Comments on: Delaware Beats Switzerland as Most Secretive Financial Center http://cryptogon.com/?p=11976 news - analysis - conspiracies Tue, 09 Feb 2010 15:25:23 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: lagavulin http://cryptogon.com/?p=11976&cpage=1#comment-17654 lagavulin Mon, 02 Nov 2009 16:59:44 +0000 http://cryptogon.com/?p=11976#comment-17654 Unfortunately this Tax Justice Network has missed the point. It isn't Delaware in particular, it's the fact that virtually every top-tier investment and/or banking house has been incorporated in Delaware. "Total U.S. deposits of non-residents rose from about $1 trillion in 2001 to $2.6 trillion in 2007, according to the study." The $1.6 trillion in undisclosed money being referred to flowed into some number of these top tier banks. Which begs the question: Why? In the 6 post-9/11 years studied -- a period of unprecedentedly restrictive foreign asset disclosure rules, a period where the US is globally viewed as being LESS laissez-faire and MORE regulatory -- why would Goldman Sachs, CIT Group, BofA, Wells Fargo, et al be viewed as such hot new places for wealthy foreigners to safe-keep their tax-haven assets? The rational conclusion is, they wouldn't. Which means this isn't "tax haven" money flowing in. My 2-cent opinion is that the sweeping new post-9/11 banking reforms were somehow also used to create a back-door for all that Caymen Island/Swiss/Luxembourg/whereever illegal-activity-laundry money to get repatriated back into the US system in quantities that couldn't or wouldn't have happened before. This is Catherine Austin Fitt's drugs/arms funds that's flooding back home to Papa. I suppose this could help answer a host of confusing questions as well. Why hasn't the US collapsed? Why has the stock market run upward in the face of reality? Why are Treasury auctions greeted by ever greater (and ever more invisible) buyers? Why do the bailout coffers never seem to empty? Etc. etc. It appears it may not just be the Fed that opened a liquidity spigot. Somehow, some way, even in the face of a financial War on Terror, more "shadow money" has managed to flow into the US in just the past few years than anywhere else in the world! Unfortunately this Tax Justice Network has missed the point. It isn’t Delaware in particular, it’s the fact that virtually every top-tier investment and/or banking house has been incorporated in Delaware.

“Total U.S. deposits of non-residents rose from about $1 trillion in 2001 to $2.6 trillion in 2007, according to the study.”

The $1.6 trillion in undisclosed money being referred to flowed into some number of these top tier banks.

Which begs the question: Why? In the 6 post-9/11 years studied — a period of unprecedentedly restrictive foreign asset disclosure rules, a period where the US is globally viewed as being LESS laissez-faire and MORE regulatory — why would Goldman Sachs, CIT Group, BofA, Wells Fargo, et al be viewed as such hot new places for wealthy foreigners to safe-keep their tax-haven assets?

The rational conclusion is, they wouldn’t. Which means this isn’t “tax haven” money flowing in.

My 2-cent opinion is that the sweeping new post-9/11 banking reforms were somehow also used to create a back-door for all that Caymen Island/Swiss/Luxembourg/whereever illegal-activity-laundry money to get repatriated back into the US system in quantities that couldn’t or wouldn’t have happened before. This is Catherine Austin Fitt’s drugs/arms funds that’s flooding back home to Papa.

I suppose this could help answer a host of confusing questions as well. Why hasn’t the US collapsed? Why has the stock market run upward in the face of reality? Why are Treasury auctions greeted by ever greater (and ever more invisible) buyers? Why do the bailout coffers never seem to empty? Etc. etc.

It appears it may not just be the Fed that opened a liquidity spigot. Somehow, some way, even in the face of a financial War on Terror, more “shadow money” has managed to flow into the US in just the past few years than anywhere else in the world!

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