Self-sufficient food supplies?  Yeah, we got that.
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Venezuela in Oil-For-Food trade with Dominican Republic - Venezuela will pay with oil for strategic food supplies from the Dominican Republic, Venezuelan Agriculture Minister Efren Andrade said Thursday.
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http://www.petroleumworld.com/story0079.htm
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In the REAL ESTATE corner, Ray Daniels reports that he has found beautiful brand new homes (new construction) in a very quiet residential section of the Zona Oriental for US$95,000.  When I spoke with Ray last, he told me he was on his way back to meet with the builder, but he wanted to stop at the grocery store to buy a loaf of bread.  What are hungry or something?  No, said Ray.  The last time I went to one of houses I got lost inside.  This time, I am going to leave a trail of breadcrumbs from the moment I go through the front door, so I can find my way out.  That's a big house, said I.  Hopefully you will not have the same problem Ray did, but it sounds like these homes are worth a look.   To contact Ray, Telephone 809-844-3688 or 809-568-2092.  On-line info:
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http://www.thedominicanrepublic.net/Real_Estate/
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IN THE NEWS:
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UKRAINE AND NAURU FACE MONEY-LAUNDERING ACTION
By Edward Alden in Washington - Financial Times of London: December 20, 2002
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The US is set today to launch sanctions against Ukraine and the tiny Pacific island of Nauru over failure by those countries to crack down on money-laundering, US Treasury officials said.  The measures will be the first taken under the Patriot Act passed by Congress last year, which allows the US to closely monitor or suspend financial transactions with money-laundering havens.  It also marks the first time the US has imposed sanctions at the request of the Financial Action Task Force, a 29-member group of advanced countries set up in 1989 to discourage the movement of criminal money.
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Under the actions to be unveiled today, the US is proposing to require American banks and other financial institutions to identify the beneficial owners of accounts in any transaction in which more than $50,000 (€48,700) is moved between US and Ukrainian accounts.
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http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1039523872929
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NOW IT'S NOT THE BANKS - IT'S THE INSURANCE COMPANIES - AND ALL THE LOOT (drug money) IS IN FLORIDA, NEW YORK, and PUERTO RICAN BANKS:
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FEDS SAY TRAFFICKERS USED LIFE INSURANCE POLICIES TO LAUNDER US$80 MILLION - By CATHERINE WILSON - Associated Press - December 7 2002
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The drug traffickers opened more than 250 investment-grade insurance accounts in the offshore finance haven of Isle of Man and elsewhere, authorities said. Drug profits flowed from banks in Mexico, Latvia and Hong Kong to banks in Florida, New Jersey, New York, Puerto Rico and Texas, the indictment said.  An undisclosed Miami insurance investment company handled much of the business for one reputed trafficker, Rodrigo Jose Murillo, the indictment said.
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http://www.sun-sentinel.com/news/local/southflorida/sfl-126moneylaunder,0,3239301.story?coll=sfla-home-headlines
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JEROME SCHNEIDER INDICTED BY U.S. GOVERNMENT:
Schneider, attorney charged with conspiracy to defraud the IRS, wire and mail fraud.
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EDITORS NOTES:  Jerome Schneider gained fame by selling banking licenses in Nauru, under the marketing technique that individual citizens should own their bank as the most iron-clad tax planning mechanism.  Something we have disagreed with for some time, as what clients were actually buying were CLASS B Banking licenses.  However, there is nothing wrong with Class B licenses providing clients understand exactly what they are getting involved with.  Either way, it would seem the IRS is more upset with the vast amounts of money he made, and his high profile US marketing seminars, more so than anything else.  By the way, anyone engaged in offshore planning with a US or Canada based firm or individual should take note.  I wonder how many clients he will give up, and how many files were taken form the Los Angeles office?
