Russian life, Money Laundering, The Celtic Tiger & more!

Good Morning- Countries like Greece and Portugal have witnessed an increase in the number of visas granted recently, while Italy and Spain have experienced record demand. These "golden visas" allow individuals to acquire EU residency and a potential path to citizenship by investing in local real estate or financial assets. The programs have faced criticism due to concerns about soaring property prices and weak regulation. Some EU politicians and officials have urged member states to terminate these programs, and some countries like Ireland and the UK have already done so. However, the ease of obtaining golden visas appears to have remained largely unchanged. Despite the debate, interest in these programs has surged, with more people seeking entry.

Global Insights

Everyday life in Russia

While some readers may already grasp the following concepts, a significant portion of the readership here hails from Western countries and carries preconceived notions about life in Russia. Many Americans, if questioned, their initial mental images often combine an 80s Soviet-style town with contemporary elements. This perception is often shaped by how Russia is portrayed in numerous Western media outlets – a portrayal that emphasizes stark dissimilarity to our everyday Western experiences and positions the country as a geopolitical antithesis, thereby extending this contrast to daily life as well. However, reality presents a markedly different scenario.

Turning our attention first to grocery stores, they bear striking resemblance to their United States counterparts – from design and dairy sections to overall aesthetics, even down to the expansive parking lots. One can even find American-themed loaves of white bread labeled as "American Sandwich." Regarding currency exchange, a single USD can fetch four whole loaves of bread. Parallels persist in Moscow, where food mall depots akin to those in NYC exist, alongside a vibrant nightlife. Numerous Americans residing in Moscow have reported receiving treatment similar to individuals from any other country. Notably, Russia boasts its alternatives to Amazon with "Ozon" and "Yandex," alongside a situation analogous to the ride-sharing giant Uber. Instagram & Twitter (X) is banned in Russia, VK.com is the king of Russian social media in 2023.

With several American companies departing from Russia due to political considerations, several substitutes & rebrands have emerged – for instance, "Stars Coffee" replacing Starbucks and even a McDonald's counterpart. Sanctions have significantly influenced how Russian business owners conduct their operations, rendering it nearly impractical for them to facilitate transactions for businesses operating beyond Russia's borders. Payment processors like Swift and PayPal have barred many Russian business owners from utilizing their systems. Reports from within Russia affirm that day-to-day life within the country has witnessed minimal changes, as supermarkets remain well-stocked and brands ousted from the nation have essentially undergone changes in ownership and branding. For instance, the McDonald's replacement which opened a year ago was bought and rebranded by a Russian entrepreneur when the company left, while certain brands have been acquired and rebranded by Chinese companies. Overall, the brunt of the sanctions is palpable to Russians primarily during international travel or when engaging in foreign business endeavors.

Money laundering in Singapore

Singaporean authorities have taken ten foreign nationals into custody as part of an ongoing investigation into alleged money laundering and forgery activities. The probe centers around a substantial amount of around S$1 billion (approximately $737 million) involving cash, properties, luxury cars, and various assets.

In a coordinated operation, Singapore police executed simultaneous raids across the city-state on Tuesday. The goal was to apprehend suspects connected to the case. A significant move included the issuance of prohibition of disposal orders for 94 properties and 50 vehicles, collectively worth over S$815 million. Assets seized comprised bank accounts, cash, luxury items, jewelry, watches, electronic devices, and documents related to virtual assets.

The detained individuals, aged 31 to 44 and of various nationalities, including Chinese, Turkish, Cypriot, Cambodian, and Ni-Vanuatu, were apprehended in these actions, according to the Singapore police.

In a separate communication, the Monetary Authority of Singapore, the nation's central bank, revealed its ongoing communication with financial institutions potentially linked to the flagged funds. Though unnamed, this demonstrates Singapore's commitment to maintaining its financial integrity.

The operation primarily targeted those suspected of involvement in laundering proceeds from overseas organized crime, encompassing activities like scams and online gambling. Singapore, known for its robust financial regulations, treats money laundering seriously, with potential sentences of up to a decade for such offenses.

The Celtic Tiger

A country that now sits among the top 3 wealthiest in the world in terms of GDP, was once once amongst Europe’s poorest. How did this happen? Enter the story of the Celtic Tiger, Ireland's economic boom between 1995 and 2007, known by this moniker, remains a subject of intrigue and analysis. Join us as we delve into the details of this period and its significance.

A Time of Economic Transformation

The Celtic Tiger years, spanning from 1995 to 2007, marked a distinctive era in Ireland's economic history. During this period, the Irish economy experienced rapid growth, expanding at an average annual rate of 9.4% from 1995 to 2000. Moreover, between 1987 and 2007, Ireland's GDP recorded an impressive growth of 229%. These economic strides were particularly remarkable given Ireland's historical status as one of Europe's less affluent nations.

