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.. In The News and Readers Write In (with our answers to Questions).......... |
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THE NEWS:
. . WHAT IS GOOD FOR THE GOOSE, IS GOOD FOR THE GANDER: . A trade dispute between the United States and European Union intensified Friday after officials here announced plans to impose $2.2 billion worth of retaliatory tariffs on textiles, citrus fruit and steel. The retaliatory measures could come into effect before June 18 if Washington refuses to compensate the EU for tariffs imposed on European steel. The purpose of widening the dispute beyond steel was to "encourage and induce the United States to come into line with the rules of the World Trade Organization, according to Anthony Gooch, a spokesman for the European Commission. . Gooch refused to comment on a report Thursday that claimed the EU would impose tariffs on Harley Davidson motorcycles, orange juice and other symbolic goods. But he said the list did not include specific items or brands. The biggest item on the list, he said, was textiles. The EU imports about E1.5 billion ($1.3 billion) worth of textiles every year. . http://www.iht.com/articles/52265.html . . HOW TO WIN FRIENDS AND INFLUENCE PEOPLE: . Bush Urges Nations To Use Aid as Tool Against Corruption, U.S. Program Will Lead by Example - By Karen DeYoung and Kevin Sullivan, Washington Post Staff Writers, Saturday, March 23, 2002 . MONTERREY, Mexico, March 22 -- President Bush called on the world's wealthy nations today to target their foreign aid more tightly, linking a bigger share of their largess to poor countries' willingness to end corruption, reform their economies and help their own people. . The United States, he said, will lead by example with a new aid fund, beginning in 2004 and reaching $5 billion annually by 2006, that was described by senior administration officials as a reward system for countries that adopt policies we know will work. Distribution will be based on standards to be developed by Secretary of State Colin L. Powell and Treasury Secretary Paul H. O'Neill, he said. We'll apply these criteria fairly and rigorously, Bush said. . EDITORS NOTES: Let us get this understood more clearly. The US wants to end corruption in other countries (and governments), so they are going to BRIBE those countries as the answer to the supposed problem. That is what a bribe is – you induce someone to do what you want by giving them money. Many would define bribery as a form of corruption, but everyone of course has their own point of view. When you pay off a policeman so he does not give you a ticket, they call it a bribe. When one government pays another to do (or not do) something then of course it is called goodwill or foreign economic aid. However, the problem with paying bribes to someone to do something they otherwise would not voluntarily do on their own is, once the money stops flowing – then so does the desired result or favor or whatever you want to call it. That is to say, if you need to pay someone to do something that is supposedly in their own best interest anyway, then why would they not do it on their own without the payment? So, if you need to pay them, then they are only doing it because you are paying them, no? Which means, this will become a permanent bribe program of sending US taxpayer money to foreign nations going forward. The US government is highly concerned about American citizens taking their own money and placing it offshore or outside the US, but it would seem the rules are of course different for what elected officials do with taxpayer funds. When it comes time for many Americans to retire within the next 15 to 20 years (and of course apply for the government operated social security pension), many speculate that the US government will be cutting benefits due to lack of funds. If this is the case, and your social security check is half of what you thought it would be, my advice is to visit Bangladesh, Somalia and a few other places on the globe to find the other half of the check. Happy Retirement. . http://www.washingtonpost.com/wp-dyn/articles/A5329-2002Mar22.html . . On the continued topic of how to win friends and influence people, CANADA disagrees with the US over its new BRIBE policy and is engaged in a major WTO tariff dispute with the US about lumber, The Dominican Republic is told by President Bush: You are NOT invited to the special summit in El Salvador (which was noticeably absent from US news stories but a major front page story here in the DR), also - Canada and the Dominican Republic are negotiating an open trade policy of their own (between the two and leaving the US out of it). . From the Canadian Newspaper, GLOBE AND MAIL: Poverty and terrorism, By HEATHER SCOFFIELD Saturday, March 23, 2002 . U.S. President George W. Bush capped this week's summit on financing for development yesterday by blaming poverty and poor education for terrorism. But Prime Minister Jean Chrétien disagreed with his analysis, saying the link between poverty and terrorism is a stretch. . http://www.theglobeandmail.com/ . . READERS WRITE IN: . John, why are you so obsessed or even slightly care what President Bush Wants or thinks if you are safe, sound and content in the D.R.? What business is it of yours if he wants to give $5 billion of U.S. taxpayer money away? That concern is reserved for U.S. taxpayers, not pundits from some foreign land. . Of course President Bush SHOULD put controls and conditions on any taxpayer money he gives to any spoiled, unappreciative backwater country. In a sense, he is like my father. If you sleep under his roof, eat his food and rely on him to protect you and keep you healthy then you MUST cooperate and do as he asked. If you don't want to live under his rules then you won't get his (taxpayer) money or his protection. If you don't like it then don't let the door at