Written by Mikaprok; Originally appeared in Russian in his blog
A study in landscape design for exotic places on Earth.
Let’s try to bring some context to the never ending discussion of offshores.
The amount of leaks concerning offshores may very well surpass the amount of legal information. More than 13 million of documents have fallen into the public’s hands, and the media try their best to find some recognizable names out of vast expanses of text, trying to match them with known information.
It’s time to dot the i’s and cross the t’s by laying some fundamental truths out.
Let’s start with the big question.
Who keeps the money in the offshores? Doesn’t matter whether the offshores are British, American, Asian or Middle Eastern.
If we want to keep it simple then the answer is everyone who has money. One way or the other they keep them in offshores.
Since the 1920s, Switzerland has existed in its own international banking dimension. The European cream of the crop all kept their money there.
In the early 80s, 16 territories around the world join Switzerland, from Bahamas to Hong-kong.
Since then, the amount of companies circumventing the state tax laws has been increasing 200-300% per year.
In 2016, an unprecedented study was conducted thanks to the efforts of Bank for International Settlements. This study showed that the amount of money kept in offshores equals to 10% of the world’s GDP. 10% was the lowest estimate.
For example, Russia had offshored a sum equivalent to 50% of its GDP, Venezuela, Saudi Arabia and United Arab Emirates did so with 60-70% of their GDP. The UK and the EU had offshored approximately 15% of its GDP (the actual number is much higher).
0.01% of the richest families of the UK, France and Spain have offshored from 30 to 40% of their respective GDPs.
In Russia, this number reaches 85%. In China, 95%.
The US’s is estimated to be 60-70%, as Delaware does not disclose its information to international organizations.
So, if you take a look at all of the offshore data, and not only at random snippets, you’ll see the very best houses of our small planet there. The worst houses will be there too.
If we apply these numbers to this map, provided by the Tax Justice Network, this is what we get:
Overall there are $21 trillion in offshores, $9.8 trillion of which are assigned to people with wealth over $30 million.
That, strictly speaking, does not seem fair.
Overall the world’s cash tends to pass from the EU and the Americas to Southeast Asia, which can be observed here:
Soft power at work. How did the U.S. destroy Switzerland?
By threats to confiscate swiss assets in the US and prosecute swiss citizens abroad, for violating US laws , even outside US territory.
Threats or bribe. Stick or carrot. Divide and conquer.
No one destroyed Switzerland. It was simply vital to get other facilities for the elite. EU’s laws were starting to impede the easy operations of the elite. Secondly they felt it was important to get attention off Switzerland because the World Bank (Bank of International Settlements) keep their mountain of gold there. Any banking scandals that might draw attention to Switzerland are to be avoided. Keep the nose clean. That’s why they needed other havens. Bildebergers etc. are behind this.
Methinks if you want to close down these tax havens its very simple, just do what they did from Iran. Lock them out of the international banking system. Can’t do much illegal banking if you can’t slush your ill gotten gains to them.
1.The Amounts stated in the Article are way below actual amounts .. please study the excellent reports by Tax Justice Network .. which are very conservative estimates.
2. The USA harbours far the biggest Tax havens in the World .. i mention the state of DELAWARE just as one example The majority of all big US Companies are incorporated in that State
3. It would be prudent .. to relate the numbers to the estimated GLOBAL BMP .. for the numbers to give any meaning for the general public .. as far as i am aware the Global BMP is around 50 – 65 Trillion US dollar ( Billions in European mode of counting ) and the amounts held of shore arrived at by Tax Justice Network are in a conservative estimate approx 36 Trillion USD
4. The most interesting FACT is ..that the major Corporations engaging in Ofshore activities are the same 50 Corporations which by the study by ETF Zurich CONTROL approx 40 % of all the 27 Million registered Companies in this world
5. Even more interesting is the FACT that the NGOs financed by these 50 Companies are the Money financing behind the Journalistic Organisations claiming a burning Desire to EXPOSE the Offshore Evildooers .. but on a persistent basis FAIL to mention these OFFSHORE HEAVYWEIGHTS
so, russia is the biggest loser. and putin does not anything against this. typical. therefore (russian megathiefs) has russia no future.