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Mapping The Witch-Hunt Of The World's Offshore Bank Account Holders

Tyler Durden's picture


A cache of 2.5 million files of cash transfers, incorporation dates, and links between companies and individuals has cracked open the secrets of more than 120,000 offshore companies and trusts. The secret records obtained by the International Consortium of Investigative Journalists (ICIJ) lay bare the names behind covert companies used by people from American doctors to Russian executives and international arms dealers in more than 170 countries (as shown in the map below). One wonders how and why this sudden (and timely) leak of documents occurred (which just happened to turn up at a source's house). If we were a tinfoil-hat-wearing conspiracy theorist we might suspect that this is a staged coup to create a witch-hunt against all offshore capital (legitimate or illegitimate) - and an attempt, as with Cyprus, to push money out of banks and into circulation (pushing the velocity up) as all other monetary policy 'tricks' have failed. While 'offshore' is synonymous with 'tax cheat', there is nothing illegal in moving assets offshore. In fact, as Simon Black notes, given that there is going to come a time, likely soon, that retirement savings will be targeted; diversifying abroad is one of the sanest things you can do to protect yourself against the real criminals.


Where are all the people that have offshore capital?


and an example of the kind of offshore network that is undertaken...


Key Findings from ICIJ:

  • 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.

The impact of offshore capital...

The vast flow of offshore money — legal and illegal, personal and corporate — can roil economies and pit nations against each other. Europe’s continuing financial crisis has been fueled by a Greek fiscal disaster exacerbated by offshore tax cheating and by a banking meltdown in the tiny tax haven of Cyprus, where local banks’ assets have been inflated by waves of cash from Russia.


Anti-corruption campaigners argue that offshore secrecy undermines law and order and forces average citizens to pay higher taxes to make up for revenues that vanish offshore. Studies have estimated that cross-border flows of global proceeds of financial crimes total between $1 trillion and $1.6 trillion a year.

Legal And Illegal...

The files obtained by ICIJ shine a light on the day-to-day tactics that offshore services firms and their clients use to keep offshore companies, trusts and their owners under cover.


ICIJ’s 15-month investigation found that, alongside perfectly legal transactions, the secrecy and lax oversight offered by the offshore world allows fraud, tax dodging and political corruption to thrive.


And Simon Black's less inflammatory take on this debacle:

Secret. Dirty. Sham. Shadowy. Illicit. Fake. Covert. Questionable. These are typically the words used to describe the world of offshore asset protection in mainstream media.


The classic presumption is that if you go offshore-- foreign bank account, overseas safety deposit box, foreign trust, foreign corporation, etc.-- then you MUST be doing something wrong.


This is an absurd conclusion and only highlights how brainwashed most people have become.


The world has become a gigantic financial nudist colony, full of government agents who pry ever more deeper into our nether regions looking for loose change betwixt the sofa cushions. Yet people are all too willing to comply. And anyone who shows up with a bath towel is branded a criminal or financial terrorist.


Clearly there are people who use offshore jurisdictions to hide graft or fraudulent activities. But this is not unique to the offshore world.


The #1 tax haven in the world, in fact, is none other than the United States of America. More ill-gotten wealth is hidden in Wall Street banks through Delaware corporations than any other place on the planet.


Yet the attention is always focused on places like the British Virgin Islands, Channel Islands, Liechtenstein, Switzerland, Cook Islands, Panama, Seychelles, Hong Kong, etc.


Just yesterday, the farcically named Center for Public Integrity released a fifteen month study based on 'leaked' documents from various international financial centers. The data shined a spotlight on the financial dealings of nearly 130,000 individuals in jurisdictions around the world.


The group's assessment is anything but flattering: "This investigation lifts the curtain on the offshore system and provides a transparent look into the secret world of tax havens and the individuals and companies that use and benefit from them."


Just think about the implications. They're essentially saying that nobody has the right to financial privacy... and that deriving 'benefit' is somehow evil and wrong.


Fact is, moving money and assets offshore is not illegal. It's perfectly legal, as long as you pay tax on the income and make the appropriate disclosures.


And despite the media hype, this is not something that's just for the criminal terrorist class. As a matter of fact, going offshore is one of the best tactics to protect yourself against the criminal terrorist class... and by that, I mean central bankers and politicians.


Insolvent governments throughout history have ALWAYS resorted to a very limited playbook.  Capital controls, wage and price controls, direct confiscation of assets... these tactics are nearly foregone conclusions in heavily indebted countries.


Just look at what happened in Cyprus. Look at what's happening in Argentina. The evidence is overwhelmingly obvious. Pretending that 'it can't happen here' is dangerous thinking.


There is going to come a time, likely soon, that retirement savings will be targeted. Capital controls are already in the works, cheered along by economic 'luminaries' like Paul Krugman. Central bankers will continue to steal the purchasing power of our hard-earned savings. It's happening.


Moving a portion of your assets abroad isn't criminal. It's not crazy. If properly disclosed, it's one of the sanest things you can do to protect yourself against the real criminals.


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Thu, 04/04/2013 - 13:39 | 3408835 JLee2027
JLee2027's picture

Let the seizures begin!

Thu, 04/04/2013 - 13:43 | 3408845 Banksters
Banksters's picture
  • We don't call it, theft but rather a tax or a levy.

Mario GS Draghi

Thu, 04/04/2013 - 13:43 | 3408851 diogeneslaertius
diogeneslaertius's picture

thats's okay then, we thought maybe it might be theft

as long as its just a little off the sides

just a trim. just a haircut or some other 1984 newspeak shit its all groovy :D

Thu, 04/04/2013 - 13:52 | 3408886 strannick
strannick's picture

Basically, to sum it up, if you dont voluntarily submit to putting your head into the hollar of the Progessive gulags' waterwheel, your a tax cheat.

Thu, 04/04/2013 - 13:57 | 3408930 bobola
bobola's picture

This is why farm land value keeps going up.

Wealthy investors are trading cash for fertile land, which will always keep producing an income, if it has a decent water supply.

Called 'land banking'.

Thu, 04/04/2013 - 13:59 | 3408941 ParkAveFlasher
ParkAveFlasher's picture

I don't know about you guys, but I lost everything I had in a boating accident.

Thu, 04/04/2013 - 14:06 | 3408966 BoNeSxxx
BoNeSxxx's picture

"We don't call it, theft but rather a tax or a levy."

Mario GS Draghi may take some comfort in the fact that we don't call it decapitation...

We call it "Columbian Necktie."  Sleep easy my friend.

Thu, 04/04/2013 - 14:06 | 3408983 James_Cole
James_Cole's picture

First, Simon Black is a giant moron.

Second, before whining about it actually look at the report. 

Thu, 04/04/2013 - 14:42 | 3409196 redpill
redpill's picture

"Gunter Sachs?"


I think they misspelled Goldman.

Thu, 04/04/2013 - 15:20 | 3409385 Matt
Matt's picture

Goldman Sachs was founded by Marcus Goldman and his son-in-law, Samuel Sachs. Could be a descendant.

Thu, 04/04/2013 - 15:03 | 3409298 Pseudo Anonym
Pseudo Anonym's picture


We call it "Columbian Necktie."  Sleep easy my friend.

is that it:  ?

