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AND, IT IS NOT ONLY THE IRS:
WASHINGTON - Friday August 9, 2002 
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A report released Thursday said the U.S. Customs Service lost 2,251 computers between 1999 and 2001. The report comes just one day after the FBI said it had "misplaced" 317 laptop computers.  The report from the Inspector General of the Treasury says Customs lost $690,000 worth of computers. Customs agents also lost 59 weapons, 613 badges and 572 government credentials.  Customs has not said whether the computers were lost or stolen.  The report was requested by Sen. Charles Grassley, R-Iowa, who was not pleased with the results. 
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http://www.foxnews.com/story/0,2933,59951,00.html
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However - The Bush Administration Wants to Send IRS Computers to Afghanistan:
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WASHINGTON - Monday February 25, 2002
Revenue Service computers would be shipped to Afghanistan to help that nation's government rebuild its finance ministry under a proposal by the Bush administration.  The 2-year-old desktop and laptop computers, which are being taken out of service at the IRS, would enable the Kabul government to better keep track of its finances, including billions of dollars in foreign aid, and monitor the banking system for evidence of money-laundering and other terrorist activity. 
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http://www.foxnews.com/story/0,2933,46498,00.html
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THE NAKED TRUTH ABOUT VISITING DISNEYWORLD:
From The UK Telegraph Newspaper, August 8, 2002
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A storm of protest has erupted over an airport security scanner that shows the naked bodies of travelers, including many thousands of Britons, as clearly as a life drawing. The machine is on trial at Orlando Airport, Florida, as part of tighter security across the United States after September 11. Each week there are more than 30 scheduled jumbo jet flights from Orlando direct to Heathrow, Gatwick or Manchester, plus many budget services and, in all, 600,000 British tourists will use the airport during the summer holidays.  Although they believe that security staff will only see a relatively hazy outline of their bodies, pictures released on an American cable television channel show that the images are far more explicit.  Footage obtained by MSNBC show the front and rear views of a man who had passed through the scanner.  He was naked except for a thin belt at his waist, with his genitalia and buttocks clearly defined.  No images of women passing through the scanner have been released by the airport or the device's manufacturer (to the media). Those associated with the project, however, say that it reveals everything many women try to hide.  British holidaymakers returning from Orlando to Heathrow last night were shocked at the idea that their bodies were being seen in their full glory.
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http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2002/08/11/wscan11.xml/
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Also in the Unbelievable But True corner:
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A Virginia couple arrested for having sex in New York's St. Patrick's Cathedral, just a few feet away from daytime parishioners:
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http://www.foxnews.com/story/0,2933,60557,00.html
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THE FOLLOWING NEWS ITEM SENT IN BY A READER:
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John, This Bartlett fellow at National Review pretty much explains all the punishment we foreign incorporated companies have to go thru to avoid the usury taxes imposed by the U.S. IRS...of course the only logical fix is to lower the IRS rates and welcome back all the surviving companies who have had to escape the USA to survive and make a decent return on their investments! But when has the IRS EVER done anything that makes sense?
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FROM THE NATIONAL REVIEW - August 12, 2002:
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When Congress returns from its August recess, the issue of corporate "inversions" will likely be close to the top of its agenda. Inversions result when U.S. corporations reincorporate in a foreign country in order to reduce their taxes. In recent years, several of U.S. companies have taken this action.  The issue of inversions has gotten a lot of attention because people, including many members of Congress, are under the false impression that jobs and factories are moving abroad. In fact, nothing real is affected. The only thing that is moving is legal residence for tax purposes - a purely paper transaction.  This goes on inside the U.S. all the time. According to the Federation of Tax Administrators, the top corporate tax rate is 12% in the state of Iowa. However, neighboring Kansas has a rate of just 4%. No doubt, over the years, there are any number Iowa companies that have reincorporated in Kansas in order to save 8% per year in taxes.  Of course, individuals do the same thing. For example, FTA reports that North Dakota has the highest income-tax rate at 12%. Yet South Dakota has no income tax at all. This may explain why the formers population has been falling, while the latter's has been rising.
