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    05/30/2016 - 21:24
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Doug Casey on Internationalizing Your Assets

Tyler Durden's picture




 

Submitted by Doug Casey of Casey Reasearch,

In a wide-ranging interview with Casey Research editor Louis James, Doug Casey discusses why it's imperative to start diversifying one's assets today, and provides some guidance in considering countries to diversify into.

L: Doug, we're getting a lot of questions from readers on how to follow your advice to diversify assets politically. I know it's a prickly subject, but what can you tell us about getting our money out from behind the new iron curtain that seems to be descending?

Doug: First – and I can't stress this enough – you've got to accept the grim reality of impending currency controls. The modern era of foreign exchange controls really started with the perversely Orwellian-named Bank Secrecy Act of 1970. For the first time, that made it obligatory for US citizens to report any foreign bank or brokerage accounts they had to the government.

But the threat is older than that, of course, going back to 1933, when Roosevelt confiscated Americans' gold. Interestingly enough, only gold bullion held by Americans within the United States was confiscated. If you had gold outside the United States, you were insulated.

L: I didn't know that – if history repeats itself, that could be a key tactical factor for our readers to consider.

Doug: Yes. There are no guarantees, of course. Those in government today think they can do absolutely anything they deem necessary and expedient. But at least if it's out of their physical bailiwick, it improves your odds.

L: Why do you think they allowed that exemption last time? I doubt it was because they had any shred of respect for private property – maybe they just recognized that trying to seize gold overseas would be impractical.

Doug: Good question. Well, the 1930s were a different era. Communication, for one thing, was vastly slower and more expensive than it is now. And you have to remember that though we had an income tax in the 1930s, since 1913 actually, very few people were paying it – even among those allegedly legally obligated to pay it. It was hard for the government to find out who they were, and how much they were earning, and so on. Even though there were only 140 million people in the country then, the absence of computers and much less centralization made it very hard for Washington to keep tabs on them.

L: The income tax really was a voluntary tax back then!

Doug: [Laughs] Much more so than now – it really was a different era. At any rate, based on this history and that the juggernaut is building momentum towards the bottom of the ditch, I have to reiterate my advice on the most important investment decision you can make. And it isn't one among the different classes of investment; it's political and geographical diversification. Simply put, that's because no matter where you live, your government is the greatest threat to your wealth today.

If you're a high-income earner, the state basically takes 50% of what you earn, and then from what's left, you have to pay your real estate taxes, sales taxes, and many, many other kinds of taxes. Government is without question the biggest danger to your financial health. You've got to diversify your assets so they are not all under any one government's control.

L: You say that in almost every speech you give these days, and you said it in one of our interviews a couple of weeks ago.

Doug: Yes, and it bears repeating, constantly. It's the elephant in the room that very, very few people pay any attention to, and it's going to stomp most people to death, for just that reason.

L: Okay, so give us a primer. For those who want to avoid getting crushed by the elephant, where do they begin?

Doug: To start with, it makes all the sense in the world to have a foreign bank account. Not a hidden one – I'm not advising anyone to break any laws. You report it on your annual tax filings. So, the government will know about it, but if it's a foreign bank account, they can't just step in and lock down your assets in an instant.

L: Does Canada count as a foreign country for Americans?

Doug: I'll probably get hate mail for saying so, but it's important for investors to recognize that Canada is a sort of "USA Light." When Washington says, "Jump!," Ottawa says, "How high?" Nonetheless, if only for the sake of formalities and legal pleasantries, US citizens would have some degree of insulation with a Canadian bank account. And, as a general rule, Canadian banks are more solvent than US banks, so setting up a Canadian bank account is an easy first step for many US investors.

The second thing to do would be to set up a Canadian brokerage account. Unfortunately, the SEC has made it so that no Canadian broker will open an account with an American unless they have a US subsidiary. That, in effect, makes your Canadian brokerage account like a US brokerage account. That doesn't help you much from an asset-protection point of view, but it does let you trade directly in many of the stocks we recommend in the International Speculator and the Casey Energy Report (not through a US market-maker via the pink sheets).

Third, I think that having a safe deposit box in Canada is vastly preferable to having one in the US. You probably do remember that when Roosevelt confiscated gold in 1933, he also sealed safe deposit boxes in all US banks. No American could visit a safe deposit box for some time without a government agent accompanying him. That could certainly happen again.

