decline of empire.
1956 Egypt nationalized Suez canal. Nazar.
UK and france attacked Egypt. US asked them the withdraw. Eisenhower asked UN to take decision. It was the end of Britain’s power. After that there was run on Sterling on UK pound. US was encouraging this. Value of pound decreased. Britain limited bank’s overseas lending. Banker’s deal with bank of england. if 2 non residents have transaction its not under bank of england.
banks created markets for dollar in london. london euro dollar market. domestic banking and this banking. banks kept 2 sets of accounts for this.
bank of england said its happens somewhere else.
US banks know this and moved their operation to london.
1960s cayman island last part of empire. financiers came there and created financial secrecy laws and regulations. these are secrecy jurisdiction. complete illegal actions.
Apr 11, 1969 bank of england report.
1080 – 500 billion
1988 – 4.8 trillion
1997 – 90% all international loans were made through this markets.
british empire sank. but city of london adapted and survived.
city of london, lond’s financial district. city within city. it is run by an organization called city of london Corporation, a private company which does all the function of local council.
London and city of london are 2 things. it has a lord mayer different than the mayer, who runs the rest of the london.
November, lord mayer show. oldest civic procession.
It has special leagal status. 1066, william the conquerer came over, only portion of england he cant conquerer was the city. he struct a deal with city in 1067 allowing to continue to function. till date city is exempted from lot of laws.
Its electorate not dominated by residents, but private business which operates there.
Its lord mayer is selected by the medieval guilds.
It has representative in house of commons called …. The only unelected person there.
clement attlee – criticism of city of london.
At the heart of city of london stands the bank of england. it is a cetral bank and financial regulator.
1972. issued license to bank of credit and commerce international. in 7 years it became largest bank in the world. 10 years later bcci bankrupted.
cia used this bank for its operation.
bcci cooperated with intelligence agencies, also did financial frauds, money laundering, terrorist financing.
no bankers goes to jail in Britain. so more banks are there.
Trusts – from old ages. when knights goes fighting foreign lands they leave their assets with trustistuents.
They playing with ownerships. ownership is not a simple thing.
anyone can setup a trust and become a trustee. no registry. between settler and trustee.
trusts are invisible arrangements.
trillions that dont belong to nobody. financial assets and non financial assets.
50 trillion dollar assets behind this.
Trust is the top. Below that lot of structures.
Offshore secrecy structure
panama paper showed it. But govts cannot act on it.
Offshore law firms. Mossac fronseca is the 4th largest Offshore law firm
top 9 Offshore law firms are registered under british overseas jurisdiction.
Relationship between britain and these offshore havens happens in closed doors and informal.
British establishment use codified language about this so people cant understand it.
Keeps its power secret.
[in the wake of freeing colonies, why cayman and others not freed?]
bahamas declared independence from britain in 1967. the offshore bankers relocated to the cayman island. Its british connection made the banker’s money safe.
All dirty works happens in city of london. But when scandals happens they say its tax haven activity, no connection to them. Convenient relationship
international financial services. UK is largest provider.
Global provision if finance services, financial services to non residents. 2 big centers are – UK(25%) and USA (19%).
but if adding ex-colonies, hongkong, singapore, dubai, syprus, then UK’s share becomes 40%.
administers left the colonies. But they still control the financial flows. So its britains hidden second empire.
When you look at the money flow through the tax havens they are increasing when britain withdraw from the colonies.
Secrecy and no tax.
combined debt end of 2008 was $177 billion.
But the wealth these country’s elites moved offshore 1970 to 2008 from 33 sub saharan countries totaled $944 billion.
Sub saharan africa is a net creditor to the world.
As capital moved offshore africa borrowed money from international banks with high interests. Over time it became never be repaid.
Ecuador tried to setup UN tax body, UK and US blocked every time.
Why they dont want democratic decision making on how tax get collected.
Western nation dont want transparency in global financial flow and taxing.
Developing nations every year looses $1 trillion dollars in capital flight and tax evasion. It goes to mainly to UK and US making their currencies stronger. Another effect was the economies of US and UK became financialized. This financialization means de industrialization goes back to 1960s.
