Disparity: How Shadow Banking and Extreme Wealth Inequality Threaten Us - by David DeGraw

Hidden wealth estimates vary widely. Many of them only take a partial look at the most basic methods of offshoring wealth.  Given the unprecedented growth of wealth over the past generation, the secretive methods used to hide it have evolved far beyond well-known tax havens in Switzerland and small-island jurisdictions such as the Bahamas.  While estimates based on banking secrecy and tax havens help to give us a more accurate picture of overall wealth, they do not give a total view.

Research by Gabriel Zucman, which analyzed banking secrecy, estimated that “around 8% of the global financial wealth of households is held in tax havens.”  If we correlate this 8% with the $82 trillion in accounted for wealth reported by the Federal Reserve, that would be an additional $6.6 trillion for the wealthy, bringing the richest 1% up to roughly $39 trillion in overall wealth.

However, to get a more complete understanding of the reality of the situation, the most wide-ranging look into hidden wealth was done in 2012 by economist John Henry in partnership with the Tax Justice Network (TJN).  They estimated that there was $21- $32 trillion hidden globally at the end of 2010. As shocking as that sounds, that estimate still did not give a complete view of hidden wealth.  As they put it, “We consider these numbers to be conservative. This is only financial wealth and excludes a welter of real estate, yachts and other nonfinancial assets owned via offshore structures.”

We also need to consider that overall US household wealth is up 30% and has increased by $25 trillion since the end of 2010. Globally, High Net Worth Individual investible wealth has increased 19% since then, and has begun to accelerate at a record pace.  In 2013, it increased globally by 14%, with a 17% increase in North America, which is now at an all-time high.  Given these factors, and several others that will be explained below, the higher TJN estimation of $32 trillion in 2012 is conservative today.

Correlating TJN’s wealth estimates with US distribution percentages is not an exact science but it gives a much more accurate total of overall wealth than excluding it.  Based on TJN’s estimation, Ultra High Net Worth Individuals (UHNWI) accounted for 48% of hidden wealth.  If we correlate that to the overall estimate of $32 trillion, it equates to $15.4 trillion for the UHNWI population.

The US accounts for 35% of the UHNWI population, which correlates to $5.4 trillion.  In the next tier, High Net Worth Individuals (HNWI) also accounted for 48% of hidden wealth.  The US currently has 42% of the HNWI population, which correlates to $6.5 trillion.  The additional 4% of hidden wealth is estimated to be held below the economic top 1% of the US population, which correlates to roughly $538 billion.

This brings the estimated total of hidden US wealth to $12.4 trillion, with $11.9 trillion of that held within the top 1%.  We can now estimate that the top .01% has $14.5 trillion in wealth, the top .1% has $26.4 trillion and in total the top 1% has $44.5 trillion.

Read more: How Shadow Banking and Extreme Wealth Inequality Threaten Us | Alternet

Immigration: EU migration is essential for a healthy economy, says CBI's John Cridland - by John Cridland

As a proud Bostonian, the change in my Lincolnshire home town over the past decade is striking. West Street is now interspersed with vibrant Polski skleps selling an array of Eastern European goods. And while it was unusual to hear so many languages spoken when I was a boy, Slav languages are now being taught in local schools.

I understand that immigration has social and cultural impacts that can’t be ignored. But as head of the UK’s biggest business group, I am concerned about where the debate on immigration is heading. I know business leaders share this unease.

Across the political spectrum, there is a mismatch between rhetoric and reality. Immigration has helped keep the wheels of this recovery turning by plugging skills shortages. This has led to more jobs for British people and driven growth. Without free movement of workers, the recovery would grind to a halt.

Our hospitals and care homes couldn’t function without overseas workers; building sites that we need to deliver more homes and big infrastructure projects, such as the roll-out of broadband, would also stall.

EU migration also has a positive impact on the UK’s fiscal position. Research from University College London shows that over the decade since 2001 EU migrants made a positive net contribution of £2,732 per person per year.

Businesses benefit too, with 63pc of CBI members saying free movement of labour has been beneficial. And that free movement cuts both ways: well over a million Britons live and work in the EU. Of course, there are concerns around immigration.

Note EU-Digest: Regardless what Eurosceptics and Nationalists, Ultra Conservatives are saying the EU needs more not less immigrants.

