Pope attacks offshore finance
Thursday 11th December 2008, 3:01PM GMT.
THE Pope has joined a growing chorus of anti-tax haven campaigners calling for offshore centres to be shut down.
Vatican officials have drafted a new policy paper which pointed the finger of blame for the global financial crisis at what are described as secrecy jurisdictions. The policy paper is reported to say: ‘They [offshore tax jurisdictions] have given support to imprudent economic and financial practices and have also played a significant role in the imbalances of development, allowing a gigantic flight of capital linked to tax evasion. Offshore markets could also be linked to the recycling of profits from illegal activities.’
Pope Benedict’s report estimates that the global fiscal deficit caused by offshore activities is £175 billion – more than three times the total sum of global development aid.
Speaking as Treasury Minister, before being elected as Chief Minister, Senator Terry Le Sueur said that he was not worried by the Pontiff’s alleged finger-pointing. ‘I haven’t seen the whole document, but I understand the thrust of it,’ he said.
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This truly is hypocrisy of the tallest order. His band of misfits have been duping the poor and needy and stealing from tax payers for centuries using fear of religion as leverage designed to line their pockets increase their power. Who do you think invented capitalism for goodness sake??!!! Or paid for that ostentatious village they live happily in whilst millions starve? Accusations of washing money… are they serious?! With their links to the mafia! An organisation that practically invented money laundering.
I bet my life the Vatican has money invested in offshore centres whether they’re aware of it or not.
Unlike Jersey, which has conformed to international requirements, the Vatican makes up its own rules and stands on a pedestal of so called morals from which it points its finger.
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Doesn’t the new Chief Minister realise, that irrespective of the inaccuracy of the Pontiff’s claims, that the perception is more improtant than the truth. To say he is not bothered by this is of grave concern. Instead, the Chief Minister shoudl be standing up for the island, and challenging these untruths! Political policy will soon be directed against our jurisdiction, whether fair or not. What will the Chief Minister say then? “Ohhh… Oops”?
John Davis
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Most everyone in Jersey is going to hell now it’s official (in case you ever doubted that ; ) !
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I am still struggling to find anyone who is going to heaven as everyone, everywhere is doing something that someone classes as hurtful to someone else so at least we’ll have plenty of company!
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See – it’s not just me.
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What a load of rubbish. Now the Pope shows he hasn’t got a clue about offshore finance centres. Is this the same person that condems gambling and abortion at all?
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Right or Wrong the Pope has made a statement and all our new CM can say is ‘he was not worried by the Pontiff’s alleged finger-pointing.’
He should be!
We now have the 2 most powerfull people in the world declaring their distaste for off shore banking.
Chief Minister Le Sueur, as the new CM of Jersey i suggest you now write to 0bama and the Pope to introduce yourself and put Jersey’s side of the story across, not just sit there and say ‘I am not worried.’
You were not worried about the resession but look whats starting to happen in Jersey now.
Please dont be a copy of Walker and stand in front of Jersey like King Canute.
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The pope’s trustee fees must have gone through the roof for him to comment like this.
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Ay, there was me thinking the global financial crisis had come about due to companies lending out money to people who couldnt afford to pay it back then selling off that debt under different guises to other financial institutions that beieved they could make an easy buck or two.
The pope has spoken i mst be mistaken.
Whatever it was Terry ought to put a little bit of thought into what he says if he wants to attain the slightest bit of credibility with those who dont support him.
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$175bn? That’s the estimated effect of all offshore jurisdictions against all other jurisdictions combined. To put that in perspective, the defence budget for the US alone is over $600bn per year.
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Absolutely spot on Joker. It would be like Alistair Darling saying that religion is responsible for all the misery, suffering and war around the World – there would be absolute hell to pay if he came out with that. However, the worst retaliation the Pope can expect is to have some paper clips thrown at him by economic extremists.
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Sounds like two choices tax haven or hell.
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The sooner we start ignoring these anti-Jersey finance people the better. They make up figures out of the sky. They obviously have no understanding of the protocol we have in place in Jersey to stop tax evasion and they have no power anyhow.
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As we now live in fairly scientifically-enlightened times, I doubt that many people will care what the pope thinks anyway. I certainly don’t. He should stick to what he does best – pondering over his bible – and leave such matters to the professionals.
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Does the pontiff understand the finance industry? Is the pope catholic?
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I don’t care what the Pope thinks either.
But there’s no arguing that the unrestrained greed of the global finance industry has brought the world economy to its knees.
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The only reason people come to jersey is because they’ve been shafted financially by some other government and they’re looking for a reasonable compramise. The pope just doesn’t like the idea that he doesn’t get a cut from the people who are intelligent enough to realise that they don’t have to get robbed anymore
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Perhaps he should refuse the handout he gets every Sunday from the good Jersey people at St Thomases.
Tainted money ??
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‘They have given support to imprudent economic and financial practices and … could also be linked to the recycling of profits from illegal activities.’
Comments similar to those made by Obama.
Yet … the largest ever financial fraud has just been uncovered in the USA!?