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http://www.usdoj.gov/usao/can/press/html/2002_12_19_schneider.html
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OFFSHORE SHOULD NOT BE POLITICAL WHIPPING BOY - From FORBES Magazine, January 2003 Issue
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It has been a year since Ingersoll-Rand reincorporated from New Jersey to Bermuda to cut its tax bill. But corporate do-gooders are still out to make the industrial conglomerate a symbol of the evils of domiciling abroad.  California State Treasurer Philip Angelides is leading the charge. In July he declared he would prohibit the state from owning Ingersoll debt (though it held none then). In November the state employee pension fund, at his behest, backed a shareholder proposal urging Ingersoll to repatriate. Now he is pressuring McGraw-Hill to oust offshore firms from its S&P 500 index. "Inversions (offshore reincorporations) do not pass the smell test with most investors," he rails.
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Ingersoll Chief Executive Herbert Henkel, who has stayed quiet during much of the attack, has had enough. His response: "If the tax laws were different, we wouldn't have moved in the first place." Foreign firms pay domestic tax only on domestic income; U.S. firms, to a degree, pay U.S. tax on worldwide income. Thus, U.S. firms are at a disadvantage to European and Asian competitors.
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EDITORS COMMENT:  You tell them, Herb.  One reason why the US economy is in the outhouse and all the jobs are now in China and Mexico.  However, the more they try to attack the symptoms instead of the actual illness (high taxes, runaway government spending, etc.), the more motivated both corporate America and individual citizens are becoming to get out altogether. In other words, what if no one was left to pay taxes (which is a variation on, what if they had a country that no one wanted to be a citizen of)?
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http://www.forbes.com/forbes/2003/0106/054.html
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ANONYMOUS BANKING SOLUTIONS 2003: Numbered Anonymous Accounts in an increasingly un-private world.
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The Chinese have a saying that goes something like, We Live in Interesting Times.  Indeed we do.  There are a number of military interventions going on, and perhaps more to come, with the supposed purpose of maintaining liberty and freedom.  Our personal lives are no longer personal, again with the intent of maintaining liberty and freedom.  Even something as simple as banking and the use of credit cards to pay for daily transactions has all fallen under scrutiny and suspicion, in the efforts to catch all the bad guys in the world.  In other words, it would seem that the cost of maintaining liberty and freedom is to surrender liberty and freedom (and privacy) itself in the process.  Will it work?  Is this really the answer and is the problem really the fact that some bad guys exist in the world?  Looking back at history, it would seem that the world has not changed much, other than the fact that technology makes this kind of snooping and invasion of privacy that much easier.  Even staunch conservative American politicians, such as former Congressman Dick Armey, have joined forces with the ACLU, claiming the US government has now gone too far.  However, the fact remains, your personal life, your business affairs and your banking transactions are now exposed - for better or for worse.  What can you do about it?
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The previous solution was to move your business and personal affairs (including banking) to a tax haven.  However, that has proven to be similar to putting all the chickens in the same hen house, so the fox can enjoy a very tasty meal without too much searching (as he now has all the chickens in one convenient place).  Meaning, with only a small handful of countries to choose from, the countries supposedly fighting all the forces of evil (drug traffickers, terrorists, and so on) have been able to put political and other kinds of pressures on a very small group of nations (deemed to be tax-havens).  Of course, current news reports seem to indicate that there is more of this so-called illegal money laundering and illegal banking activity still going on inside countries such as the US, more so than anywhere else.  But, we are encouraged to believe the politicians who blame it all on tax havens and those countries with banking privacy in place.
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In any event, the solution today seems to be diversification and thinking outside the box.  This then means thinking about places where privacy and freedom are still important, and still thrives, even though these attributes may not seem to be so apparent on the surface.  One such place used to be the former eastern European nations of Estonia and Latvia.  Two nations that created a banking industry almost overnight, catering to clients seeking private banking solutions where such services were no longer available in the traditional tax-haven nations (that have recently sold out their sovereignty to prove themselves to be on the side of the superheroes - of course crippling their own banking industry and economies in the process, which they now regret albeit a bit too late).  However, with the expansion of the European Union, and the desire for such nations to join in, the cost of such entry has been to do away with previous private and anonymous banking.  So, even new jurisdictions such as Estonia and Latvia have agreed to capitulate.  Once again, doing so to prove they are in compliance with this new political theme.