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The point is that individuals and corporations move from one state to another and from one town to another every day, partially based on differences in the taxes they pay in one jurisdiction versus the other. This is not a matter of congressional interest, nor should it be. Competition helps ensure that citizens get the mix of services they want for the taxes they are willing to pay.  However, it is much more difficult for individuals to move to foreign countries to take advantage of lower tax rates there. In part, this is because the IRS continues to tax U.S. citizens living in a foreign country as if they still lived here. It does not matter that they receive no services from the U.S. government, nor that they earn all of their income in a foreign country. The IRS still wants its pound of flesh.
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So too with corporations. A company that incorporates in Canada pays taxes only on its operations in Canada. If it has a U.S. subsidiary, it pays U.S. taxes on its profits here, but none to Canada. However, the exact same U.S. company with an identical Canadian subsidiary will pay Canadian taxes plus U.S. taxes on its Canadian operations as well. Thus, the U.S. company will pay more total taxes even if the U.S. and Canada have the  same tax rates.
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EDITORS NOTE:  An excellent article.  Thank you for sending it in.
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http://www.nationalreview.com/nrof_bartlett/bartlett081202.asp
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ANOTHER READER SENT IN THE FOLLOWING NEWS ITEM:
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OFFSHORE HAVENS UNDER SIEGE:
By Paul Kedrosky, National Post, Thursday, August 08, 2002
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A rapidly growing number of U.S.-based companies are allegedly ducking U.S. taxes and regulations by setting up headquarters in havens like Bermuda or the Cayman Islands. Lawmakers have decided no more.  The process has the unwieldy name of "corporate inversion." The Senate Finance Committee recently approved a bill that would treat such inverted companies as U.S.-based for tax purposes if they don't do meaningful business in their new host country. And on July 31 the U.S. Senate approved a measure by Senator Paul Wellstone, D-Minn., to prohibit inverters from getting Defense Department contracts if they moved offshore after Dec. 31, 2001.
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The not-so-veiled threats have already had consequences. On Aug. 1, Stanley Works dropped its plan to reincorporate in Bermuda, despite the US$30-million a year it would save by moving there. The problem? The tool company was slowly being weighed down by heavy criticism from U.S. Congress about corporate tax avoidance in recent months, and it finally folded under the pressure.
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Why the sudden frenzy to crack down on corporate inversions? After all, setting up offshore was good enough for Harken Energy when President Bush briefly worked there. And when Vice-President Cheney led Halliburton Co., it set up more than 20 subsidiaries in Caribbean tax havens. If it was good enough for them, why isn't it good enough for the rest of corporate America (or Canada, for that matter)?
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Blame two things.
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First, there is the ongoing (and largely errant) accounting malfeasance witchhunt. With Enron and Tyco, among others, being fond of offshore tax dealings, there is a seductive causal link between their actions and their offshore status. It is easy to convince uninformed voters that offshore is a neat euphemism for tricksy dealings, and lawmakers are running with the idea.
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Second, it is an election year in the United States. With control of the House and Senate up for grabs, both Democrats and Republicans are eager for so-called "wedge" issues with which they can drive swing voters into their respective veal-fattening pens. When you are a legislator you need issues for which the solution is legislation, or else you end up looking impotent. It helps that corporate tax avoidance can be gussied up with the label of being unpatriotic.
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But is it unpatriotic to minimize taxes? Of course not. One of the hallmarks of democracies is that citizens and corporations are free to avail themselves of the many legal ways to reduce their tax bills, from retirement savings plans, to mortgage interest deductions, to offshore registration. If citizens and corporations choose not to avail themselves of these mechanisms, then that is their choice -- but a reduced tax bill, far from being evil, is a laudable thing, good for individuals and corporations alike.