the international airport hit you in the ass on the way out. It is as simple as that. If you want to complain about the stupid things YOUR government does, go ahead. . EDITORS REPLY: First and foremost, thank you for your letter and you do have a valid point. However, the answer to your question is as follows. I wish it were only that easy or simple to be in disagreement and be given a choice. They only way for Americans to really vote is to vote with their feet, as the US is one of the very few governments in the world that claims the right to tax it’s citizens regardless of where they are residing. Why not be given a choice, or in the least a tax system that exempts Americans living abroad as permanent residents, or exempts them from participating in programs or benefits with the understanding they cannot apply later on? Case in point, Social Security, a program in the custody of politicians who admit it is now broke, yet ironically those same politicians have their own separate pension plan, which is not broke. Yet, all the money you paid in before is gone, yet you cannot exempt yourself today from continuing to pay into a broke system either. Go figure. . Getting back to the point of why do I highlight certain news items or pass comments? In other words, why do I care? I, like many other people, have in fact made the decision to visit an International Airport and not let the swigging door smack us in the backside on the way out. Also, I like many others, have also voluntarily chosen to take the future into our own respective hands, not relying on the government for too much of anything, which includes planning for unforeseen medical expenses, retirement, the education of our children, our own general welfare (and a number of other things). However, even though I ask for nothing and know better than to expect anything either, it still pains me to think about all of the taxes I have paid in the past, and the fact that such money has seemingly gone up in smoke (and is no longer available to even those still living there). It pains me to think that one must in fact expatriate as the only way to survive long-term. Also, it pains me to see the level of naïve-ness of many Americans with regards to world events, the economy and a host of other topics, or in the least the lack of news, debate and opinion which really is a cornerstone of a democracy. . I would agree with you 100 percent in that you should stay and pay, and therefore do so in that this is your choice and are in agreement with giving Father Bush (to quote you) all your money in exchange for his grace and protection. The problem with the US is that it does not end there. It is fine with me if this is the type of government and society Americans want for themselves, and those in agreement should stay, and should pay. Those that think differently should of course be allowed to check out peacefully and without penalty or restriction to live elsewhere (which many are doing, by the way, regardless). . The issue or problem is that the US is also trying to force its own views, political agenda and general control onto everyone else in the world. In other words, those nations (and not necessarily the so-called terrorists or bad guys) that do think differently or have their own way of running things should be left to themselves – but they are not. This is what many Americans fail to understand, and the reason for such animosity (and not because other nations are envious of the American system of government, the so-called American standard of living or way of life, or any other reason). You discuss pundits in a foreign land passing comment on US tax or foreign policy, yet what about the issue of the US criticizing the rest of the world or imposing its will elsewhere? You cannot have it both ways, to say, you cannot take a stance and then cry foul when you get a dose of your own medicine in return. If you want to tax your own citizens to death and take away civil liberties, go right ahead – but do not think for one minute everyone else in the world wants this in their own country. . To be a patriot and support the government is fine. To follow blindly without complete understanding is not only foolish, it is dangerous. Why do I care? I do not know really, other than it pains me to think about what was, what is at the moment, and what possibilities seem to be laid out for the future. By the way, I have paid more than my fair share of taxes over my lifetime with the understanding and knowledge I will not get one cent of it back in the future. However, to give US$5 Billion Dollars to someone else (a foreign country), when education is in crisis, when there are plenty of Americans unemployed, hungry, and when Social Security is broke? I was always brought up to believe that charity begins at home, or in the least that if you are willing pay the government (and give up control to Father Bush, Father Clinton or whomever) so they can take care of you, that they would – and not someone else in another country (or not to be used a bribe money for foreign leaders). . Maybe it is true that I am in the insane minority, which is just as well that I do not live there anymore. Ironically enough, I voted for the old man (former President Bush) and could have been labeled a staunch conservative many years ago. Today, I do not know what I am, but at least I am in control of my own life to some extent, or at least I like to think so. I do not need Father Bush, Father Clinton, Colonel Sanders, or anyone else for that matter to take care of me (or to take my money for the privilege of being cared for either). I know better about what politicians do with my money and their level of concern and attention for me from thousands of miles away. That is, from my experience, too many politicians tend to forget they are custodians of the tax money citizens pay and are very much so public servants. The public does not