 Read more: EU migration is essential for a healthy economy, says CBI's John Cridland - Telegraph

Meat Products - Russia to hold talks with EU Commission on illegal imports of European meat

Russian veterinary standards officials will hold urgent talks with the European Commission on illegal supplies of European meat to Russia, the country's veterinary regulator said on Monday.

“We have asked for a meeting in Brussels considering large-scale issues connected with uncontrolled movement of meat products of unknown origin across EU territories,” Sergey Dankvert, head of the Russian veterinary and phytosanitary service Rosselkhoznadzor, told TASS.

Negotiations between Bernard Van Goethem, director of the European Commission’s Directorate-General for Health and Consumers, and Rosselkhoznadzor Deputy Head Yevgeny Nepoklonov will take place on October 28, Dankvert said.

Last week, the Russian regulator busted major supplies of European pork to Russia declared as juices, vegetables and mushrooms.

“These supplies passed customs clearance in the European Union. The content of containers is under the direct responsibility of EU veterinary services, which we see do not exercise any control and promote smuggling,” Dankvert said then, noting that container checks had halted supplies of around 360 tonnes of frozen pork from Germany, Poland, the Netherlands, Belgium and Brazil. Deliveries were declared as juices, vegetables, jams and chewing gum, he said.

Read more: TASS: Economy - Russia to hold talks with EU Commission on illegal imports of European meat

Global Economy: The Stark Facts of Global Greed, a Disease as Challenging as Climate Change

Global inequality, like global warming, is a disease that may be too far along to ever be cured.

We seem helpless, both in the U.S. and around the world, to stop the incessant flow of wealth to an elitist group of people who are simply building on their existing riches. The increasing rate of their takeaway is the message derived from the  Credit Suisse Global Wealth Databook (GWD).

It's already been  made clear that the richest Americans have taken almost all the gains in U.S. wealth since the recession. But the unrelenting money grab is a global phenomenon. The GWD confirms just how bad it's getting for the great majority of us. 

Read more: The Stark Facts of Global Greed, a Disease as Challenging as Climate Change | Alternet

The Netherlands: World Trade Center Almere Invites you for a cup of coffee

WTC Almere

On October 30 the World Trade Center in Almere has an open house coffee starting at 10.30 am to celebrate the reopening of their renovated lounge and restaurant facilities in the tallest building of Almere. 

At 12.00 pm the restaurant will also open for lunch guests.

The World Trade Center Almere is located right behind the Central Almere Rail Station.


For additional information in Dutch click on this link

Brazil: Dilma Rousseff re-elected Brazilian president with small majority

Dilma Rousseff beats Aecio Neves

Left-leaning President Dilma Rousseff has been re-elected president of Brazil, after securing 51.45% of votes in a closely-fought election.

An official count showed her rival, centrist candidate Aecio Neves, taking 48.55% of the vote.

Both candidates made economic growth and lifting Brazilians out of poverty central to their election campaigns.

A poll taken in Europe prior to the election showed that Brazilians living in Europe favored Aecio Neves over Dilma Roussef by a margin of 2%.

EU-Digest

Ukraine election: Ukraine overwhelmingly elects pro-European parliament

Ukrainians have overwhelmingly voted in several pro-European parties in a landmark parliamentary election Sunday, another nudge in the former Soviet nation's drift away from Russia.

As votes are counted, President Petro Poroshenko's bloc looks set to win the most, with PM Arseny Yatsenyuk's People's Front party a close second.

Addressing Ukrainians two hours after polling ended, he thanked voters for backing a "democratic, reformist, pro-Ukrainian and pro-European majority".

"The majority of voters were in favor of the political forces that support the president's peace plan and seek a political solution to the situation in the Donbass," Poroshenko said, referring to the region of the industrialized east where government forces have been fighting separatist rebels.

The result, confirmed by other exit polls, opened up the possibility of Poroshenko, a 49-year-old confectionery magnate, continuing to work in tandem with Yatseniuk, with the latter staying as prime minister to handle sensitive talks with the West on aid for the war-shattered economy.

The People's Front of Yatseniuk, a hawk in dealings with Russia who is liked in the West for his commitment to deep reforms and stewardship of the economy, took just over 21 percent of the vote, according to the exit poll, with a third pro-Europe party from western Ukraine in third place.

Speaking later at a news conference, Poroshenko said People's Front was the "main partner" in any parliamentary coalition and talks to form the majority could begin on Monday.

EU-Digest