And all of this is true in other countries around the world.

But yes, as an easy place to start, Canada is a sort of plain-vanilla jurisdiction that's worth giving a try.

L: So, what would be the French vanilla, or even the Bailey's Irish Cream jurisdiction? Is there such a thing as a tax haven anywhere in the world anymore? Even the Swiss have caved… I just heard that they just started handing over new account info to US authorities.

Doug: Yes, apparently there were some 50,000 accounts UBS had, owned by US citizens. UBS, a multinational bank with a very substantial presence in the United States – and therefore exposure to extortion by US authorities – was going to hand them all over. The Swiss government stepped in, saying they would prosecute UBS officials if they violated Swiss law by doing that. But the Swiss worked out some sort of compromise with the US authorities, so only about 5,000 accounts are being handed over. On what basis they picked these 5,000 is uncertain.

So, the first tax-haven rule is to never go to a place that's obviously a tax haven. If I were interested in bank privacy, I'd forget about places like the Bahamas or the Caymans. It makes no sense at all today. All those little island republics are totally under the thumb of the US at this point. And they've always been infiltrated with stooges. They may have bank secrecy laws, but they don't have a tradition of privacy like Switzerland has – although that's no longer what it was.

You'll recall how the German government bribed a Liechtenstein banker to steal account names and information. The Germans then turned over relevant data to the UK, US, and other governments, who were quite happy to receive stolen goods. And there was about zero protest over the appalling theft. It's a testimony to how thoughtless and ethically complacent most people are; when a state commits a crime, they just overlook it.

L: Are you saying that all of the little havens are unreliable?

Doug: Well, I don't know of any that are reliable.

Instead, I would recommend places that are geographically distant from the US – and culturally distant as well. To me, the best places to be are in the Orient. That's partially because the Chinese and other Oriental civilizations are much less prone to roll over and do what they are told. National pride ensures that, if nothing else.

But if you go this route, with, say, an account in Hong Kong, you certainly would not want to use a bank like HSBC. It's got branches all over the world, prominently in the US – so, like UBS, they'll do what they are told.

Actually, there are still Swiss banks that will open an account for a "US person," if you can convince them to do it. But you definitely do not want a Swiss or Liechtenstein bank that has any presence in the US. The same would be true in the Orient – so forget about HSBC. You want a real Chinese bank. That way, when the US government calls, the phone will be answered in Chinese and no one will speak English with them.

The best places are the least obvious places. Malaysia is interesting. Thailand. These are completely non-tax-haven types of places – and that might make them suitable.

L: What about step two, getting a brokerage account?

Doug: Well, it's tough these days. If you want to trade in US and Canadian stocks, you pretty much have to have an American or Canadian broker. But one thing that can be done that is completely legal (and reportable) is to open up a foreign company. Then the company can open up a brokerage account. That way, you do have a level of insulation I think is very valuable, both from a practical and a legal point of view.

L: I gather you're not talking about the banana republic IBCs I see peddled on the Internet?

Doug: Right. Most of what you see on the Internet offering to open up an IBC – which is just an offshore company – are just scams, if not stings. The fees are too high. The people are usually sleazy. They often come up with all sorts of cockamamie tax-avoidance schemes. You may be encouraged to do things that are illegal. They are just disasters waiting for you to walk into. I strongly encourage people not to even consider such offerings.

If you want an offshore company for the purpose of convenience or a measure of privacy, completely reportable and within the law, the best thing to do is to go to the jurisdiction you've picked and see a lawyer who deals in that sort of business. Cut out the middleman. Ideally, the jurisdiction would be one that meets the criteria I outlined above, but is also a place you'd actually enjoy spending time in.

L: So, you hop on a plane to, say, Panama, and… how do you go about finding a reliable attorney to set up your corporation?

Doug: That's the intelligent way to do it. There's nothing illegal, nor particularly tricky about it; you just find a lawyer who specializes in it, pay the fees, and off you go.

How do you find a good lawyer? Same way you do at home; you go and start interviewing lawyers until you find one that impresses you as being sound.

Panama, by the way, is probably the best place to do this at this moment. The British Virgin Islands may be another. And, of course, if you're an Australian or a New Zealander, you should think about Vanuatu – it's only a two-hour plane ride from Sydney or Auckland.