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It is, after all, a tenet of fiscal conservatism that individuals are much better at figuring out how to spend their money than governments are. Better for you to spend your money than for a distant government to confiscate that money and spend it as it sees fit.
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Second -- and this is equally important (if much less-heralded) -- is that tax systems should compete and be competitive. Having grown up as a monopolist in the world of international trade, the U.S. tax system is truly convoluted in its handling of foreign profits. Despite offering some offsetting tax credits, it still ends up being onerous and overly complex in how it confiscates foreign earnings from domestically headquartered companies.
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For understandable reasons, companies, faced with foreign competitors who operate with no such tax albatross around their neck, aggressively look for ways to decrease the amount of their profits that flows back into the United States as a tax bill. By doing that, they reduce their own tax bills while lighting a fire under legislators to do something about overly complex and confiscatory taxes.
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But legislators don't see it that way. Instead, they resort to name-calling: Corporations are unpatriotic for avoiding taxes. And while they concede that U.S. international tax policy is outdated, they want companies to wait a while for a solution.
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Here is Congressman Scott McInnis, R.-Co., from a recent hearing on the subject. He compared the current inversion "problem" to a bucket that has sprung leaks: "The first thing you do is plug the leaks, then you work on how to get a new bucket and make decisions about what kind of bucket to get. I propose to plug the leaks in our international tax system that are inversions, and I agree we can and should work on fixing the larger and more complicated problem of how the tax code's complexity could lead to inequities and make the U.S. tax system less competitive."
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In other words, the heck with competitive and competing tax regimes -- the U.S. Internal Revenue Service gets its share first. Competitiveness, job creation, and the attractiveness of the United States as a place to headquarter companies can come much later.
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Do McInnis and the rest of the critics of corporate inversions honestly think that companies do this stuff eagerly? Far from it. Having been through offshore registration with a number of companies I advise, it is a horrific process: time-consuming, costly, and difficult to manage. If companies had other reasonable alternatives that address the root problem of differential taxes, they would embrace them eagerly. Representative McInnis is typical of many politicians, however, with his money-for-me-first attitude.
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Apparently, competition is wonderful in everything -- except for the activities in which legislators have a vested interest, like taxes. It seems that they haven't noticed the delicious irony: It is competitive pressure from these corporate inversions that is forcing governments to rethink goofy international tax policies.
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EDITORS NOTE:  Another very good article on the subject, however I do disagree somewhat that the incorporation process is neither horrific, difficult or time consuming.  While it is true that incorporation costs will run higher than forming a US C - Corporation or Sub-chapter S, the process for many countries is fast and uncomplicated in comparison.  And of course the benefits far outweigh the costs, especially in the area of lawsuits as just one item to mention (other than taxation matters).
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http://www.nationalpost.com/search/site/story.asp?id=14E5903A-B789-4F6C-A682-D9C17C6C56F5
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On the topic of the US Economy:
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Treasury Secretary sees robust auto sales, housing market, low inflation, NO MORE recession.  August 13, 2002: 8:27 AM EDT  
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NEW YORK (CNN/Money) - The U.S. economy is in no danger of a "double-dip" recession, thanks to robust automobile sales, a strong housing market, low inflation and low interest rates, Treasury Secretary Paul O'Neill said Tuesday in advance of President Bush's economic forum. 
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ON THE OTHER HAND:
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Airline undertakes job cuts, fleet simplification to reduce costs and capacity.
August 13, 2002: 9:37 AM EDT   NEW YORK (CNN/Money) - American Airlines said Tuesday it would cut 7,000 jobs by next March and reduce its capacity 9 percent by November. 
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http://money.cnn.com/2002/08/13/news/companies/amr/index.htm
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ALSO:
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The sixth largest Airlines in the US recently announced its filing for Bankruptcy.
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http://www.foxnews.com/story/0,2933,60213,00.html
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READERS WRITE IN:
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In reply to the news article we highlighted concerning US$50 US aid to Indonesia in our last update, one reader writes:
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The US has the smallest amount of its budget for foreign aide of any developed country.  $50 million won't even scratch the surface of what is needed for Social Security or Medicare.