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Once again Sara misses the point. Its not tax evasion, its the use of Offshore jurisdictions to facilitate the securitisation vehicles used in the $5 billion or more misallocation of capital in this now popped credit bubble. By saying the Offshore jurisdictions have” given supporte to imprudent economic and financial practises” has hit the nail on the head. And we are actually looking to take more of this business on with our new Unregulated funds legislation!
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Paul, it would have happened anyway, even if the offshore door had been closed. Much of the securitisation was done onshore in any event.
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Most UK CMBS and RMBS used English companies for tax reasons. Irish and Dutch companies are also very commonly used in securitisation structures. To suggest instead that these securitisation structures were some underhand offshore ruse is misleading Paul.
The problems have come from unscrupulous lenders in the onshore world (USA, Ireland, Spain, the UK) and it is for those countries to settle appropriate regulatory frameworks for their financial institutions and then properly monitor and enforce them.
Securitisation companies issue debt instruments offering a fixed return – the new Unregulated funds legislation is not as I understand it relevant.
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The last time I listened to what the Pope said I ended up married and with kids.
Never again. (oh damn, I think he said that too)
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Pope Benedict is entitled to his opinion and people are free to agree or disagree. He was merely pointing out the corruption of tax evasion and how it indirectly effects the honest tax paying people rich or poor. The Pope is the leader of the Catholic Church not the creator of financial policies in Italy or elsewhere!
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Thank you Ann. The Pope is quite right to critisize injustice caused by one or other of the seven deadly sins.
It is a shame though that the Vatican didn’t show the same kind of moral integrity while hob-nobbing with the Nazis or dealing with their own in-house paedophiles.
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Funny how the Church can comment on this – have they ever evaded the law, pilfered anything from anyone or any country. Are their financial books open for public scrutiny? I am sure that the Church’s assets and money would be able to solve much of the world’s poverty. Is this comment slightly hypocritical of the Pope??? Having visited the Vatican and seen the wealth it has and exudes, how such as visit puts so much into perspective. How the Church has the arrogance to take the moral high ground to be able to comment on this is quite remarkable. Hypocritical, hypocritical, hypocritical and once more hypocritical.
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Yep, funny one that. Here we have the head of the Catholic Church, sitting in the Vatican, arguably the richest state in the world and amongst the most secretive of all pontificating about the global financial crisis and pointing the finger at “secrecy jurisdictions”.
Yet he fails to acknowledge the church’s repeated failure to stop priests fiddling with kids, their refusal to condone contraception (despite millions of unwanted children dying), cooperation in the extermination of the Jewish people, inquisitions, crusades and refusal to allow divorce (the list is long) – and he is honking about offshore centres?
Has the immense wealth accumulated over the centuries by the church been done so using prudence and moral standards?
Perhaps He should look to affairs closer to his own before judging others.
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Anne – Hypocritical opinions hold no weight. May be the Pope should refer to his own preaching “Let he who is without sin cast the first stone.”
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The Pope is a human being and so are you and he can’t be held responsible for the decisions people make in their lives right or wrong. He can only offer guidelines.
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I have no time for the Catholic Church either, for the reasons stated. But don’t use that as a smokescreen for the immorality of the greedy financiers that have dropped us all in it. It may be hypocritical for the Pope to chastise the greedy but two wrongs never make a right. And it is now clear that the love of money is the root of all the world’s evils whether you happen to be a Christian, Muslim or Hindu (just look at Madoff). And boy does Jersey love it’s money like nowhere else in the world (except other tax havens may be)?!
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Sorry but you are wrong again Ann.
The Pope is much more than just a human being. He is an influence on millions, if not billions of people.
He may not be personally responsible for the atrocities committed by the catholic church but he is the figurehead that represents them.
He is also the head honcho in control of immense wealth – historically a huge majority of which was plundered by the likes of the Conquistadores.
If he wants to offer ‘guidelines’ on finacial transparency why not open up the Vatican vaults and lets see where most of his ill gotten gains have come from.
e.g. why doesn’t he repatriate the vast amounts of Aztec gold back to poverty stricken Mexico?
So, when all is said and done, I think he can be held responsible if he is in charge of the keys to the vaults holding the loot, even if he didn’t steal it himself.
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True Christians like the Pope are so fond of moral absolutes that I think we should give them every opportunity to experience those absolutes as real, upfront and personal events.
“Give to everyone that asketh thee; and from him that taketh away thy goods ask not again.” Luke 6:30
“Give to him that asketh thee, and from him that would borrow of thee turn not thou away.” Matt. 5:42
When you hear the the likes of the Pope extolling the Rock of Moral Absolutes upon which they stand, go for the cash. It should in the long run benefit the him.
Ask for the Vatican money, all of it.
If he refuses, he can’t be a true Christian.
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Ann – What?! By saying that you are denouncing the Pope as some lowly priest with no influence making a generalised comment about the differences between those that ‘have’ and those that ‘have not’.
If the Pope’s comments weren’t so hypocritical and were just plain incorrect then I’d probably agree with you on the basis of him forming an opinion based on poor information. Unfortunately they are incredibly hypocritical (clearly he knows his church’s activities otherwise why is he the Pope) and therefore shouldn’t giving guidance on this matter of any sort.
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The ‘happy clappers’ seem to be rather quiet on this topic…..
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