Third World Wealth Flight

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There is huge stock estimated at 5 trillion dollars of anonymous Third World flight-haven wealth that has been invested in First World assets where it generates tax-free returns for its owners and handsome fees for the global private banking industry.

The island of Jersey one of Britain's channel islands and the Cayman Islands are offshore tax havens.

Offshore Bank trusts are not registered and there is no way to learn the identities of the people behind them. They even have a " flee clause" that trigger an instruction to their trustees to shift the assets to another jurisdiction and appoint new trustees at the firs sign of investigation..

Since corrupt leaders send their kickbacks, bribes, and stolen funds to offshore accounts, Third World wealth disappear in offshore banks in vast amounts.

When Third world countries take on debt to compensate for falling tax yields ( or tax dollars that were stolen) it causes a vicious cycle for instance slower growth rates, it increases both economic uncertainty and social inequality, and further increasing political risks and encourage more capital flight.

Slower growth makes it more difficult for Third World countries to service their external debts while maintaining public services and infrastructural investment programs.

To conclude, offshore tax havens undermine the economic growth and cause poverty of Third World countries.

Source: The secret world of offshore banking ty John Christensen.For more info: www.submergingmarkets.com
www.jubileesouth.org

Lionne Club, January 10 2008, 2:57 PM

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