Why marijuana should be legal

: Many Americans feel that Marijuana is helping fund the war on terror, but making a war on drugs and keeping Marijuana illegal has not stopped millions of Americans from smoking pot everyday. So what is the answer? First, why is Marijuana illegal? In the 1930's William Randolph Hearst, who had significant financial interests in the timber industry testified to congress on the evils of marijuana, saying things like it make people insane and commit acts of cannibalism? at this time very few even knew what it was and to stop people from going insane Congress decided to make it illegal. The truth is many paper manufacturers were thinking of changing from using trees to make paper to using hemp because it was cheaper and easier to grow and better for the environment, and Hearst stood to loose millions so he used his influence and testimony to help get marijuana banned in the USA. So now that we know why it was made illegal, we can realize that not only would making it legal in the United States stop terrorist from smuggling it into the USA, but would give us another option to cutting down of millions of trees every year for paper products that can be made better from hemp. Hemp has thousands of uses that we are unable to exploit because of its illegal status. During WWII hemp was used for the rigging on parachutes as well as rope and material for uniforms. Nowadays Marijuana can be used to relieve pain and some of the effect of cancer treatments and old age. It has been proven to slow down the spreading of Alzheimer's, relieve the pressure behind the eyes from glaucoma. It also helps relieve migraine headaches and the side effect of cancer treatment. But until the United States realizes how much money can be made from legalizing it, it will remain illegal. This is much like the situation with online casinos in the USA. America was sending billions of dollars out of the country and the government needed to do something to keep the money here, so they banned Online Casino and just like online casinos and online gambling I believe one day the government will learn to take advantage of these things instead of just banning them. Eventually the USA will realize that the best way to stop the flow of money out of the country is not to ban marijuana or online casinos, but to enter the market and compete. If the USA did what Amsterdam has done the government would make not only billions in Taxes from the sales of Marijuana, but the economy would boom from all the tourism that it would bring in from all over the world. The truth of the matter is that legalization is inevitable. The attitude of people has changed so drastically over the last 30 years, that eventually when the younger generations start to take over marijuana will eventually become legal because they understand the truth, and that is banning something only makes the market for it stronger.

