From the Publisher's Desk
"There's no art which government sooner learns than that of draining
money from the pockets of the people."
- Adam Smith
The Decline of Amerika! - Part II
If you're in America, a homeowner or investor and your portfolio is too
heavily weighted to U.S. stocks, bonds and US real estate, you've
already lost 49% of your capital in the last few years thanks to the
Unless you diversify your investments to overseas markets, implement a
few simple, legal and easy to accomplish privacy techniques
immediately, don't cry if the dollar continues to depreciate and your
assets decline another 25% to 50% over the next few years.
If you live in Amerika, here's what you might consider:
Diversifying your assets abroad (outside Amerika,) can enable you to:
- Benefit from rising foreign currencies
- Benefit from rising foreign stock markets, and
- Protect their portfolios from the falling dollar.
- Buy gold in private, not subject to confiscation
- Place gold, insurance, sensitive papers, etc. in an offshore
safety deposit box out of reach from ex-spouses, lawyers and the
You get ...
- Lower risk - Adding an allocation of foreign securities to your
portfolio provides the potential to offset some of the volatility of
your U.S. holdings.
- Greater diversity - U.S. equities used to account for a majority
of the world's capitalization. Not anymore. In 1983, the U.S.
represented approximately 57% of the world's investments.
By 2006, the number had dropped to 45%. Given the rapid
acceleration of markets in countries in Eastern and Western Europe
as well as Latin America and Asia, it's likely that the U.S. share will
continue to diminish.
* Diversifying in foreign markets offers you a larger playing field.
- Higher dividends - Foreign companies often offer higher dividend
yields than those of American companies that use their cash for
growth, acquisition and excessive compensation instead of returning
the money to shareholders in the form of dividends.
- Bigger profits - While the U.S. economy is under severe pressure from
the declining dollar, the mortgage and housing crisis, and rising
consumer prices, emerging areas of the world such as China, India, the
Asia-Pacific region and South America are experiencing phenomenal
growth. In fact, the Chinese economy is already close to surpassing
Germany as the world's third-largest economy. That's why U.S.
investors are flocking to foreign investment - in an effort to score
gains that might not be available through U.S. equities.
- Optimal investment opportunities - The annualized average returns
of most of the world's developed financial markets are currently significantly outpacing those of U.S. equity markets.
- The safety of being offshore!
All things considered, there's no reason to sit on your duff and
patiently wait (wish?) for conditions to get better whilst your life
savings and future retirement income are at stake - when you could be
participating in the burgeoning global economy and at the very
least, be protecting your hard earned assets.
You should remember, however, that there are times when you may
want to tread lightly or even back off. But overall, I believe the global
expansion unfolding today is revolutionary and there is opportunity
abound for everyone, even Americans.
Striking While the Going is Good. There are numerous ways to diversify
your financial portfolio globally, including:
- Exchange Traded Funds (ETFs) that represent foreign stock indexes:
China, India, Brazil, Singapore, South Korea, etc.
- Exchange Traded Funds that put your money in foreign currency deposits:
In the euro, Japanese yen, Australian dollar, Canadian dollar, the Mexican
peso and more.
- Mutual funds that are in the business of carefully selecting the best-performing
global stocks and sectors.
- Options on Exchange Traded Funds for much greater leverage, and
- World Currency Options offered by the Philadelphia Stock Exchange,
traded just like stock options, and offered on all major world currencies.
Each of these alternatives has advantages and varying degrees of risk,
with options having the most risk, depending on your individual
investment objectives, and all require thoughtful consideration.
But whatever you do, don't simply keep your fingers crossed and hope
that things will eventually get better. At a time when the U.S.
dollar is faltering badly, your financial security may depend on
asset/portfolio diversification - and the sooner, the better.
The following AP Article says it all.
Witness tells how US taxes evaded abroad
A man wanted by Liechtenstein for leaking secret banking information
that identified millionaire tax cheats across Europe and the United
States has described to congressional investigators how money was
Lawmakers played a videotape of the testimony by Heinrich Kieber at a
congressional hearing Thursday that revealed rare details of offshore
practices at two European banks. At the hearing, Swiss banking giant,
UBS AG, announced that because of recent revelations, it will stop
offering U.S. clients offshore services through branches based
Kieber appeared only as a silhouette against a white screen with
eyeglasses and a balding head apparent. Kieber is living under a new
name in an undisclosed witness protection program, according to
lawmakers. He has never spoken publicly about his role in exposing
tax shelters he says were used by Liechtenstein's LGT group.
