| A.
R. Kakhsaz Company
an accountancy corporation
Member
American Institute of
Certified Public Accountants
International associates:
Tavana & Co.
Chartered Accountants
Toronto, Canada
Tel.416-229-2221
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A 30% devaluation of U.S. dollar? The U.S.
current account balance on international transactions in goods and
services has deteriorated significantly over the past fifteen years.
Since recording a small surplus in 1991, it swelled to a deficit in 2005
of more than 6% of GDP (Now it's about 6.5% and the deficit is some $800
billion). That's the highest such ratio in more than 40 years.
In the past, other countries with current account deficit above 5% of GDP
have typically faced worsening borrowing terms, either in the form of
reduced borrowing opportunities or increased interest charges. By
that standard, some would argue that the U.S. is overdue for such
adjustments, including a significant fall in the value of the
dollar. A recent study by two scholars in economics from U. C.
Berkley and Harvard University has estimated that a 30% depreciation
in the value of the U.S. dollar is necessary to eliminate the U.S. current
account deficit. Warren Buffet, also, has recently blamed the
growing current account deficit. He said the U.S. trade imbalances
could cause a painful correction in the value of U.S. dollar and lead to
"significantly" higher inflation. The U.S. Treasury's
challenge s to improve the U.S. dollar which has slipped some 8% against
other major currencies over the past six months.
A constitutional conundrum:
Late last March, the U.S. Supreme Court heard arguments over the validity
of the military commissions set up to try prisoners at Guantanamo,
Cuba. That's a challenge to Bush terror-war tribunals and a historic
case on executive-power limits. It is a flash point in the debate
over executive power, individual rights and homeland security that has
smoldered since September 11, 2001.
There's a fine line between
genius and insanity.
70 million Americans
suffer from chronic sleep disorders. The related cost tot he nation
is estimated at billions of dollars in lost productivity.
For more of the Generalist, please visit our website
at ARKCPACOM.
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theGeneralist,
a one-page monthly publication of the accounting firm of A. R.
Kakhsaz Company, is in its 12th year of providing information,
presented fairly and accurately, from sources we can depend upon and
trust.
A
clever tax specialist who is to make a professional speech and
wants to make it very short, would make the topic of the speech: The
Progress of Tax Simplification in My Lifetime.
The IRS should just
go ahead and prepare income-tax returns of
tens of millions of taxpayers. And then send the completed
returns to the people for signature and filing. In those cases
the IRS would essentially plug in the numbers - such as wages,
annual interest income from bank accounts, interest expenses on home
mortgages, dividends, etc. - that is gets from employers, banks and
other sources, and tabulate the results. But government
officials believe that any such plan would be potentially fatal.
U.S. Justice
Department has asked Pay-Pal Inc.
the online payment processing unit of Internet auctioneer eBay inc.
to turn over some customer records as part of a tax evasion
probe. An estimated $40 billion in federal taxes is lost every
year because of the use of credit cards linked to accounts held in
foreign "tax havens," such as Argentina, Luxembourg,
Panama and Switzerland. The IRS is looking into the
transactions from December 1999 through December 2004.
Distracted drivers
are responsible for 80% of crashes. Cell phones are the most
common.
Monica Lewinsky
is attending the London School of Economics and plans to pen a
thesis on the effects of drinking too much. She said:
"I've done some pretty stupid things myself under the
influence."
ACCOUNTANT: Degreed and
experienced, cash flow/budgeting and internal control
procedures. Contact A R Kakhsaz Company, 20501 Ventura Blvd.,
Suite 310, Woodland Hills, CA 91364 Attn: HR Dept. or fax
resume to (818) 713-0980.
We see more in numbers
than just numbers...
Ali R. Kakhsaz, CPA, MAcc
www.arkpca.com
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