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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.
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What the fuck do criminals care if they change the laws?
Only criminals will care when other than criminals make the laws.
Knuckles Theory of Equitability
You mean, Russia is about to go all Marxist, Leninist, Central Planning Idiot like Washington???
I'm so confused.
People look at RT as a viable source of news....
Nobody is shaken by their behavior versus ours anymore...
We've come a long way, baby
Jesus people. .. . How the fuck'd we wind up here?
Why, its almost as if the oligarchs have turned against us ;-)
Heads we win, tails you lose.
Nothing like a two headed coin to restore trust & confidence in their game ;-)
Starting in 2015?
...right
Is it me or is this prognostication hopelessly optimistic?
They've succeeded (so far) beyond my wildest nightmares.
"the enforcement of said rules may just be the catalyst for the end of the status quo"
Like a fist full of sand, the tighter one squeezes, the more grains that slip through.
I hope this works better than Chernobyl's controls.
Chernobyl controls is melt.
Globalists and banksters did it. The good news is that there aren't that many of them and they are will begin turning on one another once they encounter great difficulty enforcing their wills.
Will work for Vodka
More like, will get out of nice warm bed, for vodka.
What is work?
Will remain comatose in nice warm bed with vodka for domestic tranquility
Will share vodka for great blow job.
Well don't look at me!
I will give you Gutta who will give you a blow job for some food and silver. There is more of Gutta than the food I request. Deal?
Boris is work many year in custodial engineering and once is fall asleep to get caught. Blow job, now is look for work.
My salary covers attendance, all work is extra.
You reminded me of this Russian anekdot.
Q: What is Russian business model?
A: Steal a case of vodka, sell it and spend all money on booze.
old newz
you can not even imagine how popular this currency iactually is and how widely used it is in the countryside in russia
In soviet Russia, vodka will work for you!
Pposted Eearlier Russia to ban cash transactions over $10,000 | Russia Beyond The Headlines
From the Federal Reserve Bank of St. Louis. It's a bit dated, 1999, but it offers a concise insight concerning capital controls. It's conclusions are as follows. I am certain this is one Fed paper that will soon be lost in the junk folder.
"In reality, capital controls rarely have been imposed in a well-thought-out way to correct clearly defined pre-existing distortions. Instead, capital controls most often have been used as a tool to postpone difficult decisions on monetary and fiscal policies.
The consensus of the research on capital controls has been that they can alter the composition of capital flows or drive a small, permanent wedge between domestic and offshore interest rates but they cannot indefinitely sustain inconsistent policies, and their effectiveness tends to erode over time as consumers and firms become better at evading the controls (Marston, 1995). Outflow restrictions, in particular, may buy breathing space, but that is all."
https://research.stlouisfed.org/publications/review/99/11/9911cn.pdf
Thanks. Appreciate you taking the time to forward the link AlaricBalth. I'm off to get some sleep, but it's bookmarked.
You realize how dovish the St. Louis fed is?
https://research.stlouisfed.org/publications/review/99/11/9911cn.pdf
I got a feeling all them folks at FedStLouis gonna be declared threats to the state for thinking and sent off to a long term learning camp in mountainous southern Baluchistan somewhere.
lulz. Rock on Knuks ;-D
1. Currency controls are a risky, stopgap measure, but some gaps desperately need to be stopped.
—Paul Krugman, “Free Advice:, A Letter to Malaysia’s Prime Minister,” Fortune, September 28, 1998.
2. “One of the architects of those articles, John Maynard Keynes, was a strong proponent of capital controls and the IMF often was seen as such during its early years.”
"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... “The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose."
Economic Consequences of the Peace, 1920
https://research.stlouisfed.org/publications/review/99/11/9911cn.pdf
http://www.knology.net/~bilrum/keynes.htm
http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=303
-if any of this is true, it is just too freaking bizarre.
Well..........that didn't take long
Learning to weave bacon.
Can you hear that noise?
That's the Shit hitting the fan.
Yep, and it's splashing across borders everywhere!
LOL.
The end result isn't what anyone believes it will be.