Back in the Western Hemisphere, the only other reasonable alternative I see is Uruguay. It's always been promoted as the "Switzerland of South America" – and there's a lot of truth to that. Uruguay is a small country, about the same size and with the same size population as Switzerland, and a very big part of its national income is foreign banking. It has no tax on foreign-earned income – though, unfortunately, it recently instituted a tax on domestic-earned income. Too bad.

Another unfortunate thing about Uruguay is that when you import gold there – such as by carrying Krugerrands in your briefcase – their customs form asks you to report it. It's not against the law, but for some ridiculous reason, they want to know.

L: That's really all it takes? Find a lawyer and pay the fees?

Doug: Yes, though there can be nuances worth paying attention to. For example, there are various jurisdictions with different tax treaties that can be used to your advantage. The Dutch Antilles being a famous example, as far as dividends treatment goes. This is a specialist area that, well, you should discuss with a specialist. But you should definitely give it some thought.

Oddly enough, you can import gold into Argentina with no problems nor reporting requirements, and you can buy and sell gold in Argentina just as easily. It's much easier than in Uruguay, but I wouldn't dream of doing any significant banking in Argentina – and neither do Argentines. The government is just completely untrustworthy when it comes to things like bank accounts.

So, it's rather perverse; you can deal easily in gold in Argentina, but not bank accounts, and you can't deal in gold easily in Uruguay, but bank accounts are easy.

Frankly, the best place to look for one-stop financial services shopping is Panama. Banking is easy, and there's no gold reporting.

And yes, you can still take gold in and out of the US without reporting it. It's like stamps or rare coins. The exception would be, if you had enough of them, to remember that Double Eagles have a face value of $20, and the new Eagles have a face value of $50.

L: What about your cash, once you have your offshore bank account set up? You have to declare it if you take more than $10,000 on your person, but can you wire whatever you want?

Doug: Yes, you can send any amount of money you want, currently. It gets reported, but it's basically unregulated. And by the way, the $10,000 limit doesn't cover gold, but it does cover stock certificates and other financial instruments – but you can still send those by Federal Express.

L: I wonder how long that will last…

Doug: I'm sure they'll get 'round to closing all the loopholes. So, the time to act is now. We'll keep monitoring the situation, but when this happens, the Powers that Be won't want anyone to see it coming, so it will zing in from left field. Your only chance to protect your wealth is to start diversifying its exposure to any one particular predatory state as soon as possible.

I have to stress again the urgency of diversifying the political risk your assets are exposed to: do it now.

L: Okay, Doug – thanks!

Doug: You're welcome.

Your first step toward internationally diversifying your wealth is to tune in to a Casey Research webinar on the subject. Internationalizing Your Assets premiers at 2 p.m. Eastern Time on Tuesday, April 30. Doug Casey – Casey Research chairman and a New York Times best-selling author – highlights a blue-ribbon cast of financial experts who will reveal their favorite strategies for protecting your wealth abroad.  Get more information and register now.

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Thu, 04/11/2013 - 22:36 | 3439360 Schmuck Raker
Schmuck Raker's picture

Fortunately, I've had the foresight to not be wealthy.

Thu, 04/11/2013 - 22:50 | 3439388 UP Forester
UP Forester's picture

Me too.  Although I do have tools, skills and the foresight to stock up on them.

Thu, 04/11/2013 - 23:27 | 3439452 Harlequin001
Harlequin001's picture

I used to be wealthy, but then I discovered 'Bitcoin'...

Fri, 04/12/2013 - 00:13 | 3439579 knukles
knukles's picture

I get what he's on about.
Diversification against social political risk of confiscation, theft, access.....
But the other side of the coin just might be the risk of one's own country of residence confiscating any and all holdings abroad, global capital controls etc, that might negate any efforts.
Further, if y'all take anything of a close look at the reporting requirements for overseas accounts... onerous... and trying to escape such is not wise as in penalties, both monetary and other, trouble even opening up offshore accounts by Yanks...
Some home-based alternatives seem pretty competitive.

Plus, physical access is still the key.
Having a balance somewhere one cannot access at all is worse than an increased tax....

Sorta like the system is un-hackable drama...
http://blogs.computerworld.com/cybercrime-and-hacking/22036/hacker-uses-...

Fri, 04/12/2013 - 00:34 | 3439612 Harlequin001
Harlequin001's picture

But that's the whole point of holding assets abroad, there is no jurisdiction to confiscate them.

