Holland's upcoming fourth book, Restoring Our American Legacy. Get ready for a new 21st century reappraisal of how Americans should look at domestic and foreign investing, real estate investments, wealth preservation, American history and our global foreign policy. He asks if it is time to consider an improved political paradigm utilizing successful Swiss style direct democracy and the confederation model along with our existing political structure to return our nation back to the limited Republic form of government established by our Founding Fathers. In this new century of instant communications, 24 hour news, the War on Terror, exploding government and private debt, a falling dollar and America's declining status around the world it is time for a change. Americans must retake control over our government policies at home and abroad by restraining politicians, the bureaucracy and special interests to restore the control of productive American citizens back over our own government. Our wealth, prosperity and ultimate liberty depend on Restoring Our American Legacy before it is too late!
Talking Points: Investors love and politicians hate Switzerland because of their confederation type of limited government, which is still controlled by the people. Learn how their limited central government, financial confidentiality and non-aggressive foreign policy have made Switzerland the leading wealth preservation jurisdiction in the world.
"Switzerland has the respect of the world for its stability, safety, and peacefulness. How is it that this tiny country, measuring only 137 by 216 miles, with almost no natural resources, has the world's strongest currency? Has the second highest per capita income in the world and is the third largest financial center in the world, managing private assets of more than 2 trillion Swiss francs?" -- Swiss Money Secrets, The Oxford Club
Why Investors Love and Politicians Hate Switzerland
Switzerland is the most hated nation on the face of the earth by politicians, bureaucrats, lawyers and tax authorities. How does the old saying go, “the enemy of my enemy is my friend.” Productive individuals around the world who prefer limited government and honor private property rights view Switzerland very favorably. The Swiss government is a shining example of how a decentralized confederation government, that still respects individual and cantonal (states) rights, can create one of the highest standards of living in the world.
The truth of the matter is that many investors prefer Switzerland and the Swiss franc, while most governments do not. Politicians and others out to plunder after the private wealth of productive citizens look at the time honored Swiss traditions of independence, financial privacy, and limited government as obstacles in their path of looting and pillage through increasing taxes, regulations and lawsuits. Lawyers, especially in the United States, hate Switzerland because of the asset protection features built into their insurance and annuity products through ironclad Swiss insurance regulations.
This small country is loved by her patriotic citizens and by knowledgeable world investors that choose Switzerland and the Swiss franc, along with the Euro, as the currency of choice for their personal safe haven of wealth. Although the Swiss voters have ended the statutory gold backing of the Swiss franc, Switzerland has continued to maintain substantial gold reserves and their currency still tends to strengthen when the dollar weakens.
Political dissidents and over-taxed citizens around the world also appreciate Swiss political neutrality and the importance of Swiss banking confidentiality. Wealthy citizens hounded by unscrupulous lawyers and corrupt legal systems that determine guilt by one’s ability to pay, appreciate Switzerland’s time honored respect for private wealth and its honest legal system which has little in common with the lawsuit mania driven U.S. court system.Other central governments and political establishments that over-tax and over-regulate their citizens despise Switzerland’s confederation form of limited government. The Swiss practice of armed neutrality is often an embarrassment to governments, such as Washington, that attempt to enforce foreign policy through armed intervention and invasion around the world. Legal predators and corrupt legal systems hate the rule of law in Switzerland that still protects wealth and assets from their attempts at plunder through vindictive lawsuits and unwarranted asset seizures.
Although financial services and investment performance are generally comparable everywhere in today’s global investment world, Switzerland’s unique benefits of a relatively strong Swiss franc, a measure of asset protection from lawsuits, and a degree of financial confidentiality remain the envy of outside financial competitors and greedy revenue starved governments around the world.
The Benefits of a True Confederation Form of GovernmentThis alpine territory is quite small - comparable in size to the state of South Carolina - but it is home to over 7 million people, including some 1˝ million foreign nationals residing or working there. Switzerland has four official languages that reflect neighboring cultures. Some two-thirds of the Swiss speak German dialects, while 19% speak French, 8% Italian and 1% Romanisch, a dialect similar to Latin. Roman Catholics account for 48% of the population and Protestants some 44%.
