According to this article that appeared today in the Yahoo Finance pages, the Senate has approved a $1.1T spending bill that includes big increases in many government programs including health, education, law enforcement, and veterans’ programs.
Apparently our policymakers don’t understand basic economics. What would happen in your business or household if you continued to spend more than you make and borrow the difference? I’m guessing your credit card companies would quickly tire of you overleveraging yourself. Why is the Federal government any different you may ask? Well, for one, you can’t print your own money when you run out.
What does that mean for you? For someone seriously interested in asset protection and wealth preservation, you need to seriously consider the implications of what this means. The only way for the US government to pay back its enormous debtload is to either cut spending, raise taxes or devalue the dollar. As this recent article shows, spending cuts aren’t happening. Well tax increases and a devalued dollar it is. You can count on a bit of protectionist policies to boot.
Now is the time to diversify your assets offshore. You can create an offshore entity in places like Belize or Nevis that will give you the utmost privacy and keep your assets out of the reach of the US court system. Many banks and brokerage firms outside of the US now will not accept US citizens as clients, but there is a backdoor way to solve this problem. For now anyway. There may come a time where we are not allowed to be private owners of offshore entities or bank accounts. Then it will be too late.