Second Citizenship. Dominica and St. Kitts/Nevis are the only remaining countries that sell citizenship for an investment in the nation’s economy. The US government is now putting pressure on the latter to give up this program, alleging that it is a cover for money laundering and illegal narcotics. However, the US has not offered any proof of this. The US succeeded in forcing Belize and Grenada to give up their citizenship programs. The government of St. Vincent & the Grenadines voluntarily ended its honorary citizenship program after the Unity Labour Party campaigned on a platform that included an ending of the program. There is no evidence of US Intervention.
Hedge Funds. The life span of most hedge funds is 4 years. There is little or no evidence of a long term track record for most funds. Many are managed by relatively young persons. It is said that economic cycles repeat approximately every 60 years. Youthful managers of hedge funds would not have experienced things that happened before they were born and must rely on what they read from the past, if they take the time to read.
Most hedge funds are in US dollars. This poses a currency risk, since the US may be forced to repay debts by devaluing its currency through the inflation of its money supply. There are 8000 hedge funds with more than $1 trillion under management. High levels of borrowing in these funds pose the biggest risk. A gigantic risk is also posed by investment in derivatives. The IMF estimates that $5 trillion is held offshore. The Cayman Islands are said to have 75% of hedge funds.
Government manipulates stock market
One of Canada’s most prestigious funds, Sprott Asset Management, has exposed the fact, after diligent research, that the U.S. government manipulates the stock market. Sprott delivered chilling proof that the U.S. government intervenes, not only in the gold, but the bond markets and stock market as well, when it sees the need to prop up the failing U.S. economy and the equities market.
After the 1987 program-traders crash, the U.S. Plunge Protection Team pumped liquidity into the down market to avert a 1929-style panic. It compelled its large subservient banks to buy common fiat currencies, such as U.S. federal notes, in order to prop them up. The Plunge Protection Team has also taken steps to prop up the Bush senior administration, the Clinton government and the current Bush administration.
This means that share prices do not rise and fall under the influence of market forces as is commonly believed by investors. John Embry and Andrew Hepburn, analysts at Sprott, said “We believe the stability of domestic stock markets is considered by the U.S. government to be a matter of national security. Interventions are likely justified on the grounds that the health of the U.S. financial markets is integral to American preeminence and world stability. This conclusion flows from an extraordinary financial war game exercise conducted by the Council on Foreign Relations in 2000 and attended by key policy-makers. In this vein, an article in Euromoney magazine disclosed that simulation participants displayed a willingness to consider government intervention in the stock market in the event of a financial crisis.” (Free Market News Network, 9/11/2005).
What all this means is that playing the stock market is a crap shoot. However good one is at reading market trends, one still has to reckon with the manipulation by the U.S. government that can make nonsense of the predictions of investment gurus. One’s best bet it to operate one’s own business, find for yourself businesses that you believe will give you handsome returns, or choose investments that offer guaranteed returns.
What chance Do You Have in the Stock Market? In 41 years, the book value of Warren Buffet’s Berkshire Hathaway has grown from $19 to $59,377. In the same time an investment of $19 on the Standard & Poors has grown to a little over $1000. (Sovereign Society A Letter). Few private individuals can bet against institutions that use massive computers with sophisticated software looking for investment opportunities.
A Guaranteed Investment Contract (GIC) is offered by the largest insurance company in the Southern Caribbean. Here is what a well known internet publication says about the investment in an article with the title “Insurance Giant Offers Solid Investment in EFPA”. “Insurance giant [name withheld by us] has in EFPA some very impressive investment instruments. Its EFPA (Executive Flexible Premium Annuity) is a solid investment that Banks, Credit Unions and other Leading Edge Companies have been using successfully. It is a fixed income instrument (similar to a Cash Deposit) that offers some of the Highest Guaranteed Rates currently available.
There are no withholding taxes and both the principal and interest are guaranteed. You reap immediate benefits from your premium investment, there are no expense charges and you have the option to receive interest on a monthly, quarterly, semi-annual or annual basis, or you can leave the interest to be compounded.
The investor risk is mitigated as it is backed by a statutory reserve fund which at present stands in excess of $1.4 Billion US. This investment has been in existence for over 12 years with an impressive rate of return. In 2004 and 2005 $600 million US and one (1) billion US were invested respectively …” The jurisdiction “has a highly regulated Financial Sector, which redounds to the benefit of the investor.”