Thu, 04/04/2013 - 14:08 | 3408971 MillionDollarBonus_
MillionDollarBonus_'s picture

Once governments have this money, they can start paying down their deficits. This is he solution to all our debt problems. Runaway spending will end, and government budgets will be balanced thereafter. This is the final tax.

Thu, 04/04/2013 - 14:13 | 3409014 McMolotov
McMolotov's picture

This is the final tax.


Thu, 04/04/2013 - 14:21 | 3409073 johnQpublic
johnQpublic's picture

oh thats rich


Thu, 04/04/2013 - 14:25 | 3409093 eatthebanksters
eatthebanksters's picture

MDB would bet his life on that statement I'm sure!

Thu, 04/04/2013 - 15:38 | 3409201 Pure Evil
Pure Evil's picture

So, exactly how much private capital has MDB given to help pay down the deficits? (Not counting current taxes already paid)

Thu, 04/04/2013 - 17:37 | 3409956 barliman
barliman's picture


While some liken MDB to a moden day Noel Coward -  posting acerbic comments so broad they must be sarcasm ...

... I see only an ass - one more member of the braying herd who think they have a sharp eye and wit but only prove Twain's comment about removing ALL doubt. (But, at least, he has Bruce Krasting to keep him company)

Rather than chattering about the latest distraction - the filthy rich who are HIDING from the taxman - might we not rather discuss first principles?

Who wants to hold up there hand and state that they BELIEVE this nonsense to be true ... that governments are relentlessly pursuing the 1% of the 1% ???

No one ???  GOOD.

Why then ALL the publicity and pronouncements, the leaked inside information, the HUE and the CRY?

This is all stage setting, the diversion of the illusionist preparing you to SEE what he wants you to see. The hidden wealth, be it $ 8 trillion or $ 32 trillion, is the EMBELLISHMENT, the smoke and the mirrors, the RUSE.

In this electronic age, this digital paradise of ones and zeroes equalling WEALTH ... the governments have no NEED to seize the hidden wealth of the 1% of the 1% ... they only NEED to SAY they have FOUND, TAXED, PENALIZED/SEIZED the wealth ...

VOILA !!! The trumpets of the media blare the sudden windfall, the instantaneous offset to the horrific deficits incurred during the SCOAMF's tenure have all been PAID IN FULL ...

You'll believe them if they tell you that, won't you?

No need to raise your hand ... a simple "BAAA" will do.

Thu, 04/04/2013 - 14:17 | 3409045 slightlyskeptical
slightlyskeptical's picture

How about each country just print the currency to pay off it's debts. Print more to buy the outstanding debt in the system. Then run the government using the interest off that debt. No taxes needed, just borrowers. In a few decades all that money will have been payed back, thus returning government balance sheets to the way they should. 

Thu, 04/04/2013 - 15:22 | 3409395 Matt
Matt's picture

WTF? If the government prints money and buys it's own bonds with the money it printed, how can the government operate off the interest of the bonds it owes to itself?

Thu, 04/04/2013 - 14:31 | 3409123 THECOMINGDEPRESSION

MillionDollarBonus_ what a total tool. Let them go bankrupt and starve to death. BUDGETS would NEVER be balanced. They will keep taking and taking and taking and taking....

Thu, 04/04/2013 - 14:57 | 3409252 thisandthat
thisandthat's picture

The final taxdown?


Mon, 05/13/2013 - 17:10 | 3557940 cramers_tears
cramers_tears's picture

MDB=Tyler Durden

Soylent Green is made from people!!!!

Thu, 04/04/2013 - 14:01 | 3408949 Joe Davola
Joe Davola's picture

If a corporation holds it's profits overseas - fine and dandy, someday gubbermint will cave and declare a holiday.

Thu, 04/04/2013 - 14:19 | 3409020 DaveyJones
DaveyJones's picture

Good point and now with SCOTUS, they get to be "people" when they want a congressmen to see their piles money and not people when they don't.

Reminds me of patenting "food" (overturning 150 years of legal precdent). They get to call it highly unique to say it needs a patent, then nothing out of the ordinary when we ask to study and label GMOs.

It's almost as if they're liars

Thu, 04/04/2013 - 14:06 | 3408954 Vashta Nerada
Vashta Nerada's picture

I assume the names of the people who make up the International Consortium of Investigative Journalists are also being made public.

Just kidding, of course they won't release their names.


Thu, 04/04/2013 - 14:12 | 3409017 James_Cole
James_Cole's picture

I assume the names of the people who make up the International Consortium of Investigative Journalists are also being made public.

Gawd people are lazy idiots.

Thu, 04/04/2013 - 14:14 | 3409027 Vashta Nerada
Vashta Nerada's picture

Good find.  I bet they are getting nervous about now.

Thu, 04/04/2013 - 14:18 | 3409053 James_Cole
James_Cole's picture

Real journalists have guts, they're not the fucktards seen / unseen on American 'news'


Thu, 04/04/2013 - 15:44 | 3409480 Urban Redneck
Urban Redneck's picture

They may not be fucktards but they are certainly retards because they missed the biggest truth starring them in face over thousands and thousands of pages-

"Offshore" is just layover, and hence myth in a giant comic circle-jerk where the final destination of the money is right back in the very hands and domicile it started off in.

They're chasing THE LEGAL TITLE to dollars already in the domestic economy for tax revenue purposes, NOT THE DOLLARS THEMSELVES.  When they get around to taxing them, that pulls money out of the local economy.  

Savers with rainy day bank accounts with several thousands of dollars of in cash (the Simon Black scenario) are a minuscule and loss generating part of a much larger industry.

There is no pot of gold at the end of the rainbow.  And if the "journalists" can't see that now, then they really are dumb as bricks.

Thu, 04/04/2013 - 16:18 | 3409606 James_Cole
James_Cole's picture

They're chasing THE LEGAL TITLE to dollars already in the domestic economy for tax revenue purposes, NOT THE DOLLARS THEMSELVES.  When they get around to taxing them, that pulls money out of the local economy.  

Savers with rainy day bank accounts with several thousands of dollars of in cash (the Simon Black scenario) are a minuscule and loss generating part of a much larger industry.

There is no pot of gold at the end of the rainbow.  And if the "journalists" can't see that now, then they really are dumb as bricks.

Another dumbass that obv didn't bother reading the brief article posted on the ICJJ page. The investigation (involving many media agencies, so no doubt there will be a lot more to come shortly) looks at - first line of the article "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."

The journalists are not searching for a "pot of gold at the end of the rainbow"

Thu, 04/04/2013 - 16:46 | 3409711 Urban Redneck
Urban Redneck's picture

I know far more about this industry than either you or they do.

I've seen the view from the top and it is quite clear, for those trying to scale the peak, the view kind of sucks.

Thu, 04/04/2013 - 17:13 | 3409841 James_Cole
James_Cole's picture

I know far more about this industry than either you or they do.

Whether true or not, your points themselves weren't in dispute (as is seen in the case of Cyprus) but you're engaging a * clearly * separate issue to what the ICIJ discussed in their own piece leading to the obvious conclusion you didn't read it and simply went on Tyler's mischaracterization.

ZH has gleefully covered the French Minister's resignation over Swiss account and now when the data dump itself (from which that revelation originated) comes out it's all a big conspiracy to go after the 'pot of gold at the end of the rainbow.' 

