More Danger

by | Mar 7, 2003 | Archives

Here is a Swiss portfolio recommendation and reasons why we might want to hold assets abroad.

Holding assets outside the U.S. may become increasingly important. Here are just a few reasons why.

One reason for a recent visit to Prince Alfred von Habsburg Hohenberg and Col. Ottomar Herrmann (see last Tuesday’s message) was that both these men lived in Germany when the Nazis took over.

This is the prayer that Col. Herrmann uses at the beginning of each the trainings of his Lipizzan stallions. “Our Father, we are gathered here may we all be conscious of the freedoms that have been endowed upon us. How wonderful to come together without being guarded or confined in our activities. We as citizens of a free nation have the freedom of speech, freedom of assembly, freedom of press and freedom of our religious belief. May we be humble in the privileges that are ours, may we guide our youth in the steps that will make us a proud nation.”

I realized how much these men who have been through the loss of freedom love the U.S. and so I wanted to get their opinions of what is happening. I wanted to ask them if they still feel free (they say they do).
But I cannot help being concerned that our freedoms are slowly but quietly being removed along with our financial well-being. Consider these facts to see what I mean.

From a recent issue of the Naples Daily News, an Associated Press article says:
“Feds may apply anti-money laundering rules to automobile dealers, jewelers and travel agents. The Treasury Department’s Financial Crimes Enforcement Network is considering applying rules that may require car and boat dealers and travel agents to adopt comprehensive plans to combat money laundering and take certain steps to verify the identity of their customers they do business with.  The department has already adopted similar requirements for banks, credit card companies and a host of other companies.”

The Bradenton Herald AP Feb 28 story says:

“Airport checks to review backgrounds.  The government is getting ready to test a new risk detection system that would check the background information and assign a threat level to everyone who buys a ticket for a commercial flight.  Delta Air Lines will try it out at three airports beginning next month and a comprehensive system could be in place by the end of the year.  The article says that a nationwide system will check such things as credit reports and bank accounts.”

Maybe all this data will be used properly. Yet when has a government not abused the personal information about its citizens, even in the U.S.? We do not have to look back far (try the McCarthy era) to see this.

Of course in the U.S. we also have excessive lawsuits to worry about as well so holding assets outside the country where we live simply adds one more layer of asset protection and makes ever increasing sense to me.

Plus we get such an expanded global investing view when we listen to banks abroad as well as to those in our own country. The U.S. dollar is crashing so it is more important than ever to know bankers who understand multi-currency investing.

All Content Copyright Gary A. Scott 1968-2006 (unless stated otherwise)