Everyone betrayed. No body wins. Now because of the decisions made all die. Sorry humans, the future is written in pencil until you figure it out. Don't bother with the holes inthe mountains either. Enjoy the methane you pricks...screw us, we screw you. Give us back our friends assholes. or you lose alot on monday again. Assholes keep friend in lock up...well, assad is dead as a bag of rocks. We wre betrayed. You are next.
Let our friends go. all of them.
Did Putin clear this with the mafia?
Yes.
Pooti-Poot ALWAYS wins!
"I looked the man in the eye. I was able to get a sense of his soul." - GWB, June 2001
Yes, he sent the memo to himself and CC to the Fed!
Again. The game is changing,
They are going to do it Bercrankers way.
http://www.businessinsider.com/trucks-carry-cash-for-cypriot-banks-2013-...
These laws are like gun control...only affects the law abiding citizens...the Small Fries. Criminals by definition don't care what the law states.
I've been going in this direction.
When the law abiding are made criminals by the law, all is criminal.
"as all exist for solely for entertainment purposes now." how ironic that what needs to be banned is cash. Since it can't be done via inflation "we now will proceed the old fashioned way by banning cash transactions." wow...we all must be too rich. This increases the cash reserves in banks? So the money is more easily stolen?
Good news. We have an old fashioned PIIGS story not involving a geography pop quiz for the uninitiated! For once Russia is not involved even though it is SSDD....
An Old Fashioned PIIGS story as Portugal Mises Deficit Targets AgainWhere is Piigs?
Upside down in a chinese river without a paddle...
Long toxic-waste seasoned bacon!
Missed deficits? Pfff... as if that was news... Constitutional Tribunal is (finally) about to deliver it's ruling on the constitutionality of current national budget - if it's anything as the previous (2012), now that will be news...
No cash? time for barter!
Barter is the Greek way...
as i mentioned the other day. look around in the US. How many retailers etc. don't accept $50 and $100 bills. this truly is a global economy now. these assholes are doing all this in sync. No coincidence.
You can't have 50's or 100's in your bug out bag. You'll need nothing larger than 20's to go along with your gold and silver coins.
Well, how many, in actuality?
I have never myself encountered a single merchant who would not accept a $50 or $100 bill, and I routinely use both denominations.
akak by me several. Including a few big ones. They all gave the same reason. Counterfiets...
I can't upload pics on here can I? I would take a picture this am of the place I am going to...
Can't resist: Bitcoins users unaffected!
Until someone trips over a cord.
Sorry, couldn't resist ;-)
Good one newness, tks 4 laugh.
State to DHS Tower, come in DHS.
DHS....Janet "Cuddles" Napolitano here
John "Longface" Kerry on this end. Bit coin alert, bit coin alert....coordinates ZH, sector babkjl.
Fire mission. Fire mission Fire mission.
Cuddles here, affirmed, drones launched.
Longface to Cuddles, misssion sucessful, keyboard smoked, job well done...how 'bout dinner?
Your place or mine...
Alright, your disclosure, please: how deep in it are you? And how much are jizzing yourself on this run-up? http://preev.com/
Disclosure: got none; won't get any until after it crashes again to under twenty, or ten, and maybe still not then or ever.
Don't need it or want it, why should I get it?
I can count my savings with my computer turned off.
http://www.oditorium.com/ou/2013/03/are-bitcoins-anonymous-not-really/
the rulers can track your ass from behind their computers. We see you made so much bit coins, we want our cut or else we throw you in jail.
OT for fun.
So I've recently been in Hawaii on vacation. And in my inimitable way, I notice serious shit others miss... Or ignore.. Whatever
A lot of Hawaiian words sound like multiple repeated syllables... Mookamookahubbahubliani kinda stuff.
And so this waitress asks us how our lunch is and I'm having a burger. I couldn't resist. "Now this is one good burger!" And my kids are going berserk trying not to laugh getting the Pulp Fiction line when Jules is tormenting whazziiz name asking him what Marcellus Wallace looks like. And my son sushess me when I'm ready to ask if its a Big Kahuna burger.
