Democratic Capitalism

by | Jan 10, 2008 | Archives

Democratic capitalism has proven to be the best economic model for improving the material values of mankind.

History has shown again and again that the best way man has discovered to date to increase material standards is to let, what Adam Smith described as the “Invisible Hand,” guide the market. Let people decide what they want…what they will pay and let their activity and trade move things along.

At the core of this process…the essence that makes this social interaction work. is property protection.

In short Capitalism works because people will work really hard to improve their lives by serving others…if…they feel secure that they can keep the fruits of their labor.

However, pure, unfettered Democratic capitalism is rare.

Governments…monopolies…old boy’s networks get in the way. Artificial rules…regulations…restrictions are often formed inhibit and restrict the smooth flow of commerce.

This is why democratic capitalism has been the winning model. Democracies allow the populace, who are the market to maintain the balance of power.

The United States of America has been a good example of this as it grew around a system that recognized that life would be perfect if there were no criminals. Without criminals we would not need police or security or any expenses of protection.

Yet the system recognized that there are criminals everywhere. on the streets…in business…even in government. So the constitutions created a system that balanced power…hammer…scissors and paper via the democratic process.

Yet both economic and democratic systems continually slip out of balance.

Free markets regain stability with interest rates, employment and change in supply and demand. Democratic systems regain stability when voters get fed up and “throw the bums out.”

For example in the US there are currently some imbalances. There are numerous property protection worries that investors and business face.

Tort law for example may be enough out of balance that businesses are afraid to invest due to potential litigation worries. The ability of local governments to confiscate property for commercial development in the name of imminent domain is another American property protection concern. Plus the loss of privacy due to anti terrorism regulations makes many businesses afraid…especially because this one gets hidden…if there are criminals in the government they can hide their crimes behind the curtain of “national security.”

I have few doubts that American voters will eventually rebalance this situation. The recent criminal investigation of certain CIA actions may be an example. The thumping of the old and support of the new at the Iowa primary may be another.

In the meantime one must do as much as they can to protect themselves from these property protection imbalances.

This is why I decided to advertise Mark Nestmann’s book. “The Lifeboat Strategy: Legally Protecting Wealth and Privacy in the 21st Century”

I have known and worked with Mark Nestmann for about twenty years. He is the expert when it comes to privacy.

Mark recently sent me this note:

“Bankers or broker will never tell their customers, but every transaction that is conducted through a US bank or broker creates a secret financial profile of THE CUSTOMER.

“The USA PATRIOT Act and similar laws require banks, brokers, car dealerships, jewelers, and many other businesses to spy on THEIR BUYERS.

They monitor purchases, sales, deposits, withdrawals, and credit card transactions-virtually every financial transaction made.

“If the software these businesses MUST use to spy triggers a “guilty account” alert, THE CUSTOMER will never know it. The law makes it a crime to tell customers if they are under suspicion. The first clue anyone has that something is wrong is when their assets are frozen or confiscated.

One mistake-withdrawing too much cash, writing a check to the “wrong” person, etc.-and anyone could be the next victim.

The all-new third edition of THE LIFEBOAT STRATEGY, updated in October 2007, can help identify-and avoid-“suspicious transactions.” It also alerts to hundreds of other threats to wealth and privacy, and tells how to deal with them.

Mark’s website says:

“In 2006 alone, more than nine million Americans had their identity stolen and approximately two million were sued.

And that’s just the beginning of the threats you and your wealth face…threats of an intensity that would have been unimaginable only a few short years ago.

There are 13 types of public records-available to anyone-that can be used to steal your identity.

There are web sites that permit anyone curious about your financial affairs to instantaneously identify any assets you own.

There is “Data mining” software to analyze your personal and financial affairs to determine your credit-worthiness-but also made available to the government (without a warrant) to determine if anything you’ve done is “suspicious.”

Laws like the USA PATRIOT Act permit your privacy to be invaded and your property to be confiscated without proof of wrongdoing.

But when it comes to dealing with these threats, you’re on your own. Big Business and Big Brother want to keep you and your wealth in plain sight, to be profitably tracked and conveniently seized.

