What Happens When The U.S Froze Foreign Assets ?

The U.S. seized $30 billion from Qaddafi. Do we get to spend that money?

By Brian PalmerPosted Tuesday, March 1, 2011, at 5:36 PM ET

President Obama ordered the Treasury to block $30 billion worth of Libyan assets on Friday, the "largest amount of foreign assets ever seized in an American sanctions action." What will happen to all that money?

Nothing much. While some news stories refer to the president's move as a seizure, it's more accurate to call it a freezing or blocking, since the government hasn't actually taken control of any assets. Rather, the executive order prohibits U.S. institutions from transferring money out of any account owned by Qaddafi, his family and associates, or the Libyan government. Qaddafi will maintain title to his assets, and the accounts will continue to accrue interest until the order is repealed. As for stocks or other investments that are capable of declining in value, banks have a choice. They can simply leave his holdings as they are, even if the investments turn sour. Alternatively, they can apply to the Office of Foreign Assets Control—the agency responsible for enforcing trade sanctions—for a specific license to manage or liquidate the accounts.

The Treasury is normally inclined to grant such licenses, because allowing the investments to shrivel is inconsistent with the purpose of the policy. Asset blocks aren't just meant to punish international criminals; they also protect money for successor governments. The Treasury is trying to prevent Qaddafi from absconding with Libya's wealth. Many past presidents have used asset blocks to prevent this sort of plundering. Shortly after Saddam Hussein invaded Kuwait in 1990, Iraqi officials began stealing money from bank accounts owned by Kuwaiti nationals. The Treasury Department blocked those accounts to preserve Kuwaiti capital. It did the same thing with Bosnian accounts after the Serbian invasion.

Qaddafi can probably kiss his money goodbye. The president, the Treasury secretary, and Congress each have the authority to repeal the block (the latter by a joint resolution), but they are extremely unlikely to do so during Qaddafi's lifetime. The Libyan leader probably has no recourse in the court system, either, because the law that permits the president to freeze foreign assets doesn't provide for judicial review and the United States doesn't recognize the authority of any international court to mediate such a dispute.

Once Qaddafi is dead or out of power and the United States has recognized a successor government, the president will lift the block on assets owned by the Libyan government itself. The future of Qaddafi's personal assets is less clear. Except in wartime, the president doesn't have the authority (PDF) to seize blocked money unilaterally and give it to someone else. He might persuade the courts to do so, however, if he can prove the assets were obtained through corruption or money laundering. In that case, a judge might transfer title to the government, which could redirect it to Libya's new leadership. Read more.

Anwar In Panic State: Dah Ludah Jilat Balik

Hantu Laut

With his sodomy trail looking critical and PKR in almost irreversible slump in Sabah, Anwar Ibrahim is in panic state.

To make matters worse, the general Malay population is distancing themselves from him and his party of mish mash.

Here, he directed a message to UMNO members and supporters and told them "You are not my enemy" he is only against UMNO evil leaders.

Here, the Malays would say "Dah ludah, jilat balik"

I would be really surprise if Jeffrey would come back knowing how tattered PKR is in Sabah.

Air Asia Flying Into Turbulence

Hantu Laut

"Now Everyone Can Fly" a tag line that has become a reality not only in Malaysia but the whole wide world.

Air Asia, a fledgling airline less than a decade ago has become one of Malaysia's greatest success story.A pioneer in budget airline in Asia and Asia's largest low-fare, no frills airline.

Air Asia was founded by government linked company DRB-HICOM.The highly-indebted company was purchased by one man with one clear vision....... to provide affordable air-fare for the masses.

That one man is Tony Fernandes, who bought the loss-making company for RM1.00 and took over some RM40 million of debt and 2 ageing Boeing 737 .His stint at Virgin as a finance and accounting man may have given him the insight on how to start and run a budget airline.

Many thought him to be out of his mind to buy a debt-ridden airline and prophesied its early demise.The prophets of doom were wrong, the airline has grown from strength to strength and have now eclipsed MAS (Malaysian Airline) in term of fleet size, market capitalisation, profit and popularity.

An epitome of one man's loss is another man's gain. Fernandes has become the envy of the corporate world and his airline a household name in the region.This man had received many outstanding awards including the France government and the Queen of England.Malaysia seemed to have missed his contributions.

Air Asia has flown into turbulence in East Malaysia particularly Sabah where MAB (Malaysian Airports) had given it an ultimatum to move to the KKIA main terminal by 1st June 2011.

Moving to the main terminal would mean increase in its operating cost which would have to be passed on to passengers that would certainly cut its passenger load.Fernandes was against the idea and said he would chain himself to Terminal 2 if he had to, to stay there.

I am a proponent of budget airline which allow one to tailor the fare to suit one's pocket.

I fly with both airlines but more with Air Asia because of its better frequency of flights, newer fleet of air crafts and affordable fare.

Unless, you want to complain it is too cheap or you are just a stupid snob let me assure you there is nothing wrong with the airline, most of its planes are younger than those used by MAS on its domestic flights.

It would be silly of the Malaysian government to ignore Air Asia and give special treatment to MAS which is basically run by people with bureaucratic civil servant mentality and dare not face competitions.MAB excuse of wanting Terminal 2 as cargo terminal is just an excuse.I believe there are plenty of room for expansion where the present cargo terminal is.