exist to serve them, at least not in a so-called democracy. . . Another Reader Writes: . Nice newsletters as of late. I have been keeping an eye on the peso lately too. Just the past few months it took a bit of a dive. I expect fluctuation and even some devaluation, but it went down as other currencies were holding or getting stronger to the green back. That paints an odd picture for me. Since I have some funds in the peso, your personal out look for the currency is most welcome. I do not expect crystal ball advice, but your general felling of where the peso might be headed this year. . EDITORS REPLY: It is very difficult to predict currency exchange rates other than to watch economic statistics, actions of the Central bank, etc. Regardless, the long-term trend has been slowly downward, averaging about 5% depreciation vs. the US Dollar annually. As I said before, some clients hold the view that if they can get 20% interest on peso deposits and back out a possible 5% devaluation, then they are still getting 15% in US Dollar terms, which is not bad, especially when one considers it is locally tax-free. On the other hand, I have always advised clients to use common sense and not put ALL of their funds into Pesos, keeping at least some portion in US Dollars or another stronger currency. . . Another Reader Writes: . John: . I've been receiving your advisory for a few months now. Don't know how I got on your e-mail list. You have some good ideas, at times. However, instead of just making comment, I think you could put your efforts to some good use in Washington...Congress, or higher! . I'm thinking of heading to Panama, my wife's home country, in a couple of years and just lay low. If Congress passes the Reserve Retirement adjustment Act and changes the retirement year from the current 60 to 55 for all Reserve and National Guard members with 20 or more years in service to their country (like me), then I could move up my plans to retire a little early, head to Panama, and essentially live pretty good on the monthly retirement alone. . EDITORS REPLY: Well, I do appreciate the vote of confidence, but I would have to say that my points of view seem to run contrary to the current mainstream. In any event, I am glad to hear I have your vote. . On a separate note, I find your comments about Panama interesting, as it only confirms what I have found to be true. That is to say, any Americans that have had the opportunity to live abroad often end up preferring to do so rather than return to the US. Incredibly enough, military people, who one might think would want to hotfoot it back home (out of patriotism or to escape those terrible impoverished nations outside of US borders they were forced to serve in) are the usual group that have this thought. Of course, military personnel do have more of an opportunity to live in other countries as part of their work, so perhaps it is the case they have more of a chance to know what the rest of the world is like more so than the average civilian. Either way, I find it to be an interesting observation in the least. . . Another Reader Writes: . My wife and I have been exploring the possibility of investing in the Dominican Republic and relocating there in the future. We have been reading numerous articles, however, most of them are not current. Can you quote us the current rate of interest banks are paying on CD'S long or short term for US $. Thank you. . EDITORS REPLY: Interest rates have come down a bit and then recently bounced back again. US Dollar bank savings accounts pay about 4.5% tax-free at most banks, and savings accounts is Pesos, about 7% tax-free. Bank time deposits or what we can call Bank CD’s (certificate of deposit) can range up to 9.5% depending upon the amount of the deposit (US$10,000 minimum at many banks) and time (30 days, 90 days, 180 days, etc.). Local commercial paper has and still always offers rates of return above what Bank CD’s are paying, and you can expect at least about 10%, sometimes slightly more in US Dollars for a 90-day term. All of these rates quoted are annualized rates of return, just as they are quoted in the US. . . Another Reader Writes: . Hi, I was impressed with Mr Schroder's article in the winter edition of EscapeArtist, and was intrigued by the dual citizenship idea. I know there have been long-standing issues with the sister country Haiti and intense involvement from the U.S. State Department and Department of Defense. I assume the borders between Haiti and the Dominican Republic are porous to some extent. Would you care to comment on the effects to the Dominican Republic of these many years of difficulty? . EDITORS REPLY: I honestly have no idea about what difficulties you might be referring to, but I can answer as follows: We all know that Haiti has had past political issues and that Haiti is considered to be one of the poorest, if not the poorest, nation in this part of the world. The US intervened in the past when trying to make changes in the government from a military dictatorship to install the supposedly democratically elected President, who took refuge in the US. Ironically, the former military leader was given a sack of money by the US government and retired to Panama, all with the help and blessing of the US government. I know, because I used to live three blocks from his apartment in Panama, but that is another story. . In any event, I would say Haiti is to the Dominican Republic what Mexico is to the US. While the Dominicans do try to protect their border from illegal immigration as best as possible, Haitians of course enter their wealthy neighbor, the Dominican Republic, looking for work just as Mexicans sneak into the US. All of the other issues are the same, meaning undocumented illegal aliens, education issues, etc., etc. So, while there is not outright hostility between the two, certainly you have the same issues in the DR with undocumented