cryptogon.com

The United States, led by the eastern seaboard state, took in $2.6 trillion in deposits from non-resident corporations and individuals in 2007, according to a survey of financial jurisdictions analyzed by the Tax Justice Network.

The survey of laws, practices and size of inflows in 60 jurisdictions found Delaware coming in first, followed by Luxembourg and then Switzerland. The Cayman Islands and the United Kingdom round out the top five.

“While the U.S. has been jumping up and down and saying ‘Aha, bad, wicked Swiss banks,’ the U.S. is doing exactly the same things as far as non-resident bank account holders,” said Sarah Lewis, executive director of the group, based in the U.K.

Switzerland has been the poster child for financial secrecy over the past year. The United State sued Swiss global banking giant UBS AG, which paid a $780 million fine to settle a lawsuit against it by the government. As part of the deal, UBS admitted it actively helped Americans evade U.S. taxes.

The ranking is based on a composite of total offshore activity and measures such as whether a jurisdiction obtains beneficial ownership information about companies and the degree of cooperation in turning over requested financial information.

Delaware is attractive because it does not tax profits realized outside the state and does not require companies to be physically present, according to the Tax Justice Network.

The rocketing cost of insuring against the bankruptcy of the Japanese state is telling us that the model has smashed into the buffers. Credit default swaps (CDS) on five-year Japanese debt have risen from 35 to 63 basis points since early September. Japan has suddenly decoupled from Germany (21), France (22), the US (22), and even Britain (47).

Regime-change in Tokyo and the arrival of Yukio Hatoyama’s neophyte Democrats – raising $550bn (£333bn) to help fund their blitz on welfare and the “new social policy” – have concentrated the minds of investors at long last. “Markets are worried that Japan is going to hit a brick wall: the sums are gargantuan,” said Albert Edwards, a Japan-veteran at Société Générale.

Simon Johnson, former chief economist of the International Monetary Fund (IMF), told the US Congress last week that the debt path was out of control and raised “a real risk that Japan could end up in a major default”.

The IMF expects Japan’s gross public debt to reach 218pc of gross domestic product (GDP) this year, 227pc next year, and 246pc by 2014. This has been manageable so far only because Japanese savers have been willing – or coerced – into lending for almost nothing. The yield on 10-year government bonds has been around 1.30pc this year, though they jumped to 1.42pc last week.

“Can these benign conditions be expected to continue in the face of even-larger increases in public debt? Going forward, the markets capacity to absorb debt is likely to diminish as population ageing reduces saving,” said the IMF.

The savings rate has crashed from 15pc in 1990 to near 2pc today, half America’s rate. Japan’s $1.5 trillion state pension fund (the world’s biggest) has become a net seller of government bonds this year, as it must to meet pay-out obligations. The demographic crunch has hit. The workforce been contracting since 2005.

Japan Post Bank is balking at further additions to its $1.7 trillion holdings of state debt. The pillars of the government debt market are crumbling. Little wonder that the Ministry of Finance has begun advertising bonds in Tokyo taxis, featuring Koyuki from The Last Samurai. If Japan’s bond rates rise to global levels of 3pc to 4pc, interest costs will shatter state finances.

No one knows exactly when a country tips into a debt compound trap. But Japan must be close, even allowing for the fact that liabilities of the state Loan Programme (FILP) have fallen by 40pc of GDP since 2000.

The military on Thursday took foreign and local journalists for a first look inside the largely lawless territory since it launched a ground offensive here in mid-October. The U.S.-backed operation is focused on a section of the tribal region where the Pakistani Taliban are based and are believed to shelter al-Qaida.

Soldiers displayed passports seized in the operation, among them a German document belonging to a man named Said Bahaji. That matches the name of a man thought to have been a member of the Hamburg cell that conceived the 9/11 attacks. Bahaji is believed to have fled Germany shortly before the attacks in New York and Washington.

The passport included a tourist visa for Pakistan and a stamp indicating he’d arrived in the southern city of Karachi on Sept. 4, 2001.

Another passport, from Spain, bears the name of Raquel Burgos Garcia. Spanish media have reported that a woman with the same name is married to Amer Azizi, an alleged al-Qaida member from Morocco suspected in both the 9/11 attacks and the Madrid train bombings in 2004.

Her family in Madrid has had no news of her since 2001, according to Spanish media. Her passport included visas to India and Iran, and the army displayed a Moroccan document with Burgos Garcia’s photo and other information.

It was impossible to determine whether the passports are genuine, and German and Spanish officials did not immediately respond to requests for comment.

Maj. Gen. Athar Abbas, the army’s chief spokesman, said he had not realized the passports matched any prominent names, and declined further comment other than to say European militants were sprinkled throughout the area.

The USS New York is due to sail up the Hudson River as far as Ground Zero, where it will fire a 21-gun salute.

