Well we knew they (the financial industry) were and are crooks, but jumping to blatant street thugery as in the MF Global while the so called regulators look on, is, well amazing.
It goes back to the basic issue.
It is not just "electronic wealth" that is subject to complete loss.
Most anything of value is at risk. The Economic Hit Man has turned it's sights on the Mother Lode, the wealth of America and in particular, retirement funds managed by the HBB and easy to manipulate through captured State regulators / managers are probably the most at risk in the near term.
Protecting wealth through strategic Corporate setups should be a fairly effective barrier to theft of various sorts, at least another gate that needs to be broken down by the barbarians. In other words, have wealth be held by Corporations that are controlled by you. Sure, annoyingly complex and time consuming.
Think of the MF depositors. These are the good times, in this slow motion train wreck, those smart enough to see through the propaganda can position themselves. But when things unravel, it is likely to be very quick.
Collect whatever debts are owed to you. Now is a great time. QE3 is in progress, and people are feeling OK about the economy, and likely this lasts through the elections.
Anyone with strategic ideas, feel free to chime in.
Here is a link to an MF Global Theft summary, by someone who got burned.
http://www.zerohedge.com/contributed/mf-global-customer-funds-were-not-vaporized-stanley-haar-takes-wsj-task
Strategies:
Move wealth/money out of "electronic storehouses" of all sorts
Move money out of checking accounts (these are not FDIC insured)
Move money out of all but the best banks
Investments:
Invest in income producing businesses / real estate with low overhead to survive tough economic times.
Buy Precious metals on a quarterly basis, and store them properly.
Invest in the best Oil/Gas drilling companies as an inflation hedge, and to capture the 80% first year tax deduction, and generate 15% to 30% annual rates of return of which some of that income is protected from taxes due to depletion allowance. Note that your principal no-longer exists, you have literally bought a hole in the ground.
Invest in electricity producing Photovoltaic, capturing 55% to 65% tax credits, and get a large Section 179 depreciation deduction, and in 2012 also get Bonus depreciation. Own these generating assets and sell power to the host facility. Select host facilities that will not go bankrupt, and which will also appreciate someone else taking the tax credits. Churches are a perfect example, they cannot use the tax credits because they are non-profit, and they will always be able to pay their electric bills.
Invest in a "bug out" property which has its own water and water purification systems, own sewer, own electricity supply (PV with Outback Battery Backup), and at least one heating system that is independent of any governmental or utility operation.
Hold investments in Corporations that effectively shield them from lawsuits / bankruptcies.
Invest in properties in foreign countries, this may be an effective way to "ex-patriate" one's wealth. Even if this doesn't apply under current laws, consider a possible future in which the political systems and country make-up is significantly different than it is now. Even better if these properties are income producing, AND if you can also get a dual citizenship at this time.
In the future we envision a reduction in "Pack Size", as things unravel the focus will be on smaller and smaller "Packs". So instead of a "We are the World", or "I am an American" or I am a Republican, more and more emphasis will be on "I am on the clay pigeon shooting team", "My town needs to protect against the homeless moving in from Detroit", or "This is my family compound". As things progress more suspicion, xenophobia, and protection will prevail and the ability to get a dual citizenship will become harder.
Get a live-a-board sailboat
Invest in relationships with people of specialized skills, perhaps even form a "barter club"
Invest time and money into knowledge and skills, especially basic skills. Buy a few hardcopy books on "How to do things"
Hi Steveo,
ReplyDeletePeople should be aware of the fact that while confiscation gold would be difficult, trading in it could be a major felony by Executive Order and the black mkt that develops will have federal agents working in it just like trying to crack a militia they deem to be dangerous as well as a gun show.
One thing is certain. They won't touch anything having to do with Islam unless an imminent threat is involved. I hate to make that observation, but why hasn't the Major who killed over 20 service men and women been tried? I heard it was recently delayed again AND it has never been called an act of terror. Why is that? If the FBI states something is an act of terror it means they can't stop terrorism.
We will not be here, and maybe America won't, but Time's Man of the Century has to be bin Laden as this crisis brought the government all this power. For good or bad, they pick the individual who contributed to the most change. I would love to think some great discovery will be made by 2100 in the field of energy that wins that individual or group the Time Award. But if not, we have to hope bin Laden wins it for if he doesn't, something far worse than 9/11 happened.
Great tip on the books....thanks.