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August 9, 2013
Makarska, Croatia
It just never stops.
Here on the European
continent, the bureaucrats who run the EU have recently proven to the
world how much a 'government guarantee' is really worth.
We've been discussing
in this column lately how the modern banking system is a total fraud--
that dictatorial control of 70% of the world's money supply has been
awarded to just four central bankers.
And that the vast
majority of banks, especially in the western world, are laughably
illiquid... and very thinly capitalized.
But most people never
really worry too much about their banks. We're told, pratically since
birth, that banks are safe, responsible, conservative financial stewards.
This belief is universally held as truth across society.
And to cap it all
off, we're told that the government will step up to backstop any bank
losses and ensure depositors don't lose a single penny.
The numbers obviously
tell a very different story. In the US, for example, many banks hold less
than 3% of their customer deposits in cash, and they have to use clever
accounting tricks and off-balance sheet vehicles to mask the true health
of their balance sheets.
And the FDIC, which
is supposed to bail out US depositors in the event of a crisis, has a
mere 1.35% of total US deposits in cash. This isn't safe. This isn't
conservative. It doesn't even register as a drop in the bucket.
In Europe, though,
they've just decided that they're -not really- going to insure deposits
at full value after all (see the article in its original German here--
http://deutsche-wirtschafts-nachrichten.de/2013/08/07/neue-eu-regel-sparer-muessen-um-guthaben-unter-100-000-euro-bangen/)
Now, if a bank goes
under, governments will make very, very basic payments to depositors, and
restrict withdrawals to just 100-200 euros per day.
There's a term for
this. It's called capital controls. And it's something that almost every
bankrupt government in history has resorted to using.
Capital controls are
essentially a restriction on the free-flow of capital. It can take a
number of different forms-- gold criminalization, bank account
confiscation, foreign exchange restrictions, etc.
But at the end of the
day, the effect is the same-- capital controls are just another way of
transferring wealth from citizens to the government, like dairy cows to a
farmer.
Meanwhile, across the
water, I am sad to report that a number of secure email platforms like
Lavabit and Silent Circle, have now folded under intense pressure from
the United States government.
Lavabit was an email
service used by Edward Snowden. From the very cryptic message that CEO
Ladar Levison left on his website, it appears that he has been approached
by the NSA to turn over email records.
Rather than work with
the NSA, Levison has shuttered his operations.
And to boot, Silent
Circle CEO Mike Janke announced that his organization was pre-emptively
discontinuing its email platform 'Silent Mail'.
Janke says he sees
the writing on the wall and knows "USG [US government] would come
after us."
It's incredible that
two businesses essentially have to commit suicide in order to keep from
violating their promises to their customers.
Just another week in
the free world. Have you hit your breaking point yet?
Find out how to invest in the most primal resource
there is
In last month's issue of Sovereign Man: Confidential our
Chief Investment Strategist, Tim Staermose, uncovered 5 junior mining
companies in Australia that have plenty of cash in the bank, and whose
stocks are selling at a sharp discount to their net balance. Essentially
you're paying cents on the dollar for these companies, while their
operations and assets are thrown in for free.
This month's massive issue of
SMC includes:
- A complete breakdown and step-by-step guidance on
how to establish residency in Chile under the 'person of means'
immigration program, along with necessary document
templates and Simon Black's personal contacts in the country to help
you go through it successfully.
- The requirements are extremely low, but it most
likely won't stay that way for a long time. Chile is becoming an
increasingly popular place, favored by people from
all over the world for its business climate, agriculture potential
and a great standard of living.
- Learn about water as a unique investment
opportunity. The fundamentals are
clear-- there's a fixed supply of it on Earth, yet demand for it is
increasing due to rapid population growth and agricultural needs.
- There are not many ways of how you can benefit
from this trend. Water is highly localized, difficult to transport,
and places with clear water rights are rare. Yet we uncover how you can
invest in water as well-- this is another SMC exclusive deal, not
found anywhere else.
- Hear from Tim
Staermose from the South Pacific where he takes you
on a boots
on the ground tour of an ultimate tax haven
that hardly anyone has ever heard of.
- We're reviewing banking in Norway as an
excellent alternative to keeping your money in undercapitalized
banks in bankrupt jurisdictions. Best of all-- you can do it without leaving
home.
- Important updates: Low cost IRA setup;
Agricultural fund; Resilient community; Trip to Singapore with
Simon with hands on guidance.
To get immediate access to the knowledge contained
within this month's issue, and all the back issues, click
here to get the full details on your invitation to join Sovereign
Man: Confidential today.
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