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However, the good news is that there are still a number of good places to consider, which are not under pressure to join a special interest group or trading block.  In fact, one of the largest banks in Latin America is now offering anonymous credit cards and anonymous interest bearing accounts to go along with it.  In fact, we think this program is so attractive, it would be a viable option for those clients that previously were banking in Latvia and elsewhere, even if these countries did not capitulate.  Here is why:
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In order to obtain an anonymous credit card or debit card from many of the banks in places such as Latvia, you needed to first pay US$500 sign up fee.  You then made a deposit (non interest bearing) in order to fund the card.  However, this was a one-time deal.  Once you used up the credit balance, you had to throw it away, pay another US$500 and start all over again.
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The NEW program we want to tell you about works like this:  First there is still the same US$500 initial fee, however the bank offers an instant 5% credit to your account just for opening an account.  This means that if you deposit US$10,000 (as an example), the bank credits your account with US$50 right away, leaving the net initial set up fee to actually cost US$450 (less expensive than the previous deal in Latvia).  Second, the account you establish is also an anonymous numbered US Dollar bank savings account, paying 4% tax-free interest on the account balance in the process (the other guys paid you no interest).  Third, the card is renewable.  Meaning you do not need to throw your card away if you use up the account balance. For a renewal fee of only US$100, you can credit your existing account once again with a lump sum in US Dollars (saving the additional US$500 you needed to pay before, or in reality saving US$400).  Last, but not least, the bank is not located in a country deemed to be a tax haven, or otherwise under suspicion as being a place for Eastern European gangsters.  So, all in all, a better deal both economically and otherwise as well.
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In today's world, you have no control over what governments do or do not do, but in the least, you still have some say in how and where you manage your affairs.  It is a big world out there, and not everyone buys into this one world - one government concept.  In addition, not everyone believes that the sole agenda is drugs or terrorism, as both seem to flourish regardless, and the only end benefit to those governments making all the noise seems to be increased tax collection for themselves and nothing more.  In any event, in today's climate one must live like a squirrel, savings one's nuts in more than one place to maintain security.  The good news, that you can in fact do just that, without the high profile or negative attention of a tax haven either.  For more information about the program mentioned above (as one part of your overall banking options) send an email with your complete name, address, and email information to: info@ascotadvisory.com  Place in the title header:  Anonymous Card Account. or complete our on-line reply form CLICK HERE
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READERS WRITE IN:
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Dear John - We love getting your letters full of questions and information.  We just came back from spending three weeks in the Dominican Republic.  We would love to move down there and retire.  It was quite a culture shock when we first went.  The poverty was hard to take at first but after about one week, we saw past it and really fell in love with these happy, HAPPY people.  My question is - when opening a banking account down in the D.R., how do you get the money down there?  You have to claim it as you are entering the country.  And if it is in the form of a check, doesn't it get returned to the bank in the States and show the bank and I.R.S. where your money went?  How do you do this without the banks finding out that you moved your money to an off shore bank and reporting it to the I.R.S.?
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EDITORS REPLY:  First and foremost, it is not in any way shape or form illegal for a US citizen to carry more than US$10,000 on their person when traveling, and the same holds true for a US citizen that wants to maintain a non-US bank account as well.  However, it certainly is true that so-called negotiable instruments in addition to cash above and beyond US$10,000 are to be reported on a customs declaration.  In addition, the IRS does not prohibit offshore accounts, but instead says that US citizens must report the existence (and interest earned) of such accounts.  However, it is also true that the local authorities in many, many countries do not report or track bank account balances or interest because such accounts are locally tax-free and there is no tax related need for such reporting.  In fact, the banks in such jurisdictions do not even have the computer systems in place to provide for such reporting, as it was never required before (and very expensive to implement).  So, the question remains - Does everyone (individual US citizens that have such accounts) report it?  I do not know what clients do or do not, so I guess let your own conscious be your guide.
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On the topic of poverty, there certainly are poor people in the Dominican Republic as there are poor people and people living on the street as well in the US, one of the so-called wealthiest nations on earth.  However, you hit on a key point, which many other clients have commented on, which is the attitude and personal pride of the people.  There are many people in the lower economic ranks of society in the DR, but they do not let that have a negative emotional or psychological effect on themselves.  They live their lives, take pride in themselves, and generally perhaps are more positive minded than many other people (that might be better off financially).  They are also religious people, and do not blame others or the government for everything that passes in life.  A popular phrase is, Si Dios Quiere (God Willing).  While it may seem like something insignificant, I tend to think it is certainly an interesting commentary about the intangible things that make a society function (and how one society might be different than another).  I contrast this to the US, whereby everything seems to be someone else's fault or responsibility (be it the government, the large corporations, the so-called wealthier segment of society, etc., etc.) in the minds of many people.         
