free market

60 Minutes: The new tax havens

"Companies searching out tax havens is nothing new. In the 80s and 90s, there was an exodus to Bermuda and the Cayman Islands, where there are no taxes at all. When President Obama threatened to clamp down on tax dodging, many companies decided to leave the Caribbean, but instead of coming back home, they went to safer havens like a small, quaint medieval town in Switzerland called Zug. Hans Marti, who heads Zug's economic development office, showed off the nearby snow-covered mountains. But Zug's main selling point isn't a view of the Alps: he told Lesley Stahl the taxes are somewhere between 15 and 16 percent." Continue reading →

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Honduras court bans private cities project

"The Honduran Supreme Court has ruled unconstitutional a project to build privately-run cities, with their own police and tax system. The 'model cities' project was backed by President Porfirio Lobo, who said it would attract foreign investment and create jobs. By 13 votes to one, Supreme Court judges decided that the proposal violated the principle of sovereignty. An American company was expected to invest US$15m in the initial phase of construction of the first city, on the Caribbean coast. The inspiration for his 'model cities' were Singapore, Macao and Hong Kong, President Lobo said." Continue reading →

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Amid Austerity, Greek Doctors Offer Help to Poor

"Until recently, Greece had a typical European health system, with employers and individuals contributing to a fund that with government assistance financed universal care. Things changed in July 2011, when Greece signed a supplemental loan agreement with international lenders to ward off financial collapse. Now Greeks must pay all costs out of pocket after their benefits expire. The changes are forcing increasing numbers of people to seek help outside the traditional health care system. Elena, for example, was referred to Dr. Syrigos by doctors in an underground movement that has sprung up here to care for the uninsured." Continue reading →

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Turkish gold trade booms to Iran, via Dubai

"The sums involved are enormous. Official Turkish trade data suggests nearly $2 billion worth of gold was sent to Dubai on behalf of Iranian buyers in August. The shipments help Tehran manage its finances in the face of Western financial sanctions. The sanctions, imposed over Iran's disputed nuclear program, have largely frozen it out of the global banking system, making it hard for it to conduct international money transfers. By using physical gold, Iran can continue to move its wealth across borders. Turkish trade data confirms the gold is being transported to Dubai by air." Continue reading →

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Reverse brain drain: Economic shifts lure migrants home

"The financial crisis that began in 2008 has tested middle-class America's sense of stability and the European right to social welfare. It has also caused many to question whether the developed world is still the only land of opportunity worth migrating to. Emerging economies not only are faring better than most of the developed world in the current recession, they also continue to grow, drawing back their expatriates and, in some cases, even luring new high-skilled citizens of the US and Europe. Those countries losing their allure could also lose their competitive edge." Continue reading →

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Zurich eyes halving corporate tax

"Zurich, Switzerland's largest city and financial hub, may cut its corporate tax rate nearly in half if foreign firms lose fiscal benefits amid EU pressure, the regional financial chief said on Tuesday. By doing so, Switzerland's economic centre would aim to convince foreign companies to remain in the canton even if Switzerland bows to EU pressure and alters a system allowing such firms to pay less taxes than Swiss companies. The Zurich proposal follows a similar proposal presented in Geneva last week, suggesting that Switzerland's second-largest business hub should cut its corporate tax rate from around 24 to 13 percent." Continue reading →

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Spanish savers move money to Switzerland

"Crisis-hit savers in Spain are transferring their their money to Switzerland for safety, the head of Geneva's 80-strong banking association said on Wednesday. In addition to an increase in Spanish funds, Droux said Geneva banks had seen an inflow of cash from other eurozone countries so far this year, as well as from the Middle East and developing countries including those in South America. Switzerland is not a member of the European Union and so is not a member of the eurozone." Continue reading →

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Honduras ‘Free Market Paradise’ Charter City

"This new Libertarian City-State, inspired by New York University economist Paul Romer, has the backing of the libertarian-minded government in Tegucigalpa. It has also received plaudits from noted economists, pundits, and policymakers across the globe since it emerged nearly two years ago." Continue reading →

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Switzerland: the world’s gold hub

"Most of the gold produced in the world transits physically through Switzerland. Four of the world’s major refineries of gold are located on Swiss soil. In 2011, over 2,600 metric tons of raw gold were imported into the country, to a total value of SFr96 billion ($103 billion). This was a record, the quantity having more than doubled over the last ten years, not including the gold that transits through Swiss free ports. What keeps the Swiss refineries going at full pace right now is not so much the demand for semi-finished products for jewellery and watchmaking, but the demand for gold bars." Continue reading →

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Remembering the Real Ayn Rand

I love Ayn Rand.

via WSJ: Tomorrow's release of the movie version of "Atlas Shrugged" is focusing attention on Ayn Rand's 1957 opus and the free-market ideas it espouses. Book sales for "Atlas" have always been brisk—and all the more so in the past few years, as actual events have mirrored Rand's nightmare vision of economic collapse amid massive government expansion. Conservatives are now hailing Rand as a tea party Nostradamus, hence the timing of the movie's premiere on tax day.

When Rand created the character of Wesley Mouch, it's as though she was anticipating Barney Frank (D., Mass). Mouch is the economic czar in "Atlas Shrugged" whose every move weakens the economy, which in turn gives him the excuse to demand broader powers. Mr. Frank steered Fannie Mae and Freddie Mac to disaster with mandates for more lending to low-income borrowers. After Fannie and Freddie collapsed under the weight of their subprime mortgage books, Mr. Frank proclaimed last year: "The way to cure that is to give us more authority." Mouch couldn't have said it better himself.

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