Thu, 04/04/2013 - 18:37 | 3410157 Urban Redneck
Urban Redneck's picture

I glanced over the site YESTERDAY, and there were a lot fewer articles, but the focus was the same, it's the small shit sensational diversion stories and regurgitation of misleading and misunderstood statistics like the BCG study.

The "tax havens" are used to redomicile asset title, but the bulk of the money flows right into the major money center banks (under new title).  Kleptocratic governments (usually run by tax evaders themselves, but the charitable foundations of "dear leaders" are beyond what these "journalists" are willing to "expose" - this is very different then the trusts which they are willing to expose) are desperate to finance the unsustainable status quo they have promised their favored constituencies.  The problem and sheer stupidity of their design (per Hanlon) is that if they create a bank run in the money center banks then they will bring down the very house of cards they are trying to prop up.

Some of this stuff is pure hogwash designed to elicit an emotional reaction.  I use nominee directors here in Switzerland for SPVs all the time- who has time to travel to required directors' meetings, update their directors' insurance for every legal entity, then assume legal responsibility for every corporate filing (which course you had time to read before signing), then there's the minor fact that for stuff like trusts down the road in Lichtenstein, or captive entities up the road in Luxembourg, there are LEGAL REQUIREMENTS for LOCAL DIRECTORS (and I have no desire to become a legal resident of either douchebag duchy).

There are disreputable firms that may (definitely) don't have adequate controls or the necessary staffing to properly review the documents that the local directors are signing off on, but that is a different issue (and it's more complex if there is a large non-resident supporting staff doing the DD before signature).


Thu, 04/04/2013 - 13:53 | 3408901 DosZap
DosZap's picture

In fact, as Simon Black notes, given that there is going to come a time, likely soon, that retirement savings will be targeted; diversifying abroad is one of the sanest things you can do to protect yourself against the real criminals.

Yep,as long as it is not where you cannot HOLD it.Sure not into OTHER Banks.

Thu, 04/04/2013 - 14:24 | 3409084 johnQpublic
johnQpublic's picture

are you implying whats needed is multiple worldwide canoeing trips accidents?

Thu, 04/04/2013 - 15:36 | 3409445 ebear
Thu, 04/04/2013 - 17:43 | 3409979 asteroids
asteroids's picture

No Mario, it IS theft. What the common man will do is pull out his cash from your stupid banks and they will implode.

Thu, 04/04/2013 - 13:49 | 3408879 rogeliokh
rogeliokh's picture

I hope Crimex defaults soon, bunch of paper crooks and scammers!!!

Here is some start!
"Last week, a rubicon was crossed in the precious metals market as one of the largest banks in Europe defaulted on their gold contracts, and informed their customers there was no physical gold available for delivery.

ABN AMRO, the largest Dutch bank in the Eurozone, issued a letter to their gold contract customers of failure of delivery, and instead will pay account holders in a paper currency equivalent to the current spot value of the metal."

"ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank's credit risk"

Thu, 04/04/2013 - 13:54 | 3408903 strannick
strannick's picture

Classic. For your gold, they pay you out in paper, at the suppressed paper-gold price.

Thu, 04/04/2013 - 14:19 | 3409061 sgt_doom
sgt_doom's picture

Exactly, JLee2027, exactly!

"If we were a tinfoil-hat-wearing conspiracy theorist we might suspect that this is a staged coup to create a witch-hunt against all offshore capital ..."

You ain't man enough to wear a tin foil hat, TD!

And TD proclaims, "there's nothing illegal...."

Yup, and since last week when the Drone Master Obama signed the "Monsanto Protection Act" into law, nothing Monsanto now does can be considered "illegal" (just like EVERYTHING illegal they did previously is completely ignored by our so-called legal system).

Perhaps because enough people are getting sick of what's mentioned in the interview below:


Thu, 04/04/2013 - 14:57 | 3409261 bitHedge
bitHedge's picture

Bernanke will save us, .. wont you?

Thu, 04/04/2013 - 15:23 | 3409401 Archduke
Archduke's picture

a proposal for the Corporate and Commons Capital Preservation tax restructure


by Archduke



First a quote from ZH:


 Over The Past 4 Years News Corp Generated $10.4 Billion In Profits And Received $4.8 Billion In "Taxes" From The IRS


How does Murdoch make money off the tax system? There are three basic elements, disclosure statements show.

One is the aggressive use of intra-company transactions that globally allocate costs to locations that impose taxes --

and profits to areas where profits can be earned tax-free.

For that Murdoch can thank laws and treaties that treat multinational corporations much more generously than working stiffs, such as those who make up the audience for his New York Post and for his British tabloids with bare-breasted women.  Working stiffs have their taxes taken out of their pay before they get it, while Murdoch gets to profit now and pay taxes by-and-by.

News Corp. has 152 subsidiaries in tax havens, including 62 in the British Virgin Islands and 33 in the Caymans. Among the hundred largest U.S. companies, only Citigroup and Morgan Stanley have more tax haven subsidiaries than News Corp., a 2009 U.S. Government Accountability Office study found


This further highlights why there's something fundamentally wrong with our tax structures. Allowing funds to move freely between national fiscal barriers, and taxing only profits and actually indemnising refunds on alleged losses leads to this sort of abuse.



Offshoring: the real shadow banking, or profits are not made where you think they are, and nor are losses.


to paraphrase Treasure islands by Nicholas Shaxson:

The offshore business is at its heart about manipulating trails of money across borders.This practice is  known as transfer pricing.  To understand how it works consider bananas. The trade for each bundle transacted follows 2 distinct routes.  The first is the physical, where a farmer in Honduras collects it, sells it to a packer, then to a broker and they finally end up in M&S in Britain.  The second half of the trade, the money trail, is more convoluted.

It turns out the Honduran banana company has no assets and rents all its capital equipmentfrom its parent in the Cayman Islands, and the managerial exploitation costs are outrageous as is the rent at 10x its property value.  This front is in turn managed by a fiduciary trust that also is the majority owner of the Panamaian broker, who incidentally also operates barely at black, due to mispriced cost of leasing to a Manxx registered fleet, insurance to Bermuda, supply-chain management in Jersey and and marketting in Ireland.  Each of these is owned by another blind trust which is managed by financial holding company in Luxemburg, which incidentally owns the the banana's retail brand company, say FairFruit Inc based in Delaware. At the end of the day, none of the subsidiaries paid any tax, some were evencompensated for costs and which of course were carried back up the chains as interest expense, and a massive profit, 'de'-measurate' with the sale of a bundle of bananas, was entered in a Swiss bank account destined to the beneficiaries of the trust managed by the Luxemburg holding.

First we consider that in modern fiscal theory we tax profits alone, while losses are credited.  One of the keys here is understanding how both of these ideas are localised, ie within specific national jurisdictions, which the modern offshore multinational structure is designed to exploit.  Some would say evade or bypass, but I use exploit because it actually leverages loss into gain. One fundamental problem is in identifying where the lion's share of the profits are generated. Was it at production in Honduras? At the broker's in Panama? In the FairFruit HQ in the US?  Multinationals play with these numbers using the technique known as transfer pricing.

The corollary problem in offshoring is why are there losses at all if the banana retail nets a profit?  Which is to say if that if the banana's retail sale flow generates a net profit, is it fair to construct artificial localised losses in high-tax areas and deduct these from the loop, thus multiplying by far the amount of money from the actual sale?  Now recall the credit is money, and income tax credit is money just the same.  So compensating a local loss with tax break is in fact a public subsidy.