In the videotaped interview with the congressional investigators, he
described ruses that he saw while working at the bank, which he said
were used to cover the tracks of money moved into accounts.
The hearing by the Senate Homeland Security and Governmental Affairs
investigations subcommittee highlighted offshore tax abuses that they
believe cost the U.S. government about $100 billion a year.
The hearing came a day after the panel released a 109-page report that
took aim at LGT, owned by Liechtenstein's royal family, and UBS, one
the world's largest wealth managers.
Mark Branson, chief financial officer of UBS' global wealth
management, said at the hearing that the bank regrets "any compliance
failures that may have occurred" and will now provide banking or
security services to U.S. citizens only through companies licensed in
the United States. He said the bank also is working with U.S.
authorities to identify clients involved in U.S. tax fraud.
LGT refused to send a representative but said in a statement that it
had cooperated by sending a senior official for a lengthy interview
and providing all the documents requested by the panel.
Both LGT and UBS came under withering criticism from the lawmakers.
"Tax havens are engaged in economic warfare against the United States
and honest, hardworking American taxpayers," said Democratic Sen.
Carl Levin, chairman of the subcommittee. "Today we will look at two
banks that relied on secrecy and deception to hide, not just the tax
avoidance schemes of their clients but the actions they themselves
took to facilitate U.S. tax evasion."
UBS has said it is cooperating with a Swiss investigation as well as
an expanding U.S. probe of taxpayers who may have used overseas
accounts to hide assets and avoid taxes. UBS has promised to disclose
records involving U.S. clients who might have broken tax laws. It
also has banned its Swiss bankers from traveling to the United States.
U.S. authorities also have asked the Swiss government to help in the
Swiss Finance Ministry spokesman Jean-Michel Treyvaud said that Swiss
tax authorities received a U.S. request for "administrative
assistance" on Thursday.
He said the request would now be analyzed, but he said nothing
The subcommittee report said that UBS bankers searched out wealthy
U.S. clients and aggressively marketed services to taxpayers who
otherwise would not have opened Swiss accounts. It said the bank's
practices resulted in billions of dollars of U.S. taxpayer money in
accounts that were not disclosed to tax authorities.
The report said UBS has estimated that it has 1,000 declared accounts
in Switzerland for U.S. clients against 19,000 undeclared, with a
combined value of $17.9 billion.
Investigations linked to LGT have been launched in a number of
countries since German authorities obtained in February the CD-ROM of
some 1,400 alleged tax cheats with accounts at the bank that
Liechtenstein says Kieber leaked. Germany has since passed the file
to other countries, including the United States.
In his videotaped testimony, Kieber described shell companies used as "high grade camouflage." Money was often transferred through
bank-controlled legal entities registered in numerous countries with
lax regulations, including Panama, the British Virgin Islands and
Nigeria, he said.
Additional concealment was provided by fake transactions designed to
make it look like clients had withdrawn cash from a bank, when in
reality they were credited into a LGT account.
"The only purpose of all of this is to make it extremely complicated
for law enforcement agencies to follow the trail, as each step serves
as a filter to hide the track of the client's money," he said.
He said that clients were advised how to avoid scrutiny, including not
telling anyone including lawyers and family members about hidden
money. Clients were also encouraged to use pay phones to contact bank
representatives on cell phones from Switzerland and Austria and to use
code words in communications.
LGT questions Kieber's objectivity and accuses him of stealing the
information, according to Michael Robinson, a spokesman for the bank.
It says that much of the information that Kieber has provided involves
records going back to the 1970s and 1980s.
"LGT's practices were consistent with accepted industry standards of
the time and do not reflect the way in which LGT conducts business
today," he said. ***end article***
With Swiss banking all but closed to Americans and many others, the
hand writing is clearly on the wall. The authorities want your money to
stay inside their country.Why? In order to continue to tax and
depreciate your money, amongst other things, as well as for other
nefarious use, all at your personal and financial expense.
Tax Haven Bank Secrecy Tricks used by Swiss Bankers UBS for 20,000
- Code Names for Clients
Pay Phones, not Business Phones
Foreign Area Codes
Transfer Companies to Cover Tracks
Foreign Shell Companies
Fake Charitable Trusts
Straw Man Settlors
Anonymous Wire Transfers
Disguised Business Trips
Foreign Credit Cards
- Source: The U.S. Senate Permanent Subcommittee on Investigations,
As the above clearly reveals, the US authorities are closing the doors
for offshore opportunity so you need to jump onboard before its too
late! Don't belive me? Then read on!