These people with such diverse backgrounds have learned to live together peacefully and without discord. They’ve built and maintained a country that emphasizes real freedom and prosperity through it’s unique form of government. Their confederation government structure is very decentralized with most of the power residing at the canton (similar to our states) and local levels. An often-overlooked point in history is that the Swiss Confederation form of government strongly influenced America’s founding fathers and the structure of early American government. In fact, our first governing document, The Articles of Confederation, closely resembled the governmental design of the Swiss Helvetian Confederation.
Switzerland has retained this decentralized form of limited government when most nations, including the U.S., have moved toward a strong federal system simply because the Swiss citizens would not allow this loss of political freedom from themselves or their local and cantonal governments. The Swiss political structure is specifically designed to prevent the development of an all-powerful federal government like has developed in the United States.
Their governmental structure delicately balances the rights of the individual with the interests of the communes (villages), the city, the canton (state), and the federal government. Parliament is comprised of two chambers, with representatives from each of the 26 cantons representing a dozen different political parties.
A Limited Federal Government By the People and For the People
Despite the diversity in languages and cultures, Switzerland remains a stable and unified society with the world’s oldest surviving democracy excepting the Tynwald Parliament in the Isle of Man. Through a direct participatory form of democratic government, ordinary Swiss citizens decide on important constitutional issues as well as local ordinances. Every Swiss citizen has a direct say on how the government is run by the ability to show his or her support (or non-support) for government actions therefore keeping it in line. The Swiss have in practice, not just in theory, a government controlled ultimately by the people.
To further protect the rights of the individual Swiss citizens three political safeguards are built into the system to assure that the people rule the government and not the other way around.
1. A Weak Chief Executive - Can you name the President of Switzerland? Probably not. In fact, very few Swiss citizens would even be able to give the correct answer. In contrast to the United States, where our Chief Executive is constantly in the news (usually for the wrong reasons) and always surrounded by secret service protection. The Swiss do not make a profession or big deal out of politics.
The President of Switzerland can often be found riding to work on the public streetcars in Berne, Switzerland’s capital. Their executive branch of government is a collegial system, which prevents the rise of a strong chief executive and it strives for political consensus rather than confrontation. The Swiss federal government is weak by design – and that’s just the way the Swiss want to keep it.
2. The Right of Referendum - The Swiss people fortunately have the Right of Referendum that gives them an opportunity to oppose any law passed by Parliament or enacted by the government. If 50,000 voters, a little more than 1% of the electorate, sign a petition questioning a particular law passed by the government, the law must be submitted to a popular vote for final approval. The law is then rescinded if more than 50% of the voters oppose it. Any proposed change in the Swiss Constitution also requires a referendum.
Harry Browne, a good friend, financial writer and former resident of Switzerland, notes that referenda occur much more frequently than the two-year election cycle found in many states of the U.S. "Once a matter qualifies for a referendum, the vote will be taken soon afterward. So these votes are sprinkled throughout the year, and they happen not only at the federal level, but at the cantonal and city levels as well." This is in direct contrast to the U.S. where public pressure against legislation must be directed through elected representatives who are subject to massive pressure by special interest groups.
3. The Right of Initiative - Switzerland’s concept of the Right of Initiative is unique in the entire world today. It allows the Swiss citizens the opportunity to actually initiate legislation directly. When 100,000 signatures are obtained for a particular proposal, a national election is held to approve or reject the proposed law, assuming the proposed law meets certain legal standards.
Investor Benefits of Swiss Foreign Policy and World Famous Financial Center
"We will attack no one, participate in no war, will make no alliance, and will defend ourselves".
-- The Swiss Code of Neutrality as first drafted in 1515An important cornerstone in Swiss history involves national security. Switzerland places its safety and security above all other considerations. Although Switzerland has recently voted to join the United Nations, it is not a member of NATO, the European Union, and more importantly, is not directly influenced by the political decisions of these international bodies. As a neutral country, Switzerland plays an important role in world politics as an unbiased peaceful site for diplomatic negotiations and as a base for international agencies such as the International Labor Organization and the World Health Organization located in Geneva.
