Pick Your Paradise...Countries on the Up
by Chris Campbell
In this world, fiat currencies give way to their nature and stop existing. OK. So here’s the “big deal”: Anyone with the proper dose of fortitude can discover more freedom and prosperity than any of his or her ancestors. Said individual simply must understand the tricks of maximizing opportunities and freedom in today’s economic landscape.
Andrew Henderson of Nomad Capitalist writes: “The idea that a few psychopaths with the power to devalue an entire nation’s money supply is unfathomable. Intelligent people throughout history have seen the writing on the wall.
“The dollar collapse is coming, and it will send shockwaves around the world. The economies that have sound fundamentals, rather than just funny money, behind them will stand a chance of picking up the pieces. If you aren’t part of those safe havens, you could be wiped out as so many people in history before you.”
ONE: Your first order of business should be to check out one site called Nomad List.
Nomad List is a place to check out the international landscape -- to better help you find those places that fit your wants, needs, and temperament. It’s the perfect tool for budding expats. With it, you can see how much a specific city costs, the Internet speed, the safety level, the air quality, and much more.
Let’s take an example…I was reading a bit about Chile yesterday, so let’s look up Santiago…
According to Nomad List, the average cost of living for a tourist (“Nomad”) is a little over $2,000 per month (this includes the average price of a hotel in Santiago, which is $48 a day). The average cost for an expat, on the other hand, is only $650 per month. The average rent in a 1 bdr. in the center of city is only $246. And a basic meal is $3. And one more thing: Here’s how Chile sizes up in other avenues…
And from soup to nuts, here’s the best part: “This is the easiest place on the planet to obtain residency for any nationality,” Simon Black wrote yesterday on the Sovereign Man blog about Chile. “And as an entrepreneur, this is an unparalleled benefit.
“You can form a local business here in a day. And with your new company, the first 25 employees can all be foreigners.
“If you want to open an Indian restaurant for example, you could easily bring five or six chefs directly from India. If you want top-quality Spanish-speaking servers, you can bring another group from Cancún or Nicaragua. Or say you’re running an IT business and want to bring a team of programmers from Russia -- you can do that too.
“And the process of obtaining legal residency for them is incredibly simple and cost effective. I’ve done it myself -- we have people here from all over the world working at our various businesses.
“I relish the freedom to hire the best people in the world as opposed to having to hire people that some government regulation force me to choose from. Being completely unconstrained by the local labor market means that I’m not being held back by talent.
“Whether you’re an entrepreneur and investor, or a foreigner looking for a nice, safe place to live, this is a huge benefit. And here in Chile is the only place in the world where it’s so incredibly simple.”
TWO: HAVE AN OFFSHORE BANK ACCOUNT -- OR SEVERAL
“Not only does having an offshore account reduce your exposure to asset confiscation,” Henderson writes, “but it opens you up to an entirely new and much more open financial system that recognizes your home currency isn’t the be all and the end all.
“Really, try telling the average American they can bank in another currency. They’d think you’re crazy. But, in fact, many offshore bank accounts offer the ability to base your assets in any number of currencies. In one case, I counted sixteen different currencies. Some banks, especially those in Asia and the Middle East, also offer the ability to denominate your account in gold.
“You probably aren’t going to hold your entire net worth in gold. Basing your assets in more stable currencies offers you a degree of protection and diversification, as well as the reduced exposure to your home country’s financial system than an offshore bank offers.”
Many offshore experts, Henderson says, name Singapore as “the new world’s new wealth hub.”
Singapore, if you didn’t know, is ranked as the second freest economy on the planet. The U.S., on the other hand, didn’t even make it to the top ten.
“The government of Singapore,” says Henderson, “has built itself into the world’s wealthiest country (and home to the most millionaires per capita) in barely fifty years since its independence from modern-day Malaysia.”
Even if you only have $800 to your name, Singapore is an awesome place to open an offshore bank account. And alongside Switzerland, Austria, and New Zealand, it’s one of the top places to store gold.
Another safe haven is Hong Kong. Reason is, it doesn’t control or restrict any currency brought in or carried out of the country. In the U.S., for example, you have to file a report if you want to carry more than $10,000 across the border.
“However,” Henderson writes, “I also believe that there are up-and-coming safe havens for banking. In fact, if you’re an American or from a country that’s in the EU, merely getting your assets out and to any halfway sane place can seem appealing. In particular, I see a future for countries like Belize, Latvia, and even Uruguay in the offshore banking space.
“Emerging market banks can offer higher interest rates. As I write this, for instance, banks in Turkey are paying as much as 10% on short-term deposits in Turkish lira. The currency there has been under fire, but things will likely pick up in the mid-term. For someone with a sense of adventure, it could pay off to find places of this nature.
“Who says your money has to be in one place? In addition to moving part of your assets outside of your home country, it is wise to diversify among multiple jurisdictions.
“Don’t just take a stand against U.S. banks and move all of your money to Singapore. Find several jurisdictions that each match your objectives and move some money to each of them. You can often open offshore accounts with less than $1,000. Even starting with a small amount gives you something to work with -- and an account to send more money to -- later.” [You could also learn from the master on how to profit from Currency War III in the meantime. Rise up, kemosabe: Click here to begin your apprenticeship.]
THREE: LOOK INTO FOREIGN REAL ESTATE
Owning foreign real estate is more than just an asset protection strategy, says Henderson, it’s also sound investing: “Especially if you live in a slow- or no-growth economy, real estate in a faster-growing jurisdiction can allow your capital to grow.
Even better, if you’re American, you don’t have to report the investment to the IRS. “You can own real estate in your own name or in a trust without having to declare it to the U.S. government. (Of course, you’d have to declare any rental income or the existence of the trust.)”
“Real estate is a good part of your diversification plan because it is a lot harder for your home country’s government to not only get the local government to go along with its asset protection scheme, but real estate is much harder to seize than funds in a bank account. Foreign real estate can also be an excellent way to turn your lackluster bank returns at home into a livable income with high-yield monthly rents. “The world,” says Henderson, “really is your oyster.
“Personally, I like Nicaragua for cash flow, Cambodia for short-term appreciation potential, and Lithuania for mid-term appreciation potential… just to name a few.”
“Seeing the world’s new boom markets can be incredibly exciting. But is the growth of China, Asia, and the Middle East cause for concern in the West?
“I believe it is. For one thing, I am a believer that culture actively influences a nation’s economy. The countries with pro-business, go-get-’em cultures tend to do well.
“Cultures that promote laziness and projecting blame don’t do well. The United States and much of Europe have become soft, blame “the 1%” for their failures, and seek to use socialism and fascism to fix their problems, rather than letting freedom ring.”
Because of this, we’re going to continue to see a shift away from the Western world. While the East is swallowing up jobs and business opportunities, technology is eating up the ones they won’t grab.
Henderson goes on: “In fact, I believe the situation is worse than most people realize: while many low-skill jobs have long been going offshore, the rising skilled middle class in many Asian countries means those countries can now also compete for jobs that require education or higher skills.
“This is not to say that everyone in the west will become unemployed, but the trend is disturbing. And the government reaction to economic crisis in the west only indicates that the malaise will continue for some time.
“Consider taking a cue from your ancestors.
“When their local economy proved inadequate for them to pay their bills, they sought opportunities elsewhere. Or perhaps they merely wanted to be a part of the “next big thing”. Either way, they went to where opportunity existed, rather than waiting for opportunity to come to them.”
[At the very least, you should be in the process of setting up multiple income streams. Here’s one idea: Click here.]
Yours for a less imperfect world.
© 2015 Laissez Faire Books, LLC.