Case History Not so Great Britain imposed exchange controls not so
many years ago, i.e. during my life time. The United Kingdom imposed
exchange controls on 4 September 1939. Only in 1979 did the new
Conservative government abolish UK exchange controls.
The United Kingdom abandoned the gold standard on 21 September 1931.
The currencies of British colonies were almost all linked to the pound
sterling through currency boards; being on a sterling-exchange
standard rather than a gold-exchange standard, they followed the pound
sterling off gold. Over the next few years, some former British
colonies (Australia, New Zealand, South Africa) and other countries
that had important trade links with the United Kingdom switched from
gold to the pound sterling as their official or actual anchor. The
result was termed the sterling area. The United Kingdom imposed
exchange controls on 4 September 1939, the day after entering the
Second World War. Most countries that were not current or former
British colonies soon left the sterling area.
Among the remaining
countries, both current- and capital-account transactions were free of
restrictions within the sterling area, but were restricted in dealings
with outside countries. After the Second World War, the United
Kingdom returned to the gold standard under the Bretton Woods system.
It removed exchange controls on 15 August 1947, but reimposed them on
20 August 1947 after suffering a large loss of foreign reserves.
Sterling had a dual exchange rate from 1961 until the United Kingdom
abolished exchange controls. The sterling area remained in existence
because sterling was not fully convertible. It began to crumble after
the United Kingdom again abandoned the gold standard on 23 June 1972.
By January 1973 the sterling area had shrunk to the British Isles and
a few small British colonies; even Hong Kong had abandoned sterling as
its anchor currency. The United Kingdom abolished exchange controls
on 24 October 1979, ending the sterling area.
- Source: http://users.erols.com/kurrency/ki.htm
In March 1976 the value of the British pound began to slide. The
slide turned into a rout and triggered an economic and political
trauma. By September confidence in the pound had collapsed. In April
1975 the Wall Street Journal had run the headline 'Goodbye, Great
Britain, ' advising investors to get out of sterling. Now the British
Labour government under its new Prime Minister James Callaghan was
forced to seek help from the International Monetary Fund, a familiar
option for Third World countries but highly unusual for a developed
western economy. This expert new study uncovers the roots of the most
searing economic crisis of postwar Britain. The weakness and
instability of the British economy in the mid-1970s, the consequence
in part of the 1973 rise in oil prices, raised international alarm.
The US government in particular feared economic crisis would drive
Britain into a left-wing siege economy, endangering NATO and the EEC.
Anticipating the danger, the US Treasury set out to force Britain to
make major domestic policy changes. The sterling crisis provided the
opportunity. The IMF provided the weapon. Arriving in London in
November 1976, the IMF mission announced that the price for the loan
included deep cuts in public expenditure. The consequent political
crisis was fought out in private and in public, amongst members of the
British Cabinet, the Labour Party, the Treasury and the Bank of
England. It involved the US President, Treasury and State Department,
the Federal Reserve, the German Chancellor and the Bundesbank. Burk
and Cairncross uncover the efforts of the Labour government to escape
IMF conditions. They also examine the political agenda, the loss of
economic control, the rise of monetarist ideas and the change in the
climate of opinion. Juxtaposing gripping arrative with expert
analysis, the book provides surprising answers to critical questions
and reveals how the breakdown of the postwar consensus on
macro-economic management paved the way for the triumph of
Sounds familiar? It should because this is (nearly) what the US
economy and dollar are going through today, isn't it?
What affect on the public? In the event of a continued US dollar and
economic/housing meltdown, the government could take all kinds of
draconian measures to save you from yourself.
- For example;
- Placing wage and price controls placed into law
- Implementing exchange controls that might outlaw citizens from
having assets OUTSIDE your country
- Demanding that all citizens and residents repatriate their financial
assets back to Amerika (or your country) under dire penalty!
- Forbidding you from owning gold
- Limiting you from traveling abroad. This could be accomplished by
simply by passing a law limiting the amount of funds one could "take
out of the country." [Note: The UK did this very successfully in the
mid 1960's. So don't think the US, the UK or you're country wouldn't
do this if push came to shove!]
