. >> that is according to tax justice network.he hit in many is roughly equivalent to the gdp of the united states and japan combined. >> the alps are a favorite destination for the wealthy. jersey and the cayman islands are also popular. besides beyonce, the wealthy also keep large sums of money here -- besides yachts. the tax justice network estimates the total wealth tax havens is as much as $26 trillion euros. most of the money belongs to a small group, and it is not the americans and europeans at the top, but rather, asians. in the past four decades, has accounted for the most capital flight, almost one trillion euros, followed by russia with 658 billion euros, and south korea with 643 billion euros. capital flight is a huge problem for developing countries. according to the report, rich citizens from such nations have more money in foreign banks than the total debt of the countries. they put considerable blame on multinational banks which play a key role in capital flight. the wealth is often transferred legally, but countri

. >>> according to a report by the organization, tax justice network, tax havens such as the cayman islands up to $32 trillion. that's money that cannot be taxed by governments. that is more than the u.s. and japanese economies combined. >>> and an ap survey of more than a dozen economists think tanks and academics find that the number of americans living in poverty will increase to levels last seen in the 1960s. the official poverty rate in 2010 was 15.1%. but the consensus among those experts was that the poverty rate for 2011 will increase to 15.7%. but even if there is an increase of .1%, we will have the highest poverty level since 1965. terrell? >> tough times out there, ash. really is. ashley morrison here in new york. thank you so much. >>> coming up, we'll have your weather forecast and in sports, a final round collapse for the ages produces a surprise winner at the most storied tournament in golf. "moneywatch" sponsored by vagisil wash with odor block, the confident clean. sponsored by vagisil, the confident clean. i'm serious, we compare our direct rates side by side to find you

it's absolutely fascinating thanks so much for joining us that was john christensen of tax of the justice network and let's now move on to take a quick look at the equity markets and first to europe and the picture there is certainly not pretty an avalanche of bad news is really bringing european equities sharply down let's actually see the numbers there on sunday the german press reported that the i.m.f. may halt pain and sue greece as the austerity program is proving ineffective and that the moment the footsie is losing more than one it house percents now into the equity markets negative sentiment as an effect of the european currency it's shedding against the dollar the russian ruble is losing to both the euro and the dollar and that's all we have time for in this edition of business will be back with an update in about fifteen minutes see about that andy's touches thank you very much indeed for that update we'll see you later and i'll be back with a recount for our headlines in just a couple of minutes. wealthy british style. tight right. markets why not canada. find out what's really happeni

the inquiry was commissioned by the tax justice network and is being touted as the most comprehensiveort ever on the offshore economy. it is called, "the price of offshore revisited." according to the report, less than 100,000 people worldwide own almost $10 trillion of the wealth held in tax havens. to talk more about the implications of these findings, we're joined by the report's author, james henry, economist and lawyer, and board member of the tax justice network. it is great to have you with us. tell us what you found. >> to $21 trillion figure is a shock to a lot of people. it represents about 10% of global wealth. from that standpoint, we think it is i reasonable number. a lot of it is just to the top 100,000 people in the world. the second thing that is striking, the role of the great international banks that we of all come to know and love. ubs, credit suisse, jpmorgan -- all these banks, big recipients of bailout money from taxpayers, and also deeply implicated in the financial crisis in 2008 to the current time. these folks have specialized in helping the wealthiest people

employs on paid tax revenues of up to two hundred eighty billion dollars john christensen from tax justice network which published the report explains some of that money actually did return to these countries now some cases it does but it comes back dressed up with direct investment with all the tax breaks the baggage that comes with foreign direct investment this is a process known as round trip being which happens a lot of many countries like brazil india a lot of the indian and brazilian campbell has moved offshore tax havens and comes disguised by companies so it's not clear that the world's originated with from india or brazil first place. but certainly a very large proportion of this capital doesn't come back into productive investment much of it goes around chasing speculative investment on the equity markets of the securities markets to the commodity markets and sometimes real estate markets in europe and north america so a lot of this capital doesn't actually getting gauged in productive activity if it's just chasing rental income what economists call rent seeking i think you see even dow