It will be watched by relatives of those killed in the 2001 attacks that destroyed the buildings, along with rescuers and members of the public.

The US Navy is to hold an official commissioning ceremony for the new warship on Saturday.

The New York set off on its maiden voyage from Louisiana, where it was built, nearly three weeks ago.

The bow of the boat contains 7.5 tonnes of melted steel from the fallen buildings.

Technically, it’s not a tax increase, even though it may feel like one when your next paycheck arrives. As part of a bundle of budget patches adopted in the summer, the state is taking more money now in withholding, even though workers’ annual tax bills won’t change.

Think of it as a forced, interest-free loan: You’ll be repaid any extra withholding in April. Those who would receive a refund anyway will receive a larger one, and those who owe taxes will owe less.

In keeping with the NSA’s character, Alexander wasn’t exactly bubbling with good cheer when Declassified asked him what his agency’s role would be in operating the cybersecurity command post. “We support DHS [Homeland Security] like everybody else,” is all the general would say. In introductory remarks, officials noted that Alexander has also been tapped by the Pentagon to head U.S. Cyber Command, a new military organization to be based alongside the NSA at Fort Meade, Md., that is intended to consolidate and improve cybersecurity and, presumably, cyberwarfare capabilities. Other officials were vague when asked for more details on the NSA’s role in NCCIC, whose principal mission, according to Homeland Security officials, will be to monitor and assure the security and safety of civilian-government computer networks and to provide early warning to private businesses about cyber-attack threats. As NEWSWEEK reported earlier this year, some cybersecurity experts have long argued that because the NSA traditionally has had the most formidable computer hardware and related brainpower of any agency in the government, it is essential that it become more deeply involved in protecting both domestic government computer networks and the privately run grids that now help run virtually every aspect of American daily life, including this blog.

Timothy Hampton, 47, a scientist involved in monitoring nuclear activity, was found dead last week at the bottom of a stairwell in Vienna.

An initial autopsy concluded that there were ‘no suspicious circumstances’. But it is understood that Mr Hampton’s widow Olena Gryshcuk and her family were deeply unhappy with that verdict.

Now a doctor who undertook a second post-mortem examination on behalf of the family believes she has found evidence that Mr Hampton did not die by his own hands.

Professor Kathrin Yen, of the Ludwig Institute in Graz, Austria, which specialises in traumatology research, said she had more tests to complete on Mr Hampton, who had a three-year-old son with Ms Gryshcuk.

But she said one possible theory was that Mr Hampton was carried to the 17th floor from his workplace on the sixth floor and thrown to his death.

Professor Yen used new forensic techniques to detect internal bruising caused by strangulation which would not be visible to the eye.

She said: ‘In my opinion, it does not look like suicide. My example is that somebody took him up to the top floor and took him down.

‘At the moment I don’t have the police reports. We did a CT scan. From the external exam, I saw injuries on the neck but these were not due to strangulation.’

It is expected to take three weeks for blood test results to come back. Austrian police said they believe Mr Hampton committed suicide.

He had been working for the Comprehensive Nuclear-Test-Ban Treaty Organisation (CTBTO) at the UN building.

CTBTO staff monitor tremors in countries worldwide to uncover illegal nuclear tests. It has been suggested that Mr Hampton may have been involved in talks discussing nuclear testing in Iran. The UN has strongly denied the claims.

His body was discovered last Tuesday at about 8pm. Friends said it was usual for him to work late into the night. His widow, a weapons inspector for the International Atomic Energy Agency (IAEA), was working in Japan when her husband died.

A source close to the family said life had not been easy for Mr Hampton, who was often away from his wife and son.

But the source added that he was ‘not the suicide type’. He said: ‘Tim was rather introverted. He changed his life many times.’

Trained in Britain as a bio-chemist, Mr Hampton worked in a bio-lab before moving into construction.

He then worked on nuclear test-ban projects before joining the UN in 1998, said the CTBTO.

The IAEA, an independent and separate organisation, inspects nuclear plants worldwide and is based in the building next to the CTBTO in Vienna.

Under a year ago, an American died at the IAEA in strikingly similar circumstances, his body being found at the bottom of a stairwell.

A UN spokeswoman said an investigation into that case continues, though Austrian police have concluded it was suicide.

CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan. The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.

The bankruptcy “will allow CIT to continue to provide funding to our small business and middle-market customers,” said Chief Executive Officer Jeffrey Peek in a statement.

CIT, which filed the fifth-largest bankruptcy by assets, said it plans to exit quickly due to support from bondholders, who voted in favor of a so-called prepackaged plan. None of CIT’s operating subsidiaries, including Utah-based CIT Bank, were included in the filing, and operations will proceed as normal, CIT said in a statement.