Haitian workers as you do in the US with Mexican workers. Apart from this, I have not seen any effects or issues with regards to the Dominican Republic apart from illegal immigration, which continues to be a political topic, as it always has been. Although, I will say the new wild card in all of this is the US government trying to stop the flow of Haitian refugees by boat to Florida by putting pressure on the Dominican Republic to absorb them instead. So, I do know many Dominicans see this as the US government trying to use the DR to solve a US problem, which has not fostered any good feelings towards the US government in this respect at all. . . Another Reader quotes our last newsletter: . In addition, there is more than one way to transfer money without major hassles or an act of congress, but I will not get into that here. . And Writes: . Please DO get into that. I am very interested to know your thoughts as I wire money to banks overseas regularly. . EDITORS REPLY: Well, the problem is that I know I have people on this list that have something other than shall we say, a pure or legitimate interest. I think I probably say too much as it publicly, but I do try to use my knowledge and background in banking with respect to client questions as best as possible. . . Another Reader Writes: . Hey John, Give this a quick read when you can. Curious if any of this stuff about South-America is true. Thanks. . Reprinted from the on-line story: . BACKYARD TERRORISM; he US has been training terrorists at a camp in Georgia for years - and it's still at it. By George Monbiot Tuesday October 30, 2001 The Guardian Newspaper: . If any government sponsors the outlaws and killers of innocents, George Bush announced on the day he began bombing Afghanistan, "they have become outlaws and murderers themselves. And they will take that lonely path at their own peril. I'm glad he said any government, as there's one, which, though it has yet to be identified as a sponsor of terrorism, requires his urgent attention. . For the past 55 years it has been running a terrorist training camp, whose victims massively outnumber the people killed by the attack on New York, the embassy bombings and the other atrocities laid, rightly or wrongly, at al-Qaida's door. The camp is called the Western Hemisphere Institute for Security Cooperation, or Whisc. It is based in Fort Benning, Georgia, and it is funded by Mr. Bush's government. Until January this year, Whisc was called the "School of the Americas", or SOA. Since 1946, SOA has trained more than 60,000 Latin American soldiers and policemen. Among its graduates are many of the continent's most notorious torturers, mass murderers, dictators and state terrorists. As hundreds of pages of documentation compiled by the pressure group SOA Watch show, Latin America has been ripped apart by its alumni. . http://www.sheffieldmayday.ukf.net/war/backyard.htm . EDITORS REPLY: The article is about the CIA – US Military training facility known as the School of the Americas that has been around for years. It is very true, and now you know why the rest of the world thinks the US government is a hypocrite. The former leader of Panama, General Noriega was trained there, in addition to a slew of others. Also, now you know why some people are not too supportive of the US in other nations as a result. It is very simple. The US trains them and lets them loose, turning a blind eye to whatever nonsense they are up against their own citizens, providing they obey Washington or remain to be pro US. However, more often than not, these guys get a swelled head, thus starting to bark back like an escaped dog suddenly feeling comfortable. The US then goes in to get them, claiming they are now drug dealers, terrorists, whatever (which they might be, but at long as they behave by following US political dictates, they are left alone regardless of what activities they are involved with). This is nothing new and remains to be both a moral and political dilemma. How do you justify training someone, who uses that knowledge to suppress their own people, and then claim (the US) to support democratic governments? It is, in my opinion, insane. . . Another Reader Writes: . I enjoy your writing so much. It is so real, and straightforward. Keep up the good work. Signed, someone in Texas. . . Another Reader Writes: . Hello John, I have some new information about some of the things that our subversive government is doing here in the US. This information is not being given out readily to the public for reasons that you will see, but I got this from a magazine that speaks truthfully about what the government is trying to do to the citizens here in this country. Maybe some of those readers that continually defend the actions of the US government will get their head out of their (blank) and see what is happening to our freedoms. . On February 14, 2002, a campaign reform bill was passed by the House of Representatives. It violates and directly contradicts our First Amendment freedom of political speech. For the first time in American history, Congress has forbidden the kind of election-oriented political speech that the forefathers (of America) wanted to protect - the political speech that forms the prerequisite, and single most important component, of a representative democracy. Under this legislation, individuals or groups of like-minded Americans are banned by federal law from referring to a politician or his record within two months of a general election. The only ones allowed to participate within the time frame are the media and the politicians themselves. It's easy to see why they want this. It would give them absolute control over election season public debate. Only the press and the politicians can participate, the public is banned. In a democracy such as ours, the only way this can work is if the people have a voice in choosing their representatives. This legislation