Chapter 17 -  What You Need To Know About Real Estate & Terrorism Risk

Chapter 18 -  Solutions To New Regulatory Burdens and Risks
Case Study # 10 Inadequate Due Diligence
Case Study # 11  Be Careful When Banking Offshore
Case Study # 12  The Snitch Factor

Section Five - How To Build Safe Protected Wealth

Chapter 19 - New & Enhanced Post 9/11 Wealth Planning & Protection Techniques

Chapter 20 - How To Choose an Investment Or Wealth Planning Advisor 

Chapter 21 - The Swiss Inner Circle

Chapter 22 - Other Global Consultants, Publications & Organizations 

Section Six - You’ve Protected Your Wealth Now Restore Your Liberty 
 
Chapter 23 -  Back To The Articles: Restoring the Republic With the Swiss Confederation Institute     

Chapter 24 – FreedomFest: Where Free Minds Meet  

Chapter 25- Don't Delay: Start Today To Preserve Your Wealth & Liberty  

Chapter 26 - Are You Willing To Pay the High Price For Freedom?  

Case Studies  

Resource Guide  

About the Author  

THE SWISS Preserve SOLUTION
How To Preserve What Is Yours!  Ron Holland's politically incorrect guide to defending your wealth & liberty
from internal and external threats in our new 21st Century.

 

Chapter 16 - How to Defend Your Wealth from Political, Terrorist, & Empire Risks 

Talking Points:  Terrorism and foreign policy risk may well be the leading threats to your portfolio wealth held in America today.  If there is a future terrorist attack against Wall Street and the financial infrastructure, how can you protect your wealth and liquidity from being destroyed or frozen due to closed markets and the financial consequences of such an attack? 

       In today's world new considerations must be taken to properly defend your wealth. Listed below are new concerns and protection methods you should be aware of:

·         Protection Through Investment Diversification in Jurisdictions with Minimal Terrorist Risk

·         Protection from Market Closure and Illiquidity

·         Financial Institutions, Trustees and Financial Providers Should be Located Outside of Potential Terrorist Targets

·         Records Protection Utilizing Safe Facilities

·         Protection from Currency and Exchange Controls

·         Protection from a False Crisis or Regulatory Confiscation

·         Protection from Foreign Policy and Empire Risk

·         Multi-Jurisdictional Protection

·         Currency Risk Protection

·         All Asset Protection Partners Should Be Regulated and Domiciled in Respected, Highly Regulated Top-Tier Jurisdictions

       Since the 9/11 attacks, no one can deny that our nation is in a vulnerable position. Although it has been years since the last attack, our terrorist enemies know that America’s weak point is our investment markets and the dollar, and they will strike again. The solution to the terrorist threat to our investment markets is actually quite simple. For investors in American mutual funds, variable annuities or a managed portfolio, investors should make sure their financial institutions, managers, or funds are outside of U.S. stocks and bonds and that your investment provider has a base of operations and custodian activities are outside the New York City area. For example, many U.S. mutual and variable annuity funds, as well as insurance companies, are located in Boston which is a far less likely target.

       The problem with even those American funds invested internationally is that although the underlying foreign markets would not be targeted and their market closure would be brief if it happens at all, every U.S. based investment product would likely be closed and illiquid for the duration of the New York Stock Exchange closure. The ultimate solution is to have a major part of your portfolio invested through first-rate offshore money centers in order to maintain your liquidity. American mutual funds, variable annuities, and investment managers with American custodians will still likely be closed and frozen by the U.S. regulators even if you are diversified in international or global portfolios.  Therefore, simply investing American funds internationally is not an appropriate solution.

       The best way to determine what strategies are necessary to protect our wealth from another terrorist attack on Wall Street is to walk through a scenario of this likely future event, as we previously discussed in the Terrorist Nightmare on Wall Street case study.

Protection Through Investment Diversification in Jurisdictions With Minimal Terrorist Risk

       One can determine the level of terrorist risk and potential threat to financial markets, records, and institutions by monitoring the political situation and the foreign policy of the nation in which you live and or invest the majority of the funds.  I prefer jurisdictions which have a long and stable political environment.  Specifically, I favor one that has had hundreds of years with little or no military or foreign policy involvement in the Middle East. Due to the increasing threat of militant Islamic terrorist groups I consider New York City, Washington, and London to be the three most likely targets of a future major terrorist attack. If terrorists have access to a weapon of mass destruction and can transport it to a single target, New York City would be the first target of opportunity.

