Why do people hide their money in offshore accounts? What is an offshore account? Is there really some tiny little bank on a tiny little island, and all the rich people open accounts there? Of course not. The offshore accounts, often called hedge funds, private equity funds, capital funds, are simply secret accounts set up by Wall Street for their criminal friends to use to hide enormous amounts of money from the federal government.
Why do people want to hide enormous amounts of money from the federal government? The first and most obvious reason is to avoid taxes. As long as the money is hidden, no tax.
They open an account in someplace like the Cayman islands, but the money doesn't stay there. There are more important reasons people use offshore secret private accounts to hide their money. People like Romney, and all the other rich people, many of the politicians -- can send millions offshore, hide their money from troubling citizens who might ask where they got the money, turn it over to a trusted Wall Street insider to manage.
Their millions are then combined with millions from other people who want to hide their money, such as the major drug dealing cartels, sex traffickers, the child porn industry, businesses like Halliburton who do illegal dealings with countries like Iran and want to keep it secret, of course bribes and kick-backs paid to politicians, and the money most politicians in the world loot from their own countries such as the millions stolen by the leaders we installed in Afghanistan who now reportedly are head of the biggest drug cartel in the middle east. Remember the Carlysle Group, a private equity fund in which the Bushes and the bin Ladens both invested millions? You get the idea.
The "clean" upper class white men of the world deposit their money, pretend not to know anything, but in fact their money is combined with drug money and child sex trafficking money to create a huge fund. A powerful huge fund.Then what happens?
The fund collects a lot of money. They use the money to swoop into some country. Let's say Bulgaria. They secretly begin buying up homes, while at the same time encouraging the local banks to lend money to citizens because the citizens now want to buy a home. Why not? There's a shortage, prices keep going up, buy now, you can't lose in real estate. The prices for a home go up, maybe double, and when it hits the top the secret fund sells everything, the housing market collapses, the local banks collapse because people cannot repay the mortgage, the nation is bankrupt, people lose their jobs.
In many countries, if a person has a mortgage for $500,000, but the house is now worth $300,000, that person will be required to pay off the difference -- the $200,000. It will follow them to their grave. Even after they've been thrown out of the house and have nowhere to live, they will still owe the bank more than they will ever be able to repay.
Then guess what happens? Either the IMF or World Bank moves in and takes over the country, "loans" the government money, orders them to fire most of the state workers, shut down the schools, eliminate pensions, so they can pay back the IMF or World Bank. In some cases, the private funds go to the government and offer to loan them money directly. At a steep interest rate. And to ensure it will be repaid, they often demand that the government lay off half the state workers, shut down the schools, end healthcare. In either case, these nations become permanent debtor nations, never able to get out of debt. Just like most of Africa, which was forced into that position of permanent poverty by the Europeans.
Of course this is the same method that has been used in many countries around the world, as well as here in the U.S. On a global level, these funds will buy up wheat, for example, take it off the market, suddenly there is a shortgage, the price goes through the roof, they begin to sell at twice what they paid for it. Of course millions go hungry, many die of starvation. But the private equity funds make more money for scum like Romney, who hide that money in offshore accounts.
Friday, January 20, 2012
Mitt Romney Has $7-32 Million "Offshore." What are "Offshore" funds?