Factors Behind the Growth

The reasons behind the Celtic Tiger's economic boost are multi-faceted. The period saw low corporate taxes, moderate wage levels, a surge in the U.S. economy, foreign investment, stable national economic conditions, thoughtful budgetary policies, European Union (EU) membership, and EU subsidies. These factors intertwined to contribute to Ireland's substantial economic performance.

The term "Celtic Tiger," attributed to Kevin Gardiner's 1994 investment report for Morgan Stanley, alludes to both strength and energy. The Celtic connection signifies Ireland's heritage as a Celtic nation. Additionally, the term draws parallels with the "Asian Tigers," signifying the rapid industrialization of nations like Singapore, Hong Kong, Taiwan, and South Korea.

Analyzing the Roots of Success

The Celtic Tiger's emergence can be attributed to an intricate interplay of influences. The allure of EU membership facilitated foreign investment, attracting U.S. corporations like Dell, Intel, and Gateway. Ireland's economic growth was also propelled by the U.S.'s robust economic performance and its trade relations with the EU.

Deregulation played a role too, as did the construction of the International Financial Services Centre in Dublin and the liberalization of public utilities and transport facilitated by the EU. Moreover, Ireland's commitment to low corporate taxes and prudent fiscal policies fostered investor confidence.

Trending

Hard times for TikTok

Nearly 50% of American adults favor the prohibition of the Chinese-owned social media platform TikTok. The study delved into national security apprehensions and perceptions of China. In a parallel development, New York City took a stance by banning TikTok on government-owned devices due to security concerns. This step aligns with a series of actions undertaken by several U.S. cities and states, which have similarly imposed limitations on the utilization the app.

Meeting of West African countries

Military leaders from West African countries met in Accra, Ghana, for the final day of talks about what to do in Niger. Other countries want the President to come back, but the army doesn't agree. So, nearby countries are getting ready with a backup plan in case they need to help. They talked for two days about how to do this, but they really don't want to use force unless they have no other choice. The talks finished with a ceremony, hopes of a peaceful ending.

Potential 2026 Trump Case

Former President Donald Trump has suggested that a federal trial concerning allegations of obstructing the 2020 election be scheduled for April 2026. His legal team argues that the trial should be postponed until after voters have determined whether he should be granted another term as President next year. Trump's lawyers cited factors such as the substantial volume of documents to be reviewed, the unique nature of the case, and a crowded legal calendar as reasons for their request for a trial date after the general election on November 5, 2024. In contrast, Special Counsel Jack Smith's office proposed starting the trial on January 2.

Pakistan

In Pakistan, police have arrested two Christians on charges of blasphemy after a Muslim mob burned churches and homes in the Christian settlement. The mob accused the two men of desecrating the Koran by writing derogatory remarks on its pages in red. This incident led to the vandalization of several churches, the burning of houses, and the desecration of a Christian graveyard. Blasphemy is a serious offense in Pakistan, carrying the possibility of the death penalty, and has resulted in past incidents of mob violence. The authorities have arrested 128 individuals in connection with the attack, and the caretaker Prime Minister has emphasized the need to protect minorities and take action against violence.

How to build buildings with no nails or glue

Imagine a world where houses are crafted entirely from wood. No glue, no nails, no modern attachments. This remarkable practice is called Miyadaiku Carpentry.

Unlike traditional carpenters who rely on nails and glue for building, Miyadaiku Carpentry is a unique and highly skilled Japanese craftsmanship that brings wood together with wood in an intricate and enduring way. Miyadaiku refers to the Japanese carpenters who specialize in constructing and repairing shrines and temples. Achieving this level of expertise requires rigorous training and mastery of complex techniques.

Miyadaiku Carpentry involves precise cuts and connections that create a bond strong enough to withstand the test of time. Wood dowels and wedges are sometimes used to enhance the structural integrity. Japanese steel tools, renowned for their sharpness, are utilized to create intricate and sophisticated joints.

To become a Miyadaiku, aspiring craftsmen can opt for formal schooling, which costs around 5.7 million yen per year (approximately 55,000 USD) for a 5-year program, or they can embark on a decade-long apprenticeship. The apprenticeship involves mastering fundamental tasks before earning the privilege to engage in carpentry work. This demanding process filters out all but a select few, ensuring that only the most dedicated individuals remain after a decade of training.

The outcome of this arduous journey is truly awe-inspiring. Miyadaiku creations are not merely structures; they are works of art. The pride and skill involved are hard-earned and continually refined over time. Miyadaiku craftsmen possess an unparalleled ability to intricately interlock pieces of wood, resulting in robust and exceptional-quality buildings.

As a fascinating aside, carpenters who specialize in constructing teahouses and residences are known as sukiya-daiku. These artisans are admired for their delicate constructions that incorporate rustic materials, showcasing another facet of Japanese craftsmanship.

Fast Facts

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• A 6.3 magnitude earthquake hit Bogota, Colombia on Thursday

• Bitcoin just had its biggest single day drop of 7.2% since November 2022 but is up 59% YTD

Quote of the week

Three can keep a secret, if two of them are dead

-Benjamin Franklin