Your Country is Dying... And It Wants To Take You With It
We are nearing the end of the grand experiment in nation-states, democracy and socialism. In case you hadn't noticed, it failed miserably. Hundreds of millions were killed in wars engendered by nation states and made possible by fiat currencies and countless more were impoverished by the central banks instituted by the state. Riots and protests around the globe from Rome, to Egypt to nearly every major city in the US now attest to that.
Countries, however, are like living organisms and they will do almost anything to stay alive. They have always treated their tax-slaves (citizens) as milk cows and they will treat them as beef cows if worse comes to worse.
It is for this reason that it is more important than ever to both understand what is really going on - hint: whatever the government or what the newsreaders on your nightly news say is not what is really going on. It is also more important than ever to begin to protect yourself from your own government.
Having A Second Passport Gives You Options
Last year I got a call from an online brokerage I use in Luxembourg called Internaxx. After having had an account with them for a few years they called to let me know they'd be closing my account immediately.
I asked the obvious question: Why??
The lady replied that Internaxx had recently been bought out by a Canadian brokerage, TD Waterhouse, and since I was registered with Internaxx as a Canadian citizen (I was born in Canada and have a Canadian passport) that Canadian laws state that no Canadian stock brokerage can accept a Canadian client when it is operating outside of the country!
So, even though I thought I was safely away from the criminal Canadian Government's rules and regulations in Luxembourg, all it took was for a Canadian company to buy that brokerage and all of a sudden I was persona non grata.
Luckily, and smartly, for me, I have another passport and so I said to the lady, "I am also a citizen of XXX country, could you unregister me as being Canadian and put me down as being from that country?"
She said yes. So, I didn't have to go through the hassle of moving my account elsewhere. But, it just goes to show the benefit of having alternative citizenship - preferably in a country that does not have the resources nor the ability to police you around the world.
Sure, this time they were only looking to close my account. But, with all western governments drowning in debt, the next time it could be to impose an asset tax or even to seize my assets.
Goldmoney Closes Dutch Accounts
Recently, a similar thing happened to Dutch citizens who held money or gold with Goldmoney.com in England or Switzerland.
Goldmoney.com sent a notice to all of its Dutch clients stating that their accounts would be immediately closed because the Netherlands financial regulator had deemed Goldmoney.com was "offering investment objects in the Netherlands without a licence."
A licence, for those that don't know, is a form of extortion done by criminal organizations such as governments or mafia to get you to pay for something you don't need nor want.
Nonetheless, Goldmoney.com felt obligated to close all the accounts for Dutch citizens instead of facing the wrath of the Dutch Government.
Again, it was only to close accounts this time. But as things continue to collapse you will want to have options with other passports in order to evade the attempts by your own government of seizing your assets.
A Second Passport Is Mandatory For Safety
We consider holding at least one other passport as important as any other facet of your financial portfolio for the coming years. Leaving yourself at the whim and control of one government, especially if it is one of the heavily indebted western governments (which is almost all of them), is tantamount to playing russian roulette with your assets.
It is for this reason we recommend that people look to get at least one other foreign passport - and preferably from a government that is not intricately tied to the western financial system nor heavily indebted.
For this reason we have identified two countries which not only offer a passport without you having to live there but also offer it for very cheap by international standards. It takes about three years to get each but you will have residency nearly immediately after your first application which could help you organize your assets in the meantime.
The two countries we prefer and have covered heavily in The Dollar Vigilante for subscribers are the Dominican Republic and Paraguay. We have set-up a custom service to help get you a passport in either of those regions as quickly and easily as possible. You can find more info on the Dominican Republic passport service here and the Paraguay service here.
No Income Tax And Other Benefits Of Foreign Residency & Citizenship
Of course, having foreign residency and citizenship can have many other benefits as well.
For those who earn income over the internet or from outside of your home country attaining foreign residency could reduce your income tax dramatically, even to zero if you set it up properly. Paraguay, as example, has no income tax. And the Dominican Republic only charges income tax on income made in the Dominican Republic. Check with a tax advisor before making any decisions but residency in locales such as these can possibly save you a lot in taxes - all legally.
As well, should you wish to leave your country and reside somewhere for an extended period, having your residency or citizenship in a foreign country makes it all the easier. The Dominican Republic and Paraguay are both civilized, modern, beautiful places to live.
It's All Happened Before
Preparing now for what is obviously coming only makes sense.
It's not like any of this is new. The US Government forced Americans to turn in their gold to the government in 1933. In Ireland they have begun charging an annual "asset tax" on all pensions. And, in Hungary, some pensions were already seized and forced to invest in government bonds. This is the likely tact of the US Government in the near future as they begin to run out of creditors other than the Federal Reserve. They will likely look first to nationalize 401k's and IRA's and force them into buying government "patriot bonds"... for the greater good, of course.
Better Safe Than Sorry
We think the phrase, "better safe than sorry", is widely overused (see "Being Better Safe Than Sorry") but in this particular instance we think it is wiser to take precautions than to leave everything up to chance.
If the western financial system implodes in an organized and structured manner then it may turn out that having a foreign passport wasn't a necessity. However, if it implodes in a chaotic way - which is the way these systems always collapse - when the time comes that some countries institute capital controls and begin to seize their citizens assets you will be very thankful that you took a small amount of time and money to set yourself up with a second citizenship whereby you have a much better chance of protecting your assets from your own government.