So any how, what with the repetitious vowel and syllable sounds I suggested that the movie line be dubbed for Hawaiian to be "Say say what what again motherfucker fucker"
My kids were crying laughing
Ah, all in a days correction of mans errors and proper perspectives
Jules: Mookamookahubbahubliani, how we doin, baby?
Mooki: I gotta go pee! I want to go home.
Jules: Just hang in there, baby, you're doing' great, Ringo's proud of you and so am I. It's almost over.
(Jules to Pumpkin)
Now I want you to go in that bag and find my wallet.
Pumpkin: Which one is it?
Jules: It's the one that says Bad Motherfucker on it.
love that part and how matter of factly 'bad motherfucker' rolls off of SLJ's tongue
Oh man....
This is spooky. Right after that my son started talking about the exact same scene with the "bad motherfucker" billfold...
Next Ill probably be enveloped in a scalar dome shield for my own protection
I think Putin is only talking about the dirty jew cash
Putin is a patriot. The only thing stopping him from making Russia into the greatest country on the planet are the "Russian" Mafia (hehe, not really) and Oligarchs. The lines blur quite a bit, and almost all are part of the pathologic victim-complex-driven tribe that seeks to (quite hypocritically) oppress everyone else. I hope more than a few joos come down with a nice case of the Polonium. No vaccine for that one, or so I hear.
Putin is merely a better actor than the rest. Almost makes government look legitimate.
Sorry for hijacking, but does anyone, including the Tylers have an explanation for the parabola that appeared in the gold spot chart late this afternoon? Follow the green line.
http://www.kitco.com/charts/livegold.html
Check silver out too. Strange stuff.
BrotherJohn noted that silver lost 50 cents after the market closed on zero volume.
http://www.brotherjohnf.com/wp-content/uploads/SILVER32813.jpg
There was 1 dollar bid ask spread in netdania website since the market close. So i am guessing something is messed up and the data is not reliable. and the volume seems to be tick volume based on changes to the bid or ask which are completely useless indicators with 1 dollar spread.
However in bullionvault.com, london prices are 28.43 - 28.55, the spread is not tight but reasonable. where some trades can happen.
eigenvalue's homeboy group is throwin the free benny bucks at the situation.
Up or down does'nt matter, they just wanna phuk widit.
.
but what will become of the Florida real estate boom now ?
Surely, you must be listening to the MSM!
Short Sunny Isles condos. I'm sure JPM has a synthetic asset backed derivative index for that.
Is Florida taking off again?
Boyah!
scatter " but what will become of the Florida real estate boom now?"
The flippin realtors get dumped...on,
https://www.youtube.com/watch?v=MmVMrwk4i3w
Krasnodar, nice little backwater and probably a better place to raise a family than most places in the USSA.
Bullish :
"Increased activity" at North Korea's mid to long range missile sites, reports South Korea's Yonhap news agency #breaking RT Reuters
I'm getting a chubby!
Even more bullish :
http://www.kfyrtv.com/News_Stories.asp?news=62905
Nearly 200 airmen and 6 B-52s from the Minot Air Force Base are deploying to Guam tomorrow.
I hope they have tactical nukes aboard these because 6 won't be able to stop 1 million troops and 15 000 artillery tubes pounding Seoul quickly enough.
I REALLY hope SKorea or Obama has enough balls to BOMB NKorea's missile sites if they start fueling them...
Even MORE bullish... if that's possible...
http://t.co/Wo1mRKZpWx
In the background, it shows NKorea target map... Southwest California (San Diego, LA), DC, NY, Hawaii... prepare yourselves...
i laughed my ass off when i saw that map - pure propaganda. if you notice, those are straight line distances, surely their planners know the great circle route would be a shorter distance and flight time???
Well how do you draw that on a 2d map?
with a curved line:
http://www.ncgia.ucsb.edu/education/curricula/giscc/units/u014/figures/f...
Just relax knuks, and take a cold shower. You're probably having a delayed reaction to keiserhoff's earlier offer.
