October 8, 2013
By: Bobby Casey, Managing Director
At this point the “government shutdown” has reached the realm of comical. We are now being ruled by little Barry from the sandbox who decided to take his toys and go home.
Imagine this: You are traveling with your family cross country to see some of the United States’ most cherished landmarks. You decide to take the 469 mile road that runs through Virginia and North Carolina known as the Blue Ridge Parkway.
Of course along the way you decide to pull off and stay at one of the many lovely bed and breakfast places like “Pisgah Inn”. Oops, the park rangers have parked their cars blocking the driveway to the famed inn. Since the Blue Ridge Parkway is Federal land, they deem it necessary to administer control over the parkway and adjacent properties.
How is it that the federal government can now shut down private businesses due to a government shutdown? It seems that because the national park has granted this private business a concession to operate there, they now have the right to close this business.
Never mind the fact that the Blue Ridge Parkway actually remains open…
Or maybe you decided a trip out west to see Mt. Rushmore would be a good learning experience for your kids.
Oops! The park has been closed. Even worse – the scenic overlooks where people pull over for pictures has been closed.
The irony of it is that in reality only about 17% of the government is shut down. According to the CBO, 83% of government operations will continue.
Including military personnel, previously exempted civilian personnel, appropriations already obligated to, all entitlement programs, and interest expense on government debt.
Read the last one again. Interest expense on government debt. Now go back and read the mainstream headlines in the news. The media propaganda machine is suggesting the US government is facing default. And yet the CBO has exempted any cuts in interest payment on government debt. Does anyone else smell a rat?
I want me to let you in on a little secret – the government needs to shrink by a minimum of 40% just to be able to operate within its own budget.
Seventeen percent isn’t even close to enough.
Here’s the reality. The political puppet-masters are scared to death.
Why?
They are afraid you may actually learn how non-essential they really are.
The longer the government stays shut down, the more likely it is that you will figure out how you can live just as well, if not better without:
- The Department of Education
- The Food and Drug Administration
- The US Department of Agriculture
- US Patent Office
- The US National Park Service
- and nearly every other agency sucking the lifeblood out of the country
Ask yourself, “What does the government actually do that I cannot do for myself or hire a private company to manage?”
Of course the typical arguments are:
- Who will build the roads? The roads were privately owned and operated in the early 1900’s and they are becoming privatized once again.
- Who will take care of the poor? Private charities now that the government isn’t there to shut them down or rob private citizens of their means to donate.
- Who will manage the parks? Do you really need the government charging you admission to nature? And if so, if the major theme parks can be operated privately, why not the nature parks?
- Who will ensure companies are not polluting the environment? The greatest polluter in the world is the U.S. Federal Government.
- And so on…
I am not suggesting that the world would be perfect in absence of government. What I am suggesting though is that it would be better.
Each of these things mentioned are and can be better managed by the free market at a much lower cost. In addition, you would have the option of paying for what it is you chose to consume, instead of having 30-50% of your income stolen from you to fund programs and agencies you do not approve of.
Of course, we all know the outcome of the government shutdown.
The puppet-masters will reach an agreement on the budget. The debt ceiling will be raised. The printing presses will continue to print money faster than the trees can be cut down.
So what is the solution?
Don’t get me wrong, I am HUGELY optimistic about the future. But only if you are willing to take the action steps to protect yourself.
Our view is that internationalizing your life and your wealth is the only path to freedom in today’s world. You need to take a few steps to ensure you are not under the thumb, physically or financially, of any one government.
A quick action plan would be:
- Open an offshore bank account to hold some funds in another country
- Move your retirement account offshore before any form of confiscation happens
- Buy some real estate in another country
- Buy some precious metals stored in a private vault offshore
- Establish residency in another country
- Get a 2nd passport
I know many of these things seem daunting, but in reality they are not.
Our client services team can help you open offshore bank accounts and move your retirement accounts offshore. The financial benefits here are huge. First of all, you are moving your financial assets outside your home country and thus beyond the reach of the legal system. Secondly, there are many investment opportunities offshore that far surpass what you can get in the US.
We have partners with some pretty unique real estate projects and can help you with property purchases. We also have partners who can assist with precious metals, residency and 2nd passports.
I would seriously encourage you to take action before it’s too late.
