tag:blogger.com,1999:blog-5235419263414453422.post6217300354385780260..comments2024-02-23T01:30:06.101-08:00Comments on Early Warning: Size of the US Underground EconomyStuart Stanifordhttp://www.blogger.com/profile/07182839827506265860noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5235419263414453422.post-35511205312864420552012-04-15T08:17:29.446-07:002012-04-15T08:17:29.446-07:00well sanctions against the bad guys are developing...well sanctions against the bad guys are developing major under ground partners such as russia in oil trading. iran is now in trade with many in cluding china , south korea , north korea , japan , while shutting of supplies to many european nations after the fact that obama had relaxed some of the sanctions.<br />there is a closed market of oil that the west is not part of and this oil is being sold much cheaper than the opec , brent crude prices, so is there a movement by major nations to present a closed market to friends and compy that would price opec out of business as far as developing countries ? this new bank doctrine of russia and asia is going to be the selling agent for this oil as it appears now. so is there an underground major market , OH YA .viewshttps://www.blogger.com/profile/17466756806655591696noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-45618842645331966822011-11-20T13:35:49.288-08:002011-11-20T13:35:49.288-08:00Now dubbed "System D" :
http://www.fore...Now dubbed "System D" :<br /><br />http://www.foreignpolicy.com/articles/2011/10/28/black_market_global_economy?page=fullBig Gavhttps://www.blogger.com/profile/00682404837426502876noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-92029435953772560412011-11-15T11:47:14.009-08:002011-11-15T11:47:14.009-08:00Yes, an interesting paper by Feige. I read it with...Yes, an interesting paper by Feige. I read it with the reported global value of the illicit drug industry –reported variously as $300-400 billion, at the top of my mind. My problem with Feige’s paper is that he recognizes that some fraction of the currency in circulation is used for “clandestine” transactions but he makes no effort to estimate the value of this trade. Anecdotally, because I have no direct knowledge and the people involved don’t publish in the primary literature, this trade is largely transacted in US cash and we can assume that the cash sent overseas for purchases is not reported through the US Federal Reserve system. Just a couple of weeks ago, US border agents seized $2.6 million in hundred dollar bills thrown overboard (!) from an inflatable boat running between Canada and the USA on the West coast. The only person in the boat was arrested and is facing smuggling charges. At $1950 per capita for the average American that one man ( a Canadian) was carrying the wallet share of 881 “average Americans”, and he’s at the low end of the business. <br /><br />Though America remains the largest global market for illicit drugs, which means that a non-trivial fraction of the $300-400 billion is in circulation domestically, it seems naïve to ignore its existence when calculating foreign and domestic cash holdings and flows.porsenahttps://www.blogger.com/profile/04362269873149438270noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-84438467832173376822011-11-15T03:58:45.636-08:002011-11-15T03:58:45.636-08:00Gerald - thanks for the kind words!Gerald - thanks for the kind words!Stuart Stanifordhttps://www.blogger.com/profile/07182839827506265860noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-44644370846938906692011-11-14T12:46:50.703-08:002011-11-14T12:46:50.703-08:00I have never made a substantive contribution to th...I have never made a substantive contribution to this blog. But I never miss a post and most of them provoke me to think differently about the issues we face. Today's was no exception. I am sure I speak for many of your readers in saying how much I appreciate all the work you put into this blog StuartGeraldhttps://www.blogger.com/profile/03439970805170907672noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-54475795531310821132011-11-14T12:38:28.344-08:002011-11-14T12:38:28.344-08:00Europe has refused to eliminate large denomination...Europe has refused to eliminate large denomination bills (as has the US to suppress drug sales), apparently to make money on siegniorage.Nick Ghttps://www.blogger.com/profile/12721405349726668110noreply@blogger.com