Russia fact of the day

by on August 21, 2017 at 3:13 pm in Data Source, Economics, History, Law | Permalink

…the wealth held offshore by rich Russians is about three times larger than official net foreign reserves, and is comparable in magnitude to total household financial assets held in Russia.

That is from Novokmet, Piketty, and Zucman.

1 rayward August 21, 2017 at 3:27 pm

Much of it invested in Trump properties.

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2 MOFO August 21, 2017 at 4:05 pm

[CITATION NEEDED]

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3 msgkings August 21, 2017 at 4:25 pm

[SENSE OF HUMOR NEEDED]

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4 Thor August 21, 2017 at 5:12 pm

Sockpuppet alert! That post was way too brief to be Raywardian. Also, it was funny.

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5 JWatts August 21, 2017 at 5:27 pm

Two good points.

6 Anonymous August 21, 2017 at 5:59 pm

Given that it was a rayward comment I think it was stupid, not sarcasm.

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7 A clockwork orange August 21, 2017 at 11:00 pm

Dear MSGKINGS, and dearmie and duxie, I have made a silent movie for you.

https://www.instagram.com/p/BYFBGNkl4o6/?taken-by=atlasobscura27

8 prior_test3 August 22, 2017 at 1:55 am

Michel, thanks for the link – it is fascinating to realize one might be participating as part of an updated numbers station concept. Or watching someone with far too much time on their hands try out different ideas and see what happens..

Or this place just attracts bizarre people of all stripes – including the type interested in their own sobriquet, right droog?

9 A clockwork orange August 22, 2017 at 3:16 pm
10 Thiago Ribeiro August 21, 2017 at 3:40 pm

Another xountry that followed the American way of giving almost everything to a tiny share of the populace.

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11 Erik Schafer August 21, 2017 at 3:57 pm

Read. Please, read literally any book. It’s the first step that’s the hardest. We’re all rooting for you.

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12 Sam Haysom August 21, 2017 at 4:11 pm

No stop. It was a book an carnivale read wistfully by a Zanesville social studies teacher that spawned this hideously annoying midlife crisis.

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13 Thiago Ribeiro August 21, 2017 at 5:08 pm

It is sad to see that Americans live in xdnial and must try to shut up all voices that challenge their refime.

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14 Thor August 21, 2017 at 5:15 pm

Speaking of books, isn’t there a “How to Spell” Strunk and White kind of book for Thiago?

15 Thiago Ribeiro August 21, 2017 at 5:39 pm

I’ve already said, those keys are tiny.

16 John de Rivaz August 21, 2017 at 5:26 pm

“Giving everything to”? Surely “not taking everything from” may be more accurate.

It is interesting to note that this tiny share of the American populace is now taking over some of the roles of government, such as space exploration, disease treatment or control, development of surface transport systems, energy management, climate management and so on. It remains to be seen, of course, whether they do a better job, but right at the moment they look promising.

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17 Thiago Ribeiro August 21, 2017 at 5:38 pm

I see, send American’s jobs to China and you, too, can have a McMansion on Moon. America has chosen to lay everything on the altar of the greed Moloch.

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18 Thiago Ribeiro August 21, 2017 at 6:03 pm

But soon, make no misyake, the terrorized Americn masses will rise up to slaughter their oopressing masters, and repay them with blood.

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19 Thiago Ribeiro August 21, 2017 at 6:12 pm

It is sad that Americans, lacking arguments, have to resort to bravado and mockery.

20 msgkings August 21, 2017 at 6:46 pm

Wait, “I see, send American’s jobs to China and you, too, can have a McMansion on Moon. America has chosen to lay everything on the altar of the greed Moloch.” is some kind of argument? LOL

21 Thiago Ribeiro August 21, 2017 at 7:04 pm

No, it is a sad conclusion. Americans decided to sell their children into bondage to the greed Moloch.

22 msgkings August 21, 2017 at 9:39 pm

Well, when you start making actual arguments maybe we will too. Until then, you’re getting mocked bro.

23 Thiago Ribeiro August 21, 2017 at 9:40 pm

The American regime is greed writ large.

24 Lanigram August 21, 2017 at 10:25 pm

Thiago,
>…masters…repay them with blood…

You and Mark Blyth agree, “the Hamptons are not a defensible position…someday they are going to come for you.”
https://m.youtube.com/watch?v=nwK0jeJ8wxg

25 Thiago Ribeiro August 21, 2017 at 10:31 pm

So that’s what America has become: a neofeudal trying to save itself from the righteous wrath of the downtrodden.

26 Lanigram August 21, 2017 at 11:58 pm

Thiago,

>…neofeudal trying to save itself

Correct, hence all the jibber jabber about UBI, free internet, video games, and favelas. Keep em quiet, drugged even.

27 Thiago Ribeiro August 22, 2017 at 9:20 am

It is so sad that it can happen to an once great nation, the nation of the Jeffersons, Emersons, Edisons and Bushnells.

