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Take The Offshore Cash

March 26, 2013   ·   0 Comments

 

In 2008 we realised that banks, around the world could not be trusted. Then some learned that no matter how much you deposit in a bank, roughly $100K of it only guaranteed should the bank fail. The bank take this money and lend it out at roughly 80% of what you have deposited, in many cases a lot more. In return for the bank looking after money and managing the lending of your money,  they pay  a thing called interest for exposing people to the risk that they may not manage the savings and loans that well and become insolvent. Therefore, by now, after all we have been through – anyone who leaves “cash” in a bank beyond this amount should be fully aware of the risk/reward balance.

One of the major problems in getting the world going is not so much the imbalance between the rich and the poor – though that is a huge problem – but that the rich just hoard their money.

The recent actions in Cyprus – that there is a chance your money could simply be taken from you because, technically, you had risked it by investing in a dodgy bank then that should be an incentive to the wealthy to stop hoarding.

I read somewhere that  18 Trillion dollars† is held offshore as cash. Perhaps closer to 21 tn as Switzerland is not included in the assessment. Cyprus , though not offshore could loosely fit that category because of their financial regime.

So there needs to be some form of encouragement for people to spend this money and get economies going and I am going to shoot from the hip here .. just putting it out there.

So here goes. Anyone who has cash offshore can invest in the domestic country of their residence without taxable penalty for five years on condition that they create more than one job per 150K of investment.

All “cash” in excess of an AVERAGE balance $100,000 will be taxed at 40% if it is sitting in a bank account in an interest bearing account  with less than a six month penalty of interest for more than 5 years.

This should be a UN regulation enforceable worldwide.

 

 

 

†http://www.globalresearch.ca/the-global-elite-are-hiding-18-trillion-dollars-in-offshore-banks/5317691

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