Potential implications of insolvency for directors

Here is a note of the issues that a director of an insolvent company or potentially insolvent company has to take into account. The relevant legislation is primarily contained in the Insolvency Act 1986 (the "Act"). Definition of Insolvency - Section 123 of the Act states that a company is "unable to pay its debts" (i. e. it is insolvent) when the company is unable to meet its debts as and when they fall due. This is commonly referred to as a "Cash Flow Insolvency"; or the amount of the company's liabilities (including its actual and contingent liabilities) exceeds the value of its assets on a balance sheet basis. This is commonly referred to as a "Balance Sheet Insolvency". Where a company is or is about to become insolvent its directors must act in the best interests of the company's creditors (as opposed to the company's shareholders) and there are certain corporate and personal consequences for those directors if they fail to do so. The Corporate Consequences of Insolvency Preference claim - A preference is a transaction which has the effect of placing a creditor in a better position if the company goes into liquidation than if the transaction had not occurred. If the transaction occurs within six months of the company's liquidation, the liquidator can apply to have it set aside but he must prove that the directors in entering into the transaction were influenced by a desire to produce the preferential effect. In the case of a transaction with a creditor who is a connected person (for example any of the company's shareholders, subsidiaries or directors) the period of six months is extended to two years and it is also presumed (unless the contrary can be proved) that there was a desire to prefer the creditor. A classic example of a preference is where the company repays its inter-company debts or director's loan accounts ahead of its other creditors shortly before its liquidation. However paying a creditor who has refused to make further supplies may not be a preference if the primary purpose of the payment was to secure supplies which could not be obtained elsewhere. Transactions at an undervalue A transaction at an undervalue occurs when a company disposes of its assets for significantly less than they are worth. Once again, a liquidator can apply to have the transaction set aside if it occurred within two years of the company's liquidation. A classic example of a transaction at undervalue is where the company transfers its business and/or assets to a creditor, director or another party for a nominal amount. If you are considering a transfer to say a current client or any other third party it is important to ensure market value is paid and/or the transfer insured against set aside. Personal Consequences of Insolvent Liquidation Wrongful Trading - Section 214 of the Act states that, if the directors (including any shadow directors - see below) of a company allow it to continue trading when they knew or ought to have known that there was "no reasonable prospect" of the company avoiding insolvent liquidation (see 1 above), they can be held personally liable for the debts incurred. A shadow director is a person, or entity, who has effective control over the company's board (i. e. the company's directors are accustomed to act in accordance with that person's instructions). The only potential defence available to the directors is to show that they took every possible step to minimise the potential loss to the company's creditors. It is not sufficient to show, for example, that the directors believed that the company's financial situation might improve because of market forces that are beyond their control [MC Bacon Limited [1990]]. The directors may be able to justify trading for a short period of time if they are: Trying to sell the whole or part of the company's business and/or assets as a going concern; or awaiting a decision regarding further funding (for example by the shareholders or by a venture capitalist). In these circumstances the directors should: investigate whether the company's overheads and operating costs can be reduced; only pay the creditors that are crucial to the preservation of the business and assets (e. g. essential supplies, employees salaries, and judgment creditors who are about to or have taken "key" assets); postpone all other payments; not incur any new liabilities (except for immediate payment in cash – see below); and document their decisions (usually in suitably detailed minutes). Please note that such a minute will not be an effective defence to liability if there is no reasonable prospect of avoiding insolvent liquidation and steps are not taken to minimise losses to creditors. The director's goal should be to ensure that the company's liabilities do not increase. One way to do this is to "rule off" the account and pay for all further supplies and services on a "cash on delivery basis". Fraudulent trading Any director or shadow director who knowingly allows a company to continue trading with the intent to defraud its creditors or any other person can be held personally liable to pay compensation. Further, if fraudulent trading is established the director and/or shadow director will also be guilty of a criminal offence. It is unusual for a liquidator to pursue a fraudulent trading claim as the onus is on him to show that the director had the requisite fraudulent intent. Disqualification If, following liquidation, administration or administrative receivership, the DTI is able to demonstrate that the conduct of a director (including a shadow or de facto director i. e. a person who acts as a director without having been properly appointed) makes him unfit to be concerned in the management of a company (if, for example, a preference, a transaction at an undervalue and/or wrongful or fraudulent trading has occurred), then the director can be disqualified for a minimum period of two years up to a maximum of fifteen years. The disqualification will mean that the director will not be able to be involved in the formation, promotion or management of any company in the United Kingdom during the disqualification period. A director also faces disqualification if: He breaches any fiduciary or other duty he owes to the company (this may include a situation where there is an express or implied obligation to safeguard client monies such as in a principal – agent relationship); and/or he fails to comply with any of the duties imposed by the Companies Acts (for example the obligation to maintain proper books and records). Options Where the directors believe that there is a serious risk that the company may not be able to avoid going into insolvent liquidation the directors should consider seeking the advice of an independent licensed insolvency practitioner (the "IP"). Most accounting firms have IP partners. The IP would review the company's financial position and consider with the directors the options available to the company. These options include: 1. Continuing trading under the guidance of the IP; 2. Requesting further funds from the company's shareholders; 3. Obtaining additional funds from a venture capitalist factoring or trade asset based finance company; 4. A sale of the company's business and assets as a going concern outside any formal insolvency procedure; 5. Administration, which is a court driven procedure which stops the creditors or any other party from taking adverse action against the company while the IP considers the way forward. This process is similar to Chapter 11 in the United States ; 6. A company voluntary arrangement whereby the company agrees a payment schedule or some other proposal with its creditors; 7. Making a request for the appointment of an administrative receiver if the company has granted a fixed and floating charge (I am unaware of the funding arrangements of the Company); 8. A creditors voluntary liquidation whereby the company convenes a meeting of its creditors to appoint a liquidator; or compulsory liquidation whereby the company is wound up by the court following the presentation of a petition by its directors, shareholders or any creditor who has an undisputed debt for more than Ј750. Conclusion Though incorporation can shield shareholders from liabilities, the directors (who are often the shareholders as well) face a series of challenges in the event of financial difficulties that can, if advice is not sought early, result in personal liability. kaltons. co. uk

