Other recent
entries in this blog:
28 October 2008
Why the Financial Crisis Doesn't Really Matter
Well I needed an attention grabbing headline! Maybe I’m exaggerating
a little if I say it doesn’t matter. No disrespect to the many financial
services professionals who read this blog. What I really wanted to say, is that
it’s time to take a step back and look at the bigger picture. Does it
have to matter to you? Do you want it to matter?
For weeks now we’ve been glued to our screens, watching the latest news,
share prices, currency rates and so on. In this article I want to suggest a
different approach. It took me a long, introspective walk on the beach last
week to figure this one out, and now I will run it by you.
It’s easy to get drawn in by mass media hysteria. That’s what happened
to me as the bailout plans unfolded. But at the end of the day, why get stressed
by things we can do nothing about? Let me restate two facts we all know already:
- The market is no longer free, nor is there even any pretence of a free market
economy. A huge part of the global financial system is now in hands of governments.
Apart from the obvious intervention (bailouts) you don’t have to be
a conspiracy theorist to see there are lots more political factors playing
out behind the scenes. Lots of special interest groups. Lots of infighting.
- The media is in business to make news. There was a time when reporters
reported. Now, they don’t. They take stories from the internet and rewrite
them, changing them a little so as not to stand accused of plagiarism.
It would be hard for anyone to dispute these two facts in isolation. The conclusion
I draw from these two facts combined is that it is simply not worth participating
in the financial markets anymore – not unless you happen to be a central
bank, maybe.
What we need to do is concentrate on living. During that walk on the beach,
I thought back to some decisions I made years ago. They have stuck with me and
served me well ever since. I decided I wanted quality of life – a healthy
life with friends and family. Time to do things I believed in, that pleased
me. In other words – I wanted to be in control of my life.
That is why, back when I was a business student in London in the early nineties,
I didn’t jump on the bandwagon and apply for a job with a big American
investment bank. I knew a lot of people who did, and sure they made a lot more
money than I did. But their lives didn’t seem to me to be complete. Or
maybe it just seemed too much like hard work for me.
That’s why now, I don’t want to be a slave to the TV and the endless
market watching sites. If I can’t do anything about it, I might as well
look for better things to do with my time.
When times look tough, the Americans talk about ‘heading for the hills.’
I headed for the beach in Latin America, with a few stopovers in European cities
on the way. And I’ve never regretted it for a moment.
Now, just in the last few weeks, I’ve talked to a lot of people who have
been dreaming for years about a “new life offshore” but now they
are really taking concrete steps towards that goal. It is really possible to
live better, live healthier, at lower cost, make money using the internet, and
– best of all – you can hedge against the effects of the financial
markets in a way that you would never achieve with even the most sophisticated
derivative!
Maybe now is really the time to do something about it, if you are one of those
people. If the financial situation is pressuring you, it could be time for that
radical change you have been putting off. Don’t doubt your abilities.
Grab your spirit of adventure, stop gambling on rigged markets, and move yourself
offshore!
If you are interested in this topic, I’ll be addressing more specifics
of how to achieve this in my blog entries here over the coming weeks. I’ll
also talk about more recession-proof investments and businesses you can start
from scratch – all in a low tax environment of course! No promises as
to specific dates, but I will certainly cover this topic more! And if you would
like to investigate this through a more in-depth approach (i.e. peek ahead),
you can read articles in this vein by myself and others at www.QWealthReport.com
Peter Macfarlane is joint editor of The Q Wealth Report an established newsletter
dedicated to informing readers about creating, protecting and growing wealth
in a secure offshore environment. It also covers international living, banking,
retiring and investing. Visit www.QWealthReport.com
to see more.
14 October 2008
The British Government’s ‘Ill Considered’ Use of Anti-Terrorist Financing Legislation against Iceland and the Wider Implications
Financing Legislation against Iceland and the Wider Implications
Bloomberg
reports that legislation originally drafted with the supposed intention of preventing
terrorist financing has been used by the UK government to seize around £4
billion from two Icelandic banks.
