The Global Elite Are Hiding 18 Trillion Dollars In Offshore Banks
In recent days, the fact that Mitt Romney has millions of dollars parked down in the Cayman Islands has made headlines all over the world.Â But when it comes to offshore banking, what Mitt Romney is doing is small potatoes.Â The truth is that the global elite are hiding an almost unbelievable amount of money in offshore banks.Â
According to shocking research done by the IMF, the global elite are holding a total ofÂ 18 trillion dollarsÂ in offshore banks.Â And that figure does not even count any money being held in Switzerland.Â That is a staggering amount of money.Â Keep in mind that U.S. GDP in 2010 was only 14.58 trillion dollars.Â So why do the global elite go to such trouble to hide their money in offshore banks?Â Well, there are two main reasons.Â One is privacy and the other is low taxation.
Privacy is a big issue for those that are involved in illegal enterprises such as drug running, but the biggest reason why people move money into offshore banks is in order to avoid taxes.Â Some set up bank accounts in foreign nations because they want toÂ legallyÂ minimize their taxes and others set up bank accounts in foreign nations because they want toÂ illegallyÂ avoid taxes.Â You would be absolutely amazed at what some large corporations and wealthy individuals do to get out of paying taxes.Â Unfortunately, the vast majority of the rest of us donâ€™t have the resources or the knowledge to play these games, so we get taxed into oblivion.
So why do they call it â€śoffshore bankingâ€ť?
Well, the term originally developed because the banks on the Channel Islands were â€śoffshoreâ€ť from the United Kingdom.Â Most â€śoffshore banksâ€ť are still located on islands today.Â The Cayman Islands, Bermuda, the Bahamas, and the Isle of Man are examples of this.Â Other â€śoffshore banking centersâ€ť such as Monaco are actually not â€śoffshoreâ€ť at all, but the term applies to them anyway.
Traditionally, these offshore banking centers have been very attractive to both criminals and to the global elite because they would not tell anyone (including governments) about the money that anyone had parked there.
These days some governments (particularly the U.S. government) are trying to change this, but we certainly will not see the end of offshore banking any time soon.
The amount of money that goes through these offshore banks is absolutely astounding.
It has been estimated thatÂ 80 percentÂ of all international banking transactions take place through these offshore banks.Â Â $1.4 trillionÂ is being held in offshore banks in the Cayman Islands alone.
One article in the GuardianÂ estimated that a third of all the wealth on the entire globe is being held in offshore banks, and others believe thatÂ as much as halfÂ of all the capital in the world flows through offshore banks at some point.
Obviously, all of this tax avoidance means that governments around the world are missing out on a whole lot of money.
It has been estimated that the U.S. government is missing out onÂ $100 billionÂ a year because of these offshore banks.Â Others would put that figure significantly higher.
Avoiding taxes is a game that the global elite have mastered.Â They are playing a whole different ballgame than you and I are.Â They donâ€™t just sit there like idiots and get blasted with taxes.Â Instead, they hire the best experts and they employ every trick in the book to hold on to as much money as they possibly can.