Leon meekcoms on housing and baby boomers

A few months ago, the Social Security Administration sent out the first of the Baby Boomer checks. Everyone from financial advisors to real estate investors are keeping a sharp eye out for trend changes. "Baby Boomers have more accumulated wealth than any previous generation, and they're positioned downstream from a river of assets that they will inherit from their parents," says Leon Meekcoms, President of Parkbridge Capital Group, Inc. ( parkbridgecapital), a privately held real estate investment, acquisition, and brokerage firm. "Their financial position and increased longevity are translating into decisive new trends in the housing industry." The sheer numbers that make up this generation – over 78 million according to the U. S. Census Bureau – have made Boomers de facto trendsetters. In contrast to traditional "snowbirds," this generation tends to be more active and, like their predecessors, is quite cost-conscious. They have a reasonable expectation of living a quarter of century and longer in retirement or semi-retirement, and don't want to outlive their money. "While Boomers are affluent, they are smart about how they're going to invest and spend, and will plan for the future," says Meekcoms. According to Meekcoms, whose career in real estate sales, acquisition, and development has spanned more than 25 years, the most notable recreational trend among the Boomer demographic are those who termed "splitters," or people who have two residences. "Dual season residency is skyrocketing, with people choosing to go north from the spring to the fall and spend other half of the year in the south," he says. In addition, close to a half million people live and travel full-time in their RVs, with millions more dividing their time between RV travel and a home base, often in a manufactured home community or RV resort. This is one reason why Parkbridge Capital Group, Inc. has focused on acquiring a portfolio of manufactured home communities and recreational vehicle resorts. "People want the benefits associated with a mobile lifestyle without the high overhead. In buying and upgrading these properties to maximize investor return, we also provide tenants with a splendid environment. In short, everyone wins," he says. Parkbridge Capital is a prime example of a company that has positioned itself to take advantage of the Baby Boomer wave. There aren't a massive number of larger, quality manufactured home communities and RV resorts, so the market forces of supply and demand are almost certain to force prices up in coming years. In the meantime, the company's properties also appeal to the growing number of Americans who want to vacation closer to home or stay in the U. S. "Because of gas prices, people are beginning to shy away from long trips, and prefer the amenities of resorts that are within driving distance of their homes, or locales where they can stay and recreate for the season," says Meekcoms. As a Baby Boomer himself, he has an inside track on this trendsetting generation. "On the whole, we have more time, more money, and better long-term health prospects than previous generations. We want to enjoy a flexible lifestyle at a cost that isn't extravagant," he says. "The types of properties that our company acquires and owns with our partners are a perfect fit for mobile, cost-conscious Boomers who want the best of all worlds."

An overview of a quit claim deed

The deed to a property is a legal document that establishes ownership. There are different types of deeds. Here is an overview of a quit claim deed. An Overview of a Quit Claim Deed Quit claim deeds are a form of deed used in the transfer or sale of property when a grantor, a person who owns an interest in the property, is essentially allowing the transfer of that property to another person. The grantors do not actually own the property but rather simply have responsibility over it. For this reason, grantors have the legal right to sell the property but there is a catch. The quit claim deed offers little protection for buyers down the road. Although the property will be transferred to the grantee from the grantor, the quit claim deed does not legally protect the grantee from future claims to the property. The grantor does not legally own the property and so that leaves a back door open for potential future problems regarding the property. Quit claim deeds are often used in a couple situations due to their relative simplicity compared to many of the other forms that have to be filed during property transfer and/or sales. One, the quit claim deed is used to clear up a title. And two, quit claim deeds are effective for those who want to use a simplistic method for giving up their interests in a certain property. When used in a sale of a property, quit claim deeds can result in significant risk to the buyers of the property. However, quit claim deeds still have other uses that are very beneficial. For instance, in the case where there are multiple people who have claims to a home, such as when a relative passes away, a quit claim deed is an effective way of one of these people to legally transfer their interests in the home to another person. A divorce can create a similar situation, making the quit claim deed very useful. It is important to be smart about which form of deed you will be using and signing whether you are a seller or a buyer. Know what the potential risks are and the protections that are being offered by the deed so as to better be prepared.