Protection from Market Closure and Illiquidity

       The NASDAQ and New York Stock Exchange were closed for over a week following the 9/11 attack on Wall Street and the World Trade Center. Imagine the length of time for closure and the illiquidity problems that would arise if a weapon of mass destruction attack were targeted at Wall Street. This action could effectively freeze foreign and American investments in U.S. mutual funds and variable annuity portfolios, in addition to the U.S. equity markets, for months.  This scenario has the potential of making the 1929 stock market crash a minor footnote in history compared to the trillions in market losses and illiquidity. For this terrorist risk concern, I recommend limited investments in either American mutual funds, variable annuity products, or the U.S. stock and bond markets because of the susceptibility of our financial infrastructure and markets. 

Financial Institutions, Trustees and Financial Providers Should Be Located Outside of Potential Terrorist Targets

       This means that no partner, financial firm, or custodian involved with your wealth preservation strategy should be headquartered in or have its only records facility in the New York City, London, or Washington D.C. area. 

Records Protection Utilizing Safe Facilities

       All  records, both computer and hard copy, should be maintained in at least dual locations in separate jurisdictions with minimal terrorist risk in order to protect records from theft, political confiscation, war, terrorist attack, a national emergency, or natural disaster.

Protection From Currency and Exchange Controls

       Currency and exchange controls are always implemented suddenly during a financial or political crisis without any prior notice. Investors who wisely have diversified a portion of their wealth outside their home country before these controls are implemented will remain safe from the effects of such a government action. Plus, they will have the liquidity to make profitable investment choices when others in their home country are frozen out of the opportunities.

Protection From a False Crisis or Regulatory Confiscation For Political Purposes

       When confiscation targets are politically motivated they are usually religious, ethnic, or national in scope.  In my opinion, few Moslem nations or wealthy individuals should keep more than a minimal amount of funds in U.S. markets unless the ownership is protected through trusts and multiple corporate structures. The risk of a politically motivated investment freeze or confiscation reaction to another terrorist attack on America simply outweighs the potential investment profits and benefits. After all, the emergency executive orders to accomplish this were implemented immediately following 9/11 and all that is necessary is another major attack.  We know this, Washington knows this, and more importantly, the Islamic terrorists know this.

Long Term Protections from Foreign Policy and Empire Risk

       The very nature of all empires is to advance-- and thus to occupy land, people, and resources, until imperial overreach is attained. When this happens, then the sometimes slow decline or quick retreat begins. Be it Greece and Rome, the British Empire, the Ottoman Empire, France under Napoleon, Germany under Hitler, the Japanese Imperial Empire during World War II, or the Soviet Empire, the decline and fall is always the same.  Standards of living suffer, the economy and prosperity is reduced to pay for the financial and military costs of the foreign empire and military occupation, the currency weakens, and the world position of the great power is reduced. Terrorism, increased taxes and controls, a weakening currency and perpetual war are the evidences of a declining empire. This long-term risk can best be reduced by making the investor and portfolio independent of the survival and further advancement of the empire.

Multi-Jurisdictional Protections

       As stated earlier, empire risk may well become the greatest risk to your wealth over the next couple of decades. For this reason, I suggest you consider an offshore strategy in a safe jurisdiction. Therefore, the ongoing economic costs, limitations on civil liberties, and future terrorist attacks will not threaten either the liquidity of your investments, the management, or the organization and day-to-day affairs of the strategy. A properly structured strategy should be immune to the problems of the Washington Empire, local politics, and confiscation that is so prevalent in many nations today, as it was in all empires of the past.

       The negative political effects of advancing or retreating world empires are usually concentrated in the foreign territory in question or in the home nation of the empire. Since we are primarily discussing the Washington Empire, be aware of the political risks to your wealth when too much is invested in the U.S.  These risks can take the form of excise and other temporary tax measures, prohibitions on currency and travel restrictions, or the movement of assets either into or out of the country. History shows that when world events turn against an empire, it is best to already have a substantial base of protected wealth, property, and even your family, if possible, outside your home country.  The collapse of empires is not a pretty picture, even if they are going from tyranny to freedom and no war is involved. Think back to the economic and personal anarchy during the fall of communism under Yeltson in the former Soviet Union. This was certainly no picnic for Russian citizens.