A domestic government can tax you on them and deduct that tax from doestic assets but that's not the same. As long as I hold gold overseas I can sell it, convert it to cash and spend that cash anywhere, even if I have to pay tax on it. They can't confiscate it if it's under someone else's jurisdiction...

Fri, 04/12/2013 - 02:10 | 3439762 lewy14
lewy14's picture

If this article had been written three years ago... wouldn't Cyprus have been on the list? Especially for Europeans?

Just sayin'.

Lake Bottom Capital Partners LLC.

Fri, 04/12/2013 - 03:07 | 3439806 Harlequin001
Harlequin001's picture

Not my list but yes it would, along with every other jurisdiction on the planet...

I use Switzerland amongst other places... and I don't use banks for anything except immediate cash transfers.

Fri, 04/12/2013 - 06:24 | 3439928 Bicycle Repairman
Bicycle Repairman's picture

Doug, I tried to "international" my assets and here's what happened.  The Swiss ratted me out.  The Italians seized my gold.  Argentina converted my $ to Argy paper.  Cyprus gave me a 100% haircut.  My stash in Japan is irradiated and they want me to come and get.  I tried to use bitcoin to transfer money and the server crashed.  While trying to physically move money from the US, the TSA extracted it from my asshole and confiscated it.

Thanks, dude.

Fri, 04/12/2013 - 06:25 | 3439931 Harlequin001
Harlequin001's picture

You're a fucking jinx...

Fri, 04/12/2013 - 07:51 | 3440030 spankfish
Fri, 04/12/2013 - 00:39 | 3439630 Dane Bramage
Dane Bramage's picture

I investigated expatriation once.  One of my criteria was: "Can I bring my evil, black rifles?"  That narrowed the list down rather abruptly (to zero).
Lesson from FDR?  Don't use safety deposit boxes.  Check. 
I'm a content barbarian.  Burying my barbarous relics in my own little plot of barbarous earth and protecting my family, self & wealth with my barbarous weapons, if need be.  Improbable it'll ever come to that but, if so, force only respects force.

Fri, 04/12/2013 - 00:44 | 3439646 Harlequin001
Harlequin001's picture

yes, until the policeman walks up the driveway and you don't shoot him...

Fri, 04/12/2013 - 00:59 | 3439653 Dane Bramage
Dane Bramage's picture

Are they going door-to-door and wayyy out here already?  I think numbers are on our side + I'm nigh invisible... seriously.  Plan for any *probable* contingencies.  & try not to get hysterical.

Fri, 04/12/2013 - 09:55 | 3440169 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

 

"Burying my barbarous relics in my own little plot" Sounds good but- If a drone equipped with Ground Penetrating Radar flies over, how deep can it "see"?

Fri, 04/12/2013 - 09:54 | 3440472 robobbob
robobbob's picture

as it stands, the barbarous relics are quite a store of value in a very minimal footprint. just don't store them too close to your lead and lead delivery investments.

but beware, there is a huge difference between a casual search and the full body cavity treatment.

Fri, 04/12/2013 - 04:29 | 3439865 Urban Redneck
Urban Redneck's picture

Holdings Abroad...

It's interesting Casey highlights that foreign gold holdings of US citizens weren't subject to Roosevelt's order...  TOO BAD CASEY IS COMPLETELY IGNORANT OF MORE RECENT HISTORY OF US TYRANNY OVER ITS SUBJECTS.

Such as Kennedy's executive order which explicitly made it crime for US citizens to own gold overseas.

If you - the US debt serf, has title to it, the IRS can come after it.  

By setting a company (those evil legal personages), that is not a US subject, you minimize the expropriation risk by the domestic tyrants of DC- if you are going go the full legally mandated disclosure route... because the full disclosure to the US Treasury is of ownership of paper shares of an overseas company, and the company itself is not subject to US imposed constraints on holding gold bullion.

As written - the article is an amateurish and provides false reassurances to readers. 

 

Fri, 04/12/2013 - 05:42 | 3439899 Harlequin001
Harlequin001's picture

'If you - the US debt serf, has title to it, the IRS can come after it.' - yes, that is correct to the extent that as a US national you have no rights whatsoever, never did, because they define the laws that say you can own 'stuff' and they can change them when it suits them.

