Personal Financial Management

Introduction A contingency plan is an essential tool in the preparation of a retirement plan and an estate management plan. The goal of this contingency plan is guarantee the maximum possible use of existing and anticipated financial resources by coordinating all of the assets, liabilities, and other sources of income of an individual.Advertising We will write a custom essay sample on Personal Financial Management specifically for you for only $16.05 $11/page Learn More In the process of developing a contingency plan, it is assumed that and individual has the willingness and capability to undertake necessary cash and investment commitments. Furthermore, there is also the need to be uniquely identified in order to come up with appropriate recommendations. This will ensure that the plan is realistic, effective, and efficient. Discussion In the current setting, the level of risk tolerance is moderate. Therefore, the willingness to take on risks is similar t o the capacity to assume risks. Given that existing income requirements for the portfolio are minimal, there has to be a total return methodology on the continuing capital gains rather than the creation of current income. However, existing liquid assets are adequate to offer cash reserves during any emergency (Kapoor, Dlabay, Hughes, 2012). Since the wish is to retire after 32 years of active employment, the key objective is to have a balanced portfolio in order to have sufficient retirement income. In such a case, it is important to manage the financial assets by having a portfolio comprising both taxable accounts as well as two IRAs. The calculations for this plan are based on average annual inflation being at four percent with the social security inclusion being at fifty percent. The bond mutual funds are at 4% with the equities giving a return of between 5-10%. On the other hand, annuities amount to around 5% with social security COLA rates being at 3%. The personal residence a nd property growth rates are at 2%. The inflation of the college expenses stands at 7%. The family assets, cash-value life- insurance, as well as liabilities are defined at present market value (Kapoor, Dlabay, Hughes, 2012). The key strategy is to join an investment club and then to manage a portfolio of nearly eight to ten minor capitalization of stocks. Furthermore, investments will be done on mutual funds that are well managed due to their high-quality complements towards the personal stock holdings. Consequently, investments will be done in the other partner’s IRA but in a fund that focuses on high quality large capitalization companies.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The smaller IRA can be invested in an aggressive expansion small cap fund while the other taxable assets will be invested in the equity income fund, a money market fund, a global fund and finally, to a short-term bond fund. Given the existing uncertainty regarding the market’s outlook, portfolio diversification will assist in dampening volatility while providing the room to ride out any downturns arising from a given market segment. Notably, replacement costs take most of the family’s budget especially replacement of key items. Therefore, the annual income target is aimed at $200,000 and the plan is to increase it at an average annual inflation level of nearly two percent over the life expectancy. Saving current income is the key to attain financial goals while preparing for emergencies (Stovall Maurer, 2011). When it comes to the retirement plan, the social security will provide a distinctive advantage since it covers inflation-adjusted incomes. This will help to keep at bay erosive outcomes arising from inflation. Therefore, it will be essential to restructure the income together with the assets to meet current tax liabilities. Therefore, nearly 50% of the n on-pension assets will be invested in equities while the other 50% will be on fixed-income along with cash. On the other hand, pension payments will be dealt with as fixed-income assets whereby almost 70% will be invested in equities while the remaining 30% will be invested in fixed-income plus cash. Therefore, this investment will act as a source of constant income that will be used to meet the family’s daily expenses. Consequently, it will act as a foundation for growth in case the living expenses increase due to inflation. However, it is essential to consider the idea of overcoming inflation while supporting a desired lifestyle. The firmness of life insurance companies is also a growing concern due to financial troubles in the industry. Savings also offer economic control and as such, the savings will cover between 3-6 months of the living expenses.Advertising We will write a custom essay sample on Personal Financial Management specifically for you for only $16.05 $11/page Learn More Therefore, this entails maintaining a sufficient disability as well as survivor income to sustain present living standards without depleting the capital until retirement. A credit management strategy from a professional will help in avoiding dealing with credit agencies by managing the credit debt. A good debt reduction plan will help in straightening out the inaccurate credit history. For instance, Equifax from Creditnet will help to monitor the credit profiles from every bureau. It will also provide notices if any changes can result in an unmanageable debt profile and protect identity from any fraudulent acts. Furthermore, it will offer simulations on how certain credit acts being undertaken can affect the credit score in addition to providing tips on how to administer the credit score (Kapoor, Dlabay, Hughes, 2012). Under estate planning, providing for the children is a major concern and the course of action should be that all of the pro perty will be passed to the surviving partner and the distribution to the children will be after the partner’s death. The estate plan entails applying gift and estate tax credit due to access to the gift tax credit, referred to as applicable credit tax. This plan involves distributing the applicable credit total, to the children after the death of the first partner. Thus, transferring of the estate balance to the surviving partner will be under unrestricted marital deductions through a trust arrangement. Such a plan will help to minimize the amount of the remaining partner’s estate that in the end trims down the estate tax obligations (Kapoor, Dlabay, Hughes, 2012). The distribution will happen after the first death of a partner and the trust created and will ultimately distribute equal shares of the estate to all the children. If the other partner becomes involved in running the family business then life insurance will facilitate her to execute a buy-sell agreement t hat is funded from the life insurance. Furthermore, in case of death, the proceeds from the insurance will be used to buy the business interest arising from the estate. Accordingly, the children will have full control of the business, as well as the estate including the cash that they can divide among them or their heirs.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, purchasing of the life insurance can be done directly to equalize the estate and not to increase the value of the estate that in the end can attract estate tax liability. In order to avoid the uncalled for tax drain and provide additional money to the estate, every instance of ownership will be removed from the insured. For this reason, the marginal tax bracket should remain at 30% whereby the average tax bracket lingers at 24%. The surviving spouse will most likely continue with the existing pension payments and she should have a possible advisor who can assist in assessing the options. Therefore, assets received upon death like life insurance payments can be invested into intermediate-term fixed-income funds to have the liquidity that can be used in later on investments in various funds. Furthermore, the IRA should be turned into the other spouse IRA and then invested in a similarly aggressive expansion fund such that the asset allotment remains unaffected until a better option arises. Given the fact that death can occur when the beneficiary is a minor or he/she has developed special needs, a guardian will be appointed to take charge of beneficiary’s personal care. Therefore, a residuary clause will ensure that disposal of the estate assets following payments of all debts will be passed on the children (Stovall Maurer, 2011). The competitive line of credit from the bank will offer the capital required to run the rental real estate business. The business will be dealt as a personal net worth and it should have stable plus dependable cash flows including protection from disasters. Investment decisions are based on projections from markets and asset class. An asset allocation approach will offer the prospect for additional control over the amount of return in return for assuming further risks. The asset allocation is also a no-derivative approach that will help to minimize risks in addition to reducing the in general portfolio volatility. Holdi ng various asset classes will help to reduce the risks especially when major markets go down. In such a plan, the key concern is to ensure that the mortgage is completed by 2025, and the vehicle loan by 2014. In addition, poor health, inflation, disability, and possible tax hikes are obstacles that can impede the plan. In order to minimize tax liability and at the same time preserve more of the estate an amount of up to $13,000 will be contributed yearly to the child’s college account, so as not to incur federal gift tax charges (Stovall Maurer, 2011). Estate planning includes minimizing probable taxes, and thus help in assuring preferences concerning health care treatment. A proper estate planning recognizes what will take place in the home, investments, life insurance, the retirement plan, and additional property, especially in the event of a disability. Conclusion The above contingency plan has come up with an estate plan that not only serves the immediate needs but also the future necessities of the beneficiaries. It covers a broad series of legal, tax, as well as financial considerations. The contingency plan takes into consideration the coordination of the plan with those of estate goals. Given that investment in the family business is a crucial asset, the plan has addressed retirement and estate planning matters comprising value of the shares and the estate, the insurance, retirement planning as well as the preservation of the estate. References Kapoor, J. R., Dlabay, L. R., Hughes, R. J. (2012). Personal Finance (10 ed.). Los Angeles: McGraw-Hill Irwin. Stovall, J., Maurer, T. (2011). The Ultimate Financial Plan: Balancing Your Money and Life. New York: Blackwell. This essay on Personal Financial Management was written and submitted by user Aliza N. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Drug Trafficking Essays - Euphoriants, Opioids, Illegal Drug Trade