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EDITORS REPLY:  Thank you for writing and you may have a point.  However, try telling that to 70 year-old Mr. Nathan Johnson, a retired war veteran getting by on Social Security and upset because prescription medications are becoming unaffordable, and the US Government claims that one of the arguments against a national prescription drug program is because there is no money, or it is too costly.  By the way, I am NOT in favor of such things and believe in less government run social programs in general, not more.  However, if you are going to give money away as a political policy regardless of the amount, charity begins at home, and with your own citizens first (at least that is my opinion anyway).  US$50 Million Dollars may not have any significant impact, but multiply that out by ALL the taxpayer money currently given away, and help your own first (if giving taxpayer money away is the current soup of the day or agenda).  In other words, a drop in the bucket in your own bucket is still better than helping to fill up someone else's.  I could be wrong, but I tend to think that taxpayers find the old  - there is no money excuse - a bit much to swallow, when foreign aid money seems to be plentiful (and available for someone else - and for the benefit of another nation's citizens).
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Another Reader Writes (in reply to our last bulletin regarding Puerto Rico):
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I believe in the truth, the whole truth and nothing but the truth. The USA maintains a unique relationship with Puerto Rico because it really doesn't want as a state.  They keep the PR's in a limbo state, making them believe that they are treated equally but by the same token exploiting on of the most productive and educated work forces on the planet.
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Most companies in PR take 80% of their profits out thus leaving the US's most productive workforce cash starved.  The USA then releases funds via rental agreements, food stamps and exempting the Puerto Ricans from Federal Income Tax.  They do pay Social Security taxes, have been drafted in the American and world wars (PR's actually the highest voluntary group per capita during the wars) but are not allowed to vote during presidential elections and have no voice in the federal government.  
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If PR becomes a state then they would pay the Federal Income Tax, but will get so much more in return.  How many senators, Congressmen will be automatically mandated representing PR - hey, you do the math - and that means an enormous amount of power to a minority group overnight  (fear of a Latino Planet????)
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So the good old US government does not want PR to pay Federal taxes?  Do you wonder why?  DO YOU REALLY?????  Lets call a spade -a spade and tell the story, the full story.  PR is the USA's black eye and one of their most prized posetions; it is also a political embarrassment due their unwillingness to let go or due right...yeah, let them eat cake!
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EDITORS REPLY:  Well, as always, thank you for your letter and point of view.  However, you bring up some interesting questions.  The most blatant to me is, why is it that Puerto Ricans do not vote for either statehood or an independent country?   After all, if most Puerto Ricans are concerned about their co-called lack of elected representation in the US Federal Government and the fact they are somehow exploited, why not try to change the relationship?  Your argument is that the US Federal Government does NOT want to change the relationship, however I do recall a referendum on the question of statehood, forming an independent nation or keeping the status quo some time ago - during the Carter administration if I remember correctly.  While the vote that took place in Puerto Rico at the time was close and interesting to interpret, the majority vote was to keep things as they are.  
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The reader that wrote in asking about Puerto Rico, did so I believe, because as many other US citizens, he or she found it incredulous that Puerto Ricans have fairly enough the same benefits and rights of other US citizens, without having to pay for it.  In other words, by your own admission, Puerto Ricans get a flow of money from the US Federal Government, they get food stamps and participate in other social welfare programs (like social security), they have a US passport which allows them to benefit from extensive visa free travel, and so on - and they pay no US Federal Income Tax.  Are you saying that Puerto Ricans now want statehood and want to now start paying Federal Income Tax like all the other Americans?  Are you also saying there is some hidden agenda on the part of the US Federal Government to stop that from happening?  Any interesting theory, but I tend not to believe it.  Considering how hungry the US Government is for tax money, I find it hard to believe they would not jump at the chance to start collecting US Federal Income Tax from the Puerto Ricans.  I think the problem is that the Puerto Ricans have it pretty good as things stand (and they know it).  That is why they rejected both statehood and independence during the last public vote on the matter.  In other words, I agree it's a good idea to put your cards on the table, but one should spread out the entire deck, not just the jokers.  
