A-letter & Lunch Date by munificent Blog entry

Blog: Cold Water Blog
by munificent

A-letter & Lunch Date

Yes, Yes, Yes, I love it, I am inhog heaven- let's DO LUNCH-

Date: 11/17/2005 9:11:24 PM ( 19 y ) ... viewed 2328 times

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Thursday, November 17, 2005 - Vol. 7 No. 232
In This Issue:
* COMMENT: War, Revolution, Devaluations, Trade Deficits, & Extended Families: Reasons Abound to Look Offshore.
* OFFSHORE: OECD Strikes Out.
* WEALTH: Inland Revenue in Your Bedroom?
* PRIVACY & RIGHTS: RFID Passport Dangers.
War, Revolution, Devaluations, Trade Deficits, & Extended Families: Reasons Abound to Look Offshore

Comment again today is by JUSTIN FORD, publisher, editor and writer of newsletters on global investment, including his own letter on business and investment in China. Justin reported for us from Panama City last May during our Annual Sovereign Society Offshore Opportunities Conference. After the debut in Japan of his book Seeds of Wealth last week, he joined us in China for the Sovereign Society Far East Investment Tour, now coming to a close in Hong Kong.

Dear A-Letter Reader:
Hilda is a supremely talented tour guide who has accompanied us on our Far East Financial Expedition through Beijing, Shanghai, Hangzhou and Hong Kong. She is a Chinese American who runs a successful business and owns an immensely expensive home in California (that she bought years ago). And it's all because her grandparents -- all nine of them -- had the wisdom to look offshore some 56 years ago.

Let me explain...

Hilda's paternal and maternal grandfathers were successful men in China in the first half of the 20th century. One was a doctor, the other a businessman. One had four wives, the other, three. Success had its privileges in pre-Communist China. And it was all very civilized. The wives would often help and look after each other and each other's children.

Then along came Mao. His revolution promised an end to successful businessmen...an end to independent physicians ...and an end to polygamy...

So, in the 1930s, Hilda's granddads, 7 grandmothers, and countless kids in tow, fled to Hong Kong. But by 1941 it was time to look offshore again. In December of that year, the Japanese would invade and occupy Hong Kong.

Hilda's maternal grandfather escaped to America with two of his four wives and a slew of kids. Today, he is 94 years old, lives in San Francisco and his heirs are prosperous and safe. Would that her paternal grandfather had enjoyed a similar, happy fate.

But Hilda's paternal grandfather, Mr. Chen, was stuck in Hong Kong. Fortunately, he was resilient and resourceful. He managed to keep his family safe and even prospered during the Japanese occupation. But when the British liberated Hong Kong in 1945, he found that the considerable stash of Japanese currency he kept under his bed was suddenly worthless. The sudden loss was too much for the aging Mr. Chen. He suffered a heart attack and soon died. (Fortunately, he had accumulated enough non-paper assets to support his heirs for 20 years thereafter. But the bulk of his wealth had been tied up in paper assets that became worthless almost overnight.)

This is a true story. It fascinated me when I heard it yesterday. But I was amazed even more when I then learned that Hilda's story isn't unique among our band of travelers...

More Beneficiaries of Offshore Legacies

C.J. is a Sovereign Society member who was born in China. Today he is revisiting places he first saw as a boy -- before his family fled mainland China for the Hong Kong in 1949 and then the US in the 1960s.

And then there's Jerry, a Sovereign Society member from Canada of Russian descent. His step grandfather owned a liquor store in Moscow that he didn't want to give up to Lenin or the state. So in 1922 he took his five children and fled to Harbin, in the north of China. Here, he met Jerry's mother. She was also a Russian refugee and she also had five kids. They wed...and they fled...to Canada.

In an effort to open the country at that time, the Canadian government was offering land in central and northern Alberta to settlers. Every man could homestead a quarter section (160 acres) for himself and for each of his male children. They would then get clear title to the land by clearing 17 acres a year of each quarter-section for five years.

They felled trees, built log cabins, farmed the land, and fished and hunted on it. Jerry's stepfather also worked as a blacksmith and later a machinist. When they needed something, they would build it or trade for it. It was opportunity, free enterprise and hard work. And it paid off. After a few years, Jerry's step-granddad purchased more land and ultimately became a gentleman farmer.

One of the morals of these stories, I guess, is that it pays to be able to go offshore when things get tough in your hometown. Not only for yourself, but perhaps also for your family for generations to come.

One of the speakers on our Far East Financial Expedition can also attest to as much...

The Tale of the Taels-and Why You May Want to Have at Least Some Gold and an Offshore Bank Account

Michael Checkan is a member of The Sovereign Society's Panel of Experts and a 38-year veteran of the foreign exchange and precious metals markets. In 1975, Michael found himself at Eglin Air Force base in Florida. The firm he was working for had been contracted by the US government. Their job was to help Vietnamese refugees access whatever assets they could that still had any value, and convert some of these assets into US dollars.