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Another Reader Writes:
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Hi John - I very much enjoy reading your newsletter. I am planning to buy property in the D.R. and initially vacation there quite a bit with the intent of creating some sort of business that I might operate from my beach condo in Cabarete.  When I tell my friends about the D.R., their major questions revolve around political stability (will the country some day change their mind about allowing foreign property ownership, how secure is their real estate ownership, etc.).  I know these are important questions to them (but not to
Me, since I feel generally positive about the "freedom" and "cowboy capitalism" that is being supported) and I haven't a clue how to address them.  Do you have any wise words on this subject or even articles I might be able to refer them to.  It would be great to have them feel more comfortable with the politics of the country and come join me in paradise.  I look forward to your usual candor and insight.
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EDITORS REPLY:  Well, the truth is that ignorance is bliss.  Many Americans especially have no idea what goes on outside of the US.  They think there is no electricity, no food, and no freedom in the rest of the world because this is often the stereotype presented to them by the media.  To be sure there are places in the world economically or otherwise less well off, but not to the extent of everything being black and white as often portrayed. 
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However, I have an observation, which I have noticed having lived outside the US for some time, and having had the opportunity to see the US from the perspective of someone outside looking in -  which goes like this.  Why is it that the US (media and politicians) spend so much time trying to convince us that the US is the so-called greatest country on earth, and that Americans are supposedly SO much better off than people elsewhere?  If you know it to be true, or think it to be true, why spend so much time and effort trying to convince your citizens and the rest of the world?  If it is true, then it should be obvious to all and nothing need be said.  If you watch American television, and then watch television stations or programs from other nations, you will pick up on this right away.  You do not see fluttering flags on news programs and programs highlighting or glorifying the military, fireman, government law enforcement, and so on to the extent you see it in the US.  You also do not see the extensive coverage or concentration of themes which highlight how things are so bad everywhere else (and not so bad inside the US).  It is simple pride perhaps taken to an extreme, arrogance, or is it something else?  I do not know, but I would say you do not see it elsewhere - and yet, other people in other countries live happy and productive lives (with freedom, democracy and their own values, which may be different, but not necessarily worse).  They have cell phones, 500-channel satellite television, Lipton instant iced tea, colleges and universities, and whatever else that might exist in the US.  So, what is it then about Americans that makes them spend so much time on this theme, and the pervasive ignorance about the rest of the world as well?  I am not someone who is entirely negative about the US as for certain there are many positive things about Americans and American Society.  However, there are also quite a few negative attributes also, and no country is perfect.  Stated more clearly, the US is not the single most wonderful nation on the planet, and on the same token, the other sovereign nations that exist in the world may not be so bad.  No one country has a monopoly on common sense or the perfect society.  However, being different or having a different way of doing things does not mean less than perfect either.
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To answer your question directly, what value or benefit does ANY country have is doing something politically or economically that will scare off foreign investors?  The Bahamas did something that cleaned out their banking system of capital, and put a number of people out of work, but for what reason?  The short and sweet explanation was to appease the US and the OECD.  What did they loose and what did they gain?  Did they loose more than they gained (if anything)?  Argentina had an economic crisis, directly in terms of the devaluation of its currency, but what has changed in Argentina in terms of banking or foreign investment?  To be sure, some may feel uncertain about the investment climate in Argentina, but the government did not nationalize the banks and kick all the foreigners out?  Why not?  There is nothing to be gained in doing so, and a heck of a lot of future business and investment to be lost.   The Dominican Republic needs foreign investment and foreign investors if it wishes to continue to grow, as does many other countries.  What benefit is gained by doing something to convince people that the country is not a good place to live or invest?   There are no guarantees in life, but there are issues in terms of what makes sense and what does not.  Cuba could invade Florida, and you could use that as an excuse not to buy a home there.  I doubt it, but they could.  Puerto Rico could ask for independence, become a sovereign nation and nationalize all the American companies there.  I doubt it, as they enjoy being supported by US taxpayers from the mainland too much, but they could.  Anything is possible or could happen both politically and economically.  But you need to ask yourself, what is likely and why or why not?   The Dominicans, as many other people in the world, are not entirely stupid.  The stereotype portrayed in the US in terms of many Latin American countries may be otherwise, but I can assure you the reality is quite different.                 