Drug Trafficking Essays - Euphoriants, Opioids, Illegal Drug Trade Drug Trafficking Speech Professor Termaine Garden April 29, 2014 Drug Trafficking Introduction: Attention Getter: Im sure more than half you have watched a movie or documentary that had to do with drugs. Credibility: I once saw a movie called Maria Full of Grace, and it was based on drug trafficking. It showed one of the many ways they go about smuggling drugs, and it sparked an interest in me choosing this topic and looking into it more. Audience Relevance: Want to know what a drug mule looks like? Well if you look in the mirror that can be one answer. There is no look for a drug mule. Every single person involved in drug trafficking is doing it for the money they will make. Thesis: Today I will be informing you on drug trafficking. First, on a few methods used to smuggle in the drugs. Second, the countries that are known for drug trafficking. And lastly, ways that they are trying to be prevented. (Transition): Now I am going to share with you three different methods people have tried to sneak in narcotics into the country illegally. Body: I: Methods of drug trafficking: A) In an article that I had read, Heroin Implants Turned Puppies Into Drug Mules, the drug traffickers had used puppies. The drug trafficker had used 10 puppies from Medellin, Colombia and surgically implanted packets of heroin into the puppies bodies to ship them to the United States. They tried making the puppies seem as show puppies so that they would get through customs easier. a) 3 puppies died after they were saved because of the drugs. B) In another article, To Smuggle More Drugs, Traffickers Go Under the Sea, drug traffickers have come up with a new way to try and smuggle drugs into the United States. They used a submarine across the Caribbean Sea. The submarine that was caught trying to smuggle in contraband, had several tons of cocaine. In the article it was also stated that there are now three new submarines that are capable of traveling underwater from South America to the coast of the United States.. a) With this situation occurring it also now brings worry to the Americans that this method can also be used to transport attackers or weapons for terrorism. C) Another method that drugs have been smuggled in was from a South African woman who had 1.5kg of cocaine sued into her fake dreadlocks. She was caught in the airport of Bangkok. She is now being put on trial, and will possibly be facing the death penalty. The cocaine in her dreadlocks weighed over 3 pounds, and they were worth $150,000. She was going to get paid $1,900. Barely $2,000 that were clearly not worth having to either spend the rest of her life in prison, or face the death penalty. People that are helping to smuggle in these drugs illegally do it for their own selfish reasons, of wanting to make money, nothing thinking logically of the consequences. This is why the poor countries are usually the ones doing most of the drug trafficking into the United States. II: Countries known for drug trafficking: A) Drug trafficking is the most profitable illegal trade. B) There are 7 main countries that are known for their drug trafficking. a) Afghanistan b) Burma c) Mexico d) Colombia e) Peru f) Bolivia g) The Bahamas C) Mexico is the primary conduit for drugs entering the U.S. (Transition): With so many countries trying to find their way to smuggle in their narcotics, the United States is trying to find sufficient ways in cutting down, and eventually stopping drug trafficking. III: Trying to Prevent Drug Trafficking: A) The United States is setting up stronger borders to shield drug trafficking. The more protection we build around our country, and the stronger border surveillance we have, the better chance we have to stop drug trafficking. B) Not only do drug traffickers directly try and bring in drugs through the boarders, but they also do air-drop deliveries, and with how huge and remote some states are in this country, the United States is setting up stronger and more efficient surveillance. C) Barack Obama has been trying to strengthen security in the southwest border, from Mexico to the north, and stop the movement of arms and money towards the

