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The reason you can have pensions, savings, or insurance for anything is because the capital pools required to sustain them need to, a) have a return greater tha
by motohagiography 4y ago
The reason you can have pensions, savings, or insurance for anything is because the capital pools required to sustain them need to, a) have a return greater than local inflation caused by various domestic policies, and b) be out of reach of being looted by some populist or kleptocrat who wants to pay off their coalition with other peoples money.
I realize stable and consistent laws and governace fly in the face of some beliefs, but most criticisms of offshore centres reduces to people seeing a truck full of goods and thinking they can seize and resell the wheels so that others, too, can have wheels. If we didn't have the Caymans, we would need somewhere else. The benefit of the Caymans is they are sparsely populated and literally have one job, whereas if you had custodianship anywhere else, you would be putting the futures of entire nations at risk based on the politics of a banana republic.
From a technology perspective, they are like a secret store for authentication tokens. Sure, invent something better, but up-ending the current one without a plan is going wreck literally everything.
- kevin_thibedeau 4y agoThe criticism stems from people extracting disproportionate benefits from a stable society and not paying back their fair share through application of convoluted financial instruments available only to elites. You want to live in Somalia and protect your money in an offshore haven? Great. But do that in a nation that gives you a safe place free of roving bandits and you owe something back.
- pjc50 4y agoThe Caymans are there for tax avoidance: https://www.theguardian.com/business/2020/nov/20/427bn-a-year-lost-to-tax-abuse-by-firms-and-rich-individuals-study-finds https://www.theguardian.com/business/2020/nov/20/427bn-a-yea... I can see the argument that someone from, say, Argentina would benefit from the improved stability, but someone from a Western country is decreasing that country's stability by benefiting from it but refusing to pay for it. I would entirely support the EU making it illegal for EU nationals to do business with Cayman in the same way the US makes it illegal to do business with Cuba.
- medo-bear 4y ago> . I would entirely support the EU making it illegal for EU nationals to do business with Cayman in the same way the US makes it illegal to do business with Cuba. because Cuba is a tax heaven ?