UP Ibalon Bicol: "hot money"

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Putting Obama on notice: a clue to more brazen graft and corruption in America?

7/24/2009 | Posted by Anonymous | Edit Post

There is a time lag between identifying crime, the arrest of criminals and their prosecution. In the case of the New Jersey, it took 10 years of surveillance to apprehend 44 individuals, among them government officials and members of the Jewish clergy. Probably the biggest graft and corruption incident ever reported in the state, they are accused of serious crimes including money laundering, bribery, extortion, and the illegal transport and sale of human organs.

“Five rabbis were among suspects, along with the mayors of Hoboken, Secaucus and Ridgefield, the Jersey City deputy mayor and council president, two state assembly members, and numerous other politicians, prosecutors said.” AFP (07/24/09, Smith, S.)

The organized crime was busted in a stunning after-dawn raid shown in television. Acting US attorney Ralph Marra said the apprehensions showed the pervasive nature of public corruption in the state.

In a scale that rivals the legendary mafia, the crime ring allegedly operated internationally from New Jersey and New York to Israel and Switzerland.

Among those taken by police was rabbi, Levy Izhak Rosenbaum who was believed to be part of a notorious group of corrupt, shameless, and greedy people with strong government connections (said to be mostly affiliated to the Democratic party) that procure kidneys from poor people and sell them for $160,000 for transplant to ailing patients. He used religion as a cover.

The decade-long illegal activity was cracked open by the efforts of Republican Chris Christie, a former US attorney who had been against the administration of NJ Gov. Jon Corzine (D). The crusading prosecutor and many New Jersey citizens had been critical of the governor whose leadership was blamed for the poor handling of the state’s economy.

The graft and corruption is getting rampant and freely laid in the open in the United States. There is a shift in the ethical and moral standards of the nation as secular progressives and believers of relativism influence the psyche of the nation. If not corrected, America is in danger of losing its long-held values---its credibility, leadership, and moral standing in the world. (Photo Credit: AP/ Mel Evans x 2) =0=

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Labels: "hot money", Chris Christie, crime, Gov. Jon Corzine, graft and corruption, Jewish, money laundering, New Jersey, rabbis, trafficking of organs, USA

Senate wants to probe the misuse of P46 million in the 2007 RP-US Balikatan exercises

5/14/2009 | Posted by Anonymous | Edit Post

Consistent to the corruption that RP is known for, another round of investigation is in the horizon This time it’s the Department of National Defense (DND,) Armed Forces of the Philippines (AF) being probed by the Philippine senate for misuse of about P46 million, an amount given the United States in 2007 in the RP-US Balikatan exercises.

The whistle-blower is Lt. Senior Grade Nancy Gadian who alleges that retired Gen. Eugenio Cedo misused money--- of the P46 million, only P2.7 million went the to the Balikatan CMO projects. Gadian who served as head of the Western Mindanao Command Civil Military Operations based in Zamboanga City is also accused of lavish spending and insubordination by Cedo.

The allegations caught the attention of Senate defense committee chairman Sen. Rodolfo Biazon vowed who wants to conduct a probe in the senate. As many corruption charges had been exposed in the past against the pervasive government corruption, the public is skeptical if anything tangible will come out of this investigation. The AFP is a governmental institution which traditionally operates with a huge obscure budget that the public has little knowledge of. (Photo Credit: Captain Narender) =0=

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Labels: "hot money", Accountability, AFP, Corruption, Corruption in Government, Department of National Defense, DND, Lt. Nancy Gadian, military, RP-US Balikatan, senate investigation, Totie Mesia

RP listed by G20 as an uncooperative tax haven

4/04/2009 | Posted by Anonymous | Edit Post

The G20 finance ministers and central bank governors who convened in London yesterday came up with countries which don’t comply with the international openness demanded to halt the shady banking secrecy practices which works against the world economy--- by spuriously affecting the value of global assets.

Philippines, Uruguay, Chile, and Malaysian Territory of Labuan were blacklisted by the Organization of Economic Cooperation and Development (OECD) for failure to follow rules on financial transparency. The citation makes these countries among those which provide cover for tax avoiders who hide money from their home countries. Tax avoidance helps weaken the economy of the world especially those of the poor countries.