Where did the money come from to pay operating expense deductibles in the banana republics of Honduras, Panama, and the deregulated havens of Ireland, the Channel Islands and Britain? Why, from the poor taxpaying sucker, the underclass, who thus have subsidized enormous profits that far outstrip the global retail sale of the bananas.  Modern multinational corporations, you see, are not in the business of selling products.  In fact the banana bundle is only a pretext, the special purpose vehicle to fleece the public.  (but hey, keep the retail sale proceeds as well). The offshored multinational claims your cake and eats it too, and then taxes you for the crumbs.



Follow the Money, or money supply, fractional reserve, and debt as money.


Recall that in fractional reserve banking, every new dollar represents an unrealised asset,which is another way of saying a debt.  Yet fractional reserve means every asset is recirculated and reissued as we find new wants (often) and needs (rarely) to exploit from the transformation of those same resources. a forest can represent wood from trees, printing paper from wood, or rent from adventure tourism.   An asset value thus represents a forward in time of projected exploitation value.  But it's still only the same forest.

Each asset or debt, creates new money in the form of profit or interest depending on which side of the asset you're on.  Now the thing about interest is that it compounds. So while the monetary and debt growth is exponential, equivalent to interest on the issued tier-1 capital, the underlying resources are constant at best (sustainable) or for mining and extraction: depleting, minus depreciation, spoilage, and waste. Recall there is a limit to production and transformation: thermodynamics say that every step introduces waste and loss, so the underlying resources are more than likely trending to depletion than sustainability.  Sustainability is a difficult constant upward battle.

One resource however is guaranteed to be ever-present within the system, because it is the basis upon which the system is predicated.  That resource is human agency, which means labour and invention.   It is this process that drives innovation and what Karl Marx called creative destruction (contrary to popular creed, not Alan Greenspan).  When an asset is realised, and the debt of the forest netted by the sale of the trees, the fairy of innovation then can come into action and reprocess, realign, and rerecycle, spent capital into new opportunities.  Innovation then, is what drives interest, and its sister inflation.



a Conflict of Interest: pricing resource depletion, taxation, and the monetary base.


So what happens to the interest implied by the asset when I export the asset? that is the million-dollar question.  I can sell the forest at spot value, but the interest and inflation implied from the asset assumes that it stays within national borders, thus allowing it to compound with the invisible hand of potential innovation further down the road.  when I export either the lumber, or even its flip-side when I export the proceeds by offshoring profits to a foreign subsidiary, I deprive this local economy of the future realisations of innovation, either with the same lumber, or by depriving the fractional re-injection of the monies back into the economy through reinvestment.

This is the fundamental epiphany: that exports ultimately cost the economy, and short of depleting all resources to make up for it the only guaranteed dependable resource to cover it is human capital.  every export is a burden on the system and on human labour.  (to mirror the current ZH article, inflation is a result of the imbalance in fractional debt whose underlying assets were wrongfully inflated, mispriced, poached, or transfered out of the domestic economy).


So the question is, how can you be sure the price of an export makes up for the loss in capital and fractional interest thereof?  Hopefully an export sale brings cash value that makes up for it.  But what if I undersell at discount?  Worse, if instead of selling the lumber, what if I loan it to a foreign subsidiary for nothing.  I've still deprived the local economy of the lumber, but more importantly also of all the forward gains that creative destruction would imply had the lumber stayed home.  What if instead I send machinery?  What about sending labour?  How about sending money in the form of an injection of capital when I invest abroad?  Note that if my accounting-fu is strong, these acts of goodwill may be claimed as deductible expenses back home, so not only do I deprive the local economy of an fractional interest-making capital asset, and implied tax revenues for the commons, but I may also further penalise the commons by claiming a tax-credit paid by the public.



the Tragedy of the Commons, or a tax should definitely not encourage inefficiency


We have to get rid of this idea that we don't tax foreign transfers and that we subsidize losses.  That to me is the moral hazard of international corporate taxation.  The old fiscal theory was intended to promote risky investment by choosing to tax only profits, but instead it's turned into an orgy of abuse as profit and loss are terms subordinate to an entity's fiscal jurisdiction.  What we need to do is tax flows, specifically, flows that cost the commons missed opportunities.

Also, the  antiquated fiscal notion of the commons deserving a proportional share of your profits, which as we see is circumvented anyway, to me screams of injustice to liberal and libertarian principles.  You shouldn't be charged more because you're better at your business, in fact the opposite should happen: For an identical set of inputs, the more efficient company should keep the higher return, while the less profitable should be discouraged because it wasting an opportunity for the commons to make good on the asset, and hence the implied savings interest rate.



a Reverse tax, or don't tell us how much you made, rather tell us how much you put in:


I think instead, we should tax investment, not profits.  Recall that every dollar in the economy represents a forward on a real or imagined capital asset exploitation.  Thus investing a dollar actually means you are consuming an underlying resource, ie chopping down a tree or hiring a brainy scientist's grey matter.  This is what we should be taxing, because its consumption is at the expense of its better use by another investor or even by the commons.  The tree may prove more useful in its capacity to provide ecological services like erosion control, co2 sinkage, etc, while the scientist's brain may have been more useful enlightening younger generations in public university.  Thus we are taxing the opportunity cost of using or consuming a resource.

It's then up to the corporation, which pays a fixed cost for this asset use or resource depletion, to be efficient and make good on their use. The more efficient, the more profit they walk away with, and justly so.  The caveat, is that offshoring strategies, for example "investing" in a tax haven, hence moving those dollars away from the local economy, would tacitly imply denying the exploitable potential of assets back home, and thus should be taxed equally.  That is you are free to move funds to any more profitable foreign nation, but pay the tax on those funds first.



a Diligent tax, or all stakeholders have an interest in tracking the capital - the rest is your business.


The good news is that this tax need not be excessive.  Forget even notions of 25% capital gains.  I think the only way to fairly price the opportunity cost is to charge the base risk-free interest rate.  That's right: good old LIBOR or whatever rate of return benchmark of choice for your country.  This is actually a blessing in disguise.  Instead of having to predict about how much profit you'll make as a business and plan a taxpool ahead of time, you'll know how much you owe from the get-go.

The other blessing in disguise is that all of a sudden the taxman aligns with shareholder due diligence instead of being at a polar opposite.  All parties have an Interest to know where the money went. Imagine that, instead of the inefficiency of paranoid schemes to cook the costs and bake the books, companies can just pay down the meagre rate and get on with the business of making money.  As much money as they can, and they can keep all of it, without having to tell any but their stakeholders.  Unless they can't beat the LIBOR beta, in which case they have no business being, well, in business.

A possible side effect of that is that this will discourage high-leveraged ventures that misprice risk in lieu of savings.  This is a very good thing.  Instead of the current inflated opaque and volatile system which returns a pittance and fleeces the small investors for all their skin, this should imply a return to quality.  Remember when the savings interest rate was something around 5%?


Capital Controls, or how Keynes intended the original World Bank and IMF to operate



Keynes argued that there is natural conflict between democracy and traditional capitalism. In the face of a recession or depression, one would be tempted to lower interest rates to boost a recovery of local industry. International investors, however, would be tempted to seek areas of higher return. This apparent conflict is quelled if we choose to tax investment flows instead of profits, especially for developed countries undergoing a recession. In such a case the labour costs and thus inputs would be considerably lower, and a greater return on investment would be generated. Such a system would form its own elastic safety net.


