Our recent message “How Far Can Rule 41 go?” said: In 2016, the US government decided to claim authority over your computer as well. Rule 41 of the Federal Rules of Criminal Procedure, which was proposed by the US Department of Justice, was approved by the US Supreme Court.
This rule allows federal investigators to seek permission from a magistrate judge, in any state, to plant hacking software on a computer that’s… anywhere.
The Justice Department does not even need an elected judge to be this forceful. Magistrates are not elected judges, but are judges appointed to assist district court judges in the performance of their duties (1). They are “Justices of the Peace” who administer criminal or civil justice in minor cases, can act as a notary, administer oaths and perform marriages. In some cases magistrates are not even required to have a law degree.
You can’t hide from US government hacking as US law enforcement has this easy legal path to hack into any computer, anywhere in the world.
This is a Rule… not a Law!
If gaining the ability to hack our computers is a first step, what could a second step be?
Could putting all our monetary transactions on the computer be the second step?
The Wall Street Journal article “The First Money Lesson to Teach Your Children: This Is What a Dollar Looks Like” (1) suggest that society is headed that way… not to use dollars, as we know it.
Imagine a society that does not even know what paper money looks like!
The article says: Growing up in a world where purchases play out in swipes and clicks, some children barely see cash.
“We see them with their cash register and they’re picking up the money and I know they look at it sort of ‘what do I do with this?,’ ” he said. “They’re really not used to it.”
Teaching youngsters the value of dollars and cents is a task that has vexed parents for generations. Now parents face a new challenge: delivering the lesson in a world where children rarely encounter actual money.
Mr. Pantozzi said when a relative presents his 13-year-old daughter with physical cash as a gift, “she’ll be eager to give it to us right away” for quick transfer “so it can be in her account so she knows that she can use it.” She has a bank account that comes with a debit card and tracks how much money is in her allowance through an app.
Retailers notice bewilderment when young customers come into their stores armed with the paper money they have been given for holidays or a birthday.
“Sometimes the kids that are given cash, even the idea that it’s not a gift card is completely foreign,” said Gaetana Schueckler, who has owned The TreeHouse Toy Store in Buffalo, N.Y., since 1996.
For years, one of its top sellers was a toy cash register. The store doesn’t even carry them anymore, since “for kids, it’s not something they see,” said Ms. Schueckler.
Sharon Light’s daughter Orit, age 6, sees physical cash on Mondays when she receives three $1 bills from her parents to divide into jars she keeps for spending, saving and donating—an allowance-distribution system for kids popularized by Ron Lieber’s book “The Opposite of Spoiled.”
An article at fiscal.com “Here’s Why More Stores are Refusing to Take Cash” shows that commerce is already headed that way… towards a cashless society.
All of our money sitting in our legally hackable computer… kids not knowing cash… businesses not wanting it.
The article says: A small number of stores and industries have stopped accepting cash and allow payment only by credit card, debit card or via a smartphone app.
Sweetgreen, a high-end salad restaurant, stopped accepting cash in its New York City stores in January. A Boston restaurant near Fenway Park went cashless this past December. Most airlines stopped taking cash for in-flight purchases of food and beverages around 2010.
The Two Forks chain also does not take cash.
Banks of course are loving it. They make more when purchases go through them! Visa recently offered select merchants a $10,000 reward to switch away from cash transactions.
This s not happening overnight. This is a process as mentioned in the original Rule 4 article that has been pecking away at our privacy for 50 years.
This leaves bank privacy pretty much dead in the US and not great in other countries, but there are still legal ways for Americans to hold bank accounts overseas.
I asked our friends at ENR Asset Management to provide a bit more information on how to bank in Austria. Here is information provided by Eric Roseman and Thomas Fisher of ENR Asset management who I have worked with for decades.
Americans Welcomed Overseas in Austria!
When most investors think of Austria, they think of Wolfgang Mozart, Wienerschnitzel and beer. But Austria is also home to one of the best-managed private banking jurisdictions since WW II. It’s a great destination for Americans looking to establish a second domicile for international private banking and estate planning. Austria, with its close economic ties to Germany, offers a stable economy and is a member of the European Union and the euro-zone.
ENR Asset Management, Inc. is an SEC-registered Investment Advisor based in Montreal, Canada serving almost 400 U.S. investors since 1996. We offer FATCA-compliant investment services for U.S. clients in Switzerland and Austria. We also manage assets in the United States.
The Foreign Account Tax Compliance Act (FATCA) was introduced in 2010 as part of the Incentives to Restore Employment Act (HIRE). The FATCA legislation was a direct response to the 2009 Union Bank of Switzerland (UBS) offshore scandal that revealed a great number of Americans were maintaining large holdings in secret Swiss bank accounts. The legislation is very comprehensive and complicated, and it requires all foreign financial institutions to identify American clients and report directly to the IRS.
If a foreign financial institution fails to comply, it faces a potential 30% withholding tax on all U.S.-sourced payments. Due to these onerous requirements and others, many private banks around the world, including in Europe, decided to shutter their U.S. private banking divisions. Recently, Commerzbank in Germany informed its U.S. clients that they must close and transfer all existing funds out by the end of this year.
