The rich are different from you and me. They have Swiss bank accounts.
Well, at least Mitt Romney does.
That was one of the big revelations when Romney released his tax records in January -- a revelation that Vanity Fair recently looked into, along with the rest of his finances. Of course, it's no secret that Mr. Romney is a man of means. But what is still secret is just how Romney has invested those means.
Maybe not so much secret as secretive. Romney has released his return for 2010 and an estimate for 2011. So we have a broad outline of what his personal finances look like. And they look something like an Epcot of financial investments: There is a blind trust with offshore accounts in Switzerland, Bermuda, and the Cayman Islands -- not to mention an almost comically large IRA account. None of this is illegal. But it has raised questions about Romney's Caribbean tax havens and his Swiss bank account. The former makes sense. The latter not as much.
Question #1: Remind me: Why does Romney have money in the Caribbean?
Let's take a quick detour. Imagine that a tax-exempt entity -- like a university endowment -- buys or otherwise acquires a business. Maybe a macaroni company. That company would have a nice little competitive edge. It wouldn't have to pay taxes. That's exactly what happened when some wealthy alums donated the Mueller Macaroni Company to the New York University Law School in 1948. This loophole prompted Congress to close it 1950. Only a tax-exempt entity's "related" businesses would in fact be tax exempt. Everything else would be taxed as "unrelated business income".
What does this have to do with Mitt Romney? Well, university endowments and public pensions are some of the biggest investors in private equity funds like Romney's Bain Capital. Those investors don't want to be hit with the unrelated business tax -- so Bain Capital sets up shop in the Caymans where it can avoid the unrelated business income tax. You might still be wondering: What does this have to do with Mitt Romney -- at least now? He left Bain Capital in 1999 (or 2001). He did, but he didn't. He still gets a share of Bain Capital's profits every year as part of his retirement package. And Bain still has corporate blockers in the Caymans. That's why Romney has investment income from the Caymans.
Question #2: Why does Romney have a Swiss bank account? And what's so great about a Swiss bank account versus any other tax haven?
Swiss banks are the gold standard of tax havens because of their secrecy and stability. Actually, that sentence should be in the past tense. Swiss banks are not nearly as secret as they used to be. Time was, the Swiss government jealously guarded its banks' reputation for never revealing client information. It was a crime to do so. High-net individuals the world over flocked to the Alps to hide money from tax collectors back home. But that started to change in 2008. A former UBS banker came forward with tales of how he helped wealthy American clients evade taxes -- including such charming details as smuggling diamonds in tubes of toothpaste. The IRS launched an investigation, and came up with a list of 52,000 names it wanted from the Swiss banking giant. A settlement followed, and then a new U.S. law. Now foreign banks have to cooperate with the IRS or face fairly tough penalties. Auf Wiedersehen, Swiss banking secrecy über alles.
But Swiss banks still have plenty going for them. They can thank the Swiss franc for that. It's a safe-haven currency -- and that makes their banks safe havens too. The Swiss are famous for their fiscal prudence and low inflation, which makes their currency particularly strong. That's even more true now thanks to the euro crisis. Demand for Swiss francs is so great that the Swiss National Bank had to cap the value of their currency last year. It was getting so expensive that it threatened to push the Swiss economy into deflation.
The Romney camp has hinted that he only had a Swiss bank account because he wanted Swiss francs. In other words, he was hedging against the dollar declining in value. That's fair, even if it's a bit odd for someone with $250 million. But you don't need a Swiss bank account to get Swiss francs. You can just buy Swiss francs.
Another possibility is that Romney had the Swiss bank account to make it easier to wire money from one European investment to another. We can't say without seeing more tax returns. All we do know is his lawyer closed this Swiss bank account in 2010.
That's the final point. Mitt Romney's long-time lawyer, R. Bradford Malt, has managed Romney's personal finances since Romney was elected governor of Massachusetts. That's when Romney set up a blind trust, to avoid any possible conflicts of interest. Still, there are questions about just how blind the trust has been. And, besides, Romney is ultimately responsible for his own money.
Question #3: Is it fair for the Obama campaign to go after the Swiss bank account?
When most people hear the words "Swiss bank account" they think "tax evasion". That's not always fair. There are plenty of good reasons an American might have a Swiss bank account. Maybe they live abroad. Or work for a Swiss company. But those are good reasons that don't apply to Mitt Romney. He didn't live abroad. And he didn't work for a Swiss company.