- Plus throw in everything else you can dream of that the Terrocrats
would cook up in order to save their ass and steal your assets to keep
their shill game going.
Don't think any of the above could happen? Think again because it has
happened previously in the US and elsewhere and there is certainly a
real possibility of any one or all of the above and more happening
Reporting requirements are dangerous to your health! With the type of
reporting available worldwide nowadays, it is most likely that your
offshore assets are already known to, or will be made known to the US
authorities in a short period of time, assuming you haven't already
'voluntarily' reported them. The article above "Witness tells how US
taxes evaded abroad" and "Tax Haven Bank Secrecy Tricks used by Swiss
Bankers UBS for 20,000 American Clients" clearly proves the point.
Not so long ago our British friends had severe exchange controls
placed on them in order to "keep them in the UK." I know because I
personally experienced this stupidity from the government's nonsense.
Whilst traveling to France on summer holiday, we were only allowed 50
quid (fifty pounds) to take out of the country and there weren't any
credit cards back in those days. Our French hosts felt so bad for us,
they refused to accept any money from us. I've never forgotten that
kindest and am always ready to reciprocate with French friends and
Try traveling abroad with just $1,000 today for ALL your expenses,
including charges on your credit card. You certainly wouldn't get
very far would you? This would be, could be an extremely efficient
way for your government to "keep you in Amerika, the UK or elsewhere,"
Since GB did exactly that, why not in America? The US trade deficit
is at all time highs, the wars in Iraq and Afghanistan show no end in
sight, and the financing of these wars far exceeds those of financing
all previous American wars, with the sole exception of the Second
World War (in today's depreciated dollars.)
Wage & Price Controls President Nixon announced on Aug. 15, 1971, "I am today ordering a freeze on all prices and wages throughout the
United States for a period of 90 days." He threatened that the
controls "will be backed by government sanctions, if necessary."
Most of Nixon's wage and price controls didn't last just 90 days, but
until 1974. The price controls on petroleum lasted until President
Reagan ended them in 1981. Ending the gold standard in 1971 also
meant the country was off the gold standard for the first time since
the American Civil War, and although the gold standard was restored
after that war, America has not gone back on the gold standard since
Gold hit an all-time high of $850 in January 1980, when investors
bought heavily in the face of high inflation linked to strong oil
prices, Soviet intervention in Afghanistan and the impact of the
Iranian revolution. After adjusting for inflation, that level gold
was equal to $2,079 at 2006 prices.
What today's gold cost? You can see we have a way to go before gold
truly exceeds it January 1980 level of value. Buying gold might be a
good idea, even at what appears to be today's high cost, in order to
retain your wealth and capital.
- Source: Shamrock's Missive, January 2008
Here's what we predicted in our January 2008 Missive, i.e. just a
little more than six months ago:
- $100 per barrel of oil - Today it's hovering near US$150 and don't
be surprised if oil reaches US$200 per barrel in the not too distant
- Zimbabwean dollar to decline further. [Editors note: In our January
2008 missive it was 30,655 Zimbabwe Dollar to one USD!
Today as I write these words it is 1 US Dollar (USD) = 26,998,616,030
Zimbabwe Dollar (ZWD). That's right 26 BILLION plus zim dollars for
one US dollar. The largest Zim currency note in January 2008 was a
half billion Zim$ note. Take a look at http://www.ptshamrock.com/images/other/5Billion%20note.jpg That 5
billion zim dollar note isn't enough to buy a coke at McDonalds...
even if they had any there to sell, which they don't! In fact
inflation is so bad and things are so bad in Zimbabwe, prices are
rising at a 9,000,000% hyperinflation rate and a single egg costs 50
billion Zimbabwe dollars. In fact Zimbabwe will introduce a
$100-billion bank note by the time you read this article as the nation
continues to struggle with the world's highest inflation rate.
Source: http://www.voanews.com/english/2008-07-20-voa3.cfm Under Robert Mugabe's watchful eye, the Zimbabwe inflation rate has
reached a milestone: a 9,000,000% hyperinflation rate since 1980.