In order to better service potential American clients and keep their business ties to U.S. clients, many European private banks have opted instead to work with SEC-registered advisors who maintain close U.S. client relationships at their respective banks. Provided an SEC-licensed investment advisor is tied to all trades and investment recommendations to its U.S. clients, foreign private banks don’t have to secure SEC registration.
ENR offers several value-based investment portfolios, including large-cap value, precious metals and mining, dividend income, foreign currencies and safe-haven investment strategies designed to mitigate market risk.
We also hedge our large-cap growth portfolios, if the market environment dictates reducing risk. Historically, the ENR Global Contrarian Portfolio has protected capital better compared to the MSCI World Index, especially in 2008. ENR’s investment programs are available for taxable and non-taxable accounts in the United States.
Because of the complex setup, most international investment managers have high minimums ranging from $500,000 to $2 million-dollars. However, because of our very close relationship with several foreign banks, we’ve negotiated competitive banking fees that allow us to offer our services starting at $200,000. If a client opts for our currency sandwich portfolio in which we only invest in foreign currencies, then we can offer this service for as little as $100,000.
Clients can also physically store gold bullion in Austria. ENR has long recommended physical gold storage at private banks in Vienna for asset protection and inflation-hedging purposes. Gold stored in Austria is insured by large insurance companies and unlike private vaults, are highly regulated by local securities laws. Austria, in our opinion, ranks among the safest and best domiciles for physical gold storage in an uncertain world.
ENR also provides other services in addition to asset management. These include one of the lowest-cost self-directed or Advisory private bank accounts in Europe starting at just 0.5% per annum. Self-directed European private bank accounts are very inexpensive to maintain and allow the individual the freedom to invest worldwide at competitive rates, including VIP access to online accounts and portfolios 24 hours per day.
US investors can also move their IRA to a European private bank provided a US trustee is appointed, starting at $200,000. We work with Wiener Privatbank Austria and Bank Winter AG Austria administering self-directed IRA as well as actively-managed IRAs in conjunction with Goldstar Trust in Texas, a US trustee required for overseas IRAs. We can also manage 401Ks starting at $500,000 administered by Provident Trust in Nevada and managed at Wiener Privatbank Austria.
You can learn more about the ENR banking alliances on the below link:
You may access downloads on our investment programs and other password protected information on www.enrassetmanagement.com with the following case sensitive keywords:
Please feel free to contact us if you would like to receive our free monthly publication “Market Outlook” or if you would like to schedule a private telephone meeting allowing us to get into to further details about our unique overseas services.
Eric N Roseman
The Only 3 Reasons to Invest
The stock market has always been the best place of places to protect and increase wealth over the long haul. Yet it’s also been the worst place to lose money, a lot of it, quickly.
There are only three reasons why we should invest. We invest for income. We invest to resell our investments for more than we had invested. We invest to make our world a better place.
The goal of investing should be to stabilize our security, bring feelings of comfort and elimination of stress!
We should not invest in social networked protests that guarantee loss. This is like burning our houses down in protest.
If we want to change the world, we should invest in good equities that bring profit and use the extra wealth to create something beneficial for mankind.
We should not invest for fun, excitement or to get rich quickly. We should not divest in a panic due to market corrections.
This is why my core stock portfolio consists of 16 shares and this position has hardly changed in five years. During this time we have been steadily accumulating the same Top Value ETFs and have traded only a few times.
The study below shows how a value based model portfolio that dates back to 1969 has outperformed almost every stock market in the world.
The US market has not been even close to the top performer over the long term.
The DQYDJ Dow Jones Industrial Calculator (1) shows that an investment in the Dow Jones (with dividends reinvested) has risen at an average of 10.74% over the last 50 (51 actually) years.
That’s 10.74% is pretty good, but an analysis of 51 years performance of all the developed stock markets shows that (using country indices as hypothetical investments) investing in the top value (not top performing) markets would have returned 12.5%.
The chart below shows the analysis.
An annual return of 12.5% compared to the 10.74% US return is a 1.76% per annum difference. This may not seem like much,
In the long term the difference is huge. Calculations from the investor.gov site (2) shows that $10,000 invested at the 10.74% compound rate turns $10,000 into $1,817,734.62 in 51 years.
Wow, that sounds pretty good until you look at the results of the 12.5% rates. $10,000 grows to $4,062,362.22!
Investing in the top value (not the top return) markets earned $2,244,627.60 EXTRA!
$4,062, 362.22 means you would have $2,244,627.60 MORE by investing in good value markets versus $1,817,734.62 earned investing in the US market. That almost 125% more money!
Here are the best value developed markets at this time (as of end of March 2021).
No matter how we look at it, over time, value investing always wins!
