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These Offshore Tax Havens May Be Hazardous For Your Deposit Confiscation Health
In the aftermath of the Cyprus deposit confiscation template, the first thing we did is to present not only the countries that are the biggest offshore tax havens in context, but more importantly, the ratio of total financial assets to GDP of these same countries, because when the hunt for wealth goes global, and when the untaxed money of evil [insert nationality] tax evaders becomes the political topic du jour it is these locales that will become the source of "rescue bank" capital.
And since as we explained, Cyprus is nothing more or less than the template for how to "collect" about $32 trillion in "offshore wealth" it would be a handy feature to keep track of which financial sectors may experience unexpected glitches in the coming months and years in order to reallign this untaxed, and thus ill-gotten in the eyes of the broader society, wealth. It is a "fairness doctrine" world after all, where how much wealth one is allowed to have is now determined by politicians.
Courtesy of Bloomberg we have just a primer. Cyprus is gone from the list for obvious reasons. But many others remain.
In brief, anyone who has substantial capital (obviously well over the "insured" $100,000 limit) stashed away in these jurisdictions, should be quite concerned. Although for now everyone is distracted by the soaring stock market: and why worry - what happened in Cyprus can never possibly happen again. Or so Europe's politicians have sworn... the same politicians who we know "only lie when it is serious.
For much more on this topic read When Will Deposit Haircuts Take Place In Other European Countries?
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A chart for paper money (promises), my guess is that the chart for physical money (PMs) looks exactly the opposite. Ah, the pendulum swings...
It's truly disgusting that while responsible citizens pay their taxes, the wealthy do not pay their fair share. I understand the anger that this generates, and I'm glad to know that our administration is cooperating with the G8 to finally crack down on tax havens.
Indeed, so many paper fucking promises, so little physical assets of real value. This will end like it always has in world war. Perhaps, this administration should start cracking down on the fraud and the criminals that steal retirement savings and physical assets? Start by executing John Corzine motherfucker. A fiat system is built on trust, want to restore trust? prosecute the fucking fraud asshole. I should know better than to feed the trolls. According to MDB a "successful" administration hires the CEOs of failed corporations.
The government central planners have universally failed to create wealth because government cannot create wealth but it can tax it into oblivion.
The central bank central planners have universally succeeded in transferring massive amounts of wealth to the financial industry and are succeeding in destroying all of the major currencies.
Time for the Marxists to suggest a collective solution.
And with backgrounds like this, we shouldn't be surprised:
http://www.judicialwatch.org/blog/2008/09/obama-s-marxist-roots-exposed/
http://www.nevilleawards.com/obama_organizer.shtml#1
http://www.spiegel.de/international/germany/new-book-suggests-angela-mer...
http://www.economicpolicyjournal.com/2013/05/german-chancellor-merkel-re...
The spector of the Marxist menace carrying the US and EU into world governance under Keynesian soft Communism soon to be hard-core Communism rises to alarm status by the evidence presented in the allegations made by these four incredible links, Pinto Currency. The search for Truth is in your debt. Thanks, PC!!
"where how much wealth one is allowed to have is now determined by politicians."
And, of course, knowing who owns the politicians, we see where the wealth is being transferred. This is truly an "eat the rich" moment, but the plebs are definitely not the ones doing the eating.
Once they've stolen that money and spent it, where will they look then?
Well at least MDB admitted that we are citizens, it's a start, next up we can work on "Tax is Theft" Please open your syllabus up to Chapter 2 "Domestic Income vs Foreign Income "
If you were born in America after 1913, you are a "tenant" of the Corporation of the United States of America. Wake up!
The money isn't destroyed. After you spend the money, you know right away who has it, so you take it back from them.
By all means, MillionDollarBonus, protect the tax havens for General Electric, Pfizer, Microsoft, Apple, Exxon Mobile, Merck, Johnson and Johnson, Google, Cisco, ad nauseam, while America’s small business men fold under the double standard that taxes their profits but exempts the multinationals’ off-shored profits from taxation.
