Thursday, March 14, 2013

The Second British Empire Provides A Home To Oligarchs

This is a long article (via Manan Shukla) that describes The City Of London as a very special place.  It has its own government, separate from the government of London, and it is where many of the richest oligarchs have established residency.  They do so for many reasons.  London is a nice place to live, when you are not in one of your other homes, but The City Of London is also a tax haven which provides many benefits to those who relish secrecy, and protection from legal authorities elsewhere in the world.

The article also provides some insights into the new global community plutocracy.  Most of them have not made their fortunes by building a productive enterprise.  They have acquired interests in commodities like oil, gas and other minerals through political intrigue and by exploiting weaknesses in the rule of law.  It is estimated that 16% come from Malaysia whose government has been under attack for corruption.  Of course, the oligarchs from the former Soviet Union,  as well as those from oil rich states in the Middle East and Nigeria are also well represented.  Most of the new plutocrats use a complex of tax havens to shield their holding from public view and to avoid taxes and criminal prosecution.  The City Of London is at the center of this complex.  It has become the second British Empire which has little connection to London proper or to the rest of England.  The City Of London has been established for this purpose, and it vigorously defends the system that has made it attractive to the global plutocracy and the financial center from much of the world.




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