This is the Kato Daily Podcast for Wednesday, October 28, 2009.

I'm Caleb Brown.

Lictonstein is a tax haven, a country that disrespects the laws of other countries by letting the rich hide

their assets under the false guise of financial privacy.

That's if you believe the rhetoric of many

Prince Michael of Lictenstein says financial privacy isn't about the rich,

it's about freedom.

We spoke during the Cato Institute's Tax Competition Conference held October 20th. Actually, Liechtenstein as a financial center started in the late 1920s.

At that stage, actually there was less banking which is still the case

less banking but we provided certain instruments for long-term asset protection.

Continental Europe was quite destroyed by World War I, old structures had fallen and the continental

legislations didn't have did not have any equivalent to the trust for

asset production and generation planning and estate planning.

Now in Lichtnstein law they they did at stage two things.

They actually would have only then continental country

which took over Anglo-Saxon trust law

into the Liechten legislation.

One side, and then they created the so-called family foundation. into the

legislation, one side and then they created the so-called Family

Foundation which was actually a civil law, it's not really

the legal term, but in practicing the civil law version of a trust.

The real development as a financial center happened then after World War II and then family monies were placed in such foundations

...