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Another Reader Writes:
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Dear John - I noticed on the Internet that you do business in both the Dominican Republic AND the Republic of Panama.  Do you reside in Panama?  If so, could I presume that Panama may be a better place for retiring and profit?  In your opinion, which would be better?
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EDITORS REPLY:  I have lived in Panama and am there frequently, but the truth is that one is not better than the other, just different.  In my opinion, I saw Panama as more of a mature market and the Dominican Republic as more of a dynamic and growing market.  As such, the appeal for in terms of what was going on in the DR as an interesting and exciting place to be in terms of growth and investment opportunity.  However, they both are very attractive places in my opinion to consider and would invite anyone to certainly visit both.  It all depends on the kind of lifestyle that you want and which one has more of the things that appeal to you personally.  I know this is not the answer you are looking for, but it is the best one I can offer, as we all are different and have different wants.
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Another Reader Writes:
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Dear John - I read and enjoy your newsletter on a regular basis.  Thanks for what you do.  With about 20 million more like you Bush and Sons, Inc. (formerly the USA) might have a chance.  There is quite a bit of tax banter thrown around in your newsletter as correspondence from others, sometimes correct, but mostly off point.  At least 60 million Americans know that there is no requirement for filing the IRS Form 1040 and refuse to do so.  The IRS has a harder time each year holding together the extortion racket and the big lie.  I would suggest that to best serve the most people in this regard so that they know the truth, whether they apply it or not, is to direct them to the best site on the net for a legally accurate and defendable position at www.TaxableIncome.net .  That would take all burden off you as speaking heavily against the situation and merely directing them to the truth.  I have a friend who has personally defended over 400 clients successfully from the position and information on that particular site.  That is the best was to promote a "Just Say No and Then Some" policy or a "Truth in Taxation" agenda among the American people and other peoples of the world before we all get tied up in a One World United Nations income tax scam, which is where it is headed unless we all just push a little against it.
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There is a fantastic video sold on that website that I recommend that every American get into his library as an insurance policy against total ignorance.  They will be glad they did, and by the way I'm not connected to the site or the owner/operator, Larken Rose.  He is a true Patriot and not just a Patriot for Profit as many of the nut cases are.  He has challenged the Justice Department to attempt to prosecute him and there haven't been any takers for over a year.  His information and website is rock solid truth.  Try it you'll like it.  AFTER PEOPLE READ THE DOWNLOAD OR SEE THE VIDEO THEY WILL FLOCK TO YOUR SERVICES KNOWING THEY ARE DOING NOTHING WRONG AND IT WILL KEEP YOU OUT OF THE ARENA OF CREATING "861 INCOME" FOR YOUR CLIENTS THAT ACTUALLY IS TAXABLE BY US LAW.  THANKS AGAIN FOR EDUCATING YOUR MASSES.  KNOWLEDGE IS POWER.
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EDITORS REPLY:  I appreciate your comments and your information.  For this reason I have reprinted your letter.  However, as I have said before, the folks that have the keys to the pokey do not seem to agree.  There may be all the correct legal arguments in the world to prove that the US income tax is unconstitutional or whatever, but in my opinion, you are better off leaving quietly, in other words expatriating (and telling them to have a nice day).  Mind you, I respect the people that have deep conviction and are willing to go to jail for it.  They are brave souls to be sure, but so are the people that make up their mind to move to a new country as well.  Plus, it is a lot less expensive and stressful in the long run. 
