Rise of the Richistanis

Forget Afghanistan, Uzbekistan, or any of the other states that specialise in small wars and burning oil wells. What appears to be worrying most people in Britain right now - or at least the professional middle classes that dominate media discussions - is the rise of "Richistan".

Robert Frank's book of the same name, which charts the way that the new rich of the US are virtually carving out their own mini-state, has struck as strong a chord on this side of the Atlantic as in its own country.

His tales of the Richistanis complete with their 100-foot yachts, 30,000 sq ft homes, and their 100-plus domestic staff will be as familiar to many British readers as American ones. The reason? Because if Richistan has a capital, it isn't New York, or Boston, but London - or at least the bits of London that have a postcode starting with SW (South West London).

Importantly, the rest of the country is starting to notice that there is a whole new strata of the mega-wealthy, and that most of them pay very little tax. That is starting to grate. Essentially, a new class war is slowly emerging between the middle classes and the super-rich.

But actually this argument needs to be flipped on its head. The problem with the Richistanis now filling up London's more desirable garden squares is not that they pay too little tax, it is that the rest of the British middle classes now pay too much.

Still, there is no mistaking the way that many British commentators are now questioning the super-rich. One eminent writer recently argued that those really losing out to the non-doms "are the indigenous, British middle classes".

"The bourgeoisie are developing murderous feelings for the fat cats at the top of the tree," said another, describing the super-wealthy as "chiselling Croesuses" who are "cheating the rest of us". There has been much more criticism along this vein, including from many people who usually have no track with left-wing ideas.

The crucial point is that there is some truth to their complaint. London has become a haven for the mega-wealthy. It has a stable legal system, world-class financial services and a tax system that is extraordinarily generous to the people at the top of the financial food chain.