Neutrality Combined With Military Strength – The Swiss people have guarded their national independence through a strict policy of armed neutrality. This policy has produced the largest (mostly civilian) army in Western Europe when mobilized and has saved Switzerland from destabilizing involvement in both major 20th century world wars and numerous conflicts.
The Swiss believe neutrality is best achieved by a strong nation rather than a weak one. Within 48 hours the country can mobilize an army of over 500,000 soldiers, 800 battle tanks, 300 jet fighters, plus missiles and artillery - all stored in hundreds of defense positions and underground fortresses. Switzerland has armed sentries at all border crossings and there are over 3,000 points of demolition on bridges and tunnels to destroy paths of invasion or other access. Most of this defense structure is invisible. Carefully camouflaged into mountainsides are arsenals, hospitals, airplane hangers, with their interstate highways are often designed to serve as emergency air runways.
All able-bodied men between the ages of 20 and 50 serve in the army and are trained for specific jobs. In the event of war or other national emergency, the Swiss can also call upon 520,000 trained civil defense workers. They can provide protection to over 90% of the Swiss population in shelters that are designed to withstand nuclear, biological and chemical attack. Even if Switzerland were a target for terrorist weapons of mass destruction, which it certainly is not, most of its citizens have access to protection - unlike in the United States.
The Swiss Economic Miracle – The Swiss have a healthy regard for work, whether in harsh alpine terrain or in the modern banking sector. Due to its import needs and small domestic market, the level of foreign trade per capita is higher than in any other industrial nation. The manufacturing sector depends on raw material imports that are processed into export products of the highest standards. Both in the manufacturing and service areas, Switzerland depends heavily on a skilled labor force with advanced technological expertise.
The Swiss Financial System: A Vault of Safety - Swiss banks have existed since the Middle Ages, but Switzerland’s reputation as a world financial haven was gained before and during World War II. Private and government capital fled the beleaguered nations to find refuge in Swiss banks as the Nazi onslaught advanced throughout Europe. Switzerland’s neutrality and secrecy laws provided not only a safe haven for the wealthy but the difference between survival and extinction for countless war refugees.
Today it is estimated that Switzerland has almost a 35% market share in the management of the world’s private wealth, exceeding $2 trillion Swiss francs. Switzerland attracts money from investors around the world seeking the financial security this tiny nation offers.
Many individuals and corporate customers are interested in Swiss banks as a means of establishing a strong offshore base for global investments. The Swiss banks combine traditional banking with international brokerage and financial management; depositors can bank in US dollars, the Euro, Swiss francs or in almost any other national currency.
"All governments steal for a living, it's just that the Swiss government steals less than most."
-- Jurg M. Lattmann, president of JML.AGSwitzerland is Still the Best Wealth Preservation Jurisdiction
There are some negative changes that have taken place in Switzerland during the last few years. However these changes pale in comparison to what has taken place in the United States, Caribbean tax havens and in much of the European Union. Without a doubt, Switzerland is still the leading wealth preservation jurisdiction in the world.
Switzerland Ended Gold Reserve Requirement Backing Swiss Franc - Switzerland voted to do away with the gold reserve requirement backing their currency. I didn't at the time and continue to feel that this was not a major factor in the strength or weakness of the Swiss franc for two reasons. (1) Until recently gold has been relatively weak for almost two decades and (2) the value of Switzerland's currency is far more determined by the policies and targeting by the Swiss central bank and outside market forces than the amount of gold bullion owned by the Swiss government.
The Swiss Central Bank "Unofficially" Linked the Value of the Swiss Franc to the Euro - Swiss central bankers are just like their U.S. counterparts in the Federal Reserve System. The powerful political and financial elites of the U.S., Great Britain, and Germany were joined by the same elites in Switzerland wanting to join the EU and surrender its currency. Due to Switzerland's historical political rights of referendum and initiative they knew they had no chance to impose this on the voters so they pegged the currency value of the Swiss franc to the Euro anyway. The disadvantages of this linkage is past as the dollar is now in a long term downtrend therefore both the linked Swiss franc and Euro should continue to appreciate together in tandem verses the dollar.The Once Independent Swiss National Bank Now Often Follows the Lead of the U.S. Federal Reserve - As we all know there has been an ongoing war against gold, hard currencies and financial privacy by the major western democracies led by Washington during the last decade of the 20th century. The Swiss central bank has sometimes been willing, as are the other European central banks, to suddenly announce gold sales if its value rises above central banker target prices, or to raise or lower interest rates if required for market and currency stability. It is simply a fact of life today that central bankers worldwide coordinate their activities and work together in our economic world today.
