Wednesday, November 8, 2017

Paradise Papier Mache!

Long time readers of my blog may recall some of my posts from the past, about the years I spent working for offshore banks, trusts and hedge funds, or dodgy tech/media companies. In those posts I never talked much about the ins and outs of the business. Not because of any confidentiality agreement, but just due to the sheer boredom of it.

Now the ‘Paradise Papers’ are out, and the media is in a frenzy about how the so-called super rich are  trying to hide their millions, or intentionally evading the tax authorities by moving and investing their monies abroad.

Well, for anyone who is not familiar with this type of financial shenanigans.. Simply put…it’s all a load of pap… Like the Panama Papers before them, these Paradise Papers will do nothing to hurt the rich, only cause more regulation for US.
European Central Bank in Frankfurt
Not just the super rich, but just about anyone with any large amount of money can, may, and usually does, have their funds invested (or even just held) abroad. Everyone’s doing it!

Individuals and corporations, in using these facilities abroad, avoid multiple-taxation, and get to actually keep some of the money they ‘earn’. Naturally, it’s also very easy to move money around into other accounts, and sort of ‘lose’ it in the system; which can be very convenient for some.

To put it very simply, the reason these paradise island banks exist in the first place is to do exactly this! Avoid the restrictions that apply in places like the UK for example.

Allegedly, when I worked for an offshore institution, we used ‘instruments’ which moved shell-company monies through various banks using the Belgian SWIFT system through Europe to Asia, or the Pacific VIA the US and Germany. We even transferred monies to places like Iran – where you’re not supposed to – by using the same US and German banks.
Offshore banks a plenty in the Cayman Islands - Hurricane destruction
Now, how many people do you think were involved in offshore banking practices like this? How many people do you think knew about it? It was quite a lot. Why? Because it was all perfectly legal! Yes, legal. Legal loopholes are in place exactly so the rich can do this with their money. Another reason why people like Simon Cowell or Lord Sugar must allegedly be telling lies.

The questions we should really be asking are why are they talking about this at all, and why now? This is something I can’t answer. It could very well be an elite plot to bring the system down, but who knows the thinking behind it? A Russian/ Chinese plot, an American/UK plot, an Israeli plot? Whatever it is, it’s a mushy, sticky mess, that doesn’t hold water for long!
Papier Mache tray by Henry Clay

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