WTF? Caribbean Banking Centers Now a Top Holder of US Debt.

[mod mom]

FIRST, THE MONEY PARTY DEFENSE CONTRACTORS/WAR PROFITEERS SCREWED US W A WAR AND A HUGE NATIONAL DEBT, NOW WE'RE PAYING THEM INTEREST ON THAT DEBT? WORTH A FULL READ:

Guess Who Screwed You? It's Worse Than You Think.
by Pluto

Mon Mar 16, 2009 at 02:11:10 AM PDT

-SNIP



Wait... what's this? The Caribbean? Where'd that big chunk from the Caribbean come from? That's new from the Bush years. What's that all about?

Here's the explanation according to one BIS paper I read today -- and brought into sharp focus by international economist researcher, Brad Stetser, who commented on it:

By the way, US banks were net borrowers from the rest of the world – but most of their borrowing came from a few Caribbean islands – and those islands borrowed heavily from "non-bank" counterparties in the US. The BIS doesn’t think this represents a true external flow: "this could be regarded as an extension of US banks domestic activity since it does not reflect (direct) funding from non-banks outside the United States."

Most of our Bush years borrowing came from the Caribbean? wtf? No wonder the Caribbean hasn't shown up on so many of the Debt stats. Now who has such massive amounts of Dollars in the Cayman Islands? (I'm assuming it's not coming from Haiti.)

Could that be where the defense contractors and our other war criminals and profiteers have hidden all our missing wealth? Hey, maybe the Madoff money is in Treasuries? Where else can you hide $50 billion?

-SNIP

http://www.dailykos.com/storyonly/2009/3/16/44854/9764/816/709044

[HamdenRice]

1. It's basically banking secrecy money from all around the world

Those countries did not acquire that many US assets by selling bananas.

[mod mom]

2. Yes, but much is paying interest on those * crony no bid contracts like KBR.

It sounds to me that they weren't happy enough screwing us the 1st time around (non-bid contracts), so they hide their profits in Cayman (2nd screw by hiding assets from paying taxes) and elsewhere, and by investing in US debt (treasury bonds), thereby getting interest from the US taxpayers for a 3rd round of screwing.

:mad:

[ThomWV]

5. I would suggest that most of the money comes from right here at home

You see, there are other places for the world's criminals to hide their money. Most chose one close to home. Besides, why put your money in a Swiss bank when you can go to the islands to visit your money, very nice to visit in January if you're from Baltimore or Cleveland.

[KharmaTrain]

3. Tax Havens Are A Major Import...

Check up on Alan Sanford's ponzi scheme in Antigua...that's just a starter. Corporations have been offshoring their money in the Carribbean for decades. Over the past 8 years many followed further by moving their corporates to those locals...such as KBR...that saved them billions in taxes. Thus they had their cake and ate it too...they dodged taxes while their riches were sheltered away outside of any possible regulatory scrutiny.

And those Carribbean countries bent over backwards to welcome the banks and corporations. One big player was/is Panama. No wonder Poppy booosh invaded...no one cuts in on his business. For these small islands, the billions that flew in created jobs and relative priosperity.

Remember, Madoff and his ilk were at this game for years...had contacts around the world and plenty of willing governments who colaborated. We saw billions fall through the rat hole in Iraq...pallets off of planes. It's not that hard to make money vanish in this world...especially when corrupt politicians are involved.

[mod mom]

6. I just wrote my Senator to demand transparency in all international banking and to

discontinue contracts with corporations that seek to hide assets from paying taxes. If the corporations want to use these banking centers then they shouldn't be allowed to do any business in the US.

Some politician would score many points by going after these war profiteers (ex: KBR) and tax evaders.

[KharmaTrain]

8. I've Heard Of Some Rustling...

I was looking for a link, but couldn't find one...there have been a few Congresscriters who have talked about pushing laws to tighten the offshore banking loopholes, but as always, too little, too late and with little real conviction.

Unfortunately, while the populace is outraged, the beltway games are business as usual. Lobbyists with campaign contributions all bundled and ready to go will have their say and way. I still don't see enough outrage in the beltway for real reform...they just want their portfolios to become fat again.

Cheers...

[ThomWV]

4. Just out of curiosity where did you think profits from drugs go?

Not only drugs but certainly not from "no bid contracts". You see, if you get a contract from the Government - even if you got it illegally - you are still intimately tied to the US tax system with the money earned from performance of that contract.

[mod mom]

7. Are you suggesting that firms, such as KBR, paid their share of taxes?

I guess I don't understand your question.

I do believe drug money is also in these hidden accounts. I would think if the US Governement demanded transparency or else, no contracts, no doing business w the US if these accounts are used, the banking might open up. I am the 1st to admit I am NOT a banking expert, but I certainly know the system is broken.

[malaise]

9. Laundered

drug money in off shore banks.

[shadowknows69]

10. What I really want to know

Is when the fuck did we have to borrow money from Luxembourg? The country is the size of my city.