I'm pretty sure if you just run a tax shelter, all of the major countries will bar their banks from doing business with you or with any one who does business with you. You're frozen out. No deposits, no cash flow.williatw wrote: So the hypothetical bank of Luna's primary source of revenue is electronic deposits from earth, fleeing taxes, earning interest tax free. The bank in turn loans money to people/businesses back on earth charging interest, generating profit. But are you suggesting that mined precious metals on the moon, gold, platinum, yttrium etc. would have value even if they weren't shipped back to earth? A sort of cash collateral for the deposits? Can't own land on the moon, but you can "mine" minerals just like the US & Russia did, held in the colonies environs, it would have value, even if it isn't shipped back to earth, backing up the electronic deposits, shoring up the colonies value therefore attracting more investment possibly.
But if you have a significant (and I"m talking a kiloton or more of precious metals) you don't need to solicit deposits. You're free to accept them but your first business is making loans to large corporations and small countries. Those debts (and the promise of future loans) gives you a level of power. It's much more difficult to shut you out because you offer real value. It's not impossible of course. I just think the more valuable you make yourself to others, the more likely you are to survive the early years.