually have received more funds? Imagine the worthless stocks from oil company cash flows when the exploration comes up empty. Imagine Calgarians contributing these stocks to their favourite charity.

“The resource mining industry in Canada has been given special treatment under Canadian tax law to make it easier for the industry to raise capital — by issuing flow-through shares to investors. If you invest in flow-through shares, the company enters into an agreement with you to incur Canadian exploration expenses (CEE) or Canadian development expenses (CDE) in an amount equal to the cash you paid for the shares. The company also agrees to renounce and flow through to you the expenses incurred, so the CEE and CDE expenses are deemed to be your expenses, not the company’s. The result? You’re able to claim a deduction for the full amount of the money invested, with most of the deduction (often about 90 per cent) falling in the year you make the investment, and the balance being deductible in the second and third year. For tax purposes, your flow-through shares will generally have an adjusted cost base of zero. By now, you may be aware that the federal budget of May 2 changed the tax law to eliminate the capital gain on any publicly traded shares that you donate to a registered charity (excluding private foundations) after May 1, 2006. Because flow-through shares typically have a zero adjusted cost base (ACB), there will generally be a capital gain when you sell them. You can avoid tax on that gain, and help a charity at the same time, if you donate the shares. Check out the math; it’s quite amazing: Suppose you invest $10,000 in flow-through shares. You’ll save approximately $4,600 in taxes from the $10,000 deduction you’ll be entitled to (assuming a marginal tax rate of 46 per cent). If you donate those shares to charity after two or three years, when the development is completed, and we assume the shares are still worth $10,000, you’ll pay no tax on the capital gain (the gain results from your ACB being zero). You’ll also be entitled to a donation tax credit for the $10,000 value of the shares, which will save approximately $4,600 in tax. So, you paid $10,000 for the shares, got $4,600 back in tax savings from the deduction, and $4,600 from the donation tax credit, leaving a net out-of-pocket cost of just $800. That is, a $10,000 donation to charity cost you just $800. That’s what I call charitable arbitrage (Cestnick 2006-07-08).”

However,

“It is important for charities to ensure that the receipts issued in respect of flow-through shares received are accurate. First, charities have the duty to exercise due diligence when issuing charitable donation receipts to ensure that the information on the receipts is accurate. Failure to issue receipts reflecting the accurate eligible amounts may lead to charities being exposed to intermediate sanctions that were proposed by the 2004 federal budget and implemented in 200516 for issuing incomplete receipts17 or false receipts,18 or may even lead to the revocation of their charitable status. In this regard, subsection 248 (41) provides that if a donor fails to provide the charity with relevant information19 that may cause the eligible amount of the gift to be less than the fair market value of the property gifted, then the eligible amount of the gift would be deemed to be nil. Second, a charity must be careful in ensuring that the eligible amount of a receipt reflects the accurate true value of the donation received in order not to negatively impact the ability of the charity to meet its disbursement quota. The amount for which the receipt is issued is included in the charity’s disbursement quota requirement for the following year. If a charity issued a receipt for an inflated amount and later sold the property for an amount far below the amount for which the receipt was issued, the charity may have a shortfall in meeting its disbursement quota. Failure to meet the disbursement quota is grounds for the revocation of a charity’s registered status.20 (Carters Professional Corporation 2007-06-12).”

read more | digg story

Theresa L.M. Man; Karen J. Cooper; Terrance S. Carter. 2007-06-12. “Donation Tax Shelters Involving Flow-Through Shares”. Charity Law Bulletin. No. 116. June 12, 2007.

Cestnick, Tim. 2006-07-08. “Flow-through Mining Shares Can Produce Charitable Bonanza.” Globe and Mail.

How flow through shares work.”

Through WSJ Online which I follow on Twitter, I was alerted to Kuroda’s Wall Street Journal timely and informative opinion piece on Asia’s Food Crisis (2008-05-05). I realized that this article was rich in research-based information and provided an excellent summary of a pivotal moment in the social history time-line of the way in which “Wealth Disparities Will Intensify.” See Drummond and Tulk (2006). First I dugg Kuroda’s article.

Then I began a slow world rhizomic process using the semantic web with its microblogs, blogs, social bookmarking, aggregators and folksonomies locating this article at the centre of a dendronic cartography.

Leaving all the windows and tabs open on Firefox I worked with and between Adobe Photoshop, notepad, blogs, etc to produce this series of layered images which I call digitage. They conform to Powerpoint’s default size and highest resolution (1440 x 900). I saved them as .jpg to upload to the Flickr account using my new handy Flickr desktop uploader. These images Circum Asian Pacific Globe http://snurl.com/27ekf 2. “Globalization: Food, Fertilizer and Fuel“, http://snurl.com/27el3 3. On the Tomato Trail 4. Consuming Questions: East and West http://snurl.com/27en3 were then combined into a .ppt PowerPoint file entitled “Food, Fertilizer, Fuel” which conforms to the slidenet.com default size. Once the slidenet.com presentation was uploaded I collected all the urls and transformed them into snurls. (Snurls are shortened urls that can also be used with microblogging services like Twitter.)