That doesn't mean Mitt Romney was up to no good. There's no evidence of that. It's entirely possible that Romney really was just hedging against the dollar. That's the legitimate reason a very wealthy person would want a Swiss bank account. The not-so-legitimate reason is the secrecy -- to hide money from the IRS. It's unfair for the Obama campaign to insinuate Romney was doing the latter. But it'd be a lot more unfair if Romney was more transparent. We just don't know enough to say anything definitively. We don't know how long the account existed. We don't know whether Romney's lawyer or Romney himself set it up.
What we do know is that this kind of stuff doesn't seem weird to Romney. It's what the über-wealthy do. But it is weird to most everyone else. It's not what the 99 percent do. Actually, we know one more thing. Romney can end this controversy whenever he wants. He just has to release more tax records. He's running for office for Pete's sake. He should say something.
In other words, Romney should take a page from the Swiss. Even they're less secretive nowadays.
Allegations against the comedian are proof that women are angry, temporarily powerful—and very, very dangerous.
Sexual mores in the West have changed so rapidly over the past 100 years that by the time you reach 50, intimate accounts of commonplace sexual events of the young seem like science fiction: You understand the vocabulary and the sentence structure, but all of the events take place in outer space. You’re just too old.
This was my experience reading the account of one young woman’s alleged sexual encounter with Aziz Ansari, published by the website Babe this weekend. The world in which it constituted an episode of sexual assault was so far from my own two experiences of near date rape (which took place, respectively, during the Carter and Reagan administrations, roughly between the kidnapping of the Iran hostages and the start of the Falklands War) that I just couldn’t pick up the tune. But, like the recent New Yorker story “Cat Person”—about a soulless and disappointing hookup between two people who mostly knew each other through texts—the account has proved deeply resonant and meaningful to a great number of young women, who have responded in large numbers on social media, saying that it is frighteningly and infuriatingly similar to crushing experiences of their own. It is therefore worth reading and, in its way, is an important contribution to the present conversation.
A viral story highlights the lingering difference between the language—and the practice—of consent.
It was true that everything did seem okay to me, so when I heard that it was not the case for her, I was surprised and concerned. I took her words to heart and responded privately after taking the time to process what she had said.
I continue to support the movement that is happening in our culture. It is necessary and long overdue.
That was Aziz Ansari, responding to a story that was published about him over the weekend, a story that doubled for many readers as an allegation not of criminal sexual misconduct, but of misbehavior of a more subtle strain: aggression. Entitlement. Excessive persistence. His statement, accordingly—not an apology but not, either, a denial—occupies that strange and viscous space between defiance and regret. I was surprised and concerned. I took her words to heart.
The cryptocurrency was meant to be stateless and leaderless. Ironically, the culprits of its latest plunge are ... state leaders.
Bitcoin is a bubble.
That much was clear to economists, investors, and analysts for quite some time. But one of the shortcomings of such analysis is that certainty of an economic bubble offers little insight on how, when, or why that bubble will pop. “I can say almost with certainty that they will come to a bad ending,” Warren Buffett said last week, to the great consternation of crypto fans. “When it happens or how or anything else, I don't know.”
Maybe—maybe—it’s finally happening.
The price of bitcoin plummeted by as much as 20 percent on Tuesday to $12,000, or about 40 percent below its all-time high in December. Other popular cryptocurrencies, like ethereum and Ripple, also posted double-digit losses.
The cognitive test that Trump passed was neither thorough nor difficult.
Amid growing speculation about President Trump’s unfitness to hold the nuclear codes he has threatened to use, anyone who was suspicious that he could not identify a camel or draw the face of a clock can rest more easily tonight.
This afternoon the president’s physician, Navy Rear Admiral Ronny L. Jackson, said that the president “did exceedingly well” on a test called the Montreal Cognitive Assessment, reporting a score of 30 out of 30.
The Montreal Cognitive Assessment is a 10-minute test. It’s one of the commonly used screening exams for dementia. The questions on the test vary in difficulty, but they include:
Six points for knowing the date and where you are.
One point if you can identify what a train and a bicycle have in common, and another for watch and ruler.
President Trump is the embodiment of over 50 years of resistance to the policies Martin Luther King Jr. fought to enact.
On April 4, 1968, Martin Luther King Jr. was assassinated. In response, a week later President Lyndon B. Johnson scrambled to sign into law the Fair Housing Act, a final major civil-rights bill that had languished for years under the strain of white backlash to the civil-rights movement.
Five years later a New York developer and his son—then only a few years out of college—became two of the first targets of a massive Department of Justice probe for an alleged violation of that landmark act. After a protracted, bitter lawsuit, facing a mountain of allegations that the two had engaged in segregating units and denying applications of black and Puerto Rican applicants, in 1975 Trump Management settled with the federal government and accepted the terms of a consent decree prohibiting discrimination. So entered Donald Trump onto the American stage.
