Thursday, August 18, 2011

Texas as a Safe Haven Nation, Magnet For Wealth Preservation 2

by Russell D. Longcore

(Editor’s Note: Previous article updated.)

The famous (and very accurate) trend watcher Gerald Celente has written about the concept of Safe Haven Nations (SHNs). A SHN is simply a sovereign nation that has implemented laws that protect the wealth and privacy of individuals, and is a place to which people could relocate.

Wealthy people worldwide are constant prey for rapacious predator governments. They are easy targets, since most everyone wants to be a wealthy individual, but many who are not wealthy resent them. And, with predictable regularity, governments create class warfare and class envy, so the lower class supports the government’s efforts to confiscate the assets of the wealthy class.

Wealthy people worldwide are also on the lookout for venues where they can store their wealth securely. Used to be that Switzerland was the “gold standard” of wealth preservation and privacy for the world. But recently, the US and EU governments went after the Swiss, and Swiss bank UBS agreed to disclose the identities of nearly 5,000 American citizens who have secure bank accounts in Switzerland. My understanding is that this disclosure violates Swiss banking law, but they are doing it anyway.

Wealthy people are often willing to relocate to another nation when they are forced to save their own lives. Sometimes, the wealthy have to leave mansions, bank accounts and other assets behind in a predator nation just to save their own skin. Recall Captain Georg von Trapp and the movie “The Sound of Music.” They did not actually walk out of Austria to escape the Nazis, but fled to Italy by train. But ask others from Vietnam, Iraq, Germany, South Africa and Rhodesia (Zimbabwe) about leaving with nothing but the clothes you are wearing.

In the event of a complete collapse of the dollar and the financial tsunami that will wash over the world, immigrating to a new country may be quite difficult, perhaps even impossible. Predator nations will do everything that they can do to prevent capital flight and may even prohibit emigration. Borders may seal tight and travel may be severely restricted.

Texas secession and the formation of a New Texas provides an historic opportunity for Texas to become the newest and most secure Safe Haven Nation. The people who will craft the new constitution for a New Texas should look to the banking and privacy laws of the nation of Lichtenstein for a template.

Nations like Panama are attracting wealth from all over the world. Others are:

Hong Kong
The Bahamas
Cayman Islands

Panama had superior privacy laws until 2010, when Panamanian President Ricardo Martinelli bowed to Washington’s pressure and entered into a tax treaty with Washington.

The problem with the list above is expatriation. These are islands and entities of small geographic size. Many have very restrictive immigration laws. So, they are limited on how many people they could allow to emigrate to their shores. Texas, however, is immense. And with an immigration policy based on the free market, could become a worldwide magnet for wealth and wealthy individuals.

Immigration law will have to be enacted that offers a procedure for an expatriate to either gain dual citizenship or individual citizenship through a fee arrangement.

The New Texas should create a single source of taxation for the new nation...the Sales Tax, set in the new constitution no more than 10%, only changeable by referendum. No property tax. No Capital Gains tax. No inheritance taxes, No ad valorem tax. No tariffs. Everyone that spends money in New Texas pays the sales tax...from Little Johnny buying a pack of Watermelon Bubblicious to the largest commercial transactions. Details another time.

If a New Texas has no income tax, no inheritance tax and no capital gains tax, that will be a good start. But it will need to go further to attract wealth from all over the globe as a Safe Haven Nation. Banking law will need to protect the identity of anyone depositing assets in Texas. Texas will also have to refuse to enter into tax treaties with other nations, and then withstand the enormous pressure they bring to bear to comply.

Tax fraud is misleading a taxing entity and should be illegal. Tax evasion is the failure to declare assets, and is open to interpretation these days. Tax avoidance uses lawful means to minimize the amount of tax paid to any taxing entity. Many nations wish to blur the lines between tax evasion and tax avoidance. Texas should promote tax avoidance while offering absolute secrecy for individuals and corporations.

Texas should also create a constitutional law that provides for corporations to have bearer shares and no-par-value shares, as well as to operate with one director, who may also be the secretary, and who may reside outside of Texas. While annual meetings may be held anywhere, a registered office and agent must be in Texas, but no information concerning shareholders or directors needs to be disclosed. The minute book, resolutions, seal and shareholder register must be kept at the registered office. Most SHNs have these laws already.

If you are seeking a Safe Haven nation, you might consider moving your wealth and your family to Texas now. Texas as a US state is the leading economic engine of the USA. Very pro-business, very independent. Lots of wealth already there. If any state of the Union is going to successfully secede, my money’s on Texas.

If you see the writing on the wall in your country (or state), and know that you must expatriate to a new country, the time is NOW to begin preparations. Your plans must be in place and executed before a meltdown in your country or state occurs. After the meltdown, it might be too late. You may become an inmate of Prison Planet.

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

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