Some refugees brought gold. They converted what they needed so they could start their lives in the States with coin of the realm. Others had offshore bank accounts. Michael assisted them in accessing their funds or transferring them to the US.

But many of the refugees had neither gold nor offshore bank accounts. The only assets they brought over were Vietnamese taels, a currency which was now useless. The bulk of their wealth was trapped in their native country or held in obsolete paper notes -- just like Hilda's paternal grandfather...

Not Just History: Today, It Still Pays to Diversify Internationally and Among Asset Classes

Michael told the Tale of the Taels to Sovereign Society members on our Far East Financial Expedition. He also revealed why he believes gold and silver should play a part in your portfolio today. And he explained how you can own these assets offshore as easily -- but a lot more safely -- than if you have all your assets in your home country.

Michael considers two watershed events that occurred for precious metals during his career. The first was when President Nixon closed the gold window in 1971, precipitating the plunge of the dollar and the spike of gold to over $800 an ounce nearly a decade later.

The next was September 11, 2001. The War on Terror is now entering its fifth year, with no end in sight. The Patriot Act has been renewed by Congress. The US budget and trade deficits continue to post record highs. The US national debt now exceeds $8 trillion -- an increase of more than $1 trillion in less than two years.

Michael believes that, together, these developments have chipped away at whatever trust the world had in the US government and economy. Central banks are diversifying their hard currency reserves. And despite the dollar's rally the last two years, gold has rallied even more, up over 35%, signaling the dollar is no longer the default safe-haven currency.

And while economic fundamentals are bearish for the dollar, there are many bullish signs for gold in its own right. It is traditionally a hedge against inflation. And, thanks in no small part to China's building and infrastructure boom (which we are witnessing firsthand), commodities from oil and gas to steel and copper have been soaring over the last four years.

Gold also has important cultural significance in China and India -- the world's most populous nations and two of the world's fastest growing economies. Individuals can now buy gold in both these countries, a new development over recent years.

Gold is at $485 today, but Michael thinks it could reach $500 by the end of the year. Longer term, he believes it will challenge its previous high of $850 within the next five years. Yet, as bullish as Michael is on gold, he is even more bullish on silver. Silver recently broke above $8 an ounce. That's more than a 60% rally from its lows of two years ago. Yet it is still over 80% below its highs of 1980. Michael believes silver could break $10 in 2006, and could easily double from current levels in three to five years.

He thinks 2006 will be the year these metals make very strong moves upwards. One major catalyst could be rising interest rates in the US leading to a crash of stocks, real estate or both. Another is the retirement of Alan Greenspan.

One of the most convenient and affordable ways to own both these metals -- and to diversify internationally at the same time -- is with Perth Mint Certificates, offered by the Western Australian Government. Michael helped develop this unique program nine years ago.

It is the only government-guaranteed precious metals program in the world. There are dealers worldwide so you can buy it from just about anywhere. You can liquidate through these same dealers or arrange to take ownership of the physical metal at any time. Commissions are low, there are no storage fees, and the minimum investment is just $10,000 (and just $5,000 thereafter, whenever you want to add to your position).

It's an excellent way to diversify internationally and into hard assets at the same time.

Diversify, Protect Yourself and Prosper in Any Political or Economic Climate...and Save $30 in the Process

Michael's entire presentation, including details of the Perth Mint Certificate Program, is captured on The Sovereign Society's Far East Financial Expedition Audio Series. The series will be available this coming Tuesday cost for $129 for readers of The A-Letter, and for $109 for Sovereign Society members.

However, during the conference, you can save $30 off the normal price. Pay just $99 if you're an A-Letter reader or just $79 if you're a member of The Sovereign Society. And, of course, you'll get a whole lot more when you order the series.

You'll get files of handouts for key asset-protection and investment presentations as well as high-quality digital recordings. You'll learn about the best investments to buy and the pitfalls to avoid to profit from the juggernaut development of China.

That includes Chris Mayer's low-risk/high-reward Backdoor China Plays, such as the cash-rich, zero-debt, rapidly growing manufacturer of electronics components that sells into all of Asia...yet is headquartered in South Carolina!

It also includes recommendations from Jack Flader of the Zetland Group in Hong Kong, Violet Chong of Tai Fook Asset Management, Andrew Wong of CG Capital Limited...plus Asia-related asset protection and investment ideas from financial experts that have come to share their best ideas at the Far East Financial Expedition from Copenhagen, Zurich, Geneva, and the US.

But, remember, to lock in the $30 savings, you must order before midnight on Monday, November 21st.

Ting yat tin (See you tomorrow) -- in Cantonese, this time,
Justin Ford

PS: In Michael's presentation, you'll also learn why it could be very profitable to add some palladium to your portfolio. Here's a quick peek: Palladium and Platinum are both used in catalytic converters. Yet platinum is near recent record highs while palladium is 70% below its high of just five years ago. So demand is growing for palladium as a cost substitute for expensive platinum. At the same time, palladium is growing in popularity as a metal for jewelry here in China. To get the full details -- and to learn how to get the best deal on the palladium you buy -- order The Sovereign Society's Far East Financial Expedition Audio Series. You'll save $30 if you order today.