silences these voices and constitutes the most flagrant act of suppressing political speech in the entire history of this country. . Need Proof? Legal scholars consider the Sedition Act of 1798 one of the worst violations of the First Amendment ever. It was passed to suppress Thomas Jefferson and his allies. Under this legislation, you could be jailed for criticizing the Congress, the President or the Government - but only if it was untrue. Under the "reform" bill passed by Congress, even the truth is no defense. You could publish the truth and still go to jail. . Under this law, a Senator could enact legislation to do away with the Second Amendment altogether, and if you said anything against it within the 60-day limit, you would be guilty of a federal crime. THAT is how tyranny arises and perpetuates itself. In the United States, you do not put people in jail for publishing statements and voting records of elected politicians, you don't imprison people for participating in public debate, and you don't pass laws that directly contradict the Constitution! In the US, neither the forces of law or the threat of punishment will stop the American people from standing up, speaking out, being heard and participating in the debate over the governing of this nation. So, lets draw a line in the sand here and now. If politicians don't understand the American way, the American people will show them. Politicians who support excluding the American people from the American electoral process will find themselves excluded from office. . Well, John, it looks like the tyranny has begun. My wife and I have had serious discussions about where we will retire and you know where that is. It looks like we may need to leave the US a little before my work here is done. I will always be a Patriot, I believe in the Constitution as written and the belief that a government for the people and by the people is paramount. How dare a politician stand up and call himself a Patriot. Hypocrite! Oh well, save me a place there. I will come eventually! Take care . EDITORS REPLY: Thank you for the letter. I tend to think that there are many things taking place which do not get much press coverage, and that most Americans are not aware of. Perhaps with time, some will take notice, although most people tend to hold the view that the politicians MUST know what they are doing, which leaves you and I in the quiet minority. However, many people like your-self have already taken the view that the US is not the country it used to be economically, politically and otherwise (and that no one wants to correct the situation). As a result, many have already decided to quietly leave with their money rather than wait for their Social Security checks to bounce twenty years from now (read our previous news stories regarding US government Treasury tax refund checks that bounced last year). If the guessed statistics of the IRS are true (100,000 Americans with US$70 Billion Dollars already outside of the US) and you consider the Escape Artist site with 20 Million visitors annually (a site dedicated to information and themes regarding living outside the US for more freedom and a less taxing lifestyle) then there is a strong quiet group of people willing to peacefully demonstrate their displeasure – and protect themselves and their family at the same time. Again, I tend to think this is what has the US government frightened – That is to say, the fact that many middle class Americans can (and already have) protested, but in a peaceful way which hits them (the US government) where it hurts, the pocketbook. . However, rather than address the problem, the continued answer seems to be increased taxes (especially use and sales taxes) and repression. Ironically, increased taxes on things like gasoline, cigarettes, knitting yarn (this is not sarcasm, the State of Connecticut actually wants to increase taxes on knitting yarn as one of the ways to collect more taxes) all hurt the poorest income earners the most, the one group the government ironically claims they are trying to help. On a separate note, you mention this bill was passed on February 14. Isn’t that Valentines Day, the one day each year one would supposedly demonstrate their affection and love? . . Another Reader Writes: . Dear John, Thanks again for sharing your informative newsletter. You mention the fact there are a number of former military people that subscribe to your newsletter, which does not surprise me. I happen to be a Marine Corps veteran (Persian gulf) and I share some of your opinions. One thing I will say is that I do not have a problem with terrorists being taken to places like Jordan to be interrogated. As a matter of fact, I would like to be the one interrogating them. The U.S. obviously has a tough job in catching these murderers and I am all for "taking the gloves off" if it can protect us from another attack. . EDITORS REPLY: Well, it may surprise you for me to say that it is not that I disagree with you, but more of some other points or issues instead. In other words, I do not necessarily think these guys should be invited for tea and cookies, as opposed to having 10,000 volts applied to certain respective body parts. The real issue for me is the fact that one branch of the government, the CIA, is working with another foreign government that conceivably you may have to fight (or someone else in the military) in about four to six months. The Jordanians have already said publicly that they will align themselves with Iraq if push comes to shove. Yet the US is supposedly working with their intelligence department. I do not understand it. They also are working with the intelligence branch of the Egyptian Government, yet this where some of the strongest supporters of these radical groups come from as well. All very confusing stuff for a very simple minded guy like me. . . 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: |