To solve the frivolous volatilty of capital flight, it was envisaged that transfers of capital between individuals and corporations of different nations would be controlled.  Did you know old passports had a "foreign exchange authorisation" section which entitled or forbade currency transfers? These original Bretton Woods provision are all eroded now.  While I certainly believe in the economic virtue and morality of free capital movements, to borrow a GNU quote this is free as in free speech, not free as in free beer: I think the circulation need to be fairly priced (ie taxed). There has to be skin in the game to discourage the inefficient offshore predation, speculation, and volatility.


I'm going to call it the Corporate & Commons Capital Preservation tax

(or CCCP tax - heehee), though it really has nothing to do with socialism let alone communism.  Rather it's a more sensible, efficient, purely marxist-capitalist, way to allocate risk and reward.

Thu, 04/04/2013 - 16:00 | 3409547 Kayman
Kayman's picture

Trickfucking transfer pricing has been around since multinational corps and banks were invented. We once put a $3 million dollar loss through a head office vice president's expense account. Good ol' Stan, always a company man.

The book losses could never be offset in country X so head office made the U.S. Treasury help ease the pain; 25 years ago.

Thu, 04/04/2013 - 21:49 | 3410680 Buck Johnson
Buck Johnson's picture

I totally agree, the govt. around the world is hunting black money to scare back into their countries essentially.  And he's right the US is the biggest place to put your money.  What the US wants IS YOUR MONEY, in a pinch and trouble try getting that same money out.  I've always said that eventually when this whole economic system goes under they will make it impossible for people to move their money out of the US, in fact they will make it hard for Americans to leave.

Thu, 04/04/2013 - 13:41 | 3408838 Super Broccoli
Super Broccoli's picture

finaly ! i thought i'ld never hear about it on ZH :-)

Thu, 04/04/2013 - 14:45 | 3409208 reload
reload's picture

None of the summarised findings are a suprise - to any of us surely. But who dumped the documentation into the lap of the journalists and why?

Presumably the data was collated from various sources initialy - only doable with a lot of organisation and leverage.

So who? and why?

The why ...perhaps to get some money moving `home`? but surely if its dirty and, demonstably so - no problems would be solved. To discredit banks who have been facilitators? if Banks need further discredit. To show depositors that their money has been co mingled with dirty money, a la Cyprus......with Cypriot results?

The who.....fascinating to speculate. Putin? he seems to be pulling a few strings right now.

Thu, 04/04/2013 - 16:58 | 3409677 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Velocity, velocity, velocity. If it was strictly about theft through seizure of monies in those accounts everyone named in those files accounts would haven been frozen first before the information was made public. Also gives the DOJ and IRS cover for asset forfeiture theft. The hard assets are worth more than the fake money in the accounts to them as far as trying to pay down debt.


I ain't buying it for one second that some big names won't have ties to those offshore accounts like people like Warren Buffett or George Soros. If the best that is on that list is the C- listers of the American branch of the Ritchie Rich club like Denise Rich then that list is not comprehensive or information is being held back from the public on purpose so they can move their money first like in Cyprus.


It is like there is a coordinated effort to create hyperinflation by jigging the otherside of the price equation without running the printers into oblivion or kickstart any of the major global economies but that would be tinfoil hat low brow fringe conspiracy theorist claptrap.

Thu, 04/04/2013 - 13:43 | 3408847 diogeneslaertius
diogeneslaertius's picture

Total Income Sweep, LLC, a Delaware company.

Thu, 04/04/2013 - 13:54 | 3408919 wee-weed up
wee-weed up's picture

First Mattress Savings & Trust

Thu, 04/04/2013 - 13:43 | 3408848 Arcturus
Arcturus's picture

Move your money offshore! OK how does Cyprus sound? Your money in any bank is subject to the whims, laws, new policies of any offshore bank anywhere.

Thu, 04/04/2013 - 13:53 | 3408909 Urban Roman
Urban Roman's picture

If you own the bank, and the island it's on, those whims are more predictable. 

Thu, 04/04/2013 - 13:56 | 3408917 dark pools of soros
dark pools of soros's picture

Simon says, buy a vista worth of farmland in 30 countries

Thu, 04/04/2013 - 21:00 | 3410558 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Simon says go fuck yourself.

Someone had to channel Georgie C.

Thu, 04/04/2013 - 14:53 | 3409245 Kreditanstalt
Kreditanstalt's picture

Bank accounts are so....1990s.

You buy physical gold and rent a safety deposit box in some country overseas. 

Thu, 04/04/2013 - 15:27 | 3409412 Matt
Matt's picture

Are you serious about safety deposit boxes? Sounds like a great opportunity for confiscation ...

Thu, 04/04/2013 - 16:08 | 3409565 Kreditanstalt
Kreditanstalt's picture

I have one overseas...I get relatives to pay the annual bill...never had any problems.  I would imagine that the stuff in a box is sacrosanct in comparison to accounts, shares, bonds...but I guess a reliable private safety deposit box would be better.

Thu, 04/04/2013 - 16:22 | 3409626 e-recep
e-recep's picture

any news regarding the fate of safe deposit boxes in cyprus? could people reach their boxes without problems?

Thu, 04/04/2013 - 16:38 | 3409688 TheGardener
TheGardener's picture

Dig it up deep enough for terahertz scanners or perish.

Rent some drilling equipment and drill as deep as you can. Don`t worry about recovery. Could well be beyond our time.

15 ft is kind of save, digging it out by hand will make you young again. As long as you do not give an inch away in your
mind you are save.

Thu, 04/04/2013 - 16:20 | 3409613 e-recep
e-recep's picture

he is not.

Thu, 04/04/2013 - 13:44 | 3408852 Motorhead
Motorhead's picture

I thought that up and coming West Point grad and MI officer was really hip on putting money into Cypriot banks.  Perhaps not.

Thu, 04/04/2013 - 14:00 | 3408946 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

You mean Petraeus? Do elaborate.

Thu, 04/04/2013 - 14:07 | 3408986 Motorhead
Motorhead's picture

Nah, Petraeus liked younger chicks who were MI officers.  I mean Simon Black.

Thu, 04/04/2013 - 13:45 | 3408857 prains
prains's picture

cheapenzuaela simon

you said it yourself " It's perfectly legal, as long as you pay tax on the income and make the appropriate disclosures."




what the fuck do you think is going on dude!

Thu, 04/04/2013 - 14:07 | 3408988 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Yeah, there's no "set it and forget it" for your money and your "bug out" plan/country. You may need to ferry cash to your preferred destination and/or be able to safely store cash/metals in a location you can easily access and control. The happy days of Swiss bankers being able to anonymously handle it all for you are gone. And you must be able to function like a local in your alternate destination. That means you gringos who go to S.America better speak spanish (or portuguese) and not pretend you're in some isolated holiday village assuming you can speak english only.

Thu, 04/04/2013 - 14:34 | 3409147 DoChenRollingBearing
DoChenRollingBearing's picture

^--- Tiene razon!

Thu, 04/04/2013 - 13:47 | 3408867 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The burning question is where is the raw list for everyone to peruse. I'd like to see and I am sure others what crony names are in that list.

If the names of the big boys here on this side of the pond are not in those lists then we know who is behind leaking this info.