;-) (Couldn't resist)
Nah, that was right away!
This could be the black swan insiders have been prepping for?!
These bitchez bednot start no shit before I get my ebay trinkets in the mail.. fuckers
NK typically likes to push buttons to get more attention, bring the US, ROK, etc. to the table for discussions on sanctions - this has a different feel to it with the seed of kim jong il at the helm. Could also all be part of the 'plan'...
Well usually, SKorea and the US bows down to their threats... but this time, no... so either NKorea will back down real soon... or shit will go down... and considering the SKorea/US retaliation plan... it has big chances of exploding into a full scale war.
missiles alone won't win a war alone - they have 10s of thousands of guys waiting to pour through tunnels and conduct clandestine landings in mini-subs, etc.
Yep. Pentagon's best case scenario : 1 million dead. Several months of war. And that is without nukes, chemicals or biological weapons being used... and if NKorea isn't helped by China... And usually, war predictions are totally wrong... meaning it will be much worse than 1 million dead and more than months of war.
I think Apple have created a strategic alliance with the Norks and have been cunningly financing Kim (Jnr) dreams of glory. Finally Cuppertino can stop the Samsung Galaxy 4 before they can land the final blow and they become the new RIM.
As said earlier it has to be bullish, in particular, for AAPL.
Disclaimer... I have lost it and nothing makes sense anymore :P
Like Iran, any offensive action that NKorea takes will mean that the entire country will then be annihilated by the US. Its basically like committing suicide and they must know this, so either they are suicidal or they just dont give a damn.
must stop entrepreneurs and their evil diabolical plans to live free.
duplicate
The more governments try to contol every aspect of an economy, the more people try to avoid this control, barter is the new exchange as people lose faith in fiat. I have seen much more frequent deals of trade services than trade greenbacks in the last two years.
So much for Russians being "good guys".
It is not the "Russians" per se, just their oligarchy acting to curb their freedoms. Nothing has changed the whole world over since the flags of Rome flew over most of the known world. Always remember; kick a collectivist whenever possible or be impoverished for the greater good. For the good of the oligarchy that is...
Illegal entrepeneurship is an oxymoron, the answer is more liberty, not less.
there was me thinking it was just the criminal fraternity in china sending their wives, daughters and grandmas over to the US to buy up california and silicon valley
"...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..."
That's 15% more financial privacy and real capitalism than we have...!
Russia, what a fuckin' joke. What I mean is, I believe, and I don't think this thought is far-out anymore, that the entirety of the cold war was a big fat fucking sham - a hoax.
Furthermore, when "Phase II" or whatever is supposed to be enacted, that is, the permanent and utter downfall of the US, it needed to be shown that the USSR had moved toward the center. Hence the engineered collapse of the USSR, like building 7.
So it goes like this:
1) Phoney Cold War, for various purposes, take your pick - of course military industrial complex profits are a good place to start. Also a way to effectivly divide any possibility of Europe getting pipelines into the middle east.
2) The USA must be destroyed, so first off communism needs to be discredited. Hence the engineered collapse of the USSR. Whee! Look! It's all capitalist now!
3) By comparison, the communization of the USA can no longer be compared to the status quo in USSR. So now we have a police state that would make the Stasi envious. Amazing.
4) The war on terror, that is the stated purpose of the behind the police state in America, is also the current primary tool to lock the Spice in the middle east.
5) Europeans will be first to have their currency collapse. The US PetroDollar is then the hot stuff, so dollar assets will be bid like never before - so Uncle Sam can sell bonds ike there is no tomorrow. Of course the strong dollar will ignite the final USD hyperinflation.
The fuse is lit. The fractional non-reserve bomb is almost ready to blow. And it will blow, baby - it will BLOW.
The obvioud conclusion is that the Russians are in collusion with the BIS/ECB/IMF banking empire ... otherwise, they would thumb their noses at the stupid westerners and their games.
mario
Correct.
Capital controls .... to discourage gold buying ? If gold is in your future .... this would be a good time .... to .... BTFD ! The new Pope is a weenie .... let's see him give all Falkland islanders sponge baths ?