The incompatibility of the current Philippine laws to the international agreements is blamed for non-compliance. Faced with possible sanctions, the government is just about to work on reconciling local laws ---something it should have done much earlier.

In 2001, Republic Act 9160, a money laundering law was passed, but was quickly revised to give protection to corrupt individuals who stash money away to avoid taxation.(Photo Credit: London Summit) =0=

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Labels: "hot money", banking secrecy, blacklist, G20, laws, money laundering, tax havens, Totie Mesia

The Coming Crisis of 2009: Some Thoughts (Part 2)

1/04/2009 | Posted by myty555 | Edit Post

I am continuing this series in order to provoke some thoughts. In this way we might have a better understanding of the crisis that is coming to our shores.

Finance capital, monopoly capital, "hot money". What do these all mean?

Finance capital is basically wealth producing wealth. Investors lend money for profit and it will always seek the greatest return. Monopoly capital and finance capital are similar up to a point. "Hot money" is the behavior of finance capital.

In the later stages of capitalism finance capital dominated industrial capital. The industries are now at the mercy of banks, finance houses and more lately by various kinds of funds including hedge funds. Their "worth" now rise and fall with the movement of finance capital. "Bubble". Just like Henry Sy "earned" S1.1B in the first 9 months of the year and his fellow taipans "lost" hundreds of millions of dollars.

Finance capital can also be exported. And withdrawn. And that is the problem of national economic planners. In the development of a country more and more its planners and its legislatures are no longer the dominant factors. Their economies shrink and expand and their exchange rates change with the movement of "hot money" finance capital. The size of this money dwarfs the national savings of nations.

And that is the reason why our exchange rate is on the downslide. "Hot money" is being withdrawn. Our equities and stock market earned 30% per year from 2003 ton 2007. All because of the "bubble" created by the inflow of "hot money".

Our local economy was not responsible for that "prosperity" (but it certainly helped Mrs. Arroyo survive). But woe to those that do not understand this kind of "investment". They will have to be content with the 3-4% interest the bank gives for time deposits which is not even enough to cover inflation.

In the competition of nations, we will be left by Vietnam, a country ravaged by war not so long ago. Our $1B direct foreign investment (DFI) per year is but a fraction of their $7B. And we better learn how to kowtow to China which receives $1B a day at its peak. They will be our investors and buyers in the future.

How do we catch this elusive "hot money"? It is simple as long as one country's economy can guarantee it will earn handsomely. That is why former developing countries like China and India are fast becoming powerhouses. They will not be left holding the proverbial empty bag because they have real wealth--their manufacturing sector, export market, capital market and technology is own the way to development and they can now absorb flights of "hot money".

"Hot money" without outlet is a dangerous thing. Arbitrageurs and fund managers became too "creative" in inventing new kinds of investment vehicles and this led to the "sub-prime" woes in the US. They have to show enough "profits" so that they wont lose their (finance capital) investors. After all their earnings are based on percentage and on the rise of their own shares.

And this is the reason for the rise of Madoff schemes (seems Madoff is on the way to replacing Ponzi in the dictionary). We can just speculate how many Madoff schemes are out there in the world.

Whatever financial conflagration that will happen finance capital will find a way to seek profits in all parts of the globe. It won't even matter if it is a conflict area, a dictatorship for as long as there is reasonable guarantee they will get their money back with interest.

So this crisis, in essence, is just a temporary thing. The world economy will "recover" when finance capital gains enough "confidence" again. But it is gullible, the suckers and the small fries that will bear the brunt of their activity.

Is this what is meant by greed?

[photo credits:huffington post, wired newyork]

Labels: "bubble", "hot money", "sub-prime", DFI, equities, finance capital, greed, Henry Sy, industrial capital, Madoff schemes, monopoly capital, national economic planners, taipans

UP Ibalon Bicol

Putting Obama on notice: a clue to more brazen graft and corruption in America?

Senate wants to probe the misuse of P46 million in the 2007 RP-US Balikatan exercises

RP listed by G20 as an uncooperative tax haven

The Coming Crisis of 2009: Some Thoughts (Part 2)

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