An Investigation Reveals Allegations Against El Salvador's President
An investigation conducted by the Organized Crime and Corruption Reporting Project (OCCRP) has made serious allegations against Nayib Bukele, the President of El Salvador. According to the report published on October 31, Bukele is accused of misappropriating funds from the Central American Bank for Economic Integration (CABEI) to finance projects related to Bitcoin in the country.
The Misuse of Funds
The OCCRP report reveals that the funds provided by CABEI in 2021 were intended to address the economic challenges faced by El Salvador, particularly during the Covid-19 pandemic. The loan, amounting to $600 million, was meant to support small and medium enterprises (SMEs). However, the investigation claims that only $20 million was actually used for this purpose.
Instead, the report alleges that budget documents show that a significant portion of the funds, approximately $425 million, was diverted to fulfill "general state obligations." Shockingly, more than $200 million of this amount was allegedly used to support the process of making Bitcoin legal tender in El Salvador.
CABEI's Public Support for the Bitcoin Project
Interestingly, the OCCRP investigation highlights that CABEI publicly expressed its support for the Bitcoin project in El Salvador. In June 2021, Dante Mossi, the president of CABEI, stated that the institution would assist the country in this transformative process. However, the terms of the $600 million loan explicitly prohibited the use of these funds for Bitcoin-related activities, as extensive legal and regulatory reforms were required, along with significant funding.
Mossi clarified that CABEI did not provide any funding for Bitcoin activities, stating, "Basically, it says there's a covenant in El Salvador, that no money from CABEI could be used to fund any Bitcoin activity. So we don't fund that."
Legal Actions Against the Salvadoran Government
The bitcoinization process in El Salvador has faced additional challenges. Cristosal, a nonprofit organization, filed three legal actions against the Salvadoran government in November 2022. The complaints relate to the use of funds by Bukele to purchase Bitcoin, the construction of the Chivo national network of Bitcoin ATMs, and the alleged identity theft of over 200 citizens using the Chivo network.
These legal actions add to the controversy surrounding the use of funds for the Bitcoin project and raise further questions about the government's handling of resources.
Share Your Thoughts
What are your thoughts on the recently published OCCRP report? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
This could be changing, according to some experts. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some important things to remember if your goal is to invest in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It's possible to save for retirement without putting your savings into gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each type offers varying levels and levels of security.
- Last but not least, gold doesn't provide the same level security as a savings account. Losing your gold coins could result in you never being able to retrieve them.
If you are thinking of buying gold, do your research. Make sure to protect any gold you already own.
Can I own a gold ETF inside a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows for contributions from both employer and employee. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
Also available is an Individual Retirement Annuity. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs do not have to be taxable
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. There are some disadvantages to this investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers restrict the amount you can own in gold. Others allow you the freedom to choose your own weight.
You'll also need to decide whether to buy physical gold or futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts offer flexibility for buying gold. You can set up futures contracts with a fixed expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. The policy does not cover natural disasters. You might consider purchasing additional coverage if your area is at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians can't sell assets. Instead, they must keep your assets for as long you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. You should also specify how much you want to invest each month.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. Once the company has received your application, they will review it and send you a confirmation email.
When opening a gold IRA, you should consider using a financial planner. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
How to Open a Precious Metal IRA?
It is important to decide if you would like an Individual Retirement Account (IRA). You must complete Form 8606 to open an account. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should be filled within 60 calendar days of opening the account. Once you have completed this form, it is possible to begin investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious-metals IRA, you'll need to meet some requirements. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Additionally, you must make regular contributions. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you won't be able purchase physical bullion. This means you can't trade shares of stock and bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. Some IRA providers offer this option.
There are two major drawbacks to investing via an IRA in precious metals. First, they aren't as liquid than stocks and bonds. It's also more difficult to sell them when they are needed. Second, they don’t produce dividends like stocks or bonds. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
How much gold can you keep in your portfolio
The amount of capital that you require will determine how much money you can make. You can start small by investing $5k-10k. As you grow, it is possible to rent desks or office space. Renting out desks and other equipment is a great way to save money on rent. Only one month's rent is required.
It's also important to determine what type business you'll run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You might get paid only once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
What is a gold IRA account?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase physical gold bullion coins anytime. You don't have a retirement date to invest in gold.
The beauty of owning gold as an IRA is you can hold on to it forever. Your gold holdings won't be subject to taxes when you pass away.
Your gold is passed to your heirs without capital gains tax. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done that, you'll receive an IRA custody. This company acts as a mediator between you, the IRS.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit required is $1,000 However, you'll receive a higher interest rate if you put in more.
You will pay taxes when you withdraw your gold from your IRA. You will be liable for income taxes and penalties if you take the entire amount.
If you only take out a very small percentage of your income, you may not need to pay tax. However, there are some exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. Otherwise, you'll face steep financial consequences.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
finance.yahoo.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
How to keep physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. But, this approach comes with risks. These companies may not survive the next few years. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
You can also buy gold directly. You will need to either open an online or bank account or simply buy gold from a reliable seller. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It is also easier to check how much gold you have stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You're also less susceptible to theft than investing with stocks.
However, there are disadvantages. Bank interest rates and investment funds won't help you. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com has more information about how to buy gold in an IRA.
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By: Sergio Goschenko
Title: Nayib Bukele Accused of Misusing Funds for Bitcoin Project in El Salvador
Sourced From: news.bitcoin.com/occrp-investigation-alleges-bukele-embezzled-200-million-for-bitcoin-projects-in-el-salvador/
Published Date: Thu, 02 Nov 2023 22:00:09 +0000