But you CAN fight back. it’s perfectly legal to create international “lifeboats” of wealth and privacy that are practically invulnerable to snooping or confiscation. And The Lifeboat Strategy shows you exactly what you need to do to counter today’s threats to wealth and privacy.

Here’s a glimpse of what you’ll learn in this book:

How privacy and wealth are lost:

13 types of public records-available to anyone-that can be used to steal your identity.

Your “right to silence” is much narrower than you might think.

Five ways businesses and the government use “data mining” to learn about your interests, sources of income and lifestyle.

How “mail covers” strip away the privacy of first class mail.

The 10 most important electronic eavesdropping threats.

Your telephone dialing records have almost zero legal protection.

The giant hole in “caller ID blocking.”

The secret global network that monitors all international telecommunications.

There are over 3,000 federal criminal statutes, including more than 200 offenses for which your property can be seized, often without a criminal conviction. Are you unknowingly violating any of them?

Do you fit the definition of a “terrorist?”

Tax avoidance vs. tax evasion-how to tell the difference.

Six ways government agencies can seize property, without convicting you of a crime.

If you fit any of these 40 “profiles,” your assets can be seized.

Are you a “racketeer?” If you’ve ever made this simple mistake, you probably are withdrawing lawful cash from your own bank account in ways that can land you in jail.

Emergency powers that permit the government to freeze assets, close securities markets and more.

How to preserve privacy and wealth:

Seven legitimate ways individuals and businesses use offshore centers.

The single most important strategy to maintain privacy.

Two vital precautions to avoid lawsuits.

23 strategies to prevent identity theft.

What to do if police want to search you, your vehicle or your home.

When to use cash, and how to avoid looking like a “money launderer”.

10 ways to preserve postal privacy.

Six tactics for private phone service.

How to obtain insurance privately.

Your private driver’s license.

Eight ways to achieve “residential anonymity.”

22 tactics to audit-proof your tax return.

Nine tips for private banking.

The best private tangible investments.

Five hiding places for your valuables.

The state with the strongest attorney-client privilege laws.

An ideal business for privacy seekers.

19 ways trusts protect privacy and wealth.

Using corporations, limited liability companies and other business entities

Three types of international bank accounts-which one is right for you?

An anonymous safety deposit box.

How to move money privately.

How to invest internationally in your IRA or pension plan.

U.S. laws for foreign asset reporting-and three strategies to legally avoid them.

Using offshore insurance policies for privacy, asset protection and tax avoidance.

Offshore trusts: unsurpassed for asset protection.

How to structure offshore businesses to legally defer profits from U.S. taxes.

The nine best jurisdictions for investing and doing business offshore.

Six strategies to avoid offshore scams.

You can order this book from Mark for $95 at

Until next message may all your checks and balances be good.


Join Merri and me in Sunny Ecuador this winter. Here are a series of photos from our friend, Dennis Goff.

Enjoy the beauty of the countryside.

Jan. 18 – 23 Ecuador Spanish Course

Jan. 24-25 Imbabura Real Estate Tour.

Jan. 18-23 Spanish Course & RE Tour and Jan. 24-25 2008 Imbabura Real Estate Tour Two course savings

Feb. 18-23 Ecuador Import Export Course

Enjoy the wonderful crafts markets.

Mar. 7-9 International Investing and Business Made EZ Ecuador

Mar. 10-11 Imbabura Real Estate tour

See beautiful property in our area for sale.

Mar. 12-14 Coastal Real Estate tour

Enjoy Ecuador ’s beach resorts. Here is the spa where will stay on the beach.

View from the spa.

Mar. 7-9 IBEZ and Mar 10-11 Imbabura Real Estate tour

Mar. 7-9 IBEZ and both real estate tour

Most delegates in March will join us for two or three courses as there is a sizable savings.

If you attend all three courses separately the fees are $1,847. Sign up for all three at only $1,499 here. Save $348. Three course savings.

Three courses for two separately are $2,597. Two on our three course adventure is only $1,999. Save $598. Three courses savings for two.