This article then on the East and West was a catalyst to my first “snurl cloud” or “snurl roll” on on Twitter. (A second snurl cloud links to the first: “Wealth Disparities Will Intensify also on Twitter (2008-05-06).

In a sense this is a virtual faint echo of Barndt’s Tangled Routes (2001). See also Flynn-Burhoe (2006-11-17) on the layered digitage linking tomatoes, French Fries, fast foods, high-meat-protein-consumption, Milton Friedman’s “The Social Responsibility of Business is to Increase Profits” (1970), Cannibals with Forks and Barndt’s Tangled Routes: Women, Work and Globalization on the Tomato Trail (2001).

Webliography and Bibliography

Barndt, Deborah. 2001. Tangled Routes: Women, Work and Globalization on the Tomato Trail. Aurora, ON. Garamond Press.

Drummond, Don & Tulk, David (2006 ) Lifestyles of the Rich and Unequal: an Investigation into Wealth Inequality in Canada. TD Bank Financial Group.

Flynn-Burhoe, Maureen. 2006. “Wealth Disparities Will Intensify (Drummond and Tulk 2006).” >> December 15, 2006.

Kuroda, Haruhiko. 2008. “Solving Asia’s Food Crisis“. Wall Street Journal Asia. May 5, 2008.

“The Bank of England will announce Monday a scheme which will see it lend money to banks in return for collateral in a bid to help the troubled U.K. mortgage market, U.K. Chancellor of the Exchequer Alistair Darling said Sunday Wall Street Journal . Following Business and Financial News in 2008 has been an exciting, mind-boggling, incredulous (mis)adventure. It has become difficult to choose those stories that will remain relevant in the future as part of the social and economic history of this chaotic period. See also http://snurl.com/25asj and http://snurl.com/25aus

read more | digg story
“Nice deal… nationalize risk, privatizes profit.”

digg users comments are themselves very revealing. I don’t think active digg users represent a broad spectrum but I am not sure? Are the demographics on digg similar to other services offering trendy tech tools? young male techies writing for young male techies?

Along with evangelical Ron Paul supporters, there is a very active core group writing anarchist, anti-government, minimal government, avoid-banks-buy-gold, avoid-banks-cash-only diggs with some nasty digg between digg users.

Geopolitics of Oil, Money and Militarism: George W. Bush pledged $350 billion in tax cuts for the wealthy over a period of 10 years. The invasions and occupations of Afghanistan and Iraq have cost $250 billion so far. According to a Financial Times report, foreign investors: China, Japan, Taiwan and South Korea own c. 53% of all US Treasury bills.

read more | digg story

Geopolitics of Oil, Money and Militarism
The US is the world’s largest debtor ($3 trillion in 2005) due to tax cuts and wars during the presidency of George W. Bush who pledged $350 billion in tax cuts for the wealthy over a period of 10 years. The invasions and occupations of Afghanistan and Iraq have cost $250 billion so far, with another $6 billion added each month (Dillon 2006:2). According to a Financial Times report, foreign investors such as China, Japan, Taiwan and South Korea own about 53% of all US Treasury bills and over half of these overseas holdings be-long to central banks (Dillon 2006:2 citing Financial Times 2005/08/16).

A timeline of geopolitics of oil, money and militarism

Late 1980s tranquility before the crises of the 1990s.

2005 According to a Financial Times report, foreign investors such as China, Japan, Taiwan and South Korea own about 53% of all US Treasury bills and over half of these overseas holdings be-long to central banks (Dillon 2006:2 citing Financial Times 2005/08/16).

2006 “The US is the world’s largest debtor. Its external debt, measured in terms of its “net international investment position”, approached $3 trillion at the end of 2005. The US debt is comparable in size to the total debt of all developing countries which reached $2.6 trillion at the end of 2004 as measured by the World Bank (Dillon 2006:1).”

2006 “Former US Treasury Secretary Larry Summers warily compares the apparent calm on global financial markets [in February 2006] to the tranquility that preceded the crises of the 1990s. Today, the imbalances that threaten global financial stability are rooted in the USA’s burgeoning debt (Dillon 2006:1).”

Selected bibliography and webliography

Dillon, John. 2006. “Will US debt lead to a financial crisis?Kairos. No. 2 February. KAIROS: Canadian Ecumenical Justice Initiatives unites eleven churches and religious institutions in work for social justice in Canada and around the globe.