Chase Manhattan bank, balance of payment economist MH.
In 1960s US balance of payment deficit was entirely because of wars in overseas. Dollar was flowing out of US. Govt want Chase to setup a bank in saigon, It lost money.
1967 State department memo urging Chase manhattan to help it to became switzerland of the world. Flight capital.
Plan was setup offshore banking centers in careebians etc. the hot money did not come directly to Chase. Criminals, drug dealers etc put money in offshore carrebian banks. These will deposit inflow to the head office.
With this US stopped outflow of dollars.
Foreign exchange in not just import and export. Its capital movement.
IMF status report, you see steady balance of trade, what goes up and down are errors and omissions. Errors and omissions are Fright capital?
1930s roy ovid hall ? Economist for US commerce department wanted to include criminal movement in balance of payments statistics. Congress was upset and said we are christian country, we dont want to report crime. So they forbid him to include criminal money in balance of payments. That is errors and omissions.
1960s-70. In UK money was going out, decreasing value of pound.
Inflow of criminal money to london.
1986, economist john christenson went offshore to jersey office of accounting firm Deloitte.
Clients are doing all financial crimes.
Today half of world’s secrecy jurisdictions are british dependencies.
Cayman Island is the 5th largest financial center in the world. It has 80k registered companies. ¾ of world’s hedge funds. And 1.9 trillion dollars deposits. It has a population of 60k. Equal to Ny’s homeless population.
Treasure Island – book by Nicholas sansen?
2011. Jersey senator stuart syvret. Whistleblower. He was suppressed and then taken to court. Prisoned 3 times. Case not ended. Its continuing. Harassment going on.
Jersey is an extension of city of london, they says.
they have more lobbyists from london, including politicians to protect the city of london interest than every other EU states combined.
David camoron’s father Ian camoron was expert in offshore funds. He was involved in offshore trusts from 1980s .
2009 his wealth was 10 million pounds. When he died in 2010 his wealth was less 2.7 million pounds.
Upper class public school establishment doing this for centuries.
At demise of empire, british establishment, old boy’s network of privileged elites transformed themselves from the administrators of empire to financial handlers of global elites and multinational corporations.
The reality is not what you believe, that your primeminister has the power to decide on the future of your country. The power is hidden here, [in london]. – eva joly mep. Vide chair of panama paper committee.
if so much of wealth is hidden does govts, market, distribution of wealth works better?
Half of the land in scotland is owned by anonymous people.
In 60s and 70s pushing back against taxation is kind of seen as anti establishment. Rolling stones, phil colins etc going offshore, seen as a rebellious thing to do.
Now the offshore system is the establishment.
Now offshore is the way elites and corporations conduct operation
This kind of sophisticated cheating requires huge infrastructure of highly educated people who think its their rights to help others to cheat society.
Accountants are the backbone of the offshore system.
2.5 million accountants in this planet. 3.3 lakhs are in the UK. Tax avoidance.
“we generate millions of dollars of revenue. Clients are satisfied. What is your problem”. Simple, thats the language of drug pushers and pimps.
In UK new kind of civil servants rising up. HMRevenue and Costoms head dave hartnett. He negotiate with rich.
2011 protest. Senate committee.
Financial service industry penetrated the state.
After retiring dave joined deloitte, accounting firm.
PFI private finance initiative
way a funding public infrastructure by private sector. Over 30-40 years the amount of repayment cost is 3,4 times higher than borrowing from central govt. its a joint accounting scam.
The big 4 accounting firms helps companies to exploit.
Hmrc is the tax collector in uk. Its office is owned in bermuda by a company named. Hmrc head office is run by this private company. They borrowed money from offshore investors at 15% interest. Company is loosing money because of high interest. So no tax is paid by them.
2011 any PFI company pay any tax in uk.
25% of international finance is conducted on british territory. Half of all secrecy jurisdiction are under british protection. Half of all offshore wealth may be hidden in british offshore havens. Financial services, by that british elites makes their money.
Nullius in verba
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