Monthly Archives: July 2013

No-Income-Tax Monaco Again Threatened With ‘Tax Haven’ Blacklist Status

"Monaco, which was for a long time considered a black sheep because of its lack of transparency, is still clouded by its very attractive financial legislation. It is a haven for its inhabitants, who don’t pay income tax or inheritance tax. That is, with the notable exception of U.S. and also French nationals, as per a convention signed 50 years ago signed by General de Gaulle. Today pressure is mounting on Monaco. The world powers have launched a new war on tax evasion. During their recent Northern Ireland meeting, the members of the G8 agreed to an automatic exchange of information for tax purposes." Continue reading →

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IMF Recommends Increased Taxes For No-Income-Tax Vanuatu

"Vanuatu has previously been attractive as a retirement and investment destination for Australian citizens, largely due to its lack of an income tax, but there has been enhanced oversight in recent times by the Australian Tax Office of Australian citizens' financial assets in Vanuatu. In that scenario, the IMF now proposes that an income tax could now be imposed, as it has been in other Pacific islands. Vanuatu's domestic revenue, at 18.5 percent of GDP, is low relative to its Pacific island peers, suggesting scope to increase revenue. It is forecast that an income tax, levied on both employees and employers, could yield between 3 and 4 percent of GDP at modest tax rates." Continue reading →

Continue ReadingIMF Recommends Increased Taxes For No-Income-Tax Vanuatu

Russia and China building their gold reserves

"The People’s Bank of China recently let overnight money-market rates soar to over 20%. The message is clear for those prepared to look for it: they are not going to fuel an extended credit bubble. The two countries have learned how damaging a bank-credit-fuelled business cycle can be, and are determined to restrict bank lending. Western commentators find this hard to understand because it does not conform to the way western monetary policy works. It seems that the leaders of both Russia and China are also painfully aware of the importance of currency stability in a way the West is not." Continue reading →

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Shanghai Futures Exchange To Begin Gold/Silver Night Trading

"'The U.S. and Europe still have the pricing power, although prices are usually being affected by a number of factors, such as liquidity and overall economic conditions,' said Yang Maijun, chairman of the Board at the Shanghai Futures Exchange, which is going to start night trading hours for its gold and silver contracts on July 5. 'The purpose of night trading is to help prices [on the Shanghai exchange] better connect with global prices, and to help achieve our goal of internationalizing our contracts,' Mr. Yang told the audience at the Lujiazui Forum, an annual gathering of financial policy makers and executives in Shanghai." Continue reading →

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JPMorgan Comes Out With First “Overweight” Call On Commodities Since September 2010

"Metals prices have reached levels that are demonstrably forcing involuntary production cuts and fresh demand. Against one-sided sentiment and following 15 months of destocking, Chinese buyers are going to realize very soon this is the opportune moment to back up the truck and to restock supply channels where China is import dependent. A surge in Chinese buying of a metal at a lower price has already been observed in gold. We expect renewed vigor in imports of copper and oil. It is quite obvious what the Chinese should do here in physical markets, in pursuit of China’s long-run economic and social self-interest." Continue reading →

Continue ReadingJPMorgan Comes Out With First “Overweight” Call On Commodities Since September 2010

Thin Wire – Hawala

"With the ingenious method of hawala, money moved time zones and continents via a single communication between two hawaladars or thadekars (hawala agents): a promise that the cash had been deposited on one end, and thus could be withdrawn from the other. So long as cash trades at either end were relatively balanced, the system worked—so well that hawala remained the mainstay of monetary trade in more than 50 countries until the early 20th century. Fast-forward a few hundred years, and hawala has a less celebrated reputation. But for families in developing countries supported by diaspora relatives, hawala is a lifeline." Continue reading →

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U.S. Helping Iranians With Surveillance Circumvention Technologies

"While Americans are making a big deal that the NSA is spying on everyone, Obama comes out and fervently defends the practice. NSA spying on you is the good kind. The 'bad' surveillance happens over in Iran. So what else for the U.S. government to do than supply Iranian citizens with surveillance circumvention technologies! Bloomberg reports: 'The U.S. State Department is helping develop a number of general-use surveillance circumvention technologies,' Sascha Meinrath, founder of the Commotion Wireless Project, a non-profit group trying to build such devices, said in an email.' The irony is so thick, you can barely see!" Continue reading →

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If Syria Falls, Expect a Pop in Oil Prices

"If Syria does fall, the next logical target would be Iran, which would create chaos in the global oil markets. Today, Iran provides about 20% of China's daily imported oil – only Russia provides more. If Iranian oil stops flowing to China, the Chinese will be required to go to other sources to buy over 500,000 barrels of oil, which would instantly increase the spot price of oil. Just what is going on in Syria? Syria is the first salvo in a war that puts Iran, China, and Russia against the US and its allies. The American government has thrown its weight behind the Sunnis, whereas Iran, China, and Russia have been backing Bashar al-Assad, the Shi'a leader in Syria." Continue reading →

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Americans troubled more by governmental abuse than terrorism

"In the dozen years since 9/11, frequent polling conducted by Fox has suggests that the majority of Americans have all the while said they’d give up their freedoms for the sake of security. Only with the latest inquiry though are those answers reversed: the last time a majority of Americans opposed giving up privacy for security was May 2001. Not only are Americans more opposed now to giving up personal freedoms for the sake of security than they were after 9/11, but other statistics show that distrust against the federal government continues to climb." Continue reading →

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Public Approval of Supreme Court Falls to All-Time Low

"The U.S. Supreme Court finished its term with big decisions on voting rights, affirmative action and same-sex marriage. Following those rulings, public approval of the court has fallen to the lowest level ever recorded in more than nine years of polling. Just 28% believe the Supreme Court is doing a good or an excellent job. At the same time, 30% rate its performance as poor. That’s the highest-ever poor rating. It’s also the first time ever that the poor ratings have topped the positive assessments. These numbers are even weaker than the numbers recorded following the Supreme Court ruling upholding the president’s health care law last year." Continue reading →

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