The only 'stuff' you can ever truly own must be in another country where the authorities can tax you on it as a domestic resident but they cannot confiscate it simply because you are a US national, and if you hold it in a trust or company as you say, it's game over for confiscation, not so domestic penalties though. But that's your choice isn't it...

The only thing left to say is that the terms under which you own it define it's taxability at home. Give some thought to that and you can achieve your goal even if it is legitimate avoidance of tax in the US, or anywhere else for that matter...

Fri, 04/12/2013 - 05:59 | 3439911 HardAssets
HardAssets's picture

The criminals write the 'laws' and can make them anything they want.

In a 'national emergency' the crooks could enact high taxation of overseas assets, with the co-operation of foreign governments. As pointed out, look how Switzerland caved in to pressure.  They could revoke the passports of anyone having gold held overseas. Its great to have that gold account in Singapore, but what if you can't fly out of the country to get it ?

Now if youve got Real Money and Political Pull, none of this matters. If youre a Corzine you can do anything you please. The little guy who retired with a mil or two after selling a small business he built for his whole life, ain't in that category. Nor are the vast majority of people far below his situation.

The only real solution is to wake others up and to turn this damned nation around from the fascist controlled police state that its become.

Fri, 04/12/2013 - 06:24 | 3439929 Harlequin001
Harlequin001's picture

In a 'national emergency' the crooks could enact high taxation of overseas assets, with the co-operation of foreign governments.

I wouldn't be in the slightest bit surprised if they did.

If you want to avoid high taxation then you need to look at the structure of your contracts, and get away from this idea that if you don't physically possess it you don't own it.

There is far more stuff owned under foreign laws than US law I can assure you...

Fri, 04/12/2013 - 07:47 | 3440018 democratickindeling
democratickindeling's picture

So that is how they get planes to fly into buildings! You don't even need to train some arabs to fly planes...you just need Mustafa to buy a ticket and board!

Fri, 04/12/2013 - 10:38 | 3440714 Seer
Seer's picture

Whoa!  That link!  That explains how THEY* did it on 9/11!

* Either the "insiders," or the actual "terrorists."  If the later then that would be a good reason why the "insiders" wouldn't want the information disclosed lest it spook everyone from getting on an airplane.  Still the issue of the free-falling collapses...

Fri, 04/12/2013 - 06:20 | 3439925 savagegoose
savagegoose's picture

i was poor , then i discovered bitcoin! then i was a millionaire, then not, then a millionaire, then not then....  the story continues.

 

Thu, 04/11/2013 - 23:23 | 3439448 zen0
zen0's picture

Well played. If only the poor knew how well off they were! Maybe there would be less whining.

Thu, 04/11/2013 - 23:47 | 3439511 XitSam
XitSam's picture

Why do you think Obama is trying so hard to get everyone on government assistance? "Don't like what you're getting? I'll just turn this knob here and you'll get nothing! Still want to complain?"

Thu, 04/11/2013 - 23:42 | 3439498 Banksters
Banksters's picture

I'm buying parking lots in North Korea.  I hear a new mall is opening up soon.

Fri, 04/12/2013 - 00:34 | 3439580 knukles
knukles's picture

A single glassine parking lot from horizon to horizon

Hi, can I park your ash for you?

Fri, 04/12/2013 - 10:39 | 3440726 Seer
Seer's picture

I was trying to impress my then girlfriend, now wife, to marry me.  I told her that I was "independently poor."  Ha ha!  She fell for it- she's now Mrs. Seer :-)

Thu, 04/11/2013 - 23:28 | 3439391 DoChenRollingBearing
DoChenRollingBearing's picture

There may not be a lot of time left to quietly build up some assets overseas.  A few items for reader consideration:

1) You do not have to have a bank account overseas if you have someone reliable who owes you the money...

2) I too would be extra-careful about the "tax havens"

3) Ideally, you should have assets in a place where you would consider living

4) The sooner the better

5) Declare any liquid assets upon leaving (cash, gold, negotiable instruments, etc.) if they total over $10,000, you do not want to go to jail for being stupid...

Thu, 04/11/2013 - 23:31 | 3439459 Harlequin001
Harlequin001's picture

Set up a trust offshore and let the trustees do it.

They can open bank accounts and buy gold etc and FATCA only applies to trustees that carry on a business in the US.

Everyone else can quite legally give Uncle Sam a well deserved middle finger...