This is truly a good thing, right?, because it contributes to the Fed’s goal of monopolization of America by allowing these global behemoths to grow even larger. No problem then, MDB, that Google has acquired more than 100 companies to sustain its cancerous growth or that Cisco has purchased more than 140.
No. You’re right, MDB. This is a good thing. Let the American taxpayers and small business men shoulder the growth of their U.S.-based international competitors with the free use of the U.S. military and the accompanying advantages and infrastructure of being an American-based company.
Never mind, MDB, that the “ongoing war of Big Biz against Small and Medium Biz “is leading to the monstrous point where a budding entrepreneur is not angling to build up a multi-generational owned venture but only building up something that financials can buy and integrate into a megacorp,” according to ZH blogger Ghordius.
Or that “eventually you run out of entrepreneurial spirit in this financialization-capitalism model, to paraphrase the ‘it takes a village...’: because “it usually/often takes an entrepreneurial family to raise an entrepreneur fit for organic growth of the sustainable kind.”
Sorry, MDB. Your devil’s advocacy failed this time around. The bottom line is that it’s time for these multinational leeches to either 1) pay the tax, or 2) get the heck out of the country and locate in a tax haven where they’ll be happy.
Any tax dollar is a waste of money
Without fair taxation you don’t have liberty. Taxation alone is government intrusion; at the very best, it’s tyrannical because immediately those in power move to progressive taxation which means taxing the people who have succeeded and made money and they leave out the failures.
The definition of taxation is unfairness. But then, to exempt the most wealthy, the top .01% from the progressive taxation in order to enhance their advantage of monopoly and control, is slavery. Unfair taxation is leading rapidly now to oligarchal tyranny in America.
My pet-theory is 'MDB' is one of the Tylers having a laugh.
They remind me of how, as a teen, I used to view our car filled with gas:
It's just sitting there!
Of course the ones where bail ins are most common would be the ones which defy the jackboot of the western powers and their US military / NATO attack dogs.
I gots to get me a criminal job at the IMF, world bank, or some other crazy place where you get diplomatic immunity and avoid paying taxes.
I have my money stashed away in the US tax haven. Something doesn't sound right.
I'm glad I don't have enough money this is a problem for me. Must suck to be rich. Or.... not.
It's pretty bad when money is safer at the bottom of a river from a boating adventure gone wrong than it is in a bank.
River bank?
+ 1 Good one.
Um, that was meant as a compliment to the article writer, not sarcasm, what's with the negative votes? Jaded peoples here methinks.
This commentary only paints a partial picture. Notably, it lacks 2/3 of the wealth in the world.
Where is Mideast and Asian wealth concentrated? Oh yeah, those are State secrets of which corresponding leverage gets no press.
Any such light in that darkness earns one the star of terrorist.
Bingo, this is the money of the real power brokers. Don't kid yourself, this is and has always been about the power and control over resources.
I guess the best thing to do now is to move money to Cyprus.
Quite similar to the long-standing – and not unreasonable – point that the safest airline to fly on if the one that recently suffered a crash.
Right. I'm gonna book me a Carnival Cruise.
Didn't realize that they had branched out and become an airline.
mattress
Is pm's on the bottom of some body of water offshore? Btw. the pm's are taking hits right now, will we see gold in the 1300's today?
Hope so. It's payday.
Gold and Silver can really fuck up your your deposit confiscation health, particularly if the owner happens to be an avid boater.
...or very well armed, or a nuclear power, etc. etc.
The above chart is 2008. Hasn't there been any changes in the last five years?
I'd certainly feel safer in the National Bank of Zimbabwe then BOA.
Just saying.
In that case, I have a one hundred trillion dollar bill in ZWN I'll trade you for in the same amount in USD.
That chart is missing one column; the standing army of these tax havens. That way it would make a lot more sense.
The only way for one to fully protect themselves from the greedy bankers is to be broke.
"It is a "fairness doctrine" world after all, where how much wealth one is allowed to have is now determined by politicians."
as if the power of money didn't buy the politicians in the first place to get their 'wealth' in the first place...
Not to be a party pooper but the numbers on the chart add up to about 7 trillion, not 32 trillion. Where are the other 25?
