Re: International Capital Flows Called Criminal

["E. ALLEN SMITH" <EALLENSMITH@ocelot.Rutgers.EDU>]

From:	IN%"frissell@panix.com"  "Duncan Frissell" 25-APR-1996 14:36:03.76

>Now the last time I looked, 'Capital Flight' was as legal as church on a
>Sunday.  Or is this a proposal for exchange controls.  Is this guy a state
>or federal prosecutor?  He was also unable to come up with legitimate
>reasons for $3 Billion to go from Egypt to the Bahamas.  I can think of any
>one of a number of legal reasons, one being "International Tax Planning."

	As well as the taxes on those transferring their citizenship (which
rather give the lie to those who say to libertarians that we ought to just
move someplace else), there's also various limits on capital flow in other
countries. Perhaps he's wanting the US to back these? Preventing people from
taking their cash out of a country without economic development does reduce
the costs to the World Bank et al for development funding. Of course, it also
means that those people (generally the brightest ones in those countries) are
more likely to leave, and will bear the brunt of development failures.
	-Allen