Dateline: Zagreb, Croatia
This month, Australia has declared war on individual bank accounts, going so far as to propose a bank deposit tax.
The idea of bankrupt governments concocting new ways to steal money from their own people is nothing new. Central banks have been devaluing your currency for years, creating the root of the problem that is now causing governments to – in maddeningly ironic fashion – steal some more.
Despite politicians’ cries for unity, they are the puppet masters pitting classes against each other behind the scenes. They are the ones who tell the poor that it is the wealthy who are stealing from them, when inflation and bad economic policy are the real issues.
We’ve seen this before.
Not long ago, the Cyprus government was prepared to dip into the savings accounts of every person with a Cypriot bank account. Every single one.
After realizing this was political suicide, they decided to steal an even higher percentage of money – 100% in some cases – from those with more than 100,000 euros.
The so-called “poor” escaped unscathed with the exception of the capital controls, while “the rich” lost it all.
I said at the time that when governments that confiscate and spend with wanton abandon for economic reality know they can merely hit up “the rich” for cash, the definition of what is rich will expand until everyone with two nickels to rub together is treated as if they’re Donald Trump’s neighbor.
The idea of taxing people merely because they’re “rich” – not even because they EARN income, but merely because they HAVE money – is not so far-fetched.
The Netherlands already has a wealth tax, paid annually based on the value of one’s assets. That means that even if you sell your business and retire to live off the proceeds, your net worth will drop every single year because of some silly tax.
Consider also that in Europe, people are now essentially paying the banks to store their money for them thanks to negative interest rates. Some government paper has achieved the same negative interest rate feat.
It’s outlandish. Just how disastrous is the world financial system that people who have worked hard their entire lives now have to pay six ways to Sunday just to keep their money in cash?
Soon, bank depositors in Australia will feel the same hurt. A new proposal will have Aussie bank depositors paying their own insurance costs. It’s a great example of big government and crony capitalism shifting risk away from institutions and onto consumers.
As socialist economic policies fan out from Europe, I expect more and more countries around the world, and especially in the “fair tax”-ing OECD, to implement similar bank deposit tax measures.
Several commentators have already suggested that Australia is merely a testing ground for public reaction to the scam. If Australians go along with it, the global elite will roll it out to more and more countries such as the United States, Canada, and throughout Europe.
The wealth grabbers down in Argentina already tax bank accounts, so much so that even my attorney contact in Buenos Aires strongly advises his clients to keep as little money in local banks as possible.
I would go the extra step of suggesting that the US and EU governments will attempt to bully non-OECD safe havens into adopting similar measures. At the very least, they’ll up the ante on laws like FATCA that make it more difficult for westerners to take part in capital flight.
That way, governments can call their cronies at the big banks – the same ones they bought off with taxpayer money under policies like “Too Big to Fail” – to merely snatch some of your cash every year and send it to Washington, Ottawa, London, or Brussels.
This could start at as little as fraction of a percent, but over time it could be much higher. Have you ever seen a tax go away once implemented?
Of course not; taxes usually go higher.
If you want to avoid the coming laundry list of wealth taxes, bank deposit taxes, and other outright theft, here is what you need to do:
1. Take action before it’s too late
I talk to so many people who are all freaked out about going offshore… then sit back and kick their feet up when they figure out what they need to do. Having a plan to protect your cash isn’t enough; you have to implement the plan.
My guide, The Best Offshore Banks, lists 55 banks that will accept your hard-earned money now. Many of these banks accept the dreaded US citizen, and some allow you to get started with a minimal deposit and build up over time so you don’t get locked in. I literally did all the work figuring out which banks are worth your money.
It’s possible that many of these banks will no longer accept US citizens in the future. Even worse, I believe that countries that enact bank deposit taxes may make it difficult for foreign banks to accept their citizens, as well.
The more I study Australia, the more I see it as the next United States: an over-taxed, arrogant police state hellbent on brainwashing its citizens to never wanting to leave so they’ll keep every dime they have within its borders.
Grow your business faster
Download our Guide to Lower Taxes and learn how to legally lower your tax bill while traveling the world.
2. Move into non-cash assets
I’ve always advocated having a healthy cushion of cash lying around for a rainy day, a future business project, or whatever else liquidity can provide for.
As governments go rogue, however, having a lot of cash could become a major liability on your balance sheet. Owning assets like foreign real estate means you can legally stash your liquid cash in assets that are not only harder to tax, but harder to find.
I’ve written extensively about real estate investment opportunities in Europe and elsewhere, and with bank interest rates hovering around zero, you could practically throw a dart and get better appreciation and/or cash flow from a property investment if you know what you’re doing.
Later this month, I’ll be releasing my second “Nomad Guide” on how to buy and store gold and other precious metals offshore so it’s not reportable and not easily confiscatable.
There is a reason governments are fighting a war on cash: getting paper money out of your hands means they know where all of your money is. While I caution you against illegal strategies that “hide” your money, there are several legal strategies to prevent being a victim.
3. Have a safe haven to escape to
We’ve already seen what the US government is capable of in terms of blocking the exits for Americans who wish to move their money into offshore banks. Even though banking overseas is perfectly legal, the government has mastered the art of making it next to impossible while still being able to say “oh, but you CAN do it… if you don’t mind filling out these 82 forms”.
Go to any major US city and conduct a “man on the street” interview and see how many people have ever heard of FATCA. My money is on almost none. The government has succeeded in passing one of the world’s most imperialist laws, and none of their own citizens even know it exists.
That means the political pressure to repeal it is also zero.
Now that governments have seen that they can impose de facto capital controls without so much as a peep from the average citizen, I believe they will impose more of the same around the world. That means a second residency that leads to a second passport is important.
Being a citizen of a country that doesn’t subscribe to the idea that money is evil and needs to be extracted from you in all of its habitats will become increasingly important as governments brand us like cattle and prevent us from escaping their wealth grabs no matter where we live.
Like any good insurance policy, moving your money safely offshore isn’t without cost, so if you’re not willing to invest a small amount to protect yourself, then no one can help you.
If you are prepared to fight back and would like some help implementing these strategies, my team and I may be able to help you. There are still a few of the 25 spots remaining this month for us to chat and see how we can be of assistance and, if not, to whom we may refer you.
Click here if you’re interested in the help.
Latest posts by Andrew Henderson (see all)
- How to Get Malta Residency with the Global Resident Programme - September 21, 2017
- Low-Tax Countries for Intellectual Property- the Ultimate Guide - September 15, 2017
- The Ultimate Guide: How to start your own consulting business overseas - September 12, 2017