28 JWatts August 21, 2017 at 6:38 pm

“xountry ”

Is this like Xir or Xe? A non-gender name for a geo-political territory? Is Brazil non-gendered now?

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29 Thiago Ribeiro August 21, 2017 at 7:02 pm

As I have already said, the tablet keys are tiny. The “x” key is besides the “c” key.

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30 Lanigram August 21, 2017 at 9:27 pm

Thiago,

So you have tiny hands. You can be POTUS someday.

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31 Thiago Ribeiro August 21, 2017 at 9:39 pm

No, my hands are huge, the tablet’s virtual keyboard has tiny keys because it is a Korean-designed device, it was not designed for Brazilians.

32 msgkings August 21, 2017 at 9:43 pm

Since he’s American, yes he can. But his hands are too big for the tiny keyboard not too small. If he had Trump hands he’d be able to type with no mistakes at all, except maybe “covfefe”.

33 daguix August 21, 2017 at 3:54 pm

It’s very good news. If the Russian government becomes more respectful of private property rights, all this financial wealth could come back to Russia and accelerate economic growth.

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34 Borjigid August 21, 2017 at 6:54 pm

“If the Russian government becomes more respectful of private property rights”

*chuckles*

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35 FYI August 21, 2017 at 3:55 pm

File under “leaving Communism is almost as hard as living under it”

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36 daguix August 21, 2017 at 3:55 pm

Do you have data for Africa? I guess numbers may be even worse.

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37 inertial August 21, 2017 at 4:13 pm

Another Russia fact of the day, from the same paper. Starting in 2006, the national income share of the top 10% is falling.

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38 Tom T. August 21, 2017 at 5:34 pm

Estonia really doesn’t want this news to get out.

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39 Cooper August 21, 2017 at 6:30 pm

Gosh, I wonder why Russians are so reluctant to keep their wealth held domestically in Russia. Maybe they don’t want to end up like Mikhail Khodorkovsky.

I’m sure most Russians would prefer to invest domestically but they can’t do that so long as Putin runs the Russian economy like his personal piggy bank, taking whatever he likes whenever he feels like it.

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40 gab August 21, 2017 at 6:49 pm

Sergei Magnitsky, paging Sergei Magnitsky… you’re wanted on the white courtesy phone.

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41 Benjamin Cole August 21, 2017 at 8:49 pm

With $32 trillion in offshore accounts, who says offshore banking is only a Russian curiosity?

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42 Tyler Fan August 21, 2017 at 10:57 pm

If I didn’t know any better, I’d think capitalism was a plot to destroy Mother Russia.

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43 Thanatos Savehn August 22, 2017 at 12:22 am

I’ve been to Limassol, Cyprus. I know. The Russian girls there are … well, don’t keep flammable materials nearby.

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44 ChrisA August 22, 2017 at 12:49 am

Of course this fact somewhat is representative of history and present day uncertainty, and perhaps tax evasion (although Russian taxes are pretty low). But I bet that it is also heavily related to financial management expertise being overseas, in places like London and New York. Financial services are an industry just like car manufacturing or oil production, and as an industry it is very network orientated. So the Russians send their money to London to be invested in UK based companies, which then might invest all over the world including in Russia. This global investment trade is a good thing, not something to be suspicious of.

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45 Ricardo August 22, 2017 at 3:23 am

Russia has its own space program – it surely has enough above-average IQ people to run an investment management industry. In the U.S., plenty of important investment managers and hedge funds are based outside of New York so network effects are not as strong as they are for securities underwriting or M&A. Zucman’s work shows fairly convincingly that money laundering and tax evasion are the primary reasons for the huge sums invested overseas.

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46 cliff arroyo August 22, 2017 at 5:39 am

Imagine you’re a rich Russian who’s managed to steal a fortune from your fellow citizens (pretty much the only way to get rich in Russia).

Do you really want to trust the government that helped you steal it to let you keep it?

Or do you want to store it somewhere safer where oligarchs don’t have free reign to steal from the citizenry?

In case things turn south in Russia and new guys take over who want a bigger cut, it’s also easier having the money waiting for you in your bolt hole of choice.

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47 John de Rivaz August 22, 2017 at 7:02 am

re money laundering:

Instead of imposing insulting regulations that make money for bankers and lawyers and make ordinary life difficult for honest citizens, yet have no real ability to prevent laundering, isn’t the answer to devise a technological means of exchange that is immune from laundering?

It may well be that this is what cryptocurrencies and the blockchain will evolve into.

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48 Ricardo August 22, 2017 at 9:00 am

Blockchains can’t and won’t prevent money laundering. What you need is an easy way to reveal the identities of owners, trustees, signatories and beneficiaries of all the corporations and trusts that are established in havens around the world and all the accounts established in their names.

One of the simplest forms of money laundering is, when Alice wants to launder money to Bob, she pays for bogus “consulting services” offered by some shell corporation in Panama that is ultimately under Bob’s control. No blockchain is going to stop that.

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