Thu, 04/04/2013 - 13:52 | 3408904 thisandthat
thisandthat's picture

It's a fucking 260giga harddrive (ok, not that big for an hardrive, but still) - torrents would be your best bet, but don't give it too much hope, this wasn't Wikileaks, alas.

Thu, 04/04/2013 - 14:00 | 3408938 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I could parse that list with a hadoop machine cluster remotely fairly quickly without downloading any of it.

Thu, 04/04/2013 - 14:16 | 3409029 thisandthat
thisandthat's picture

Kudos to you, not everyone has access to clusters, but you'd still want to store the results, no?

Oh, and upload it to the cluster.

Thu, 04/04/2013 - 14:36 | 3409101 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You can do it through Amazon or IBM to name 2 that have public accounts to set up clusters. IBM will even provide you linux system images with their hadoop software already set up to go that you can install on those 2 service's machines. You don't need to upload the whole per se but just need remote access. You stream the information piece by piece, parsing it using a map/reduce job based on certain search criteria. You just discard on the fly information that doesn't meet the criteria. You store what does. That I bet when all is said and done the info you do keep will be 5 gigs or less depending upon how specific you parse it. You take that then and put it into some sort of structured database and parse it even further locally. The parsing speed is going to be directly related to download speed when doing it remotely.

I'm really starting out with this now since it is about the only emerging field where a math degree can be applied with a chance in hell of actually finding employment and a decent paying wage at that.

Thu, 04/04/2013 - 14:41 | 3409181 thisandthat
thisandthat's picture

Well, I guess it will eventually show up, anyway - there's a lot of people involved and it will end up leaking, no doubt.

Thu, 04/04/2013 - 13:51 | 3408881 IamtheREALmario
IamtheREALmario's picture

Most likely the majority of the monied people being tracked and hunted are not the power elitists, but those in the upper middle class who might pose a threat and need to be eliminated as such.

Most likely George Soros will not be on the list.

Thu, 04/04/2013 - 13:49 | 3408882 Major Major Major
Major Major Major's picture
Bedevere: How do you know she is a witch?
Peasant: She looks like one.
[Crowd indistinctly shouts]
Bedevere: Bring her forward!
Girl: I'm not a witch.
Bedevere: But you are dressed as one...
Girl: They dressed me up like this. [Crowd murmurs]
Girl: And this isn't my nose. This is a false one.
Bedevere: [inspects the nose and confirms] Well?
Peasant: Well, we did do the nose.
Bedevere: The nose?
Peasant: And the hat. She's a witch!
Peasant Crowd: Burn her!
Bedevere: Did you dress her up like this?
Peasant Crowd: No, no, no! [beat] Yes, yes. A bit. But she's got a wart.
Bedevere: What makes you think she is a witch?
Peasant: Oh, she turned me into a newt!
[Bedevere gives him a disbelieving look]
Bedevere: A newt?
Peasant: Well, I got better.
Peasant Crowd: Burn her anyway!
Thu, 04/04/2013 - 13:54 | 3408920 thisandthat
thisandthat's picture

Man the pitchforks!

Thu, 04/04/2013 - 13:58 | 3408940 cougar_w
cougar_w's picture

She turned out to be a witch, tho. Just say'n

Thu, 04/04/2013 - 14:28 | 3409111 francis_sawyer
francis_sawyer's picture

Q: Ow do you know she's a witch?

A: We'll build a bridge out of her...


Thu, 04/04/2013 - 16:06 | 3409556 Kayman
Kayman's picture

Q: Ow do you know she's a witch?

A: Well she floated to the top. If she wasn't a witch she would have drowned.

Thu, 04/04/2013 - 13:50 | 3408887 dannyboy
dannyboy's picture

They missed one country, and the way that I do it aswell. New Zealand, with foreign trusts being tax exempt anyone can basically park thier entire asset base here, pay 0 tax in a far more stable environment (deteriorating mind you). Anyone that still holds the majority of thier assets in cash deserves to lose it with whats coming.

Thu, 04/04/2013 - 13:54 | 3408888 Rainman
Rainman's picture

Well, there you have it. The very rich will always wipe their asses with the tax hike plans for the wealthy. A big fuck-off for Oblameo and Moonbeam...who have the middle class squarely in their crosshairs anyway.

Thu, 04/04/2013 - 13:49 | 3408892 THECOMINGDEPRESSION

Its about time that we helped ourselves instead of giving our money to banks and governments..SO..GET YOUR DOUGH OUT OF THESE STUPID BANKS! Gold, Silver, Bitcoins,Litecoins, Mattress, anything but criminal BANKS

Thu, 04/04/2013 - 13:50 | 3408894 laomei
laomei's picture

Of course, the irony is lost in translation that if you want to have a secret bank account, you open it in Canada or Singapore.  If you want to have a shell company, you incorporate in Delaware or Wyoming where no one gives a fuck.  The hideaways in Caymans and Bahamas and BVI, etc. are easy pickings and general-knowledge secrets.  Everyone knows about them, but for real money, smart money, they are just a part of the equation, not the solution.

Thu, 04/04/2013 - 13:52 | 3408898 Fox-Scully
Fox-Scully's picture

Actually it looks like drugged spider that was turned loose to spin a web!

Thu, 04/04/2013 - 13:52 | 3408899 timbo_em
timbo_em's picture

Tyler, you should add "courtesy of Süddeutsche Zeitung" to this example of an offshore network. Otherwise the folks in Munich might not be very happy.

Thu, 04/04/2013 - 14:52 | 3409236 thisandthat
Thu, 04/04/2013 - 13:52 | 3408902 Yen Cross
Yen Cross's picture

     The only safe place for your money is in a concrete reinforced underground bunker in your backyard.

Thu, 04/04/2013 - 15:10 | 3409342 Ckierst1
Ckierst1's picture

Which you don't really own as a function of property tax.

Thu, 04/04/2013 - 15:10 | 3409343 Ckierst1
Ckierst1's picture

Which you don't really own as a function of property tax.

Thu, 04/04/2013 - 13:53 | 3408911 Shaten
Shaten's picture

I love how everyone jumps on the, they must be evil bandwagon.

What if a semi wealthy person setups 7 trust one in each of the richest economies to diversify their risk while mainting a steady income for the generations to follow. Yhea real evil. I could imagine if you had under 700k in working capital that a 7 trust strategy would be good.

Thu, 04/04/2013 - 13:59 | 3408943 Yen Cross
Yen Cross's picture

    Where would one find a steady flow of income/roi in a ZIRP world filled with money printing central banksters that artificially inflate equity and R/E prices while eroding wealth and purchasing power in the process?

Thu, 04/04/2013 - 15:26 | 3409409 Urban Redneck
Urban Redneck's picture

In a non-ZIRP market.  There's significant currency risk, but that's what hedges are for.

Thu, 04/04/2013 - 17:05 | 3409796 TheGardener
TheGardener's picture

Trust are legal constructs repealed or ignored at any foreign governments calling, sorry tiny islands bank
on a sand bank.

Commonwealth sucks, just legal exploitation, the rule of law
is for the children to sleep well...

Thu, 04/04/2013 - 13:55 | 3408913 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Now we know when the DOJ goes and seizes these accounts the monies will be returned to the proper jurisdictions just like what the Germans and ECB's intentions was with that Russian oligarch money. These are honest upstanding members of society running these organizations. The creme de la creme role model types our kids should aspire to be.