The merits of inflation

In a series of speeches designed to defend his record, Alan Greenspan, until recently an icon of both the new economy and stock exchange effervescence, reiterated the orthodoxy of central banking everywhere. His job, he repeated disingenuously, was confined to taming prices and ensuring monetary stability. He could not and, indeed, would not second guess the market. He consistently sidestepped the thorny issues of just how destabilizing to the economy the bursting of asset bubbles is and how his policies may have contributed to the froth. Greenspan and his ilk seem to be fighting yesteryear's war against a long-slain monster. The obsession with price stability led to policy excesses and disinflation gave way to deflation - arguably an economic ill far more pernicious than inflation. Deflation coupled with negative savings and monstrous debt burdens can lead to prolonged periods of zero or negative growth. Moreover, in the zealous crusade waged globally against fiscal and monetary expansion - the merits and benefits of inflation have often been overlooked. As economists are wont to point out time and again, inflation is not the inevitable outcome of growth. It merely reflects the output gap between actual and potential GDP. As long as the gap is negative - i. e., whilst the economy is drowning in spare capacity - inflation lies dormant. The gap widens if growth is anemic and below the economy's potential. Thus, growth can actually be accompanied by deflation. Indeed, it is arguable whether inflation was subdued - in America as elsewhere - by the farsighted policies of central bankers. A better explanation might be overcapacity - both domestic and global - wrought by decades of inflation which distorted investment decisions. Excess capacity coupled with increasing competition, globalization, privatization, and deregulation - led to ferocious price wars and to consistently declining prices. Quoted by "The Economist", Dresdner Kleinwort Wasserstein noted that America's industry is already in the throes of deflation. The implicit price deflator of the non-financial business sector has been -0.6 percent in the year to the end of the second quarter of 2002. Germany faces the same predicament. As oil prices surge, their inflationary shock will give way to a deflationary and recessionary aftershock. Depending on one's point of view, this is a self-reinforcing virtuous - or vicious cycle. Consumers learn to expect lower prices - i. e., inflationary expectations fall and, with them, inflation itself. The intervention of central banks only hastened the process and now it threatens to render benign structural disinflation - malignantly deflationary. Should the USA reflate its way out of either an impending double dip recession or deflationary anodyne growth? It is universally accepted that inflation leads to the misallocation of economic resources by distorting the price signal. Confronted with a general rise in prices, people get confused. They are not sure whether to attribute the surging prices to a real spurt in demand, to speculation, inflation, or what. They often make the wrong decisions. They postpone investments - or over-invest and embark on preemptive buying sprees. As Erica Groshen and Mark Schweitzer have demonstrated in an NBER working paper titled "Identifying inflation's grease and sand effects in the labour market", employers - unable to predict tomorrow's wages - hire less. Still, the late preeminent economist James Tobin went as far as calling inflation "the grease on the wheels of the economy". What rate of inflation is desirable? The answer is: it depends on whom you ask. The European Central Bank maintains an annual target of 2 percent. Other central banks - the Bank of England, for instance - proffer an "inflation band" of between 1.5 and 2.5 percent. The Fed has been known to tolerate inflation rates of 3-4 percent. These disparities among essentially similar economies reflect pervasive disagreements over what is being quantified by the rate of inflation and when and how it should be managed. The sin committed by most central banks is their lack of symmetry. They signal visceral aversion to inflation - but ignore the risk of deflation altogether. As inflation subsides, disinflation seamlessly fades into deflation. People - accustomed to the deflationary bias of central banks - expect prices to continue to fall. They defer consumption. This leads to inextricable and all-pervasive recessions. Inflation rates - as measured by price indices - fail to capture important economic realities. As the Boskin commission revealed in 1996, some products are transformed by innovative technology even as their prices decline or remain stable. Such upheavals are not encapsulated by the rigid categories of the questionnaires used by bureaus of statistics the world over to compile price data. Cellular phones, for instance, were not part of the consumption basket underlying the CPI in America as late as 1998. The consumer price index in the USA may be overstated by one percentage point year in and year out, was the startling conclusion in the commission's report. Current inflation measures neglect to take into account whole classes of prices - for instance, tradable securities. Wages - the price of labor - are left out. The price of money - interest rates - is excluded. Even if these were to