History Essay Example | Topics and Well Written Essays - 750 words - 39

History - Essay Example Her family realizing how dedicated Swift was, they decided to move close to Hendersonville, Tennessee. Therefore, this shows how supportive her family was to accomplishing her goals and becoming a renowned artist (Burlingame 7). It is among the many sacrifices her parent’s made in years to ensure that Taylor Swift succeeded. They kept on encouraging her on her quest to becoming a country musician and more so her mother Andrea who has been her role model and mentor. She always loved to perform her music. In her free time, she would watch biographies of country music legends which made her realize that most of the stars had started in Nashville (Burlingame 13). Every time the name Taylor Swift comes up in the media such as magazines, newspaper or even online articles, there is a chance that at least one of these phrases will be included. Taylor Swift the first singer of country music to win an MTV award in the music video category, one of the youngest female artists in history of mankind to win the best year’s Album in the Grammy Awards (Burlingame 17). In addition, Taylor Swift became the year’s best selling artist. Even though one could see Taylor Swift have become a star over night, at the age of 11, she was already singing and writing her own music. She had big dreams and continued to do what felt right until 2006 when she had a break through with herself titled debut Album (Burlingame 21). In the year 2006, Taylor released her single debut Tim McGraw and then self titled it that later on the Recording Industry Association of America certified multi-platinum. The same year in October, she had sold 2.5 copies of the album. In the 50th Grammy Awards, Taylor was nominated for the Best New Artist. Fearless, her second album won the album of the Year in 2010, released in 2008 at the 52nd Grammy Awards which were her pop stardom. As the year ended, Swift became the best selling country artist of the year 2008. In 2009,