Fri, 04/12/2013 - 00:06 | 3439567 Kirk2NCC1701
Kirk2NCC1701's picture

In spite of a lot of crap you've said in the past, I find myself giving you a +1 for this post, cause merit is merit.

Fri, 04/12/2013 - 00:16 | 3439587 otto skorzeny
otto skorzeny's picture

"trustee"-LOL- as Agent Mulder used to say on The X-Files - "Trust no one".

Fri, 04/12/2013 - 04:35 | 3439870 Urban Redneck
Urban Redneck's picture

FATCA also applies to US citizens who are the grantor, trustee, or beneficiary of an overseas trust that owns a "Financial Account"

 

Fri, 04/12/2013 - 05:33 | 3439897 Harlequin001
Harlequin001's picture

Yes they are aren't they. But trustees that are not US nationals and do not carry on a business in the US need not worry about it.

Fri, 04/12/2013 - 06:06 | 3439914 Urban Redneck
Urban Redneck's picture

The thing that scares me about trusts is that even the basic recognition of the legal status of a trust varies from jurisdiction to jurisdiction, and if history is any guide-- the IRS will whip out the same disallowance card they have used regularly on tax shelters- when shaking down the local tax tree stops yielding enough fruit to feed the beast.  Then the local (foreign) trust law and the willingness of the jurisdiction where the trust is domiciled to play nice with the US Treasury becomes a big issue.

Fri, 04/12/2013 - 06:40 | 3439939 Harlequin001
Harlequin001's picture

Yes it does but the recognition of trust law as I understand it generally refers to the legal recognition of the division and separation of various trust assets on the balance sheet of the trustee. And yes you do need to look at that.

The problem with these tax shelters seems to centre around peoples intent to call a duck by another name to avoid tax. If it waddles like a duck and it quacks like a duck then the IRS will treat it like a duck and tax you accordingly regardless where the asset is sited. Money offshore doesn't have to be a tax evasion issue though for most offshore account holders it clearly is.  If you want to avoid tax then you need to look at your contracts and accept that if the law says that as a US national you pay tax, then as a US national you cannot hold assets offshore and not pay US tax. You have to do things differently because the US govt says that you must... If you aren't prepared to consider that then you pay US tax, period.

There are however ways to hold assets offshore not as a US national and that is as far as I go. I'm not aware that too many English or Frenchmen are currently crapping themselves because their assets aren't held under US law...

Fri, 04/12/2013 - 10:42 | 3440739 Seer
Seer's picture

Excellent amendments!

"Ideally, you should have assets in a place where you would consider living"

And people should consider how they would be viewed in case of world-wide economic collapse, when the US is no longer "feared" and open season on Merikans might start up...

Thu, 04/11/2013 - 22:56 | 3439399 Possible Impact
Possible Impact's picture

Bitcoin - because there is safety in numbers...

Thu, 04/11/2013 - 23:03 | 3439416 NoDebt
NoDebt's picture

Can we perhaps start thinking more along the lines of making sure our own contry is not turned into a predatory state?  Do what you think you must, but if the US becomes predatory I'm not sure where else won't be.  Perhaps you guess right in your countries of choice, but most places will follow suit and you will still be hosed (and even less in control of things half way across the globe).

Diversification is less about the number of places you put your money than it is about the different KINDS of places you put your money.  Near as I can tell, most of the "developed world" is basically just slight variations on the same debt-fueled shit storm.  They're all going to move with a correlation approaching +1.00 (as one goes, so will they all).  There are few places left to "run to" unless you want to try your luck in some really out-of-the-way locales.

Something about gold buried under the basement floor keeps coming to mind as a more relistic alternative for the "average guy".

 

 

Fri, 04/12/2013 - 00:47 | 3439650 Dane Bramage
Dane Bramage's picture

+1  I've diversified into: fuel, food, precious metals, ammo, etc. ,etc.,... none of which will ever be "declared" nor even known by any "official". 

Fri, 04/12/2013 - 08:33 | 3440104 petolo
petolo's picture

Don't forget honing up the little grey cells and reading Zero Hedge every day. Knowledge and cunning are still the best ammunition and can out-draw any gubberment half-wit..

Fri, 04/12/2013 - 10:48 | 3440768 Seer
Seer's picture

"Knowledge and cunning are still the best ammunition and can out-draw any gubberment half-wit.."

I recall hearing this kind of statement before... oh, yeah, "we can out-run that cop car!"  sure enough, but... oops, there's that OTHER cop car up ahead!  Moral of story: you cannot outrun radios.  There are the cogs and then there's the system...

