Posts Tagged IMF

“There has been so much orchestrated ‘good news’ that the bottom is probably about to fall out of the market.”

Quote of the day, from “Mish“. First, Mish quotes this article about China refusing to help the IMF bail out Europe.

The IMF is proposing an expansion of its lending resources to safeguard the global economy against any worsening of Europe’s debt crisis, according to an official at a Group of 20 nation. The lender is pushing China, Brazil, Russia, India, Japan and oil-exporting nations to be the top contributors

Then comments, “That the IMF feels the need to make such a request should not be anything to cheer about. Indeed, there has been so much orchestrated “good news” that I can’t help wondering if the bottom is about to fall out of the market.”

via Mish’s Global Economic Trend Analysis: IMF Proposes Trillion Dollar Lending Expansion.

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Dominique is French toast

Very well made, very clever, a catchy tune, and I can actually understand the words because the singer knows about diction (I’ve been watching Keanu Reeves in Hardball and Reeves is the only character whose words I can understand).

[yframe url=’http://www.youtube.com/watch?v=24a-Qb327ok’]

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Two Filipinos arrested for operating black market bank | The Japan Times Online

Hawala

Hawala, from the IMF website. Click image to visit.

Update: California has just enacted a law that requires

“money transmitters–companies that act like banks, but aren’t, such as PayPal–to get licenses. As usual, however, the devil is in the details. Previously, California corporations were only required to get money transmitter licenses for international funds transfers, and domestic transfers were unregulated. Now both kinds of transfers are regulated. Also, the price of each license is a little bit steep: half a million dollars and change. Oh, and if you want to do business nationwide, you’ll need 43 more of those licenses from almost every state. The forms and requirements are different everywhere, most states want your fingerprints to do a criminal background check (the exact same criminal background check, it turns out), and the price varies wildly from a measly $10,000 to $1,000,000+ per state. Want the forms? Good luck finding them; some states don’t post them on-line.”

via In Fifty Days, Payments Innovation Will Stop in Silicon Valley | Quora

Let me get this straight: two people who were performing a service for their customers – transferring funds to the Philippines – were arrested for … satisfying their customers? Providing a service? Charging commissions for providing this service? What is the crime, exactly? Ah! Depriving banks of potential income!

This sounds like a hawala system, a perfectly legal and ancient system, as explained in this article on Lewrockwell.com. See also the explanation on the IMF website. Hawala goes by different names in different cultures. In the Philippines it’s apparently called Padala. So this article seems to be saying that Hawala is illegal in Japan. Or at least the police think it is. This is another victimless crime. According to the article itself, no-one was ripped off or defrauded and no-one complained to the police.  It’s probably the official banks who are mad about seeing all this potential cash bypassing them: they want their cut, they deserve it!

The IMF website tells us, In earlier times, IFT [informal fund transfer] systems were used for trade financing. They were created because of the dangers of traveling with gold and other forms of payment on routes beset with bandits.

And who are the modern bandits in this case?

the hawala system… is less expensive, swifter, more reliable, more convenient, and less bureaucratic than the formal financial sector. Hawaldars charge fees or sometimes use the exchange rate spread to generate income. The fees charged by hawaladars on the transfer of funds are lower than those charged by banks and other remitting companies… The system is swifter than formal financial transfer systems partly because of the lack of bureaucracy and the simplicity of its operating mechanism; instructions are given to correspondents by phone, facsimile, or e-mail

And that’s wrong! wrong! WRONG!

Two Filipinos have been arrested for allegedly operating an underground bank to remit money from Japan to the Philippines, police said Thursday.

The police believe they remitted over ¥1 billion to the Philippines and allegedly charged commissions of 3 to 5 percent on each transaction. The police arrested them for allegedly accepting ¥70,000 last October and November from two Phillipinos living in Gifu and Mie and remitting the money to the Philippines.

via Two Filipinos arrested for operating black market bank | The Japan Times Online.

 

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