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Also, for what its worth (probably nothing, but I'll add it anyway), I know of three factory owners in Puerto Rico.  They tell me they would rather hire Dominicans and jump at the chance to do so, be they legal or not.  In fact, the quote is (their words not mine) - one Dominican is equal to five Puerto Ricans (work wise that is).  In addition, there are always quite a few adds in the local classified section of the newspapers here (in Santo Domingo) from Puerto Ricans looking to hire Dominicans as domestic help (to work in Puerto Rico).  Why would Puerto Ricans not want to hire other Puerto Ricans?  Just thought I would make mention to your comments that Puerto Rico has the most productive work force on the planet (or something to that effect).
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Another Reader, or perhaps former Reader Writes:
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John - I've been receiving your E-Zine for about 2 years.    At the beginning, it was interesting and informative, with legal and financial news with a generally positive message.  But now, it is full of nothing but bashing the United States, the same broken record message every week.  Sort of a cocky and smug attitude is what I get from it, how much superior the DR is.  If I wanted to read political criticism, I can get that from any old liberal tabloid.
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I've lived in Brazil for about 4 years, and when I return, I'm always struck by how clean, well run and organized everything is in US.  There are many good, solid people in US, including many friends and family.  If you went back to your beginnings, I'd be more interested in reading what you had to say, instead of deleting right away.  As it is, you've lost a lot of credibility.
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EDITORS REPLY:  Well, as always, I do welcome criticism and other points of view, and you might have a valid point.  Which is to say, perhaps I have seen too many things and have been exposed to too much news and information, and perhaps it has made me cynical over time.  
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However, if you read things like even the CDC website in respect to information dished out by the US government regarding other countries (or agency information, such as offered by the State Department), the misinformation is mind-boggling (the CDC claims there is a Polio epidemic in the DR, but this is of course news to all the health officials I have spoken with).   Some of it so off base, you might even conclude intentional misinformation (read negative information).  As an example of this, a news item recently appeared in the ULTIMA HORA afternoon newspaper here (page 6 - Wednesday August 14, 2002) which highlights a so-called Citizens Alert issued by the US Embassy advising Americans to get out of the DR.  Some of the supposed key points were electrical outages, increase in cost of living (thanks in part to new sales taxes which we have addressed earlier - the current president is a confidant of James Carville and Bill Clinton - so you can read between the lines on that), so-called potential riots due to increased cost of living and of all things, garbage collection issues.  
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Ironically enough, since the electricity companies were privatized, things have gotten better.  In fact, read the letter below from an AMERICAN working for an AMERICAN COMPANY that is involved with building new generating equipment and refurbishment of some older equipment to increase output (the American Company owns the generators by the way, and are not just here on a consulting assignment).  Riots, I have not seen any, but I know there have been a few.  Mainly people complaining about lack of efficient trash pick up service in recent weeks and YES, many people are ticked off about higher sales taxes without the social programs materializing that they were promised.  Is this a bad thing?  Heck, I think Americans should get angry once in a while and maybe the politicians will finally pay attention.  What do Dominicans riot about?  Trash collection, or lack thereof by the local government civil service responsible for such things.  What do Americans riot about?  Nothing, other than race issues or perceived race issues from time to time.  In fact, it would appear that such rioting is caused by a small segment of the US population that use race issues as an excuse to steal television sets.  These US riots seem to work in cycles, every few years and about the time someone might be due for a new TV.
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I am not in favor of destructive civil disobedience, but you have to put it all into perspective.  At least the Dominicans do not allow the Politicians to get away with malarkey, at least not without a fight.   And they fight about tangible issues - trash collection, education, rise in student tuition costs and so on.  