LINK: Far East Financial Expedition Audio Series

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6 Forces Driving Gold to $600 in 2006...and 10 Ways to Protect Yourself from Economic Mayhem and Profit as Gold Gets Ready to Rocket

The "conventional wisdom" crowd on Wall Street will tell you now's the time to sell gold-while at the same time they're trying to sell you shares of some helium-huffing tech stocks with no earnings and no real value.

But, every fundamental and technical factor we are watching right now says...

* It is not too late to profit from rising gold prices
* You will want to have gold in your portfolio over the next year
* Gold could move farther and faster than many people believe possible.

Full, detailed report at:

LINK: http://www.agora-inc.com/reports/190SSFDG/E190FB25/

Offshore
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OECD Strikes Out

FROM THE EDITOR, Bob Bauman Says:

Melbourne, Australia: Dan Mitchell of the Heritage Foundation and our friends at the Center for Freedom and Prosperity Foundation in Washington, DC, report that the Organization for Economic Cooperation and Development's so-called harmful tax competition project suffered another major setback last week, as low-tax jurisdictions refused to bow to the leftist Paris-based OECD bureaucracy at a Global Forum in Melbourne, Australia. The OECD had the forlorn hope that tax havens would agree to surrender their low tax policies to help the major welfare states stop the offshore flow of capital.

The OECD's anti-tax haven attacks have featured a phony "tax haven" blacklist since 2000, a hypocitical move that was widely criticized since many OECD nations (including Luxembourg, Switzerland, the UK and the US), conveniently were omitted from the blacklist, even though they are major tax havens according to the OECD's own definition. Rightly accused of discrimination, the Paris-based bureaucracy suffered a defeat and was forced to agree that tax havens are not obliged to surrender their fiscal sovereignty unless OECD member nations also agreed to abide by the same misguided policies now known as the "level playing field" condition.

Let's hear it for the tax havens -- and we hope for a swift demise for these futile OECD high tax efforts.
* For more about how tax havens can help you, click here,
LINK: http://www.agora-inc.com/reports/190STHOW/E190FB29/

Wealth
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The Inland Revenue In Your Bedroom?

British local Council tax inspectors will be able to enter people's homes and take photographs even of their bedrooms. Tony Blair's Labour government have plans that will allow UK tax collectors to "obtain factual information from internal inspections" as part of the exercise to revalue 22 million properties in England. Knock. knock! Who's there?

Privacy & Rights
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The Security of RFID Passports

Hong Kong: In the last three weeks, your editor has traveled in the US, Japan, Singapore, Thailand, China and now, Hong Kong. Having left the oppressive atmosphere of the People Republic of China yesterday, I can tell you that a US passport is a fairly important document. That's why it's important for freedom lovers to be concerned about what the US State Dept. is planning for the proposed new, RFID-embedded passports. There are serious concerns among privacy experts about the abuse, even dangers, of passports that contain radio frequency chips. There is no certainty that the US government is addressing these concerns. For an intelligent discussion of the RFID passports, we recommend an important essay on RFID passports by Bruce Schneier at LINK: http://www.wired.com/news/privacy/0,1848,69453,00.html
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London: A 24 hour, seven day a week national motor vehicle movement database that logs the movements of everything on the UK's roads and retains the data for at least two years is now being built.

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Your Rights & Liberties Are Under Attack

Here's what the PATRIOT Act can do to you! Learn how and where you legally can bank offshore -- without fear of US interference.

LINK: http://www.agora-inc.com/reports/190SPATY/E190FB26/

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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER .
* Bob Bauman, Editor * Daniel Aponte, Jr., Managing Editor,
* Matthew Barrett , E-Commerce Mgr. * Erika Nolan, Publisher.
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The A-Letter provides accurate information on the subject matter covered and advertisements displayed, so far as we can ascertain. We cannot certify the absolute accuracy of referenced articles nor do we necessarily endorse products advertised herein. The Sovereign Society advocates full compliance with all applicable tax and financial reporting laws. All LINKS are operative at time of publication. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed under securities laws to address your particular investment situation.
LEGAL NOTICE: This document is based on SEC filings, current events, interviews, press releases and knowledge gained as financial journalists and may contain errors. Investment decisions should not be based solely on this document. The Sovereign Society expressly forbids its writers from having financial interests in securities they recommend to readers. Sovereign Society, its affiliated entities, employees and agents must wait 24 hours after an initial trade recommendation published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

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~9th~
So I cold called the chairman of the board. We are having lunch to discuss an idea and see if I can get a mentor that will teach me some of what he knows....God, this kinda stuff fills me with excitment...I love knowledge but I am a collector of it, I need the male energy to produce or act on the female energy...I hope we can come up with a project together and some intellectually (pant,pant) stimulating projects- Oh please I will be good! Well for as long as I can-