Offshore’s Global Impact

[xoxoxoBruce]

Proof of what we all knew.

Dozens of journalists sifted through millions of leaked records and thousands of names to produce ICIJ’s investigation into offshore secrecy A cache of 2.5 million files has cracked open the secrets of more than 120,000 offshore companies and trusts, exposing hidden dealings of politicians, con men and the mega-rich the world over.

Key Findings
■ Government officials and their families and associates in Azerbaijan, Russia, Canada, Pakistan, the Philippines, Thailand, Mongolia and other countries have embraced the use of covert companies and bank accounts.
■ The mega-rich use complex offshore structures to own mansions, yachts, art masterpieces and other assets, gaining tax advantages and anonymity not available to average people.
■ Many of the world’s top’s banks – including UBS, Clariden and Deutsche Bank – have aggressively worked to provide their customers with secrecy-cloaked companies in the British Virgin Islands and other offshore hideaways.
■ A well-paid industry of accountants, middlemen and other operatives has helped offshore patrons shroud their identities and business interests, providing shelter in many cases to money laundering or other misconduct.
■ Ponzi schemers and other large-scale fraudsters routinely use offshore havens to pull off their shell games and move their ill-gotten gains.

And more...

[DanaC]

yeah. But the way to deal with economic woes is to batter the poor.

[ZenGum]

I recently read (forget where) that offshore asset-hiding cost each regular US tax payer over $1,000 in 2012 alone.

There are quite a few countries whose main function is secret banking - Lichtenstein, Jersey, Bermuda etc. This is largely used for tax evasion and money laundering.

These are the real rogue states, and we should launch a war against Secret Banking. We don't even need to invade; just impose financial sanctions. Make it a criminal offense to trade with a nation which practices bank secrecy. Force the super-rich to keep there money in the country where it was made, and pay tax on it there, and watch budget deficits everywhere shrink.

Of course, it will never happen, because the plutocrats will instruct their tame politicians against it, and the sheeple will fall for the "Job Creators" and "Freedom" line if it is shouted at them often enough.

[BigV]

xoB--Right.
Dana--Right.
Zen--Right.

my two cents:

The imbalance between capital and labor is extreme, unhealthy, and unsustainable. We, all of us, need people in all ranges of wealth from poor to rich. Who will cook and serve the rich if not the low wage earner? Who will pay the wages if not the tavern owner? Who will pay the tab if not the rich? Etc, etc. It's ok to have the whole range, and a varied distribution of wealth, really, it's ok.

But. You knew there was a but, right?

But the current proportions are waaay out of whack. And the current culture of keeping poor(er) among us down by legal(ish) means is immoral. It is our laws that are broken, and they're broken and kept broken by the selfish, fearful, immoral attitudes that drive more, more, more for me! That's broken.

And it's not just individuals, but communities too. Look at the actions of cities like Memphis, Tennessee that decided to give Electrolux $190 million dollars in (LOST) tax (revenues) incentives to *return* to the city, and away from a city in Canada to relocate a new factory where the UNunionized labor force will cost Electrolux a third less in wages. Why?

Because the business has a reasonable desire to maximize their profits and indeed a fiduciary obligation to maximize the return for their shareholders. A LEGAL obligation to reduce costs and increase profits. This is an example of how our system of laws (crafted by the tame politicians--thanks for making me cry Zen, you bastard) exacerbates our problems. It's bad enough when bad actors break the law, but doing it equally effectively by following the law is... disheartening. This is the same as a few countries attracting the capital and its attendant prosperity at the expense of other countries.