President’s investing in foreign companies through some sketchy Cayman Island trust is something you usually see out of a spy thriller or something. Well, where do you think those movies get their inspiration from?
We all know politicians have a great deal of cash. Some of them get in it honest ways while others are a little more… creative. Was Barack Obama investing in Chinese companies? That’s certainly what some people think.
MITT ROMNEY ACCUSES BARACK OBAMA OF FOREIGN INVESTMENT
Remember that time Mitt Romney attacked Barack Obama at the presidential debate? Yeah, no one does. But let’s go back and see how it went down.
During the debate, Romney accused Obama of having investments in some Chinese companies and also investing through a Cayman Island trust. It was strange since Obama accused Romney of the exact same thing a few months prior. Apparently, Romney can’t take a little joke.
So with everyone pointing fingers, what’s the true story here?
MITT ROMNEY “MOSTLY RIGHT” ABOUT BARACK OBAMA
Before we give Mitt Romney too much credit, let’s take a step back and look at the details. Back when Barack Obama was a state senator, the State Board of Investment made investments for the state employees retirement. Furthermore, Romney pointed out Obama was involved with Advent International (AI), one of the world’s largest private equity firms.
One of AI’s partnerships is set up in the Cayman Islands. But is there really anything to worry about? Let’s dig a little deeper.
BARACK OBAMA DIDN’T REALLY DO ANYTHING WRONG
Unlike Mitt Romney who used a Cayman trust for a tax advantage in the U.S. Obama did not receive anything like that. Obama didn’t break the law. However, his association with the investment board means Romney wasn’t entirely wrong.
The managers of the Illinois pensions funds made all these decisions. Meanwhile, Obama had no idea all this was going on. He was too busy being a state senator and all. Hence, Obama gets a pass on this one.