Battle of Little Bighorn Essay Example | Topics and Well Written Essays - 250 words

Battle of Little Bighorn - Essay Example oldiers lost during the battle to the Lakota Indians their defeat ironically was a win as it strengthened America’s nation building (Calloway, 2012). The changing images show who was either the victim or the victor of the â€Å"battle of the little bighorn† between the Lakota Indians and the American Soldiers at different times. Through the interpretations; the image, â€Å"Custer’s Last Stand† the Indians are depicted as victors, the image of â€Å"they died with their boots on† depicts the American Soldiers as the victims. On the other hand, in â€Å"little big man†, it can be interpreted that the victors are Clusters and the American soldiers; in the image â€Å"Lakotas Fighting Custer’s Command†, the Indians are the victors while in the image of â€Å"Custer’s Dead Cavalry† depicts how the American Soldiers were defeated (Calloway, 2012). The Americans and the Indians have portrayed the battle in different forms. The American images depict the Americans as the victors while the Lakota images depict the Indians as the Victors. The American images show General Cluster as the last man standing this is a clear indication that the Americans won the battle. However, the Lakota images depict the Indians as the victors, and they show many dead soldiers (Calloway,

Speec - Should We Keep Animals in Captivity Essay Example for Free

Speec Should We Keep Animals in Captivity Essay Introduction Do you know that there are approximately a hundred million wild animals, and about twenty thousand species that die every year? Wild animals are in great danger from nature, diseases and worsening environment. The extinction of animals has become a critical problem leading us to think whether or not we should keep animals in captivity. Body – Danger In recent 50 years, nearly two thirds of the world’s forest has been cut down for human industry and agriculture so that a variety of wild animals find it harder to survive as usual. On average, in every 6 square kilometres of the forest, there are over 750 species of trees, 400 species of birds, 150 species of butterflies, 60 species of amphibians, and thousands of species of other plants. But with the disappearance of forests, more wild animals are deprived of shelters and food and die in large numbers. Next imagine that you travel to Africa with the hope to see wild animals, such as rhinos, giraffes, elephants and chimpanzees, only to find nothing but the samples displayed in the museum. Underneath the display, there is the sign saying† Rhinos, the world-famous animals, existed from 500 B.C to 2014 A.D., Cause of death: Human poaching†. Looking at the animal, shouldn’t we feel guilty for human indifference to animals and heavy massacre before? Poaching is the first reason that causes the extinction of wild animals. It’s increased at the rate of 3000 per cent over the past years. Especially, the demands for rhino horns in Africa has rocketed, because it is now valued the same as gold! Other animals like panther, Chimpanzees and Africa elephants are also the victims of human poaching. Another reason to cause animal extinction is the climate change. The earth getting warmer rapidly, the animals that suit cool climates are forced to move and finally lose their habituates for the amazing development of industry and great increase of green-house gases. Body Advantages Having realized the sharp reduction of wild species, some countries have set up many animals reserves to protect the rare animals. Around the world by means of captive propagation, humans have promoted the birth of 135 gorillas, 33 black rhino, and 123 leopards, some of which are restored to their habitual environment. Though captive propagation and reintroduction seem to work effectively and contribute to insurance against sudden or catastrophic losses of animals in the wild, I don’t regard them as the major ways to save animals. Body Disadvantages One of the main problems with captive propagation and reintroduction is the high cost. Capture from the wild, food, veterinary care all contribute significantly to the huge cost. Though some think this problem can be solved by fundraising. The other problem is that captive endangered animals may fail to practice their genetic traits. Animals raised in unnatural conditions where they no longer need to hunt for food, and find shelter themselves would gradually weaken their natural instincts. For example, the animals fed from birth may never learn gathering or prey-hunting skills from their parents as they would in the wild. Generation after generation, will they reduce to home pets? Conclusion It is a painful fact that there will be no more wild animals left on the planet if the climate continues to warm up, or if humans continue poaching them. In such cases, I can’t deny that captive propagation and reintroduction are effective ways to save and increase the number of endangered species. However, the animals fed and bred in artificial conditions will inevitably lose their instincts and vigour they owned in the wildness. Therefore instead of focusing on how to keep animals in captivity, we should try our best to prevent globe warming up and stop poaching with severe punishment, providing a better living condition for those innocent wild animals. Do you agree with my ideas? Or do you have better ways to settle the problem?