Thu, 04/04/2013 - 14:15 | 3408962 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And for the record the law is the law. If these accounts are legitimately breaking existing laws then prosecution should follow. The issue is the prosecutors like the DOJ are really persecutors who are in reality private servants not public. So in that sense the laws really don't count as supreme authority anymore because they aren't enforced equally and the people decreeing them are not making them in good faith.

I'm also coming to the conclusion that the investigators (you can fill in the 3 letter blank) jobs are to cover up evidence to bring it to light.

Thu, 04/04/2013 - 14:20 | 3409072 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Agreed. Nothing the Rockefellers and Rothschilds do can ever be 'illegal' since they take care to have the laws written for their convenience. Now there's trillions sitting around in various "trusts" that never get mentioned at all. "Please look at those smaller crooks over there".

I do have one question which isn't clear in all these "haircuts" and even within the realm of FDIC insurance here in the States: so there is some level of deposit insurance (at least in theory), i.e. 250K per depositor. Does this include corporate accounts as well as personal? If so, for a company of any size, they'd almost certainly have the bulk of their funds (and butts) hanging in the breeze beyond these deposit insurance levels. Or are they just grandly f***ing small, personal depositors?

Thu, 04/04/2013 - 14:59 | 3409284 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The prosecutions should be done by entities that are not compromised and corrupted beyond recognition is really all I am saying. The DOJ most certainly is the poster boy for crony corruption.

Thu, 04/04/2013 - 13:58 | 3408931 pashley1411
pashley1411's picture

I'm reminded of a ancedote in "When Money Dies: The Nightmare of Deficit Spending, Devaluation, and Hyperinflation in Weimar Germany", turned on to me by another blogger here.    Where the correspondent writes, you lie to the government, or your starve.

Terrifying read.    

Thu, 04/04/2013 - 14:06 | 3408970 catacl1sm
catacl1sm's picture

Good read.

Thu, 04/04/2013 - 13:59 | 3408933 Joe Davola
Joe Davola's picture

How does the skim to the tax avoidance facilitators compare to the taxes being avoided?

Thu, 04/04/2013 - 14:56 | 3408937 falak pema
falak pema's picture

the whole issue is  : do individuals and corporates who cheat existing laws in their country of origin, by "double Irlanding" and using transfer pricing from shell companies THAT CORRESPOND TO NO ECONOMIC REALITY OTHER THAN tax evasion, are they honest actors of the world economy? 

That some people consider they are above the law simply because thay can use lawyers and banks to short circuit the country that hosts their true economic activity is a question that needs to be addressed on the basis of ethics and what is the finality of all economic activity : is it above the law and are individual private economic rights sacrosanct? 

Consider this : those same shills who pronounce that they are could be the first to ask for their own government big sticks to go beat the hell out of their unlawful rivals who are their mirror opposites and who destroy their businesses using the same methods. 

People in glass houses  and the patriotic knee jerk of false jingoism goes hand in hand with "My inalienable rights to do what I want like I want to and damn you government!".

Golden rules and individualistic fools don't make good bed fellows. 

As an historical reference to support my thesis I would refer you to the Monroe Doctrine, that was used to make South America the USA's private surrogate playground where no European could come do what the USA did subsequently. It was encouraged by Pax Britannica and its navy against continental interests and fostered the "special relationship" subsequently. A nice stepping stone based on good neighbour sentiment that laid its US imperial eggs subsequently.

Power games and false noses are often long term chess games.  

Is the Caymanista legacy the template of new neo-feudalism for the century?

Who needs nation states anymore? 

Thu, 04/04/2013 - 15:15 | 3409361 Widowmaker
Widowmaker's picture

Who needs laws anymore?

Thu, 04/04/2013 - 15:33 | 3409436 falak pema
falak pema's picture

so you are happy with status quo?

A willing pawn of oligarchy?

How do you get rid of this order without become a fascist yourself if laws don't count and the people do not exert their common will?

Wouldn't that be betraying the founding fathers? 

In the real world you have real choices; not theoretical ones. 

Fighting via the elective route is the best way until it is not allowed to play out fairly; we are not there in the USA today if the people come up with another grass roots solution  than current red/blue oligarchy. 

Thu, 04/04/2013 - 16:15 | 3409589 Kayman
Kayman's picture

The game is rigged, the laws are irrelevant if not enforced. But they will be enforced against you.

The best plan is to reduce your footprint; starve the parasites.

And jingoism includes believing there is or ever was a free market.

Thu, 04/04/2013 - 14:01 | 3408951 Bingfa
Bingfa's picture

The unravel is gaining momentum...

awesome story

Thu, 04/04/2013 - 14:02 | 3408953 DaveyJones
DaveyJones's picture

"there is nothing illegal in moving assets offshore"

oh I thought it was a war on terror. Turns out were just moving tanks, airplanes and personnel offshore

Thu, 04/04/2013 - 14:01 | 3408955 Panafrican Funk...
Panafrican Funktron Robot's picture

Something tells me there are a few less people in the world jamming to this in their Phantom today:

Thu, 04/04/2013 - 14:05 | 3408968 cougar_w
cougar_w's picture

"diversifying abroad is one of the sanest things you can do to protect yourself against the real criminals"

This appears to assume that the "government criminals" are all in the US, and won't have any reach into foreign jurisdictions.

I don't buy either supposition for an instant. And anyone thinks the off-shore localities won't confiscate deposits (or won't eventually blackmail depositors into "voluntary" haircuts) is bat-shit-crazy. In fact I see these off-shore vehicles as honeypots intended to ensare and eventually eviscerate hot money.

Thu, 04/04/2013 - 14:08 | 3408984 catacl1sm
catacl1sm's picture

"A tax is a fine for doing well. A fine is a tax for doing poorly" - random fortune cookie saying

Thu, 04/04/2013 - 14:28 | 3409094 Henry Hub
Henry Hub's picture

I have an uncle. He's a real old timer. He decided that his life savings was no longer safe in the bank. He withdrew it all and took it home. He works part time in a homeless shelter and causally mentioned what he had done. That night some of the "boys" paid him a visit. They tied him up and stole every dime. True story.

Thu, 04/04/2013 - 14:41 | 3409184 walküre
walküre's picture

Moral of the story. Keep your mouth shut.

Thu, 04/04/2013 - 15:12 | 3409351 Widowmaker
Widowmaker's picture

Moral of the story: Remmington Model 870 - mouth open or closed.

Thu, 04/04/2013 - 15:53 | 3409516 ebear
ebear's picture

Should have hid it in the homeless shelter.  No one would look for it there.

Thu, 04/04/2013 - 14:43 | 3409106 are we there yet
are we there yet's picture

Gold is $1555 because the euro holders are moving to US $.... THe Euro is in long term trouble, as is the US, but the Euro is more immediate so I am watching for a new gold buy bottom perhaps this year, but before the US hits its inevitable debt devaluation in the coming decade.  I would also watch for China in the next few years to challenge the dollar and making our gold price higher. Just watching now. .... Another comment, China has much more gold than they publicaly say, and the US has much less than they publicly state. ... These are my thoughts.

Thu, 04/04/2013 - 20:09 | 3410404 defencev
defencev's picture

I would also watch for China in the next few years to challenge the dollar and making our gold price higher. Just watching now. .... Another comment, China has much more gold than they publicaly say, and the US has much less than they publicly state. ... These are my thoughts.