Just a thought: click on the linked article and read it
I would not want to be doing anything "suspicious" in the age of financial loss of privacy, there are just too many squealers out there, kind of like the former East Germany, why take offshore risks unless you have an iron clad lawyer firm willing to back it up?
True story; a guy went to a Carribean offshore bank to save on taxes; as the heat was turned up he ended up getting a call from the bank saying they were seizing his money and if he complained they would turn him over to the IRS. BTW, the US is the biggest money laundering place for foreigners. Google "Stew Leonard" a relatively early example of offshore tax enforcement; "Sovereign Society"; "Lynn Meredith"--oh btw, she just got out of jail for her BS work promoting offshore and other tax evasion schemes....
“a guy went to a Carribean offshore bank to save on taxes; as the heat was turned up he ended up getting a call from the bank saying they were seizing his money…”
Of course! It’s a closed system. It’s called absolute advantage. Members only, ya know.
Singapore insures only approx US$40k
https://www.sdic.org.sg/
"because when the hunt for wealth goes global, and when the untaxed money of evil [insert nationality] tax evaders becomes the political topic du jour and source of rescue bank capital.."
...then what?
At .75 percent, use mattresses. I perfer Thermopedics
Project Management 101: Where there is Risk -- risk of ANY kind -- you Identify & Mitigate against that risk. You may not be able to eliminate it entirely, but you can do the next best thing: Minimize Risk!
In the case of "offshore" cash/risk, treat like like an "onshore" cash/risk. Since they are all at risk -- but to different degrees and on different timelines -- you can use that to your advantage: Store the assets (cash, PM) in a number of places, and move it around as the situation demands. The way a cat mover her kittens from one location to another: to reduce risk to acceptable levels.
D & S Strategy: Diversify & Shift. Rinse and repeat.
Who are the Russian Oligarchs who were among Cypriot banks' largest depositors and allegedly forewarned to get their money out of Cypriot banks prior to the Troika depositors heist? Many, no doubt, are the same as those listed in 2004 by Forbes.
The Top Ten Russian Oligarchs listed by Forbes in July 2004:
And here is the 2004 commentary (excerpts) from “The Golden Hundred: Russia’s Richest People” by Paul Klebnikov:
A closer examination of the Forbes Russia 100 List confirms the old rule of thumb that great wealth is typically not held in the form of bank deposits or brokerage accounts, but is tied up with a successful business enterprise. It doesn't pay to liquidate your share. Consider the fate of former television and oil magnate Boris Berezovsky. In 1997, Forbes identified Berezovsky as Russia's wealthiest man, with a net worth of $3 billion. He was also the country's most influential businessman. It was Berezovsky who brought in an unknown oil trader named Roman Abramovich into one of Russia's largest oil companies, Sibneft, in the mid-1990s. Since that time, Berezovsky had a falling out with the Kremlin, was forced to sell his share in his various companies to Abramovich at fire-sale prices and moved to London. Today, Berezovsky is 47th on the Forbes Russia 100 list, while his erstwhile junior partner is Russia's second-wealthiest man.
The same lesson is visible in the fate of Lev Chernoi, one of the founders of the so-called Trans-World Group, which ruled Russia's huge aluminum industry for most of the 1990s. Chernoi sold his shares in 2000 and now heads up a little-known Moscow think tank. Today, he occupies a relatively modest 49th place in the Forbes Russia 100, while his two junior partners, Vladimir Lisin and Oleg Deripaska, who stayed in the metals business, are ranked as Russia's seventh and eighth richest, respectively.
While Russian capitalism may be highly dynamic, it can hardly be called well developed--one symptom of that the extraordinary concentration of capital. The combined net worth of the Forbes Russia 100 is $136.9 billion. In the autumn of 1996, Berezovsky declared to the Financial Times that he and six other individuals controlled 50% of the Russian economy. Berezovsky was exaggerating, but there was more than a grain of truth in his words. Today, much of that concentration of capital remains. According to a study commissioned by the World Bank, Russia's 23 largest companies (almost all of them are present in our list) account for 57% of the country's industrial production.
