How does this “hot” money leave these countries [illegally]? Global Financial Integrity has calculated that 83% of illicit financial flows are due to what it calls “trade misinvoicing”.Visual Capitalist
The World’s “Hot” Money [Chart]
Jeff Desjardins
6 comments:
The guy is misinterpreting extremely low / discounted prices in USD terms offered by foreigners to US entities as "munnie leaving the country!"
Perpetuating the whole "munnie is munnie!" falsehood... does not understand forex imo...
Matt, have a note for your son under the Just Gatekeeper/Trump thread.
Nowhere in that report do the authors state what currency is "leaving the country." Is it USD? Yuan? Rubles? What? (And good luck getting the Chinese to agree to having their companies' info collected in some Finnish/French database.)
Because if it's USD--and unless it's baskets (or planes) of actual physical cash--those USD are in accounts at the Fed. USD can't leave the US banking system, by law. Period.
Seems to me they're trying to impose a global nanny tax system under the OECD, or am I missing something.
M, its the whole term itself ie "money"... its at LEAST a metonym if not a metalepsis so it is a figure of speech either first order or first derivative figure of speech...
https://en.wikipedia.org/wiki/Metonymy
https://en.wikipedia.org/wiki/Metalepsis
True science cannot use figures of speech science has to use well defined technical terms...
Like you say a USD cannot leave the USD system this they dont get... to them whether its a USD balance they are talking about or a Yuan balance to them it is just "money!"... its really sophomoric and unscientific... what they will do is "convert" the "US money!" into the other "Chinese money!" using the latest exhibited exchange rate which adjusts to reflect the terms of trade... so imo this guy is ignoring that regulatory adjustment and concluding "money left!" or "money flowed!", etc...
Saw the comment there thanks... I think Marriott Corp now does the same type of thing with the "Courtyards", etc... Perhaps "Hilton", and some others... Keeps his risk limited and provides the management systems for a royalty type of deal... this is why the "Trump" things can go bankrupt but he doesnt personally....
Also saw your comment about his daughters religious conversion.... dont know why this doesnt help with the neo-cons they still are on his ass big league... They probably want something more explicit and I dont think that is his way of doing business ie he does not want to be compromised right up front...
Had some familiarity with conditions in NYC back in the late 70s early 80s when he went in there it was a mess... I give him most of the credit for NYCs turn around since that time he was like the first one to really go in there with the intention of turning it all around... it was like "make NYC great again!" and I think he succeeded...
those USD are in accounts at the Fed. USD can't leave the US banking system
It's true that dollar reserves (accounts at the Fed) don't leave the U.S.
However, every time a U.S. firm or individual transfers a (dollar) bank deposit held at a U.S.commercial bank to a foreign country bank, there will be new dollar balances created abroad: the foreign bank expands both sides of its balance sheet with a new (dollar) deposit held at an American bank and a new liability (bank deposit) denominated in dollars, owed to the U.S firm or individual who ordered the transfer.
Do you guys really have this much trouble understanding money laundering and tax evasion?
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