#ROK media: Vehicles seen moving to Tongchang-ri missile site in #DPRK in what seems like prep for long-range missile test. #Korea
Yeah ``missile test`` uh??
A report from Peter Schiff with Greg here.
http://www.youtube.com/watch?feature=player_embedded&v=knJpAVNlW3Y
And Greg Hunter's weekend report.
http://www.youtube.com/watch?v=JqD3funyr_M&feature=player_embedded
This is like waiving a big red flag and telling everyone in the country to take all but a few thousand dollars out of your bank accounts.
But, but, but... Capital controls were supposed to come anywhere else before they come in Russia, following this site. Has Russia joined the EMU zone somehow between the time when they were sold as the new temple for 'american' beliefs and that piece of news?
Speaking of 'americanism', apparently, the Russians must deal with a severe crisis of 'americanism' on their turf
Lets see: shadow economy, ticked, flight of capital (if you cant beat them, join them, apparently, a lot of 'american' russians prefer to sell their country to buy themselves a future in more established 'american' areas), illegal entrepreneurial endeavours, ticked, looks like Russia has a much desired 'american' middle class surge.
Time for the political personal to take account of that massive change, because in 'american' societies, the 'american' middle class is the King class.
for you information - cash transactions long ago have upper limit in many EU countries. This is old news. Russia is actually behind many others.
It is supposed to limit grey/shadow economy. In the not so distant future all cash transactions will become illegal
yes, as I posted below
That is saying that Russia was the last place on Earth for capital controls to come.
Because you look the other way when you predict who is going to be next on the list.
That other places had already capital control does not remove the fact that when predicting where capital control is coming next, Russia was not mentioned.
Applying walrusian economics propagangnam-style, AnAnonymous said:
Non sequiturd.
What is the issue with selling cheap Chinese citizenism propaganda that might not be operational in a decades for the buyers? That is the buyers' issue?
By the way, the new Chinese Citizenism Communautist Party paradigm will be to run deficitis in good times (to fatten the soon to be extorted) and then run austerity programs in harsh times (to throw the dead pigs in the river).
Guess that prolongs the use of the dollar as reserve currency then.
Everyone will pay in greenbacks.
Perhaps this is being done in anticipation of the end game re: competitive devaluation. If there is a sudden and ultimate race to the bottom then Russians are going to want to get their money out in a hurry. The Russian authorities may be shoring the economy up in expectation of the last great currency battle?
We are to be slaves for the elites everywhere.
Russia knows how to treat billionaires (take their money and watch them cry). In the usa billionaires don't even try to hide the fact that they run the show and own everyone.
Who will take Vlads money? Russia only knows which oligarch is in charge and nothing more.
I have had to imbibe Vodka martinis. Yuk. The Gin has run out. So, again I speculate. The NK and Iran
are pushing for their side in desperation. Double vision but the Syrian situation has to fall into place before the debacle.I have no more to say except: this is the time to honour our redemption.
Pax
prolibertate eos occublisse
they are just trying to enforce the tax laws. positive.
"...ban cash payments for purchases of more than 300,000 rubles (around $10,000)..."
that's nuttin, in Denmark the new cash limit (2013) is Dkr. 10.000 - about USD 1.600
Up to year 2012 it was Dkr. 100.000
The deposit confiscation and capital controls genie is out of the bottle.
Next comes trade wars or just plain old war?
The bankers are vainly doing everything they can to make you keep money in their dead banks as the runs start. Remember that stuff about the number of the beast? Can't buy or sell without some digits? It looks like they want to make sure you cannot buy or sell without using your check card number.
When they announce paper cash is now worthless and you must use digital money, people will understand why they needed gold. That kind of control directed at only supporting banks will end the economy and society.
They won't try to confiscate gold and silver. You will just wake up one morning and find out it is illegal for a private citizen to buy or sell gold or silver, (except for jewelry which will have a mandated percentage of adulteration with other metals so as to lessen its appeal as an escape hatch).
Eventually there will be no rational reason not to resist in a violent manner.