The insurance company is “the number one indigenous Insurance Company in the Southern Caribbean, with an asset base of over $3 Billion US.” “The company has been in operation for over 70 years with an incredible track record and history.” “… The parent company of the group has an asset base of $6 Billion US. This is truly a world class company with over 65 companies operating in over 30 countries (on all the continents). The group’s high level of diversity mitigates your risk and protects the investor.”
The insurance company is owned by a finance company with investments throughout the Caribbean. It is the number one Caribbean Conglomerate in Banking, Finance, Insurance, Real Estate, Energy and Manufacturing. No other Caribbean company is as diversified and leads the market in as many industries. It is the number one producer and exporter of Methanol in the world and is also engaged in Forestry and Agriculture, Money Market Brokering, Mortgage Finance, Oil & Gas exploration and production, General and Life Insurance, Retail and Distribution, Marine Services, Media and Communications, Medical Services, and Ammonia production.
(For information on the extremely attractive rates offered, and a direct introduction to the company, send email to argonlimited@gmail.com
The OECD. The Organization for Economic Corporation and Development (OECD) is having trouble getting its own members to comply with the rules it has made for offshore jurisdictions. It is guilty of double standards. Commenting on this, Dean William R. Inge says “it is useless for sheep to pass resolutions on vegetarianism while the wolves remain of a different opinion.” The OECD has more than wolves to contend with. Luxembourg and Belgium refused to attend its last forum. St. Vincent and some other jurisdictions insist on universal compliance before the OECD seeks to impose its will on them.
The UK. The UK now requires all trustees of trusts in the UK to pay an inheritance tax of 20% on all gifts to trusts. People who hold trusts must pay a 6% tax on assets in a trust that exceeds 285,000 pounds sterling.
Canada. The Canadian government has granted to the Canadian Security Establishment (CSE) the right to spy on Canadian citizens and residents. It is possible that CSE is monitoring phone calls, reading emails and intercepting faxes.
Effects of US affairs on the world economy. During the last quarter of 2005, US debt grew four times faster than GDP. Analyst wonder how this debt will be repaid. The US inflation is at an annualized rate of 10%; the worst in the industrialized world.
Currently, the US is showing:
- A decline in profits
- A record shortfall in savings
- Consumer borrowing at rates never seen before
- A gigantic current deficit
- Record high debt levels
Real growth in US GDP is 0%.
The official deficit in the US for 2005 is $39 B. If we were to include Social Security obligation and Medicare obligations, it is $3.5 trillion. That is ten times the official deficit. If you raise the US tax rate to 100% and place all salaries earned in the US into the US treasury, there will still not be enough to meet US government expenditures. There will still be a deficit.
The total federal deficit in the US at the end of 2005 was $51 trillion. This is more than four times the country’s GDP. A company in such a predicament will have to file for bankruptcy. However, people around the world continue to place their faith and confidence in the full faith and credit of the US government.
--The Sovereign Society Offshore A Letter
These figures mean that the United States will not be able to continue to pay Social Security. There is no way the US can continue to pay Medicare and Pensions. They are doomed. Millions will be left without a pension and destitute.
H.L. Mencken called US politicians “damning politicians up hill and down dale for many years are rogues and vagabonds, frauds and scoundrels.”
Senator Russ Feingold is said to be an embarrassment to the US Senate. He got up and said out loud, about government wire tapping, that the President broke the law and lied about it.
The US Patriot Act was passed by a Congress that could not have read what it was voting for, because no printed copy was available to be read when the Act was hurriedly passed after the attack on the World Trade Center. It provides for:
- Secret FBI and police searches of one’s home and office
- Secret government wiretaps on people’s phone, computer and/or internet communications
- Secret investigations of people’s bank records, credit cards and other financial records
- Secret investigations of the books people borrow at libraries
- Secret examination of medical, travel and business records
- The freezing of funds and assets without prior notice or appeal
- The creation of secret watch lists
-- the Sovereign Society Offshore A Letter
A law passed to counter terrorism and protect Americans is now being used against Americans. It is now used to abolish privacy and confiscate cash without bringing charges or offering proof of crime. |
