What The Government Cant Do For You: Cash

Showing posts with label Cash. Show all posts

Sunday, April 7, 2013

RT News- Suiciders for Sale, Saudi Arabia gets cash for blood in Syria.

Thursday, March 28, 2013

Russia Is Next In Line To Restrict Cash Transactions

The Russians are taking a page from the Europeans book (and not a positive one for libertarians). Given the substantial criminal activity and illegal entrepreneurship in Russia – the grey and black economies account for 50–65 percent of GDP and estimates that about $ 50 billion was taken out of Russia illegally in 2012 alone – the great and glorious leaders have decided to impose restrictions on cash transactions. As Russia Beyond The Headlines reports, Russia may ban cash payments for purchases of more than 300,000 rubles (around $ 10,000) starting in 2015 – starting with a higher ($ 19,500) restriction in 2014. They will also enforce mandatory cash-free salary payments (cash compensation accounts for 15% of GDP currently) in an effort to both bring some of the population’s ‘grey’ income out of the shadow; and increase the volume of cash reserves in the banks. It would appear that wherever we look now, leadership are realizing that the limits of fiscal and monetary policy have been reached and now changing rules, limiting freedom, and outright confiscation are the only way to maintain a status quo. Ironic really, when the enforcement of said rules may just be the catalyst for the end of the status quo as the middle class suffers.

Via Russia, Beyond The Headlines,

Russia may ban cash payments for purchases of more than 300,000 rubles (around $ 10,000) starting in 2015. The move is expected to boost banks’ cash reserves and put a damper on Russia’s shadow economy. However, the middle class will most likely end up having to pay the price for the scheme.

Moscow is looking to kill two birds with one stone: Firstly, it wants to bring some of the population’s “grey” income out of the shadow; secondly, it wants to increase the volume of cash reserves in the banks. The government’s bill will introduce the new rule to the State Duma. The document was prepared by the Ministry of Finance and approved by the government.

The restrictions on cash transactions will develop in two phases. In 2014, a ban on cash payments for purchases worth more than 600,000 rubles (about $ 19,500) will be introduced; the limit will then be halved to 300,000 rubles in 2015. Furthermore, the document introduces mandatory, cash-free, salary payments.

…

Even now, cash withdrawals on payday account for around 85 percent of all ATM transactions. Moreover, in 2005–2011, cash flows more than quadrupled. According to Bank of Russia estimates, more than 90 percent of all commodity purchases in Russia are paid for in cash.

The government is now trying to bring the shadow economy into the light and increase money flows into the treasury, according to Investcafe analyst Yekaterina Kondrashova. In her words, as soon as the new rules come into effect, those using unofficial wage payment schemes will encounter certain difficulties, although there could be some ways to circumvent the law.

The Ministry of Internal Affairs and the National Anticorruption Committee estimate the market for money laundering and cash conversions at somewhere between 3.5 and 7 trillion rubles ($ 113–230 billion) — about 60 percent of the Russian federal budget.

Rosstat reports that the volume of the shadow economy (“grey” money from tax evasion, compensations paid as “cash in envelopes” and violations of currency and foreign trade regulations) is at least 15 percent of the GDP, according to Ricom-Trust senior analyst Vladislav Zhukovsky.

Given the substantial criminal activity and illegal entrepreneurship, the grey and black economies account for 50–65 percent of GDP. Even former Central Bank Chief Sergey Ignatyev had to admit that about $ 50 billion was taken out of Russia illegally in 2012 alone.

There is another side to the move toward plastic, however. Cash-free payments will result in higher prices for some goods and services. The middle class will suffer the most, because the “risk group” includes property and automobile transactions. The luxury segment will also be affected, including customized tours.

…

Zero Hedge

Russia Is Next In Line To Restrict Cash Transactions

Friday, February 15, 2013

Jesse Jackson Jr Charged With Stealing $750,000 In Campaign Cash Used To Purchase "Fur Capes And Parkas" And Much More

And so the surreal criminal saga of former Illinois Congressman Jesse Jackson Jr. (“JJJR”, “Junior” or just “Jackson”) has ended. Jackson, 47, a prominent Chicagoan son of the civil-rights leader of the same name for the handful of people who are unaware, was a national co-chairman of President Barack Obama’s 2008 campaign and an advocate of traditional Democratic Party constituencies. He disappeared in June, and it was later revealed that he was being treated at the Mayo Clinic for bipolar disorder and gastrointestinal issues, although now it appears kleptomania may have been one of the afflictions treated too. He returned to his Washington home in September but went back to the clinic the next month. As Bloomberg summarizes, “he pushed to maintain government support for the poor, including welfare, assistance for heating bills and the Head Start early education program.” He certainly was very generous with other people’s money.

So generous, in fact, that hours ago he was charged with “misusing“, also known as stealing, some $ 750,000 in campaign funds for purchases including a $ 43,350 gold Rolex watch, $ 5,150 for fur capes and parkas, $ 9,588 worth of “children’s furniture”, Michael Jackson and Bruce Lee memorabilia and much more.

At the same time Jackson’s wife, Sandra Stevens Jackson, was charged in a separate case with filing false tax returns. She faces a maximum penalty of three years in prison. Junior’s charge has a maximum term of five years in prison. More importantly, he is sorry (to be caught, we can only surmise): “I want to offer my sincerest apologies to my family, my friends and all of my supporters for my errors in judgment and while my journey is not yet complete, it is my hope that I am remembered for the things that I did right.”

We hope Jackson’s career-ender is a shining beacon of light what happens when the “misuse” of other people’s money is finally exposed, especially, as the case may be, when once it finally all runs out.

From Bloomberg:

No court dates have been set.

William Miller, a spokesman for U.S. Attorney Ronald Machen in Washington, declined to comment on the charges.

Jackson’s wife will plead guilty to one count of tax fraud, her lawyers, Dan Webb and Tom Kirsch of Winston & Strawn LLP, said in a statement.

“Ms. Jackson has accepted responsibility for her conduct, is deeply sorry for her actions, and looks forward to putting this matter behind her and her family,” according to the statement.

Jackson, who ended a career of almost 17 years in the U.S. Congress by resigning in November, won a special election for a vacant House seat in 1995 and began serving on Dec. 12 of that year. He subsequently never garnered less than 81 percent of the general-election vote in his district on Chicago’s South Side until last year when he won a 10th House term with 63 percent.

His wife resigned her Chicago alderman seat last month.

Jackson was a national co-chairman of President Barack Obama’s 2008 campaign and an advocate of traditional Democratic Party constituencies. He pushed to maintain government support for the poor, including welfare, assistance for heating bills and the Head Start early education program.

Jackson was caught up in the scandal surrounding former Illinois Governor Rod Blagojevich’s attempts to sell an appointment to Obama’s former Senate seat. Identified in court papers as “Senate Candidate 5” who was willing to raise money for the governor’s re-election, Jackson denied the allegations and said he wasn’t a target in the federal probe.

Blagojevich was convicted in June 2011 and sentenced to 14 years in prison.

Educated at the elite Washington prep school St. Albans, Jackson graduated from North Carolina A&T State University in 1987. He earned a master’s degree in theology from Chicago Theological Seminary and a law degree from University of Illinois College of Law.

And since everyone only wants to know just what “memorabilia” and other trinkets he spent $ 750,000 of taxpayer money on, here is the list from the conspiracy charge: