Somebody got what they wanted…
With the Panama government’s submission to global pressures through the “Panama papers” thievery, it must be noted that this has caused the desired effect in the USA with significant growth of foreign-owned “sheltered” corporations in key states of Delaware, Wyoming, and elsewhere.
According to Jurgen Mossack of “Mossack & Fonseca”, Panama has lost (should we say “given away”) 30% of their offshore business which has gone to other bigger and better jurisdictions that protect the privacy and confidentiality of moneyed corporations and individuals. Congratulations to Panamanian President Verela and his court system for throwing their own lawyers and constitution under the bus of political expediency…that further profits and allows controls of big brother, USA. Panama has shown itself to be the “Banana Republic” so many have long called it. While they hate themselves for it, Panama continues to live off the hind tit of the G7 powers that be.
The political hot potato that the Panama Papers have become is bouncing in very peculiar directions. Many international courts such as Pakistan are coming up empty in proving that the corps and accounts in Panama were somehow “illegal”. While the Neo-Liberals and growing number of socialists in the world blindly lambast wealthy corporations, individuals, and politicos who use Panama and other jurisdictions to diversify and protect their assets…the question now becomes “what country(s) will the offshore community now trust to protect and grow their revenues away from tyranny of high taxes and silly tort laws”?
It would be interesting to know the truth of how much of the lost 30% of international business in Panama went back to the USA. We are sure the “America First” advocates are thrilled with what has transpired in Panama. Only international pressures of the highest order could force the Panamanian government to jail its own lawyers before standing up for the thousands of companies and individuals who trusted the Panama banks and constitutional corporations and foundations to protect their resources internationally.
We predict darker days ahead for Panama’s economy based on this downturn of tourism and core economies. The canal is the only thing in their arsenal still maintaining levels of productivity. The reported growth of Panama’s economy is full of political smoke and mirrors. We know many in our network who have or are in the process of pulling out of Panama because of these changes in Panama’s international structure and banking regulations.
Unfortunately, the trickle-down effect will eventually be felt most by the lower middle and poor people. The rich Panamanians are always “sheltered”. Investment will go into decline, jobs will go away, and the current challenges of maintaining the “lipstick on the pig” will continue to be more challenging in Panama and elsewhere. You can’t cover up decline or corruption forever. Just look at Venezuela.