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Another Reader Writes:
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I found your website and both agree and disagree with parts. I've been to Panama quite a few times and wonder if we are talking about the same place! Even the cab drivers were concerned about my walking through old Panama at night.  Rural farmland can legally be claimed by squatters. Colon is very dangerous. The Canal-Zone housing was bought by speculators, very few houses are owner occupied. Darien is hiding many refugees from Columbia, the buses are colorful but reckless, and Tocumen resembles Newark.  However, I still find the place fascinating.  I've made several inquiries when there re banking and could never get an honest answer. Obviously there's moneyed people in 'little Israel', but until your website I was clueless.
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As a US citizen I must declare more than $10,000 upon return to Miami. I've wanted to conceive a plan whereby I could return with less on frequent visits.  I also qualify for Lithuanian citizenship and ponder how that would work in my favor.  By the way, when on final approach to Tocumen and out over the anchoring field, I occasionally see an unusual vessel with bizarre antennae anchored in the field. It has no markings. I suspect they are monitoring the maze of sat dishes mounted on the banking center rooftops.
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EDITORS REPLY:  Well, I agree with the taxi driver.  I would not walk around Casco Viejo 2:00 AM in the morning, but then again I would not walk around parts of Boston or Los Angeles at that time either.  In fact, you will be hard pressed to find me walking around anywhere 2:00 AM in the morning as I am in bed long before then (I am a very boring guy).  However, when I lived in Marbella, I did walk to Farmacia Arrocha round about midnight to buy Tylenol a few times and never, ever felt unsafe or saw anything to make me think I was doing something foolish.  So, walking around Casco Viejo the wee hours of the morning - no way.  Marbella, Punta Paitilla, El Cangrejo, El Dorado or Chanis, no problem.
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On the subject of squatters, you have the same issue in many countries, but it is not like you go away for the weekend, some guy pitches a tent on your lawn and then you loose your property Monday morning.  The entire process can takes years in most cases.    Squatters need to prove they were living on the property (unchallenged) and have tended to the property for an extended period of time.  Unless you plan on buying property and then plan on disappearing off the face of the earth for a few years, this is a very remote possibility.  If you do purchase property, and do not plan on living there, my suggestion is to find a family or someone to tend the property in which case you have an employee - employer relationship (with a legal work contract and so on) and the cost might be US$400 per month or whatever you work out.  Many owners of the property allow the caretaker to plant the land and keep some percentage of whatever he grows and sells, which is a good deal for both of you.
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On the other points, I am not a big fan of Colon and would not want to live there.  Although whenever I went to Colon, I never had a problem, so I do not know what to tell you.  However, I grew up in New York.  If you think Colon is dangerous, you haven't been around much.  Better yet, go visit old San Juan in Puerto Rico.  Now that place, is for sure a den of thieves, literally.
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The bus drivers in Panama are very often reckless, just as New York City taxi drivers are as well. Come to think of it, there have been quite a few Amtrack Train wrecks during the past year in the US, which is somewhat hard to understand.  I never noticed the strange secret spy ship in the harbor you mentioned, but I can say the Americans are not as slick as they think.  For example, the DEA has an office in a so-called super secret location (a house in a residential neighborhood).  Everyone in Panama knows where it is and the college kids often go out to bomb the house with tomatoes on a Friday night for kicks (in Los Angeles they have drive by shootings, in Panama, drive by tomatoes).  On the subject of Canal Zone housing, I take it you did not read my comments in the Panama Report, as I have advised clients not to consider purchasing homes in the Canal Zone.  While well built, they are 70 years old and were very over-priced as well.  Many people have spent money re-modeling them, but they are your basic plain vanilla military homes, with no property either.   Some people may disagree, and may find a 70-year old bomb shelter with windows attractive, but I do not and also do not think they are worth the money being asked.    
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In short, you can find a number of faults with Panama as you can with anywhere else.  In addition, you can spend your time being - the glass is half empty - kind of guy.  It all comes down to the fact that there is only one Disney-World.  Everywhere else is less than perfect.   Although, I would prefer to live in Panama City over Miami or any other US city, any day of the week - imperfections and all.
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Another Reader Writes:
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Hi John, On Friday, Panama's Congress passed a tax reform on Friday that's considered a prerequisite for the International Monetary Fund to approve a major loan to the Central American nation.  Saying this is an "interesting" development just doesn't seem appropriate. When one considers the IMF's ongoing role in corporate and personal taxation in various countries, it's hard not to imagine that the protections currently (or once?) afforded by Panama to international investors and privacy seekers may be coming to an abrupt end. Certainly, loans from the IMF come with many strings attached -- most that aren't readily visible to government outsiders.  Any insight?