Your point, however, is still valid in that one must be mentally sharp.

P.S. The "story" above was made up.  I, fortunately, have never been caught outrunning cop cars (yeah, I was pretty good- I don't do it anymore).

Thu, 04/11/2013 - 23:22 | 3439423 erg
erg's picture

Relax people.

I'm from the government and I'm here to help.

Fri, 04/12/2013 - 10:50 | 3440778 Seer
Seer's picture

OK, then here's where you can start:

1) Get off my back;

2) Pick up a shovel.

There's work to be done...

Thu, 04/11/2013 - 23:17 | 3439424 otto skorzeny
otto skorzeny's picture

I don't get this stashing shit overseas idea-I can barely trust the fucking bank in my community-how do I trust some little shithead English banker in Hong Kong half a world away. Panama sounds great-oh yeah- the CIA and Pappy Bush cleaned those accounts out back when they kicked Noriega's ass out-I'm sure they would never do that again. You see -right now Uncle Sam calls the shots and when he snaps his fingers all of these countries that are named above will ask " how high" he wants them to jump.

Thu, 04/11/2013 - 23:32 | 3439467 Pure Evil
Pure Evil's picture

You can't trust anything. Sure you can open an account overseas and report it to the government. All that means is they know exactly where your shit is located and how much. If they decide to confiscate wealth in the US and you fail to be out of the country when the SHTF they can put you on a no fly list, send your name and address to the DHS shock troops and disappear you.

If you're gonna move your wealth out of the US, then you better be prepared to move out as soon as possible. As Ron Paul said, you can build a fence to keep the Mexicans out, but that fence can also be used to lock you in.

Thu, 04/11/2013 - 23:36 | 3439480 Harlequin001
Harlequin001's picture

They can cancel your pasport at any time in which case no country will give you an entry visa and you are forced to return home.

You've been on a bungee for a long time but that doesn't mean you can't or shouldn't look at your options offshore does it? What you do doesn't have to be illegal.

Thu, 04/11/2013 - 23:53 | 3439529 Pure Evil
Pure Evil's picture

Don't disagree, but do you think a fascist government run by criminal psychopaths is going to look benevolently at someone that intentionally hid his wealth overseas to avoid not only taxes but wealth confiscation?

The rules are constantly changing to suit the prison guards. Today its ok, tomorrow you're an enemy of the state.

Anyway, this is mostly an intellectual exercise for most people reading this post on ZH.

Fri, 04/12/2013 - 00:46 | 3439632 Harlequin001
Harlequin001's picture

I didn't say anything about hiding it. It isn't illegal to hold assets overseas, it only becomes illegal when you fail to disclose it or evade taxes due on it.

Your problem is that they can take taxes on offshore assets from your domestic assets, which is why you have to comply with domestic law when you set up an offshore trust.

The simple benefit is that even if you don't, and you get hammered by the tax man he will still have great difficulty acquiring any assets not under his jurisdiction, though you might end up in a domestic jail whilst he tries it...

Don't break the law, if you look around you don't need to...

Fri, 04/12/2013 - 11:08 | 3440932 Seer
Seer's picture

"I didn't say anything about hiding it"

It's getting into semantics here...

The entire point of the exercise IS to keep some entity from getting it.  "Hiding" is, I'd have to say, an applicable word/term.

Folks like Casy cannot come out and suggest that people undertake illegal activities.  But. clearly, if you do the "legal" stuff, as most here are noting, it really doesn't get you anything (other than physically separated from your "wealth").

Diversification has ALWAYS been the wise thing to do.  I don't think that it takes a rocket scientist to figure out how to diversify things, not if you really pay attention to the true fundamentals.

The same reasons Casey gives for internal threats should also apply to external entities (other countries).  AND, one should keep in mind that things WILL change.  One's sphere of influence/control is far smaller than most think- act accordingly.

Fri, 04/12/2013 - 00:15 | 3439581 Kirk2NCC1701
Kirk2NCC1701's picture

Agreed. But you can get Foreign Residency, and that is easier and cheaper than most ppl think. But you gotta DYOH, or join the readership of Doug Casey or Simon Black, to leverage their know how.

Having said that, leaving the US is not for everyone. In which case, BTFD, stack and self-store in your place(s) of choice.

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