At the same time that the president sows doubt and confusion to undermine his adversaries, he finds those forces depriving him of credit he believes he deserves.
A long weekend with lots of executive time, simmering tensions with politicians of both parties, a looming government shutdown: It’s the most potent cocktail that Donald Trump, a teetotaler, could imbibe, and it produced a predictably jarring and erratic series of statements.
Over the course of several days, mostly in tweets, Trump tried to make three points. First, he sought to discredit the idea that he had referred to African nations as “shithole countries” and said, “Why do we need more Haitians? Take them out.” (Trump also declared to a reporter that he was “the least racist person you have ever interviewed.”) Second, he jockeyed for position in negotiations over funding the government, arguing Democrats were imperiling the military as he tried to preemptively shift blame to them. Finally, for good measure, he whined a little bit that he doesn’t get more credit for what he’s done:
This isn’t the first moment astrology’s had and it won’t be the last. The practice has been around in various forms for thousands of years. More recently, the New Age movement of the 1960s and ’70s came with a heaping helping of the zodiac. (Some also refer to the New Age as the “Age of Aquarius”—the 2,000-year period after the Earth is said to move into the Aquarius sign.)
More comfortable online than out partying, post-Millennials are safer, physically, than adolescents have ever been. But they’re on the brink of a mental-health crisis.
One day last summer, around noon, I called Athena, a 13-year-old who lives in Houston, Texas. She answered her phone—she’s had an iPhone since she was 11—sounding as if she’d just woken up. We chatted about her favorite songs and TV shows, and I asked her what she likes to do with her friends. “We go to the mall,” she said. “Do your parents drop you off?,” I asked, recalling my own middle-school days, in the 1980s, when I’d enjoy a few parent-free hours shopping with my friends. “No—I go with my family,” she replied. “We’ll go with my mom and brothers and walk a little behind them. I just have to tell my mom where we’re going. I have to check in every hour or every 30 minutes.”
Those mall trips are infrequent—about once a month. More often, Athena and her friends spend time together on their phones, unchaperoned. Unlike the teens of my generation, who might have spent an evening tying up the family landline with gossip, they talk on Snapchat, the smartphone app that allows users to send pictures and videos that quickly disappear. They make sure to keep up their Snapstreaks, which show how many days in a row they have Snapchatted with each other. Sometimes they save screenshots of particularly ridiculous pictures of friends. “It’s good blackmail,” Athena said. (Because she’s a minor, I’m not using her real name.) She told me she’d spent most of the summer hanging out alone in her room with her phone. That’s just the way her generation is, she said. “We didn’t have a choice to know any life without iPads or iPhones. I think we like our phones more than we like actual people.”
Seventeen years after the original Blue Planet, the BBC Natural History Unit has perfected the art of the blockbuster documentary.
Across seven episodes of Blue Planet II, viewers are treated to a number of wondrous images. Orcas stun schools of herring by slapping them with their tails. Cuttlefish mesmerize shrimp by splaying out their arms and sending moving clouds of pigment across their skin, like a living gif. Mobula rays cavort in the deep, stirring glow plankton as they move, creating an ethereal scene that looks like a clip from Moana. Cutthroat eels slink into a lake of super-salty water at the bottom of the ocean, and some tie themselves into knots in the throes of toxic shock. Pods of bottlenose dolphins and false killer whales meet in the open ocean, greeting each other as if reuniting with old friends.
The series first aired in the United Kingdom last year and finally premieres in the United States this Saturday. It is the latest program from the BBC’s indefatigable Natural History Unit—arguably the greatest producers of such documentaries in the world.
A new report finds that white supremacists committed the largest share of domestic-extremist related killings last year—highlighting the danger of racist rhetoric and hateful ideas.
Although the leaders of the white-supremacist alt-right insist their movement is nonviolent, racist rhetoric and hateful ideas can inspire violence if taken to their logical conclusion. A lone individual, encountering white-supremacist propaganda, can become convinced that it is a cause worth fighting for. Timothy McVeigh read The Turner Diaries, a story of a race war written by a notorious white supremacist, before he carried out the Oklahoma City bombings. Dylann Storm Roof frequented racist and anti-Semitic sites before he walked into an African-American church and gunned down nine parishioners in Charleston, South Carolina.
And the threat they pose is not trivial. According to the latest data from Anti-Defamation League’s Center on Extremism, white supremacists were responsible for more than half of the 34 fatalities linked to domestic extremists of all stripes last year, claiming 18 lives in 2017.