Louis: Yesterday you said to “forget about places like the Bahamas or the Caymans,” as they all appear to be under the thumb of U.S. influence. 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 U.S. — 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 U.S. — so like UBS, they’ll do what they are told.
Actually, there are still Swiss banks that will open an account for a “U.S. 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 U.S. The same would be true in the Orient — so forget about HSBC. You want a real Chinese bank. That way, when the U.S. 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 nontax-haven types of places — and that might make them suitable.
Louis: What about step two, getting a brokerage account?
Doug: Well, it’s tough these days. If you want to trade in U.S. 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 practical and legal points of view…
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.
Louis: 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.
Louis: 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 or 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 U.S. 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.
Louis: 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.
Louis: 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.
Louis: OK, Doug — thanks!
Doug: You’re welcome.
Doug Casey and Louis Jamesfor The Daily Reckoning
It's a tough time for the average investor. Many sectors look too expensive to dump serious cash into them, and many individual stocks are sporting huge multiples. But there's still one place you can find a bargain. Today, Greg Guenthner details one of the most unloved sectors in the market... and why it could be your best bet right now. Read on...
Doug Casey of Casey Research is the author of the best sellers Strategic Investing, Crisis Investing, Crisis Investing for the Rest of the 90's, and most recently, Totally Incorrect. He has lived in seven countries and visited over 100 more. He has appeared on scores of major radio and TV shows and remains an active speculator in the stock, bond, commodity, and real estate markets around the world. In his spare time, Doug engages in competitive shooting and plays polo.
Pingback: carmen electrica
Pingback: web directories list
Pingback: cheap web page hosting
Pingback: online music marketing
Pingback: website counter
Pingback: check your pagerank
Pingback: 17 inch laptop
Pingback: online affiliate programs
Pingback: buy garcinia cambogia
Pingback: karen millen karen millen outlet
Pingback: cheap seo services uk
Pingback: gï¿½ ned i vekt
Pingback: marketing halifax
Pingback: home inspectors denver
Pingback: buy inversion table
Pingback: Escorts in London
Pingback: wood burning stoves
Pingback: Deutscher Anleger Club
Pingback: Website Developer
Pingback: Unlock iPhone Chile
Pingback: all natural shortbread cookies
Pingback: small business opportunities magazine review
Pingback: Canberra landscapers
Pingback: sell my car
Pingback: dog waste bags bulk
Pingback: Go Watch This Informative Real Estate Video
Pingback: Spielregeln Doppelkopf
Pingback: deer antler velvet bodybuilding
Pingback: Cheap Holiday
Pingback: harper99 caro
Pingback: pokerist chips for sale
Pingback: las vegas casinos
Pingback: hair extensions
Pingback: fibre optics
Pingback: Stainless Steel Ice Bucket
Pingback: mobil casino
Pingback: (213) 454-0779
Pingback: temperature data loggers
Pingback: more information there
Pingback: Dating Tester
Pingback: Unlock iPhone Switzerland
Pingback: Manchester Plumbers
Pingback: cash for cars west palm beach
Pingback: car crashes
Pingback: read here
Pingback: partner with anthony
Pingback: build your own shed
Pingback: how to get your ex girlfriend back
Pingback: urlman cow
Pingback: the venus factor review
Pingback: Criminal Lawyer Houston
Pingback: id badge
Pingback: iPhone IMEI Unlock
Pingback: loans with no credit checks
Pingback: hop hoang
Pingback: Unlock iPhone USA
Pingback: Unlock iPhone World Wide
Pingback: check my blog
Pingback: behr concrete stain
Pingback: Look At These Guys
Pingback: Try This Out
Pingback: Click For More
Pingback: antivirus gratuit
Pingback: Wool Robe
Pingback: iherb coupon
Pingback: suplemento de creatina
Pingback: targeted advertising
Pingback: auto insurance
Pingback: Cheap auto insurance online
Pingback: auto insurance online quotes
Our friend Jim Rickards and founder Addison Wiggin believe the dollar will soon meet its demise. Chris Mayer, on the other hand, thinks the dollar will only get stronger this year and next. We'll let you decide for yourself. In this featured essay Chris lays out his train of thought and a guide for investing in a strong dollar world. Read on...
The first thing you might notice about the life of Felix Dennis is that he devoured crack cocaine during massive orgies with hookers at his mansion. Yet despite his penchant for sex and blow, he admitted, "making money is the one addiction I cannot shake." And thankfully, he wrote a book about it. Chris Mayer explains...
Bitcoin has been pretty quiet lately. But that doesn’t mean big things aren’t taking place behind-the-scenes for the digital currency. In today’s Laissez Faire Today, Chris Campbell pulls back the curtain and shows you how bitcoin is quietly slipping into the mainstream. He also shows you why now could be the time to buy now, or forever hold your peace. Read on…
According to my friend and fellow technician Ryan Detrick, The Russell’s quarterly win streak of 8 is the index’s best performance of all time—even topping two monster runs in the 90s. So if small-caps are slipping, where can you find the next hot sector? The answer might surprise you…
The Swiss gold referendum in November is far more important that many people realize. The outcome could quell or confirm doubts about the amount of physical gold available at the New York Fed. And that could send the price of gold higher by multiples. Dr. Ron Paul brings you up to speed on what's happening in Switzerland...