Currency Risk Protection

       First, allow me to give a brief history of other world currencies verses the dollar in recent years. From the 1980’s through 1995, we saw strong hard currency values verses a weakening U.S. dollar. After bottoming in the fall of 1995 until late 2002 (except for a brief period in 1998 during the Asian financial crisis), investors would have benefited from dollar denominated investments. This was a time of a strong American dollar combined with a U.S. stock market mania of unparalleled proportions, not seen since the roaring twenties. While I believe the dollar is now in a long-term down trend, it is prudent for most high income investors to always diversify outside their home or national currencies in order to avoid their home currency risk. For example, Europeans should diversify a percentage of their portfolio outside the Euro, the Swiss out of the Swiss franc and Japanese investors outside the Yen. Most investors are generally over weighted in investments, equities, real estate, and cash in their home currencies.

Avoid Most U.S. Securities

       If you are an American investor there will be times, I am sure, when you may want to invest in specific U.S. stocks or sectors.  This is sensible as long as you have sufficient assets outside the dollar and U.S. markets. Nevertheless, I believe that now during the middle of 2007, the American investment markets are surging due to the fall in interest rates that resulted from the US housing recession. Take your profits now while you have them.

All Asset Protection Partners Should Be Regulated and Domiciled in Top-Tier Jurisdictions

       Obviously the actions of a few large nations and their intrusive regulators have clouded the real benefits of quality, “client first” protection in an honest and secure regulatory environment. Stringent regulations and oversight are positive benefits, as long as they are not coupled with the loss of confidentiality and privacy for honest clients, which is the case in the U.S. today. 

       Always pick highly regulated, secure offshore financial centers with an excellent reputation for regulatory protections, strong prohibitions against money laundering, and a stable political system. Remember-- you do not want to escape the political corruption and threats to your wealth of the United States or another nation, and then transfer a high proportion of your wealth to another jurisdiction with another set of disadvantages that could threaten your investment portfolio. Locations that meet my criteria are of course Switzerland, Liechtenstein, the Isle of Man, the Turks and Caicos Islands, and several other jurisdictions.

For Additional Reading, Research & Essay Links Regarding This Chapter:

Uncomfortable Parallels    www.lewrockwell.com/thornton/thornton21.html

 

Ron Fact, Book & Video Recommendations For This Page:
The future closure of U.S. financial markets in the event of another terrorist attack against Wall Street and New York City is the greatest foreign policy and empire investment risk threatening American investors. Other world markets will continue to trade and provide liquidity for offshore investors as they should not be affected by the temporary closure of American markets unless you are invested in offshore funds invested in U.S. securities. - Ron Holland

The New American Militarism by Andrew J. Bacevich. Two days ago while finishing up the book in mid May, the news carried at story about the loss of his son in Iraq. Bacevich is a graduate of West Point, a Vietnam veteran, and a conservative Catholic who makes the point that the United States is becoming not just a militarized state but a military society: We are now a  country where armed power is our standard of national greatness instead of our proud heritage of liberty, freedom and independence.  I was in the military and I support the need for a strong defense but what we are becoming today is scary if you read a lot of history as I do. I fear for my children and the nation and world we have left for them.

The Sorrows of Empire: Militarism, Secrecy and the End of the Republic by Chalmers Johnson. Since September 2001, the United States has "undergone a transformation from republic to empire that may well prove irreversible," writes Chalmers Johnson. Unlike past global powers, however, America has built an empire of bases rather than colonies, creating in the process a government that is obsessed with maintaining absolute military dominance over the world, Johnson claims. The Department of Defense currently lists 725 official U.S. military bases outside of the country and 969 within the 50 states (not to mention numerous secret bases). According to the author, these bases are proof that the "United States prefers to deal with other nations through the use or threat of force rather than negotiations, commerce, or cultural interaction." This rise of American militarism, along with the corresponding layers of bureaucracy and secrecy that are created to circumvent scrutiny, signals a shift in power from the populace to the Pentagon: "A revolution would be required to bring the Pentagon back under democratic control,".

 

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