Not bad thoughts. Instead of watching, just take a trip to HK and open bank account with Bank of China. Just in two currencies:HK Dollar and Chinese Yuan. Trust me. That is all  you need. Forget about fucking idiots who buy bitcoins or hoard the Gold.

Thu, 04/04/2013 - 14:28 | 3409107 taketheredpill
taketheredpill's picture

Any strategy that involves a substantial amount of assets being held overseas (and DISCLOSED) would presuppose that in the event of a wealth tax you would have to move to that jurisdiction, given that your local Government would demand 30% of ALL assets including offshore or else loss of citizenship.  I keep getting the impression that an offshore strategy would keep those monies off the table.  Recent events make that seem unlikely.

A better bet might be to get citizenship in a country that 1) you like which also has 2) low Bank debt as % GDP and low government debt as % gdp and low taxes.

Singapore might qualify for # 2, but would you want to live there or be forced to live there?  And if the US DoJ goes after Singapore will their Banks take a hit and require Government assistance, pushing the Wealth Tax problem onto another Sovereign?






Thu, 04/04/2013 - 15:54 | 3409519 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

BRIC region is looking more and more attractive. Lots of hot ass (and stds too) in Brazil. Hong Kong might be a good second choice.

Thu, 04/04/2013 - 14:40 | 3409176 walküre
walküre's picture

Will be fun to watch when governments try to seize the capital from banks that are largely underwater due to min. reserve requirements. All that money has been loaned out to governments across the world so they can continue to operate. Now governent wants that money and not pay back the loans issued against it.

Fucking A!

Thu, 04/04/2013 - 20:03 | 3410389 mendigo
mendigo's picture

If they suceed in causing bank runs, they will drive the banks into insolvency. Once the banks are tagged as insolvent, they will be forced to step in to "save" them. The only way to save them will be by haircuting investors - formerly known as depositors.

This is so sick, they confiscated peoples money and were already on to other issues - would not have believed it possible. At this point nothing is unacceptable and the criminals run the show.

Thu, 04/04/2013 - 14:42 | 3409189 web bot
web bot's picture

What's shocking is that the language around account confiscations, haircuts, etc... is talked about in a smooth, hypnotic voice as it if these were sensible approaches to deal with the banker-created problems. Once an American "Dis"ll blow em" begins to talk about executive orders that allow for GOTUS to access pension plans, pm confiscation, etc... we'll know that its upon us.

Stunning how these unelected bureaucrats can have so much power over us...

Thu, 04/04/2013 - 14:44 | 3409193 The Heart
The Heart's picture

Awesome! Great to see you picked up on this and advanced this story. Good works done well Tyler.

The pursuit of the real criminals begins. There will be no rock to hide under that the double-edged sword of Truth and Justice will not find these criminals at. After the purging of these criminals, both in the financial world of banksters, and the political pile of carp that is called modern leadership, the world may have a chance of saving itself. The world is a rudderless out of control ship with a civilization that inhabits it that is about to annihilate itself. Nothing but total debt forgiveness and a reset can begin the the long path back to sanity in world trade. All countries should retain their sovereignty and individualism.

What is concerning is this story that seems like the chinese are blatantly getting ready to flaunt their forces to do what ever, knowing or at least saying they know that America will not fight for the islands in japan, Korea, or the Philippines. Most agree with this. The red hoards are moving all over the globe towards the martial law cover for the take over of the USA. Pray this never happens, and we all learn to get along. It is possible.:

Chinese expert: If tensions escalate, US support for PHL, Japan will be 'limited'

Thu, 04/04/2013 - 14:49 | 3409226 Kreditanstalt
Kreditanstalt's picture

Yet these same campaigners against alleged "fraud" and "theft" on the part of owners of capital jump knee-jerk to the support of thieving governments every time.

And the offshore money - WHOSE is it?  It belongs to its owners and they should have the absolute right to do with it whatever they wish.

By willingly paying taxes you are supporting the governments in their financial war on YOU.

Thu, 04/04/2013 - 14:57 | 3409269 Pure Evil
Pure Evil's picture

Well, at least this will give the political criminal class something to chew on while the rest of us try to find a way to get the hell out of Dodge.

Thu, 04/04/2013 - 15:11 | 3409305 Widowmaker
Widowmaker's picture

Simon Black is justa another finance-faggot.

Every word he spews is shilling for big wealth and inverse to reality. 

Privacy?  IRS.

Sanity?  Fiat currency.

Integrity?  USDOJ.

Fraud?  Incorporation.

Justice?  TARP

Regulation?  MF Global

The world is getting smaller and crimes bigger.  Simon Black couldn't recommend a sound policy if it was in his pocket with a bell on it.

If the market were real it would have dealt with each crisis, but nope, the public gets bullshit with a beard assuring more bullshit continues unabated.

Hey Simon, they call it a witch-hunt because there are witches, not because there are none.  Get a clue, pervert.


Thu, 04/04/2013 - 15:43 | 3409485 falak pema
falak pema's picture

widow makers are supposed to go after men not witches! 

You go after the witches and you'll be a widower maker! 

Thu, 04/04/2013 - 15:57 | 3409538 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I'm thinking Simon is just a pseudonym for one of the major gold bug types so as to not look like they are blatantly playing salesman for their products. Simon Black pseudonym approved vehicle. Must be legit with no conflict of interest.

Thu, 04/04/2013 - 15:15 | 3409362 Yen Cross
Yen Cross's picture

      "If speech was made of silver, then silence would be golden."

      "An ounce of prevention, is worth a pound of cure."    Two good rules to live by before re-allocating your hard earned cash.

Thu, 04/04/2013 - 15:17 | 3409369 q99x2
q99x2's picture

"criminal or financial terrorist" or bankster I'd say.

Thu, 04/04/2013 - 16:15 | 3409585 ian807
ian807's picture

So, I'll guess what happened is that too many "little people" were getting in on this and so it was time to blow the game. Those with enough wealth just got their warning. Whatever the new alternative is will spread by word of mouth through the relatively small world community of the ultra-wealthy.

Thu, 04/04/2013 - 17:59 | 3409731 Hacksaw
Hacksaw's picture

"If we were a tinfoil-hat-wearing conspiracy theorist we might suspect that this is a staged coup to create a witch-hunt against all offshore capital "

Hahahaha, what a crock of shit. Hey tea bag crackers there's your call to battle. What a bunch of morons. Where's Beck and Jones on this?

Aw lawdy, it's the end of the world. We can't hunt down the tyrants, fraudsters, charlatans, and oligarchs, it would be the end for us all.

Thu, 04/04/2013 - 18:30 | 3410136 BigInJapan
BigInJapan's picture

The global march towards Communism continues...

Thu, 04/04/2013 - 18:59 | 3410223 CitizenPete
CitizenPete's picture


Nobody in the USsA would be involved in this sort of thing.


Keep your stash in an apartment safe in Beijing.  As long as the building doesn't get bulldozed ... or surrounded by a 12 lane highway...

Thu, 04/04/2013 - 19:18 | 3410275 BigInJapan
BigInJapan's picture

Plenty of buryin' hole space available in the Canadian arctic.

Tue, 07/02/2013 - 05:47 | 3713084 value
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