Our portfolio is built around a strategy that’s taught in my Purposeful Investing Course (Pi). I call these shares my Pifolio. The course shows how to use the value analysis of Keppler Asset Management to create a portfolio of ETFs that cover undervalued stock markets. I have combined my 50 years of investing experience with the study of the mathematical market value analysis of Michael Keppler, CEO of Keppler Asset Management.
In my opinion, Keppler is one of the best market statisticians in the world. Numerous very large fund managers use his analysis to manage billions of dollars in funds. However because Keppler’s roots are in Germany (though he lives and operates from New York) all of his funds are registered for the European Union citizens, Americans cannot normally access his data.
I was lucky to have crossed paths with Michael over 25 years ago, so I am one of the few Americans who receive this data so I can share it with Pi subscribers.
The Pifolio analysis begins with Keppler’s research that continually monitors 46 stock markets and compares their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return. Keppler looks at these numbers and takes market’s history into account.
Michael Kepler CEO Keppler Asset Management.
Michael’s analysis is rational, mathematical and does not worry about short term ups and downs. Keppler’s strategy is to diversify into an equally weighted portfolio of the MSCI Indices of each good value (BUY) markets.
This is an easy, simple and effective approach to zeroing in on value. Little time, management or guesswork is required. You are investing in a diversified portfolio of good value indices.
A BUY rating for an index does NOT imply that any one stock in that country is an attractive investment. This eliminates the need for hours of research aimed at picking specific shares. It is not appropriate or enough to instruct a stockbroker to simply select stocks in the BUY rated countries. Investing in the index is like investing in all the shares in the index. You save time and gain incredible diversification because all you have to do is invest in the ETF to gain the profit potential of the entire market.
To achieve this goal of diversification the Pifolio consists of Country Index ETFs.
Country Index ETFs are similar to an index mutual fund but are shares normally traded on a major stock exchange that track an index of shares in a specific country. ETFs do not try to beat the index they represent. The management is passive and tries to emulate the performance of the index.
A country ETF provides diversification into a basket of equities in the country covered. The expense ratios for most ETFs are lower than those of the average mutual fund so they provide diversification and cost efficiency.
Here is the Pifolio I personally held at the beginning of 2021. There have been no changes since.
70% is diversified into Keppler’s good value (BUY rated) developed markets: Germany, Hong Kong, Italy, Japan, Norway, Singapore, Spain and the United Kingdom.
30% of the Pifolio is invested in Keppler’s good value (BUY rated) emerging markets: China, Brazil, Chile, Colombia, South Korea, Malaysia and Taiwan.
There is one trick Pi subscribers learn about China which is different from the rest of the funds.
iShares Country ETFs make it easy to invest in each of the MSCI indicies of the good value BUY markets.
For example, the iShares MSCI Germany (symbol EWG) is a Country Index ETF that tracks the investment results of the MSCI Germany Index. The fund invests at least 80% of its assets in the securities of its underlying index that primarily consists of all the large-and mid-capitalization companies traded on the Frankfurt Stock Exchange.
iShares is owned by Black Rock, Inc. the world’s largest asset manager with over $4 trillion in assets under management.
There is an iShares country ETF for every market in our Pifolio.
This year I celebrate my 53rd anniversary of writing about global investing. Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades. This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.
How you can create your own good value strategy.
Stock and currency markets are cyclical. These cycles create extra profit for value investors who invest when everyone else has the markets wrong. One special part of your course looks at how to spot value from cycles. Stocks rise from the cycle of war, productivity and demographics. Cycles create recurring profits. Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.
The effect of war cycles on the US Stock Market since 1906.
Bull and bear cycles are based on cycles of human interaction, war, technology and productivity. Economic downturns can create war.
The chart above shows the war – stock market cycle. Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine, production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet. The military technology shifts to domestic use. A boom is created that leads to excess. Excess leads to correction. Correction creates an economic downturn and again to war.
Save $124.50 If You Act Now
Subscribe to the first year of The Personal investing Course (Pi). The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking that down to $174.50 in this special offer. Plus I am reducing annual renewals from $299 to only $99.
I would like to send you, on a no risk basis, a 130 page basic training course that teaches the good value strategy I use. I call this strategy Purposeful Investing (PI). You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.
You get this course when you enroll in our Purposeful Investing program (Pi) with a triple guarantee.
Enroll in Pi. Get the 130 page basic training, a 46 stock market value report, access to all the updates I have sent in the past five years right away, plus numerous updates over the next year.
#1: I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy diversified investing.
#2: I guarantee to send you monthly updates that are based on a study of every share in 46 stock markets around the world. These updates will show the values, the earnings of all these markets and categorize each market as Top Value (buy), Neutral Value (hold) or Poor Value (sell)
#3: If you are not totally happy, simply let me know. I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.:
You have nothing to lose except the fear. You gain the ultimate form of financial security as you reduce risk and increase profit potential.
When you subscribe to Pi, you immediately receive a 120 page basic training course that teaches the Pi Strategy. You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.
You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last five years so you can back track if you desire. Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.
Subscribe to a Pi annual subscription for $174.50 and receive all the above.
Your subscription will be charged $99 a year from now, but you can cancel at any time.