Air Asia has become too big to ignore.There were rumours that the Singapore government is trying to court Air Asia to move its hub to Singapore with a promise of competitive costs and a dedicated terminal for the airline.It wouldn't take a lot of effort for Fernandes to accept the offer, if true, and move his main hub to Singapore.

I have flown once with Jetstar from Singapore to Kota Kinabalu and it was no where near as systematic and efficient as Air Asia, the queue at the check-in counter was so long I almost die standing.

The rumours of Singapore wanting another low-cost airline to make Changi its main hub may not be untrue.Air Asia is probably the most successful low-cost airline in the world.Many have tried to copy it but some have fallen by the wayside or are struggling to survive.

Read this on the screwing of Air Asia by Joe Fernandez

Is Malaysia The Same As Egypt,Tunisia And Libya?

Hantu Laut

The answer is definitely NO!

There are serious flaws in this writer's exposition and I have to accept with bemused resignation that she was no student of history and did absolutely no research before putting her opinion to the pen.A good writer but succumbed to unfounded and excoriating oppositions propaganda and disinformation.One should write with the head not the heart.

Apart from no allowing street demonstrations, for all intents and purposes, Malaysia is still a very democratic country and adopts a capitalist approach to its economy.It has never failed to call a general elections when it's due.The ISA may be a necessary evil due to the delicate nature of our ethnic composition.

Just for the heck of it, let's compare those Arab countries with Malaysia,

Let us start with Tunisia, how it became a sovereign nation and how the leaders came to power.

Tunisia gained independence from France in 1957 as a republic led by its first President Habib Bourguiba.In March 1975 the Tunisian National Assembly voted Bourguiba president for live.In November 1987 he was toppled by Ben Ali in a coup d'etat.Ben Ali started off good but eventually became a dictator and had 24 years of uninterrupted rule. The country have known only two leaders over a period of 54 years and both ruled the country with an iron fish.

Though, all came from the same ruling party, Malaysia have had 6 prime ministers over the same period.

By comparison Tunisia is considered a poor country with GDP of US9500.00 against Malaysia's US14700.00.About 8-10 percent of Tunisians live below the poverty line but are better off than their Egyptian counterparts because of its smaller population.

Egypt gained independence in 1953.Egyptians have known only 3 presidents up till today.They were Nasser, Sadat and Mubarak.The first president Mohammad Naguib was only in office for 16 months when the country got rid of the monarch and declared itself a republic.

Some 30 percent of Egyptians live below the poverty line earning less than US$60.00 a month and live in abject poverty, with limited food supply, poor and overcrowded housing and inadequate access to clean water, good quality health care and education.If you live on that kind of wage you have two options, you either become a beggar or a thief.

Very few Malaysians earned less than US$200.00 a month.

With a population of 80 million against 28 million for Malaysia it is not belittling to say the Egyptian economy is in a shambles because of improbity, Egypt's GDP is below that of Malaysia.Egypt's per capita for 2010 stood at US$6200.00 against Malaysia's US$14780.00

Libya is not even worth to put a comparison to. Its mainstay is oil and the small population gave it a false per capita GDP reading as most of the oil revenue go to corruptions, mainly the pockets of Gaddafi, his family and his cronies.

After disposing King Idris in a coup d'etat in 1969 Muammar Gaddafi, a captian in the army with his junior officer co-conspirators abolished the constitution and made Libya a republic.

Gaddafi has ruled the nation with blatant disregard for human rights ever since.

Libya has a per capita of US$13800.00 and if anyone believed it is fairly distributed to the population than they should decry the revolution and go out and save Gaddafi.

What does it tells you?

It tells you many crucial things about Malaysia, that it is still a democratic country and to a great extent practising free market economy.That's why you have many billionaires, millionaires and significant middle class in the country.Unlike, the Arabs, no leaders or prime ministers had or ever attempt to abolish or abrogate the constitution to deprive the basic human rights of its citizens.It also shows that Malaysia has, over the years, executed sound economic policies that have given it moderate economic growth.It may not be the best in the region but it is better than many other countries.We are ranked 30th in the world's GDP ranking.Not too bad for a small nation of 28 million.With the new economic reforms we should do better.We have one of the lowest below the poverty line.Only about 5 percent of Malaysians live below the poverty line according to the CIA Factbook.

Corruptions, should be our main concern, this is where we should spare greater effort to combat the sickness .Though, I agree with her on the worrying degree of corruptions in the country I don't believe that there would be less corruptions with Pakatan taking over the helm.Many politicians in Pakatan bound for the higher office are cut from the same cloth.

She wrote "Najib is in denial for there are many similarities between the two countries. The Egyptians were fed up with the repressive rule of Hosni Mubarak. The reasons for their dissatisfaction were mainly financial. They were angry with life in the autocratic police state, of poor living conditions, economic stagnation, unemployment, corruption and abuses by the police"

I have done business with that region for almost 20 years.

No! Malaysia do not have the same similarities as those godforsaken places.

This one is even more idiosyncratic, political backwashing from a flat in London.

Everyone wants Taib out but would he flutters and falls?

Not likely, he would lose some seats to the oppositions but he and the BN should prevail to rule Sarawak again.