Back then, the U.S. dollar and the Zimbabwe buck were nearly equal in
value. Today, your average $200,000 home in the U.S. would cost over
950 trillion Zimbabwe dollars. In other words, the mighty 5 billion
Zimbabwe bills are worth around US 0.185 [eighteen and one half US
cents!] For a true horror story read
- US dollar to decline further. [Editors note: 1 USD = 0.68 EUR on
12/31/2007, i.e. the time of publishing our January 2008 missive. As
I write this missive, i.e. late July 2008, it is 1 Euro = US Dollars
1.59 USD as of 7/19/2008 or 1 US Dollar = 0.63121 Euro as of
7/19/2008. That's a whopping 9.3% depreciation of the USD in a little
more than six months during 2008!
- The U.S. government will make threats to offshore governments/banks
to enforce US policies. [Editors note: See the article on Swiss banking above.]
- US mortgage meltdown. No need to talk about that debacle. Fannie Mae
and Freddie Mac are soon to be bailed out at US taxpayers' expense.
- Gold will continue to rise.
Now we're certainly not clairvoyant nor claim any such nonsense.
However seeing the very clear signs of pending financial and privacy
related disaster is or should be, as clear to you and I as seeing the
fork in the road ahead. The question is; which fork do you take?
You are being tracked! The US authorities are already tracking
EVERYONE, US and non US citizens' alike, traveling inside, into and
out of the USA today. American's and others, are even being tracked
outside the USA whilst traveling and they probably don't even realize
it. The databases for accomplishing such monstrous intrusions are
According to reliable sources, the US federal government alone has
more than 138,500 plus such databases and they are currently growing
exponentially at a rate of around 1-3% per quarter. That's an awesome
number of databases with hundreds of trillions of terabytes of
information on your every move. This information stored on you by the
- Your financial, physical and other movements including but not
limited to which books you read,
- How you pay for one product, service or another,
- Your preference of travel
- Whether you have a meat or a veggie meal on flights and
- Your aisle or window seat assignment preference;
- Where you travel to
- How long you stay there
- Which hotel/s you stay, etc. and so forth!
And these figures don't include local or state agencies data
bases either. Further, least our Yankee friends forget, your new
US passports do have a tracking chip inside that records all your
details into those databases upon your return. Ditto for mobile
phones, automobiles and the list goes on and on ad infinitum.
International travelers entering the United States face potential
inspection and seizure of their laptops and other electronic devices,
and copying of the electronic files they contain as part of the
country's border security. Upheld in April by the U.S. Court of
Appeals for the Federal Circuit federal appeals court decision, such
activity by border patrol agents has drawn criticism - especially as
the U.S. Department of Homeland Security has not complied with
requests to provide information - and was the subject of a U.S.
Senate hearing last month.
That's a very sobering thought if you're to think about it.
There are more than 900,000 Americans on the Home Land Security (HLS) "Watch List"
- Source: American Civil Liberties Union,
The cause and effect of such nonsense is that people have their basic
right of freedom of movement and privacy impeded.
Starting this past May 2008, all US citizens are required to have an internal passport, i.e. a HLS approved driver's license.
Though the US is not alone in requiring an internal passport, most
striking was the former Soviet Union, former Communist Germany, North
- Source: http://en.wikipedia.org/wiki/Internal_passport
The trend towards internal passports and national ID cards is indeed
increasing and regrettably, we don't see an end in sight!
What To Do? This article "The Decline of Amerika" should cause
considerable consternation to Americans and anyone anywhere in the
world who cares about their personal and financial liberties being
stolen. [Editors note: For a good read on the subject, check out: "The Thief of Privacy - a FREE PDF download Report!" at
Our advice if you wish to remain in Amerika, are an American or
legally reside in the US is simple: obey all laws; comply with all US
filing requirements, pay all the taxes they say you owe; don't lie or
commit perjury whilst signing documents, don't break any laws and
especially don't try to be funny and play games with the authorities!
The authorities aren't stupid. Remember lying to any US federal
official is a serious felony offense with a minimum five year
sentence. Unlike former President Bill Clinton, you're unlikely to
get off scot free from any perjury charges.
Alternatively if you don't care to lie down, roll over and get
slaughtered like lambs being led to slaughter; have a reasonable
amount of assets you'd like to protect (US$100,000 or more,) and are
willing to invest a small sum for some sound practical advice in order
to preserve your capital, you might want to email our leprechaun for
some thoughtful and personal Mano-a-mano consulting advice.
The doors are most certainly closing for Americans and many other
Westerners' that's for sure. The question you need to ask yourself
is; "What are you going to do about it?"
See you next issue
"The people never give up their liberties but under some delusion."
- Edmund Burke, 1784
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