We’re Living in Orwell’s Dystopia
But The Tragedy Doesn’t Stop There...
We’ve depleted our national treasure on wars of personal revenge and vendetta, spending more than $1.2 trillion - and counting - on conflicts in Afghanistan and Iraq that have accomplished little of national significance. Our accumulated debts now exceed $14 trillion, nearly 100% of GDP.
At The Sovereign Society, we know exactly how we would solve the debt crisis - but it would have nothing to do with Fed chairman Ben Bernanke’s redux of Operation Twist, which aims to stimulate the economy by pushing medium and long-term interest rates lower.
Our solution is simple - though it is one the Keynesian-minded, wealth-destroying automatons in Washington refuse to consider.
Firstly, kill ObamaCare.
It’s unconstitutional - no government should force its citizens to buy any product under threat of financial penalty. Business executives are so uncertain about the financial impact ObamaCare will impose they have no desire to hire new workers. The added costs only serve to make American businesses less competitive in the global marketplace.
Second, throw away the entire 71,600-page U.S. tax code and start from scratch.
Ensure that everyone pays a little something for the right to live in the freest nation on Earth. There is no reason 51% of American taxpayers effectively pay no income tax - and even less reason why 30% of taxpayers made money off the tax system through credits.
Reduce corporate income taxes while you’re at it.
Kill the various exemptions that individual industries have lobbied for.
And incentivize companies to repatriate the tens of billions of dollars sitting in corporate bank accounts overseas.
Unfortunately, none of those suggestions are likely to happen.
Instead, we have increased inefficient regulation at every turn. Obamacare will doubtless make matters even worse and will continue to work to dampen the animal spirit of American capitalism.
The outcome of the forthcoming election will have long-term ramifications for America.
There is Only One Thing Left To Do
A possible escape hatch is Asia, where growth is springing forth. Just look at the exploding economies in places like Phnom Penh, Singapore, Bangkok, Hong Kong.
Putting idle cash into EverBank’s Asian Currency Portfolio, for example, means you will inoculate yourself against the never-ending debasement of the U.S. dollar (a trend that has been ongoing for generations) by investing in currencies such as the Singapore dollar, Australian dollar, Indian rupee, Chinese yuan and Japanese yen - all of which consistently outperform the ailing greenback as Asia’s rising middle class fuels the growth of emerging-market economies.
There are a number of other countries that offer offshore banking, citizenship and tax haven opportunities.
Parts of South America - Uruguay in particular - can offer a nice golden parachute and soft landing. As Erika Nolan, Publisher of The Sovereign Individual, pointed out on earlier in the week, not only does Uruguay welcome the right people -- and clearly they are coming in steady numbers - it offers a delightful lifestyle and a myriad of real estate and land investment opportunities. At the same time, establishing Uruguayan citizenship is far from onerous.
In the event that life in the U.S. goes pear-shaped, we urge you to protect your future and the assets you have worked hard to accumulate for yourself and your family by going offshore.
Jeff D. Opdyke
Editor, The Sovereign Individual