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Yosano Says Japan’s Trust in Treasuries ‘Unshakable’
Japanese Finance Minister Kaoru Yosano said his government is confident about the outlook for U.S. Treasuries, signaling the second-biggest foreign holder of the securities will keep buying them amid record sales.
Two Japanese citizens carrying $134 billion worth of U.S. bonds were detained last week by Italy's financial police at Chiasso (40km from Milan) on the border between Italy and Switzerland, an Italian daily said Wednesday.
According to the report, they include 249 U.S. Treasury bonds each worth $500 million, plus 10 Kennedy bonds and other U.S. government securities worth a billion dollar each.
The two unidentified Japanese citizen were searched on June 3 when they were in Chiasso. They were detained on suspicion of attempting to take a large amount of securities out of Italy without declaring it.
The bonds were found hidden in the bottom of the suitcase, in a closed section separated from the part of the bag containing personal items.
Apart from the securities the Japanese men were carrying a considerable sum of original bank documents.
Investigations are underway to establish the identity and the origin of both the bonds and the bank documents that have also been impounded.
In order to stop money laundering Italian law sets a ceiling of €10,000 per person for importing or exporting money without declaring it. The penalty for violating the law is 40 per cent of the money seized.
If the certificates were real, the fine alone would amount to US$ 38 billion, five times the estimated cost of rebuilding quake-devastated Abruzzi region. It would help Italy’s eliminate its public deficit.
If the certificates are fakes the two Japanese nationals could get a very lengthy jail sentence for fraud.
The US Embassy in Rome was informed.
Originally posted by Trunkeight
Excuse me, I already posted this precise information @ 2:28pm.
Why have you reposted this as your own??
Interesting set of ethics here...
Originally posted by warrenb
But folks: This is $134.5 billion dollars worth.
If they're real, what government (the only entity that would have such a cache) is trying to unload them?
If they're fake, this is arguably the biggest counterfeiting operation ever, by a factor of many times. I've seen news about various counterfeiting operations over the years that have made me chuckle, but this one, if that's what it is, is absolutely jaw-dropping.
The cute part of this is that if the certificates are real Italy just got a hell of a bonanza - their money laundering laws provide for a statutory 40% penalty for failure to declare instruments and cash in excess of $10,000 Euros, which means they'd garner a close-to-$40 billion dollar windfall.
That ought to help their budget problems!
Notice, by the way, that the US Media has totally ignored this story - even though the securities in question are allegedly US instruments.
Gee, I wonder why? Might the authorities know they're real and be just a wee bit nervous that disclosure of a sovereign attempting to covertly dump nearly $140 billion in debt could cause a wee bit of panic, given that we're running nearly $200 billion a month in deficits?
Inquiring minds want to know what's really going on here.
What the 2009 World Economic Forum meeting in Davos lacked in consensus it certainly made up for in doom-mongering. One clear message came through from world leaders: the need for greater regulation and transparency in the new financial system. Although offshore centers are a thorn in the side of the newly corporative vision, they still have an important role to play in the global financial world.
Speaking at the World Economic Forum held in Davos, Switzerland, Stephen Green, CEO of HSBC, called for "global co-operation", "economic balance" and "transparency and simplicity" as the central tenets of a new financial world. Despite the knee-jerk protectionism that is currently being demonstrated, many commentators have stated that the global economy will struggle to recover without this sort of co-operation.
President Obama vowed Monday to "detect and pursue" American tax evaders and go after their offshore tax shelters.
In announcing a series of steps aimed at overhauling the U.S. tax code, Obama complained that existing law makes it possible to "pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, N.Y."
The president said he wants to prevent U.S. companies from deferring tax payments by keeping profits in foreign countries rather than recording them at home, and called for more transparency in bank accounts that Americans hold in notorious tax havens like the Cayman Islands.
"If financial institutions won't cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly," Obama said.
The president, who hammered on this issue during his long campaign for the White House, said at a White House event that his plan would generate $210 billion in new taxes over 10 years and "make it easier" for companies to create jobs at home. Over a decade, $210 billion would make a modest dent in a federal deficit expected to swell to $1.2 trillion in 2010.
Silver certificates were printed without interest. The Order was for the Treasury to issue silver certificates against all silver held by the government which did not already have certificates against it. The Order was needed due to the passage of Public Law 88-36 which repealed the Silver Purchase Act and other related monetary measures. One result was that after the repeals, only the President could issue new silver certificates.
The Federal Reserve System could replace the certificates, but only in larger denominations. The thrust of the Order returned the authority to issue new silver certificates (and specify denominations) back to the U.S. Treasury.
This executive order allowed for the Federal Reserve System to distribute and exchange currency at lower denominations that met the growing economic need. The authoritative basis for the Order was substantially nullified in 1982 with the passage of Public Law 97-258.
The Order was never directly reversed. However, Section 1(j) of Executive Order 10289
Originally posted by jefwane
reply to post by SLAYER69
You know that's good reasoning Slayer, but what kind of private or corporate individual has $140 Billion to hide from the taxman? Unless it was some type of organized conglomeration of several individuals or corporations can you name any individual or institution that would have that kind of wad they wanted to hide from the taxman? The only entities I can think of with $140 Billion are the types that levy taxes not hide from them.
Wal-Mart completed its 2008 fiscal year on Jan. 31, 2008, marking an 8.6-percent increase in net sales over 2007, to $375 billion. “We added about $30 billion in sales, which is equal to adding the annual sales of a Fortune 75 business,” Scott wrote. “Even more impressive, Wal-Mart exceeded $100 billion in sales during the fourth quarter – a first for any global retailer. And, we accomplished this during a quarter when most of retail was going in the other direction.”