Swiss Financial Privacy and Banking Confidentiality is Weakening Along With Every Other Nation in the World - Washington and London have been threatening every independent and dependent money center in the world in order to destroy every last shred of personal, economic and financial privacy. The horrible terrorist attack on New York on September 11th has been used by the Washington politicians and the financial establishment as the pretext to “blitzkrieg” the new regulations and legislation that will effectively end most, if not all, offshore privacy. While many pro-liberty groups and civil libertarians, such as Congressman Ron Paul, are speaking out against this final nail into the coffin of financial privacy it will not matter. America is currently in the midst of yet another war – the War on Terror. It is during times like this that civil liberties go out the window and there isn't a thing we can do about it other than reduce our portfolio exposure to political risk by international diversification and offshore planning.
The Swiss Parliament Voted To Join the United Nations - The most neutral and non-aligned nation in the world joining the bureaucracy of the United Nations? This certainly isn’t our preference of national and regional sovereignty and government powers concentrated at the most local jurisdiction possible. Still we must live and deal with the political world as it is and not as we wish it could be.
After these negatives regarding Switzerland you may find yourself wondering . . Has Switzerland sold out? The answer is no, but their politicians, central bankers and financial establishment have at times compromised for economic reasons, international acceptance and political expediency. I believe their rationale is in order to effectively compete in the global export and financial markets of the 21st century they must join with two of the three so-called super states of the world - China, the European Union and the United States. They believe Switzerland cannot remain an island in today's interrelated global financial system. Is this the right course of action? I don't think so but considering the fact that compromise worked before when faced with other aggressive threats, such as the threat of German invasion during both World Wars, who am I to give advice to the Swiss.
Will the independent, freedom-loving Swiss people go along with this new “one world” path for Switzerland and will it work to the benefit of Switzerland? To be very frank, Switzerland must be viewed on a relative basis, not compared to what it once was but rather in competition with other jurisdictions. Here Switzerland comes out way ahead.
Will the Swiss people or politicians continue to cave in to Washington, London and outside interests? No, but they will continue to compromise when then have to and stand firm when they can. Their recent opposition to the end of Swiss financial privacy was a very positive event in my opinion and I feel they will continue to hold on to their independence and sovereignty.
"A world without a Switzerland would considerably complicate the lives of many, while simplifying regulation and surveillance by governments. The fact that Switzerland does exist is proof that people and governments, have a need for it, where it is and as it is. The Swiss have a saying: If there were not a country like Switzerland, one would have to be created." -- Robert Roethenmund, The Swiss Banking Handbook
The Future for 21st Century Switzerland
In contrast to the United States, change comes very slowly to Switzerland due to their decentralized confederation form of government and their political rights of initiative and referendum. Throughout their long history as a confederation and republic, the Swiss have learned to compromise and negotiate.
Although Swiss politicians are generally no better or worse than their counterparts in Washington or other nations, the fact is they do not have the ultimate control of their government. In the final analysis, the Swiss voters can control their politicians through the political tools of referendum and initiative. Therefore, politicians and special interest lobbyists can’t easily impose new taxes, pass unfair regulations or create new government programs without the electorates consent. Although the recent votes to join the United Nations and a few others show that massive political contributions by special interests can upset the historical delicate balance, Switzerland still remains the only nation on the planet with real controls on the central government still exercised by the voters through referendum and initiative.
The main problems for Switzerland will be the bad publicity campaign as Washington continues to hammer away at Swiss financial privacy under the pretext of the War on Terror. The false charges about how financial privacy supports terrorism are just a continuation of the war against financial competition and lost revenue from Washington.