Wire Pirates :: essays research papers

Wire Pirates Someday the Internet may become an information superhighway, but right now it is more like a 19th-century railroad that passes through the badlands of the Old West. As waves of new settlers flock to cyberspace in search for free information or commercial opportunity, they make easy marks for sharpers who play a keyboard as deftly as Billy the Kid ever drew a six-gun. It is difficult even for those who ply it every day to appreciate how much the Internet depends on collegial trust and mutual forbearance. The 30,000 interconnected computer networks and 2.5 million or more attached computers that make up the system swap gigabytes of information based on nothing more than a digital handshake with a stranger. Electronic impersonators can commit slander or solicit criminal acts in someone else's name; they can even masquerade as a trusted colleague to convince someone to reveal sensitive personal or business information. "It's like the Wild West", says Donn B. Parker of SRI: "No laws, rapid growth and enterprise - it's shoot first or be killed." To understand how the Internet, on which so many base their hopes for education, profit and international competitiveness, came to this pass, it can be instructive to look at the security record of other parts of the international communications infrastructure. The first, biggest error that designers seem to repeat is adoption of the "security through obscurity" strategy. Time and again, attempts to keep a system safe by keeping its vulnerabilities secret have failed. Consider, for example, the running war between AT&T and the phone phreaks. When hostilities began in the 1960s, phreaks could manipulate with relative ease the long-distance network in order to make unpaid telephone calls by playing certain tones into the receiver. One phreak, John Draper, was known as "Captain Crunch" for his discovery that a modified cereal-box whistle could make the 2,600-hertz tone required to unlock a trunk line. The next generation of security were the telephone credit cards. When the cards were first introduced, credit card consisted of a sequence of digits (usually area code, number and billing office code) followed by a "check digit" that depended on the other digits. Operators could easily perform the math to determine whether a particular credit-card number was valid. But also phreaks could easily figure out how to generate the proper check digit for any given telephone number. So in 1982 AT&T finally put in place a more robust method. The corporation assigned each card four check digits (the "PIN", or personal identification number) that could not be easily be computed from the other 10. A nationwide on- line database made the numbers available to operators so that they could