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With regards to the Dominican Republic, I will be the last person to tell you that the country is perfect.  Far from it, and the truth is no country is perfect.  However, it is not as imperfect one might be lead to believe either (after reading the US State Department reports).  Too many Americans especially think that life ends at the Florida Keys and everyone lives in poverty outside the US.  Not true.  We even have MTV, Amour Hot Dogs, brand new Toyota Camry Cars and whole slew of things.  Plus there are few things outside the US that the US does not have, such as tax-free banking, reasonable tax rates, and much more.   
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So, while I like the place very much (on my personal list of positives and negatives, it of course has many more pluses than mines), that is not the case for everyone.  I have some clients, for example, that absolutely love Belize or Ecuador or Panama or Brazil or wherever for whatever reasons.  It is not that one country is perfect or imperfect, but rather the idea that the US constantly seems to be trying to convince the rest of the world how superior they are, when in fact that is not the case.  Ironically enough, you do not see the Europeans or the Japanese carrying on with this tone, and quite frankly, I tend to think this is the reason less people are trying to knock off the Europeans or the Japanese accordingly.
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In fact, the key point is the hypocrisy or more perfect than thou attitude the US throws at other nations.  In short, that blatant cocky arrogance you indicate is the problem with some of my comments and tone.  The following news article link in English from Russia (sent in by a American living in Europe) is a very interesting read on this very theme (from the Russian Newspaper - Pravda):
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http://english.pravda.ru/economics/2002/07/27/33295.html
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Refusing to hear negative news or information will not make the problems go away.  I wish it were that simple.  There are many people today that have carried it so far to actually want to ban so-called negative information or news from being disseminated (as being unpatriotic to do so).  I think this is part of the overall problem.  The high tax nations, and the US especially, have some major, major problems that no one seems to want to fix.  No one wants to hear about them, or talk about them either.  But ignoring them or not speaking about them so others can brand you a patriotic individual will not make it better.  
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I personally think many people in the US are in for a very rude awakening.  GDP is a negative number (especially after factoring inflation and devaluation of the US Dollar), yet we keep hearing the recession is over (I tend to think that someone is smoking some of those funny weeds they grow down in Mexico, Columbia, and California).  The next major crisis in the US will most likely be in the banking sector for reasons I do not have time to mention, but the problems are there.  The constant artificial manipulation of interest rates and the money supply by the Federal Reserve will takes it toll, in fact it already has.  American citizens have the lowest savings rates of any other industrialized nation in the world, and the US Government went from the largest creditor nation to one of the largest debtor nations.  If war breaks out, you can kiss current gasoline prices good-bye, which will only add to inflation and increase costs for consumers (oil has already jumped to US$30 per barrel based on rumors of a US military action in September).  And, US oil reserves are at an all time low (strategic reserves).
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By the way, politicians from both political parties are to blame and all of this did not happen overnight (and is not the fault of Osama Bin Laden, Saddam Hussein, or even that fellow from North Korea either).  It is not a question of being a Liberal or Conservative, Democrat or Republican.  No one in either party wants to fix it, and YES - it makes me angry even though the answer for me (and many others) was to get out as the only viable solution for long-term personal economic survival (which would seem to be the case for yourself as well - living in Brasil).
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In short, you are correct in that the US used to be one of the best places in the world to live.  So, what went wrong?  You are also correct in that there are a great many people in the US who are honest, intelligent, trustworthy, efficient, and have integrity.  The problem is, none of them seem to be working for the government (or many of America's major corporations either).    By the way, with all due respect, how is it that the US is so clean, well run and efficient - but you live in Brazil?  Is it that you were kidnapped at gunpoint and forced to fly down there, or is it like many other Americans, that you have chosen to live there because cost of living is much lower, and you can actually afford to live the lifestyle you want someplace other than the US (even though you do not want to hear or about or discuss some of the current issues)?  Doesn't it bother you one bit that you were forced to make a choice to live elsewhere in order to survive financially?  It sure as heck bothers me to the extent that I know it does not have to be this way and the fact that things have taken its toll to the current extent that it has, but on the other hand it is a blessing that life can and does goes on elsewhere.  