The second issue that Switzerland must confront is foreign and domestic pressure to join the European Monetary Union. The Swiss central bank has been pegging the Swiss franc to the Euro for several years and I expect this to continue as the dollar weakens verses the Swiss franc and the Euro. Just as powerful interests promoted the referendum to join the United Nations, this may eventually happen concerning the European Union. Still I would expect Switzerland to demand protections for their banking industry and to resist a full capitulation of financial confidentiality rules just as Austria and several other European nations have done.
I believe the EU was the final attempt in the late 1990’s by European politicians and their U.S. allies to stop the devolution of European nations into smaller more governable entities. The break up of Czechoslovakia and the move toward regional independence movements in Belgium, Italy, Scotland and Wales is a concern to the political establishment. It’s easier to control large nation states as opposed to a number of independent new nations that might prefer that their own national interests take precedence over global special interests. We will continue to watch the EU and Swiss situation but, for now, Switzerland remains the premier financial jurisdiction and home to more of the world’s private protected wealth than any other country.
"Money alone does not make you happy. You must have some of it in Switzerland, too."
-- An Old German proverbThis means Switzerland is my first choice in the world as a freedom-oriented jurisdiction to conduct business, raise a family and live free. While I love my home country, I am concerned about the effect of its foreign and domestic policies, alphabet police state like agencies and the out of control legal system. All of which remain major threats to accumulated wealth and personal liberties in the United States.
Although I will always be proud to be an American and will pay my required taxes to Washington, support my country and even defend her if called upon as I have done before in the armed forces, this is not the constitutional Republic with limited powers as established by our nation's founding fathers. I fear, we have temporarily, lost our way and have exchanged the sacred vision of liberty, private property, personal freedom and a respected legal system so highly valued in the early years of our Republic for federal tyranny at home and an aggressive world power abroad. But for now, I plan to live, work and raise my family in the Helvetian Confederation commonly called Switzerland. For as a financial professional and a long time historian, Victor Hugo stated my views best when he wrote, "In history, Switzerland will have the last word."
For Additional Reading and Research:
Swiss Federal Banking Commission
Swiss Private Bankers Association
firm licensed in 47 states.Ronald Holland - For more information go to http://www.ronaldholland.com
Note, Ronald now lives at Asheville NC's Wolf Laurel Resort, where he markets ski property, homes and real estate in one of the highest elevation 4-season mountain resorts in the eastern United States. He is an internationally known financial & marketing consultant & author of 3 books and over a hundred articles & reports, a leading speaker at financial conferences in the US and abroad and editor of several internet based news sites. He invented several financial products & services including the first gold IRA account and the first Swiss franc denominated variable annuity portfolio in the US and was president of a Swiss owned investment
|
Ronald
Holland is editor of this website and a broker/realtor with
More of our websites about Asheville, Wolf Laurel & our high mountain area.
Wolf Top News
-
News. links and headlines about the Preserve and Wolf Laurel Resort.
Please click the graphic at the left to receive a free photo tour DVD featuring highlights of the seasons of Wolf Laurel and the Western NC area provided by Wolf's Crossing Realty & a listing of resale mountain lots at Wolf Laurel where prices begin at under $25,000 per lot. |
 Take the Wolf Grand Tour in 2007! - A fun, relaxed, no pressure alternative to see the broad range of of real estate opportunities, homes and lots in Wolf Laurel, Wolf Ridge Ski Resort, Breakaway Village, the Peaks at Wolf Ridge, the Haw Ridge Summit airport community and the Preserve at Wolf Laurel including Buck Town, Steeplechase and The Ridges.. What could be better than a brief private tour of all the resorts together followed by wine or sparking grape juice and cheese on a mountain top with long-range views that seem to go on forever? We are only 35 minutes from exciting Asheville, NC recently named by Frommer's, the most respected name in travel writing as one of the top 12 destinations in the world for 2007. Do Your Own Due Diligence! - No sales pressure, just balanced information as we drive you and your family through the different communities answering your questions on prices, views, winter access, climate and lifestyle as we highlight the unique advantages, differences & amenities of each resort in a fair and balanced manner as we do not represent any particular resort or development. CLICK HERE for more information and to schedule your complimentary private Grand Tour of our resort area. |
|
