> Centre for Research on Globalisation > > http://www.globalresearch.ca/articles/PET108A > > > "Dirty Money" > Foundation of US Growth and Empire > > Size and Scope of Money Laundering > by US Banks > > by James Petras > Professor of Sociology, Binghamton University > > La Jornada, Mexico, 19th May 2001 > Posted at globalresearch.ca 29 August 2001 > > > >There is a consensus among U.S. Congressional >Investigators, former bankers and international >banking experts that U.S. and European banks >launder between $500 billion and $1 trillion of dirty >money each year, half of which is laundered by >U.S. banks alone. As Senator Carl Levin >summarizes the record: "Estimates are that $500 >billion to $1 trillion of international criminal >proceeds are moved internationally and >deposited into bank accounts annually. It is >estimated that half of that money comes to the >United States". > > > >Over a decade then, between $2.5 and $5 trillion >criminal proceeds have been laundered by U.S. >banks and circulated in the U.S. financial circuits. >Senator Levin's statement however, only covers >criminal proceeds, according to U.S. laws. It does >not include illegal transfers and capital flows from >corrupt political leaders, or tax evasion by overseas >businesses. A leading U.S. scholar who is an expert >on international finance associated with the >prestigious Brookings Institute estimates "the flow >of corrupt money out of developing (Third World) >and transitional (ex-Communist) economies into >Western coffers at $20 to $40 billion a year and the >flow stemming from mis-priced trade at $80 billion a >year or more. My lowest estimate is $100 billion per >year by these two means by which we facilitated a >trillion dollars in the decade, at least half to the >United States. Including the other elements of illegal >flight capital would produce much higher figures. The >Brookings expert also did not include illegal shifts of >real estate and securities titles, wire fraud, etc. > >In other words, an incomplete figure of dirty money >(laundered criminal and corrupt money) flowing into >U.S. coffers during the 1990s amounted to $3-$5.5 >trillion. This is not the complete picture but it gives >us a basis to estimate the significance of the "dirty >money factor" in evaluating the U.S. economy. In the >first place, it is clear that the combined laundered >and dirty money flows cover part of the U.S. deficit >in its balance of merchandise trade which ranges in >the hundreds of billions annually. As it stands, the >U.S. trade deficit is close to $300 billion. Without >the "dirty money" the U.S. economy external >accounts would be totally unsustainable, living >standards would plummet, the dollar would weaken, >the available investment and loan capital would >shrink and Washington would not be able to sustain >its global empire. And the importance of laundered >money is forecast to increase. Former private banker >Antonio Geraldi, in testimony before the Senate >Subcommittee projects significant growth in U.S. >bank laundering. "The forecasters also predict the >amounts laundered in the trillions of dollars and >growing disproportionately to legitimate funds." The >$500 billion of criminal and dirty money flowing into >and through the major U.S. banks far exceeds the >net revenues of all the IT companies in the U.S., not >to speak of their profits. These yearly inflows >surpass all the net transfers by the major U.S. oil >producers, military industries and airplane >manufacturers. The biggest U.S. banks, particularly >Citibank, derive a high percentage of their banking >profits from serving these criminal and dirty money >accounts. The big U.S. banks and key institutions >sustain U.S. global power via their money laundering >and managing of illegally obtained overseas funds.
.... >The URL of this article is: >http://www.globalresearch.ca/articles/PET108A > >Published with the permission of the author. For fair use only.