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EDITORS REPLY:  Well, do not count out the Panamanians just yet.  The tax reform bill is a very hotly debated topic in Panama and there are many political forces that take issue with it.  Also, one must understand that the current political party in power got there for the same reasons that Jimmy Carter was elected President previously in the US.  Stated more clearly, many viewed El Toro, as the previous President was called, to be corrupt and inattentive to the poorer segments of society.  However, this was the guy that ripped up the previous agreement sent to him by the US when they made a last ditch effort to renew the military base leases, so for sure, many would say he was more defensive of Panama's sovereignty.  Many chastise the current female president for what is viewed as her lack of attention to the issues of concern to the business community and those sensitive to foreign policy matters, which is the same criticism thrown at Jimmy Carter as well for his handling of the economy and foreign policy under his term as president.  So, I think you can make some parallel analysis here, if you wish.  Main point being, even though it might be said that the current administration has been coined as being more reform minded (read liberal) than the previous, there are many business people in Panama not willing to give up the ship so easily (so to speak).
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In any event, getting back to the speculation of an IMF loan, Panama needs money from the IMF the way Norway needs more snow.  In fact, as we reported earlier, Panamanian Banks have more money than they know what to do with, and this is not simply a personal commentary on my part.  Recent business publications in Latin America that have ranked all the banks in Latin America clearly show that most banks in Panama have an excess of non-invested cash.  In other words, there is more money in the banks than demand for home loans, car loans or other places for the banks to put the money to work earning interest.  So, if the Panamanian Government needed to borrow money, they could very easily do so locally from the banking community, and the banks would jump at the opportunity to lend the money (which is sitting around doing nothing at the moment).   So, to speculate about an IMF loan to Panama is somewhat far-fetched, unless there is such a political breach between the Presidents office and the banking community that the banks refuse to loan money just on political spite.  However, I doubt this will be the case as many Panamanians are well aware of the very same issues you mentioned.
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Another Reader Writes:
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Dear John - I trust this email finds you well.  You are welcome to use the following question in your newsletter, although I would appreciate an answer if possible either via email or the newsletter.
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Because of family obligations I am not yet ready to expatriate by relinquishing my US citizenship.  However, I would like to be able to do so in the next few years.  Unfortunately, I don't have any familial ancestry that would qualify me for second citizenships.  My options at this point are 5+ year residency/naturalization programs in a couple of countries whose citizens enjoy substantial visa-free international travel, or the quicker route of naturalization in the Dominican Republic.  I would like your opinion of the current and future viability of the Dominican Republic passport as an international travel document.  Given its bad reputation over the past few years because of a large amount of stolen and illegally issued passports, meaning that Dominican citizens now need visas for almost all international travel, how hard is it to obtain visas as a Dominican citizen for travel to the US, Canada, and Europe, especially as a former US citizen?  For example, if I were to relinquish my US citizenship but still wanted the ability to spend time in the United States (naturally less than 122 days per year for tax purposes), how easy or likely would it be for me to travel to the US as a Dominican citizen who was formerly a US citizen?
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EDITORS REPLY:  Well, first and foremost, to address your comments about the visa free travel issue with a Dominican Passport, it is not for the reasons that you mentioned. At one time, a Dominican Passport was an excellent visa free travel document (for travel to many European Countries, etc.), but the poor economy 15 years ago encouraged many Dominicans to travel with the intent of living and working elsewhere illegally.  In other words, it is very true that many Dominicans took advantage of the fact that they could simply walk into France or Italy, etc. as a tourist, with the intent of not being just a tourist (to escape the high unemployment and difficult economic conditions that existed at that time in the DR).  As a result, one by one, many European nations did take away the visa free travel privilege to cut down on illegal immigration.  Stolen or illegal passports had nothing to do with it, although I have no doubt that there are stolen Dominican Passports floating around, just as there are plenty of stolen and illegal US passports floating around (you can buy a stolen US passport on the streets of Miami for about US$600, or so I am told).  Personally, I would not take one, even for free.