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Another Reader Writes:
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I am interested in hearing your opinion on the B.V.I. as an offshore haven and how much have they complied with the rules that the US, and UK are trying to establish. I would appreciate any of your comments. Thanks.
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EDITORS REPLY:  Well, we do not currently offer any services in the BVI, but I can only say that I have not heard anything negative.  However, you are correct that there has been increased pressure by the US (and now the UK) towards former and still existing British Colonies that are so-called tax havens or those places that offer favorable taxation regimes.  So, it certainly will be interesting to see how things pan out.  However, on a somewhat related note, many people have informed us that the Turks & Ciacos islands is now giving expatriate residents a difficult time and are almost stone-walling new applications for residency.  Has the pressure gotten to them?  Is there some reason the Turks & Caicos government does not even want Americans and other nationalities even living in their country (even if such persons have the where with all to meet their very steep economic solvency and investment requirements)? 
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Another Reader Writes  (in reply to our last bulletin where we said): 
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For me, this is just another example of government and public civil servants at work (to protect and manage your future and safeguard US tax payer funds, or not).  I wonder what the folks at Social Security are up to?  Perhaps many are manipulating the computer system so friends and relatives are put on the system to get monthly checks they are not entitled to? 
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The Reader Says:
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Don't you know it:  Computer programs can be written by these people - - that will put money into their Social Security accounts.  A word of advice:  Make sure that your yearly Social Security is in the system.  I found out that there were a couple of my years that had $0 in the Social Security account.
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EDITORS REPLY:  Thank you for the letter and your comments.  For me, I do not believe I will ever see a dime of it - Especially now that they are talking about extending the retirement age to 80 (in order to receive your so-called regular full benefits amount).  At 80 years of age, I'll probably be dead (in which case they win, because they get to keep ALL my money) or I'll be senile (in which case I will not even know what planet on I am on, so how much monthly income I have will be irrelevant).  Some say I am senile now, so I can only imagine my state of mind at 80.
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Another Reader Writes:
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Dear John, 
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I have been reading your updates for some time now and am finding them most interesting.     
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I live in England, but have also spent time in the United States as I was granted permanent residence some years ago when I went out to Nebraska for a job.  I'm still a British citizen, and have been back in the U.K. for about 5 years.   So many of the problems noted in your updates are becoming all too apparent in this part of the world, in no small part thanks to the European Union with its crazy "regulate and tax everything" mentality and inbred corruption.  Like so many people here who feel that they are being taxed out of all proportion to the supposed benefits, not to mention seeing our rights slowly eroded, I have for some time been trying to find somewhere else in the world to relocate.   I'm sure there must be many people reading your updates in a similar position to myself, in that they have a reasonable amount of capital/assets, but are certainly not rich (I would probably realize about U.S. $75,000 in total if I sold up here).   
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There are places with lower costs of living and much cheaper housing than Europe, such as Australia and New Zealand, but they now have very restrictive immigration policies that make it almost impossible to get in unless you have a huge amount of capital to invest or come under one of their "approved" categories, the latter not being particularly easy to satisfy for self-employed people such as myself.  As you can imagine, after frustrated attempts at finding somewhere suitable in all respects, the Dominican Republic sounds as though it might be just the ticket, and I will certainly be ordering your report now it's available on-line so cheaply.  On the subject raised in your latest update about the possible loss of certain rights in the U.K. (trial by jury, double jeopardy, etc.), you might like to see the following site: 
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www.kc3.co.uk/~dt 
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Select the link "Corpus Juris" for details.  It also has reports about the new "European Arrest Warrant."  As reported on the site, this piece of legislation being pushed through in the name of protection after 9/11/01 will allow the authorities in any country of the EU to issue an arrest warrant for a British (or other) citizen, even if he has never set foot in the country concerned and even if the supposed "crime" is not actually an offense in his own country.  The British authorities would apparently be compelled to extradite a person on the basis of this warrant without a shred of evidence, and without any possibility of a hearing by a British judge to see if there were any case to answer.  The site also contains many, many other examples of the sheer arrogance of the EU and the way the European bureaucrats will ride roughshod over anyone and everyone in their quest for power. The Advocate-General of the European Court of Juctice is on record as saying:  "Criticism of the EU is akin to blasphemy and could be restricted without violating the right to freedom of speech."  I don't know about anyone else, but to me, that's frightening.  For years we've all known that these corrupt bureaucrats like to think of themselves as gods.  Now we have a quote to prove it.
