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View Diary: Leak of Identities & Emails of Rich Hiding *$32 Trillion* Offshore (240 comments)

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  •  32 Trillion? (5+ / 0-)

    That's 1000 Warren Buffets and Bill Gates with all their money in cash.  I have doubts.  

    Denise Rich with a crappy 140 million?  And there's 21,000 like her,  all in cash?  And this is just one bank?

    I remember when a billion was a lot of money.

    Let me see, carry the one, at 3% interest, that much money makes a trillion a year, just in interest.

    Orly, it isn't evidence just because you downloaded it from the internet.

    by 6412093 on Wed Apr 03, 2013 at 11:12:58 PM PDT

    •  Just sitting there it does nothing. Interest is (10+ / 0-)

      only earned if someone has borrowed the money and is using it in trade and exchange.
      If you think of dollars as similar to the letters of the alphabet, visible and tangible representations of sound, then the quantity being stored has no more significance than the books in the Library of Congress that are going unread.
      The only import this warehouse of dollars would have is if, because so much is in storage, the people who issue dollars argue they should make no more for anyone else to use. Imagine arguing that because there are billions of words in books, we may not write any more.

      We organize governments to deliver services and prevent abuse.

      by hannah on Wed Apr 03, 2013 at 11:47:10 PM PDT

      [ Parent ]

      •  Exactly... (9+ / 0-)

        Hyper inflation terrifies the rich but in reality, it could have a very equalizing effect on wealth distribution.  If the US printed $32 trillion and used half of it to pay off our national debt and the other half to rebuild infastructure,  the money in off shore accounts would effectively be cut in half.  As long as all wages were doubled as well, it would effectively cut everyone's debt in half as well.  

        I know this is an extreme example that would never happen but just as a thought experiment, it demonstrates why it is so important for the rich to keep inflation down and stop the treasury from printing money.  

        "Perhaps the sentiments contained in the following pages, are not YET sufficiently fashionable to procure them general favour..."

        by Buckeye Nut Schell on Thu Apr 04, 2013 at 06:15:22 AM PDT

        [ Parent ]

        •  The money that is moved from the public (6+ / 0-)

          treasury into the private sector isn't printed. We do that by key strokes now, both when the Fed transfers dollars to banks and when the Social Security Administration makes pension payments. Although the latter now are mandated to go through banks, these regular electronic transfers have not placated the banksters because they can't play with these funds as they'd like, but have to keep them available for the owners of the accounts to draw down. They get to use them short-term and keep whatever interest they can collect that way, but they can't make long-term bets. If there was an intent to compensate banks for having taken away the graduate education loan program, it hasn't worked. Student loans were a gravy train AND an enabler of spurious training programs set up by corporate cronies.

          We organize governments to deliver services and prevent abuse.

          by hannah on Thu Apr 04, 2013 at 07:35:30 AM PDT

          [ Parent ]

        •  Yes, but then we would be paying double (0+ / 0-)

          for good and services too if the dollar is worth less.

      •  According to what (3+ / 0-)
        Recommended by:
        elwior, kurt, ybruti

        I've read many of the BVI bank 'trusts' do move this money around and 'invest' it, globally. I don't think they just park this money they make more money with it.  

        Another prominent American in the files who gave up his citizenship is a member of the Mellon dynasty, which started landmark companies such as Gulf Oil and Mellon Bank. James R. Mellon – an author of books about Abraham Lincoln and his family’s founding patriarch, Thomas Mellon – used four companies in the BVI and Lichtenstein to trade securities and transfer tens of millions of dollars among offshore bank accounts he controlled.
        Spanish names include a baroness and famed art patron, Carmen Thyssen-Bornemisza, who is identified in the documents using a company in the Cook Islands to buy artwork through auction houses such as Sotheby’s and Christie’s, including Van Gogh’s Water Mill at Gennep. Her attorney acknowledged that she gains tax benefits by holding ownership of her art offshore, but stressed that she uses tax havens primarily because they give her “maximum flexibility” when she moves art from country to country.
        Even as the world economy has stumbled, the offshore world has continued to grow, said Henry, who is a board member of the Tax Justice Network, an international research and advocacy group that is critical of offshore havens. His research shows, for example, that assets managed by the world’s 50 largest “private banks” — which often use offshore havens to serve their “high net worth” customers — grew from $5.4 trillion in 2005 to more than $12 trillion in 2010.
    •  no. 32 trill is a guess of all offshore funds. (5+ / 0-)
    •  Between 1985 and 2009 (4+ / 0-)

      American's one percent accumulated more wealth than existed on the entire planet in 1980.

      They're expected to again double their net worth by 2020.

      I don't have documentation offhand for these stats.

      I'm living in America, and in America you're on your own. America's not a country. It's just a business.

      by CFAmick on Thu Apr 04, 2013 at 07:50:07 AM PDT

      [ Parent ]

    •  I think the total value of all companies listed on (1+ / 0-)
      Recommended by:
      elwior

      all US stock exchanges is around $30T.  Of course who is to say that a lot of those $32T in assets aren't in the form of shares of stock?  This is wild because in theory rich people could own and control all the public companies in the US and not have to pay any tax on profits thanks to having their shares squirreled away in the Caymans or Malta or wherever.  Wait a second, that's exactly how it is already...

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