Wednesday, May 23, 2012

Georgian Style Feeding Frenzy, AKA, Asset Management: where does the money go?

Asset Management, Georgian Style Feeding Frenzy:  "where does the money go?"

I see the Georgian government have gone back on another promise. Instead of reducing income tax from 20% to 18%, like they said they would, they've instead invited tax payers to divert the 2% into a savings fund which will be administered by “asset management companies” to invest funds in various projects:

The good thing is that the tax payers are free to withdraw their money at any time - any time after 15 years has elapsed since the money went in which sounds like they can withdraw the equivalent of 2% of their current earnings, per month, starting in 15 years time. What 2% of their current earnings will be worth in 15 years time is anyone's guess.

The best thing for people to do is simply not subscribe to this scheme and leave that money in the state coffers to fund things like the ambulance and fire service, rather than let it be diverted into the hands of private companies in order for them to reap rich rewards with all of this money they'd be accumulating out of thin air.

This sounds more like a feeding frenzy than anything that would come close to the semblance of asset management - rumor has it that the same gang that was involved in a investment scheme 20 years ago - Golden Cup, are involved in this from the sidelines. It is clear that this is just another scheme to get rich by a few elites at the expense of the majority of hard-working Georgians. 
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