In what a Financial Times op-ed described as an 'ill-considered invocation
of anti-terror laws' the UK Treasury seized assets worth about £4 billion,
amongst them UK bank Singer and Friedlander (also a major offshore bank through
its Isle of Man subsdiary) which was owned by Icelandic bank Kaupthing. This
pre-emptive move, claim the Icelanders, was actually what precipitated Kaupthing's
failure, as loan covenants on the British subsidiary were activated.
What do we learn from this? Iceland went in about a week from being a small,
respectable Western European nation that nobody much thought of, to being brought
to its knees and having it assets seized under anti-terrorism laws! We've heard
of private individuals being wrongly accused and having their assets seized.
Now we see Western banks and indeed whole economies getting the same treatment.
Press coverage shows a British population apparently unconcerned by this misuse
of laws, and indeed the moves to protect creditors seem to have broad public
support. It seems to me to be a typical case of the ‘end justifying the
means’ – a worrying precedent when the means is anti-terrorist laws
- some of the most draconian, controversial legislation passed in recent years,
a grave threat to civil liberties in the UK and overseas, and something that
is always foisted on us ‘for our own good.’
The Icelanders may have made some bad business decisions, but we can hardly
blame this tiny economy for the world financial crisis. Maybe it is right for
the UK government to protect British creditors by seizing assets – though
the British public should also be encouraged to understand that investing in
hitherto-unknown foreign banks can be risky. Due diligence works both ways –
it’s not just something banks should do on their clients.
But what is really wrong is the use of legislation that was designed to protect
against terrorist financing. Now, how can we believe British government claims
that provisions such as longer detention without trial in terrorist cases will
not be used in crimes that have absolutely nothing to do with terrorism? Is
the whole ‘war on money laundering’ a farce… or does it have
ulterior motives? Are drugs and terrorism really the reasons for the burdensome
bureaucracy imposed on banks these days, or is it really about protecting the
Treasury’s revenues? And if so, why can’t they at least be honest
about it?
Expect to see things like this repeated with greater and greater frequency.
You need to take action to protect your assets and your family. This may be
an uncomfortable thought, but if you research this matter further and open your
mind to what is going on, you will be in a much better position to come out
of this crisis with profits.
If you would like to discuss this with myself and colleagues in person, you
can meet us in Panama next month, the week after the US election. Otherwise,
watch this space!
P.S. I have set up a page on Twitter, at which you can see my tweets –
very short commentaries of 150 characters or less. Check http://www.twitter.com/qwealth
Peter Macfarlane is joint editor of The Q Wealth Report an established
newsletter dedicated to informing readers about creating, protecting and growing
wealth in a secure offshore environment. It also covers international living,
banking, retiring and investing. Visit www.QWealthReport.com
to see more.
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Latest
25 entries from all other blogs:
09 November 2008
A Keynesian Vacancy The IMF Can't Fill
02 November 2008
You Can't Escape; Resistance is Futile
26 October 2008
Is Oil Cheap?
19 October 2008
Tax Harmonization Is Coming!
12 October 2008
How To Commit Collective Financial Suicide
04 October 2008
Thank You, Mr Paulson
22 September 2008
Scam Busters: Second Citizenship and Passport
07 September 2008
EU Defeated By Bean-Counters
05 September 2008
Offshore Banking: Failure to Open a Bank Account
31 August 2008
A New Lord Of Taxation
20 August 2008
Blacklisted Offshore: Private Consultant's Opinion
17 August 2008
Alphabet Soup
10 August 2008
Taxpayers: 1; India 0
07 August 2008
While Offshore Banking Giants are in Trouble
03 August 2008
It's All The Fault Of The Speculators
27 July 2008
Don't Play Poker With Uncle Sam
25 July 2008
Is Dominica Good for Your Offshore Business?
20 July 2008
'I Love Tax' - Anonymous Offshore Banker
09 March 2008
Goodbye To Privacy
20 February 2008
Panama Today, Tomorrow And Always
03 January 2008
Another Nail In The Currency Coffin
02 December 2007
Please Turn Out The Lights As You Leave
19 November 2007
Hands Off The Poor, Starving Tax Lawyers!
28 October 2007
The Death Of Corporation Tax
07 October 2007
How To Learn To Love Accounting Standards
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