Belize Commercial Free Zone

The Commercial Free Zone [pic] Sign to entrance to CFZ [pic] Map layout of CFZ [pic] Plazas, Company Stores & Shoppers inside ‘The Zone. ‘ CRS104-2 Group # 7/ D Research Question: Identify an industry or economic area with in your country where taxation and protection as been removed and look at the condition of it with in your country in terms of: 1. has it worsen or improve 2. variety of choice ( no specification of products made) 3. price of goods ( no indication of the prices of goods) 4. overall employment 5. quality (no indication of the quality of goods) 6. government revenue 7. ocal industry A Brief over View of the Commercial Free Zone or CFZ The Commercial Free Zone is one of Belize’s many Offshore Companies or industries used to attract foreign investors from all over the world to increase Belize’s economy and northern economy. Belize's legislation defines CFZ as â€Å"a geographic area in Belize designated outside national customs territory and duly restricted by controlled access, wherein the benefits created shall apply to a complex of industries. † The CFZ boarders Mexico’s South Eastern border and allows investors to directly access Mexico’s high end consumer market.Corozal’s Commercial Free Zone is under the management of the Commercial Free Zone Management Agency (CFZMA) and is headed by the Chief Executive Officer under a Board of Directors within the Zone. The Commercial Free Zone (CFZ) was established under the Corozal Commercial Free Zone Act of 1994 and was in place by 1997. The FZA is the most modern laws governing Free Zones in Belize. Business entrepreneurs are offered insane tax free business opportunities. Businesses there are free of foreign exchange restrictions and benefits such as duty exemptions and tax holidays.Goods imported or exported are exempt from any duties, quotas, stamp duties and revenue replacement duties. Income tax on Commercial Free Zone businesses is usually c harged between 2% and 8%. Businessmen’s rates can be reduced up to 2% through tax credits by employing Belizean workers. The Zone provides a variety of facilities for activities such as manufacturing, processing, warehousing, packaging and distribution of goods and services. This allows the businessmen today to manufacture, import, export, distribute fuel, and to offer retail or wholesales to Mexico and many other international clients.By doing so, they are also offered access to dock ships at ports in Belize and direct export by sea, air, land and entry into national customs territory. Today the Zone under gone vast improvement since then and continues to do. What started out first as a private sector with a great struggle to attract investors began to pay off due to the involvement of the few businessmen’s determination and dedication. First there were a few companies that only imported and exported their merchandise, then one or two retail stores, and then there was the addition of a SHELL gasoline station.This then offered the Mexicans an economical and better quality fuel than Mexico’s state-run fuel company PEMEX offered. Mexicans then began to invest in the Zone and brought with them numerous stores which offered investors and consumers everything from a more active store location to batteries. Benefits that Foreign Investors Receive from CFZ The following is an extended list of benefits that Investors receive: 1. no restrictions on foreign exchange out of or within a CFZ, including the sale of foreign currency or the transfer of foreign exchange; 2. noGovernment charges and taxes on foreign currency use within a CFZ; 3. all merchandise, articles and goods that enter a CFZ for commercial purposes are exempt from import duties, revenue replacement and stamp duties; 4. all fuel and goods, including buildings materials, equipment, furniture, supplies, etc. , needed for the functioning of a CFZ business are exempt from all duties and ta xes; 5. A Social fee of 1. 5% is charged on all goods and services imported into the CFZ, except for fuel (on fuel it makes 10%); 6. no quotas for imports and exports; 7. t is possible to open an account in any currency with a duly registered bank of CFZ business choice located in the CFZ; 8. no import or export license is required for imports or exports; 9. imports and exports are exempt from all custom duties, consumption and excise taxes, and export duties; 10. During the first 5-year period of business functioning in a CFZ, it is exempt from income tax, or capital gains tax, or any new corporate tax levied by the Government of Belize; any dividends paid by this business are exempt from tax for the first 20-year period of its operation; 11.The loss incurred over the 5years' tax holiday by a CFZ business may be carried forward and deducted against profits in the 3 years after the tax holiday period; 12. Any proceeds from the sale of stock or other ownership interest in a CFZ busin ess are exempt from the above-mentioned tax. Employment, Government Revenue, CFZ Current State of Being and Effects on the Belizean Economy Employment The main industry in Northern Belize that provides over six thousand families with income is the sugar industry.The other main industry which does so is CFZ. By 2003 there were over 400 businesses. Now there are about 700 which are offering employment to over 3000 Belizeans. Government Revenue 1. In 2004, CFZ brought in $274 million in economic activity annually of which the Government charged income tax as the five year mark had passed in 2002. 2. CFZ Christmas sales were approximately 50 percent lower than 2004 in 2008 CFZ Current State of Being Investors are losing confidence in the Belizean economy as: 1. There is less economic activity in the zone.This has left investors who have built million dollar shopping plazas unable to meet financial commitment. As a result, half of the facilities have now become vacant. 2. The Chetumal Ch amber of Commerce consistently pressures the Mexican Federal government to hinder Mexicans from purchasing at CFZ. 3. Before the Belize Bank and Atlantic Bank have been depositing pesos from the Free Zone in banks in Chetumal. Now Mexican banks are refusing to accept pesos deposited at CFZ due to money laundering concerns. Investors are then forced to keep large sums of pesos which posses the risk of theft.As a result the risk of excess pesos forcing the Market is eminent causing investors to sell excess pesos to local currency dealers at a loss due to Mexico’s unstable exchange rate. 4. The Central Bank has lost its account with HSBC (an international bank which used to process the millions of US dollars in cash) this is due to US anti-money-laundering banking regulations. There are periods when commercial banks in CFZ have not been freely taking the US dollars for the past three weeks. As a result, there have been several U. S. dollar freezes at CFZ in 2002, 2009, 2010.This is a very serious matter as it posses a possible treat to place CFZ activities on halt permanently if no resolution is provided. Hence anywhere up to over 17 million US dollars would be left to sits in a vault in Belize unprocessed. Effects on the Belizean Economy Consequences: 1. In 2008, Imports also fell by 38. 9 percent to a new low of $114. 5 million due to losses in the global economy . When economic activity fell to 50% in the Christmas of 2008; it caused the Belizean economy to decline. This is due to the fact that the industry is earning less; less income is being gained by the government through income tax.As a result Commercial activity continues to decline. 2. CFZ income is dependent on foreign currency, especially so US currency. Any change in the U. S economy directly affects us. Also since investors are all foreign, and not local, they can leave at any point in time, and will provided that there is persistent decline in economic activity or U. S Dollar Freezes or whe never financial responsibilities cannot be meet. 3. As a result of businesses closing their shutters permanently thousands of Belizeans are left unemployed. 4. Belizean economy then continues to decline.