Russia has more billionaires in proportion to gross domestic product than any other major economy--36 individuals in relation to a GDP of $458 billion. Though it would be wrong to correlate net worth to GDP (the former is a question of capital, the second of revenue), but comparing the two gives an indirect indication of the degree of concentration of wealth in a country. The fact [2004] that the combined net worth of Russia's 36 billionaires ($110 billion) is equivalent to 24% of GDP speaks volumes…
Russia's capital is not only concentrated in the hands of a relatively small group of individuals, it is also highly concentrated in one part of the country: the city of Moscow. According to Forbes' estimates, all but three of Russia's 36 billionaires either live in Moscow or made their fortunes in companies that are based in the city. No other city in the world can boast such a number of homegrown billionaires--even New York could boast only 31 billionaires, according to the latest Forbes world billionaires list.
http://www.forbes.com/2004/07/21/cz_pkl_0721russianintro.html
Why is Deleware never on the list? Most of those banking centers' assets are registered to Deleware corporations.
When we were pursuing tax scofflaws with the Swiss Govt everything went away when they mentioned Delaware
La la la la, nothing to see here, move along, especially NOT at the Chancery Court, have a nice day.
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Its not just individuals who are at risk. What about all the overseas profits US corporations keep overseas to avoid US taxes? That's a very tempting target for foreign governments. The 35% US tax rate could seem like a bargain compared to near confiscation they could face.
The "35% US tax rate" is a ruse.
U.S. average corporate taxes are low by international standards; the average corporate tax rate (2000-2005) in the U.S. was 13.4%, lower than Australia, the UK, France, Portugal, Belgium, Spain, Japan, Finland, the Czech Republic, Denmark, Greece, Canada, Switzerland, and Korea. These are statistics from the Center on Budget and Policy Priorities.
This is according to the Center on Budget and Policy Priorities on February 14, 2012.
http://www.cbpp.org/cms/index.cfm?fa=view&id=3411
“Corporate taxes have plummeted as a share of federal revenue from a high of 32.1 percent in 1952 to less than 9 percent now.”
For example, Apple pays no more than 1.5% on profits it generates outside the United States.
The San Francisco Chronicle notesd last year that a report by a Senate subcommittee shows:
“Microsoft employed offshore entities in Puerto Rico, Bermuda and Ireland to sell its patents, licenses and other intellectual property developed in the United States to its own overseas subsidiaries at beneficial prices that help the company avoid U.S. taxes, the report said.:”
That “Last year 2011), 47 percent of Microsoft's U.S. sales were shifted to Puerto Rico under this arrangement, (Sen. Carl) Levin said, allowing the company to avoid U.S. taxes on ‘47 cents of each dollar of sales revenue it receives from selling its own products right here in this country.’
“The report showed that many Silicon Valley giants hold most of their cash overseas, according to financial filings this year (2012): Hewlett-Packard (100 percent), Cisco (89 percent), eBay (88 percent).
Read more: http://www.sfgate.com/politics/article/Tech-firms-find-havens-from-U-S-taxes-3882486.php#ixzz27DcgJ8Pa
OECD Puts CAYMAN ISLANDS On Tax ‘White List’
http://www.hedgeco.net/news/8/2009/oecd-puts-cayman-islands-on-tax-white-list.html
Goldman Sachs Evades Taxes, Takes Tarp Funds
http://open.salon.com/blog/anthony_m_freed/2008/12/18/goldman_sachs_evades_taxes_takes_tarp_funds
Singapore to Agree With U.S. on Sharing Bank Account Data
http://www.bloomberg.com/news/2013-05-14/singapore-to-agree-with-u-s-on-sharing-bank-account-information.html
Cayman Islands Spars With Sachs Over Hedge Fund Directorships
http://www.bloomberg.com/news/2013-05-13/cayman-islands-spars-with-sachs-over-hedge-fund-directorships.html
Where do the Clinton's have their money stashed?
I think you are missing the point with offshore tax havens. It is not about how much wealth you can have, it is about its location. If the wealthy, and thus influential, have to keep their money onshore, they will be the ones who ensure banks behave in a responsible fashion, since their money will be the collateral at the casino.