they must've been dismayed then at another report that was released yesterday a liberal group tax justice network found between twenty one and thirty two trillion dollars worldwide are being hidden in tax shelters sort of accounts that mitt romney is concealing by not releasing his tax records now not all of this cash is being stashed by americans but a lot of it is which shows how absurd this whole politics of envy claims are really are there is a class war all right but it's be waged by the elite against the lower in the middle classes because middle class americans are expected to pay their share while facing cuts to crucial government programs the wealthy get to squirrel away trillions of dollars in places like switzerland and the cayman islands so a way to be great job creators guys and speaking of the job creators let me just give you another study that was released last week that says shows that it's not taxes it's not regulations that are slowing the economy as the argument so often goes down from the i.r.s. and the federal reserve shows that nine financial american companies could be sit

combined size of america and japan's annual output and comes from a report commissioned by the tax justice network it's off them that james hendry says that tackling this problem presents a great challenge to governments around the world but i think one of the ironies is that some of the biggest players in this axiom in the street are major banks that received a lot of government assistance in the bail out of the top ten banks include fire u.s. banks that received billions and billions of dollars meanwhile we are now being the richest people on the planet their assets abroad intervene in taxes so you know there's a there's a real policy problem here we have to cut the county gristle this sort of banking industry once and for all you know this example of tax evasion so powerful example where you have a relatively tiny group having its way with democracy basically having too much influence or the pass laws and the new course that result from that so that you know this is a real challenge to our system as well as to work economy there's been a lot of rhetoric about. secrecy jurisdictions but i think

billion dollars to offshore havens in the past two decades the us according to a report by tax justice network now the result is among the top of money losings. most of the transferred capital comes back to russia in the last year so it grows neverland's alex and they accounted for almost all foreign investments into russia so sick if russia does have a look at the variable and see how that is before may just now if we would see what the exchange rates are looking like and as we can see it is a change of fortunes just there is managing to gain against vaska currencies against the u.s. dollar and the european currency as the figure though it remains it relatively strong. that it skews maybe one twenty one twenty eight that the common currency are listing how the asian markets are performing just moving off the lows of the session today to show chinese manufacturing out of the recovery likely in july that the european debt worries of keeping most of the indices in the region in negative territory have moved is the investors service credit outlooks for germany the netherlands luxembourg that was

combined size of america japan's annual output and it comes from a report commissioned by the tax justice network that's off the james henry explains to us how they reach these huge. we use three different methods one is to look at the bottom of a record capital it flows out in developing countries looking at some of those we've developed to analyze their balance of payments sources and uses of funds and a sort of those come out with some very large numbers for the developing countries we did models of honored thirty nine and different countries secondly we looked at a lot of data that's published by the bank for international settlements on the bottom of cross border deposits by corporations and individuals and that allowed us to make an estimate of how large their core folios were the offshore investors have. really we were able to get quite a bit of data on individual financial institutions even though they are secret need to disclose a lot of information collectively that you could put together if you work at and come up with some you know not perfect but some idea of how much they have and w

james henry, a lawyer and economist wrote the report for the advocacy group tax justice network. tax havens. he says the actual number may be even as high as $32 trillion. >> the number is just kind of a way of having a lightning rod that makes it clear exactly what's at stake and illustrates the problem of, you know, how big it is. >> reporter: the problem he says is hundreds of billions of dollars of lost tax revenue each year with major banks helping the world's wealthiest people hide their money. the report looks at individual wealth estimating the global elite number fewer than 10 million people with moy parked at popular havens like switzerland and the cayman and channel islands, but skeptics question the $21 trillion figure saying it's way too high. >> there could be some double counting according to some experts. and clearly it's driven by an ie dee logical agenda to try to have the highest possible number to convince governments that there's some magic pot of money out there to fund the welfare state. >> reporter: james henry dismisses the criticism and stands by his numb

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