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Ironically enough, the initiatives put in place in the last ten years by the government turned things around and the Dominican Republic did have one of the fastest growing economies in all of Latin America later on.  So much so, that it was reported an average of one family per day was actually returning back to the Dominican Republic because things were so good (and less so in the US or Europe).  In fact, many Dominicans are still coming back home from the US, to live for good in the country once again.
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On an interesting note, the Dominican Republic recently took away visa free travel privileges to Colombia, as the country (the Dominican Republic) was flooded with illegal Colombian immigrants due to the very poor economy there (in Colombia) right now.   Of course, to retaliate politically, as of Aug 1 of 2002 Dominicans now need a visa to go to Colombia.  But the point is, all of this is often economic and political, and has nothing to do with black market passports.  In fact, there are probably more stolen French, Spanish and Greek passports floating around than anything else right now.  The reason for this was a mafia ring selling them in very recent years, especially here in the Caribbean.  Now, if I know that, you cannot convince me to believe that the US immigration department or immigration of any other government does not know it.  So why did they not take away visa free travel for French and Spanish passport holders (the Greeks still need a visa to go to the US, even though they are also members of the EU, which is something I still cannot understand)?  The simple answer is economics and tourism.  The US government, just like the Dominican government, wants and needs European tourism.  It's that simple.
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Americans, as an example, do need a visa to go to India, but this is more political as Indian nationals need a visa to go to the US - tit for tat.  And since India is not exactly a hotspot for American tourists, the Indian government could care less as they make a political statement (if we need one to go there, you need one to come here) without having any economic impact, on their tourism industry anyway.  
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In any event, the economic issues that existed before obviously do not exist today, in the Dominican Republic, so while there still may be some Dominicans interested in looking for the greener grass elsewhere, it is not to the degree it once was.  So, for this reason, I do think it very possible that you might see increased economic competition in terms of tourism in coming years between the US and the EU.  The result of course being possibly that visa free travel is extended to citizens of those countries, which might be called the nuveau-riche (the newly created middle class in countries such as Chile, The Dominican Republic and so on who now have money to travel).  It is funny, but travel visas are like credit cards.  It might be a pain to establish credit and finally get one, but once you do, all the other credit card companies are after you from then on (instead of the other way around).  This is true for countries too.  The American government does not want everyone to go to Europe on vacation (to spend tourist money in the local economy) and perhaps vice-versa.  My sentiment is, go where you are wanted.  As a foreign national, if the German consulate gives you a visa to go on vacation and the US consulate turns you down, go to Germany, spend your money and have a good time.  Later on, if the US consulate falls all over them-selves trying to get you to spend your money in the US (and visit), tell them to eat soap and go back to Europe (where they were nice to you the first time and gave you a visa).
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The issues surrounding visas are more complicated than what I laid out to be sure, and the whole point of requiring visas is to screen or weed out people that have something other than tourism on their mind.  But, the bottom line is, providing you can demonstrate that it is not your intent to immigrate illegally (and simply want to visit as a tourist) then getting a visa, while a minor inconvenience, is not a big deal. However, the US consulate is so unfair and so discriminatory that even the foreign spouses of US citizens living abroad have been denied a tourist visa in order to go back to visit family and friends in the US (while at the same time they let the terrorists walk right on in).  But, the point again is, getting a visa as a Dominican, Panamanian, Mexican, Greek or whatever is all pretty much the same as I just outlined.  If you can demonstrate you are not looking to immigrate illegally with a tourist visa, then that really is the crux of the matter.  Normally this is done by asking that you prove local relationship ties, business or employment, real estate, and whatever else that would make it uncomfortable for you to just take off and not come back. 
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In any event, while dual citizenship is not illegal, it is true that the US State Department does require that Americans with dual citizenship enter the US WITH their US passport, and not the other passport.  They want to keep track of you.  If you entered as a tourist and citizen of another country, then it makes it more difficult to cross-reference their database for US related outstanding warrants, back due child support payments and so on.   My advice is to simply enter and leave on your birth certificate, which you can do with a number of countries, especially in the Caribbean. 
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