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EDITORS REPLY:  Thank you for your letter and the information.
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Another Reader Writes:
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John, While not fancying myself much of a conspiracy theorist myself, in regard to your last column, I find it ironic that the United States has for a large portion of the last 14 years been led by persons who made vast fortunes in the selling of oil.  Why would any concerted effort be made to reduce our dependency on petroleum-based products while the leadership of this country stands to profit from that very dependency?  Keep up the good work.
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EDITORS REPLY:  Well, I do not deny anyone the right to earn an honest living (in the oil business), but it does seem odd that the US continues to tolerate all of the nonsense and instability that exists in the Middle East, when some time could have been spent on other options (such as working on alternate sources of fuel).  
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Another Reader Writes: 
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Hi John.  EGE Haina (an American Company in the Dominican Republic) is taking advantage of this law to install tax - free small generating sets along the Haitian border in Manzanillo and Pedernales.  FYI, we are now also in the process of bidding a new 150 MW power barge to be installed in Manzanillo in 15 months. As they say, put the power in and they will come.  If any of your readers are concerned about reliable electricity, we can solve their worries.  We are actively seeking new large users, 2 MW and up.
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Also you should know that anyone who brings us a client of 2 MW or more we have paid finders fees of up to $ 10,000 USD per MW  (depends on the price of energy we sell to them) As a general rule a private client buying from Haina can get power for 10 cents or less per kwh on a 15 year contract, much less than the 18 cents in your DR report.  So buying from the big guy on the block makes sense.  We currently have 24 % of the generating assets and with the upcoming purchase of Itabo will have over 40 %. 
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EDITORS REPLY:  Well, thank you for the letter and the information. I was unaware of the exact reduction in energy costs, so I am glad you wrote in and provided it.  Although, I have to say that the local electric companies have actually raised rates to consumers lately, but I realize that has nothing to do with your company (as you just generate the electricity on a wholesale level and it is the local companies that set the rates for consumers).
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Also, I find it ironic that American Power Companies have more incentives to build new power plants and invest in new capacity than they do in the US.  The State of California perhaps should take note.
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One other thing - You might want to write to the US Embassy in Santo Domingo and let them know you are there (your company that is).  The US Embassy seems to think there is and will be a continued electrical energy problem in the country, and seem to be advising all US citizens to leave accordingly.  I find it odd that the US Embassy would not highlight some of the positive things American Companies are doing in the DR (especially in the one area that they are critical of - such as electricity), but I realize they have another agenda (like discouraging Americans from leaving the US, and taking all their taxable income with them).   On second thought, why doesn't the US Embassy take their own advice and leave, and the rest of us will stay - - just a thought of mine.  They did not advise Californians to get out when the lights were going out in LA not too long ago, did they?  Anyway - Keep up the good work.  For what its worth, I appreciate what guys are doing.  I'll keep the lights on for you.
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This information has been compiled and presented by John Schroder of Ascot Advisory Services, for the benefit of clients and readers. Ascot Advisory Services provides assistance with such matters as offshore company formation, Panama Foundations, offshore banking, and special services in the Dominican Republic regarding residency, free zone applications, etc. For more information: 
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