be included, the way inflation is defined and measured today, they would have been grossly misrepresented. Consider a deflationary environment in which stagnant wages and zero interest rates can still have a - negative or positive - inflationary effect. In real terms, in deflation, both wages and interest rates increase relentlessly even if they stay put. Yet it is hard to incorporate this "downward stickiness" in present-day inflation measures. The methodology of computing inflation obscures many of the "quantum effects" in the borderline between inflation and deflation. Thus, as pointed out by George Akerloff, William Dickens, and George Perry in "The Macroeconomics of Low Inflation" (Brookings Papers on Economic Activity, 1996), inflation allows employers to cut real wages. Workers may agree to a 2 percent pay rise in an economy with 3 percent inflation. They are unlikely to accept a pay cut even when inflation is zero or less. This is called the "money illusion". Admittedly, it is less pronounced when compensation is linked to performance. Thus, according to "The Economist", Japanese wages - with a backdrop of rampant deflation - shrank 5.6 percent in the year to July as company bonuses were brutally slashed. Economists in a November 2000 conference organized by the ECB argued that a continent-wide inflation rate of 0-2 percent would increase structural unemployment in Europe's arthritic labour markets by a staggering 2-4 percentage points. Akerloff-Dickens-Perry concurred in the aforementioned paper. At zero inflation, unemployment in America would go up, in the long run, by 2.6 percentage points. This adverse effect can, of course, be offset by productivity gains, as has been the case in the USA throughout the 1990's. The new consensus is that the price for a substantial decrease in unemployment need not be a sizable rise in inflation. The level of employment at which inflation does not accelerate - the non-accelerating inflation rate of unemployment or NAIRU - is susceptible to government policies. Vanishingly low inflation - bordering on deflation - also results in a "liquidity trap". The nominal interest rate cannot go below zero. But what matters are real - inflation adjusted - interest rates. If inflation is naught or less - the authorities are unable to stimulate the economy by reducing interest rates below the level of inflation. This has been the case in Japan in the last few years and is now emerging as a problem in the USA. The Fed - having cut rates 11 times in the past 14 months and unless it is willing to expand the money supply aggressively - may be at the end of its monetary tether. The Bank of Japan has recently resorted to unvarnished and assertive monetary expansion in line with what Paul Krugman calls "credible promise to be irresponsible". This may have led to the sharp devaluation of the yen in recent months. Inflation is exported through the domestic currency's depreciation and the lower prices of export goods and services. Inflation thus indirectly enhances exports and helps close yawning gaps in the current account. The USA with its unsustainable trade deficit and resurgent budget deficit could use some of this medicine. But the upshots of inflation are fiscal, not merely monetary. In countries devoid of inflation accounting, nominal gains are fully taxed - though they reflect the rise in the general price level rather than any growth in income. Even where inflation accounting is introduced, inflationary profits are taxed. Thus inflation increases the state's revenues while eroding the real value of its debts, obligations, and expenditures denominated in local currency. Inflation acts as a tax and is fiscally corrective - but without the recessionary and deflationary effects of a "real" tax. The outcomes of inflation, ironically, resemble the economic recipe of the "Washington consensus" propagated by the likes of the rabidly anti-inflationary IMF. As a long term policy, inflation is unsustainable and would lead to cataclysmic effects. But, in the short run, as a "shock absorber" and "automatic stabilizer", low inflation may be a valuable counter-cyclical instrument. Inflation also improves the lot of corporate - and individual - borrowers by increasing their earnings and marginally eroding the value of their debts (and savings). It constitutes a disincentive to save and an incentive to borrow, to consume, and, alas, to speculate. "The Economist" called it "a splendid way to transfer wealth from savers to borrowers." The connection between inflation and asset bubbles is unclear. On the one hand, some of the greatest fizz in history occurred during periods of disinflation. One is reminded of the global boom in technology shares and real estate in the 1990's. On the other hand, soaring inflation forces people to resort to hedges such as gold and realty, inflating their prices in the process. Inflation - coupled with low or negative interest rates - also tends to exacerbate perilous imbalances by encouraging excess borrowing, for instance. Still, the absolute level of inflation may be less important than its volatility. Inflation targeting - the latest fad among central bankers - aims to curb inflationary expectations by implementing a consistent and credible anti-inflationary as well as anti-deflationary policy administered by a trusted and impartial institution, the central bank.