Compelling Arguments for Expatriation

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The Daily Reckoning | Saturday, July 7, 2012 Enough is enough! say a small — but growing — number of Americans, Readers weigh-in on conditions on the farm and gettin’ outta Dodge, Plus, all this week’s reckonings archived for your wanderlusting consideration... --------------------------------------------------------------- The “Lost” Gold Bible Congress Never Wanted Anyone To See “Locked away” for almost 3 decades. Kept virtually secret...until now. You’ll soon discover why all the secrecy surrounds this book...and why it would be to your great benefit to read this book now. You’ll also see why I’m doing everything in my power to get this book into your hands for FREE by following one simple step Click here to read more. Joel Bowman, checking in today from the City of Lights... Joel Bowman We’d never met a “penthouse gypsy” before. Actually, we’d never even heard the words in consecutive order. Then, a few years ago, in a cigar lounge on the top floor of one of Dubai’s many hulking structures, we had the pleasure of meeting a gentleman who introduced us to the concept. “No one place is perfect, Joel,” he told us between long draws on his Cohiba. “Freedom is not contained within one border or another. Instead, one must find nuggets of it where and when it is available...and then remain geographically flexible enough to enjoy it, piece by hard-won piece.” Our new friend went on to describe, in loose detail, his international lifestyle strategy: bank accounts in a handful of different countries, multiple passports, land holdings across borders, gold stored in this vault and that, business interests scattered here and there, income sourced from various jurisdictions... We often hear it said that not everyone enjoys the means to live internationally. To our way of thinking, that’s a bit like saying, “But I hardly make any money working on Maggie’s farm. How will I survive without her daily serving of gruel? Where will I sleep if not in her rat-infested barn? And how will I live if not by her for- my-own-darned-good rules?” The leg irons are not easy to break, Fellow Reckoner, and the fences not easy to climb. But the freedom is well worth the effort...impossible as it all seems while toiling under the cracking whip back on the farm. In this week’s feature essay, Eric Fry shares some thoughts on the growing number of Americans who have decided to exchange their shackles for one-way tickets outta Dodge. Please enjoy... [This article originally appeared in these pages on Tuesday, July 3, 2012.] The Daily Reckoning Presents Prepare for Departure Why More and More Americans are Abandoning Their US Citizenship Eric Fry Reporting from Laguna Beach, California... In November, millions of Americans will trudge to their local polling places to cast votes in the hope of improving their lives here in the USA. Between now and then, a few hundred Americans will vote with their feet in the hope of improving their lives outside the USA. Last year, nearly 1,800 Americans surrendered their citizenship. In a nation of 300 million folks, 1,800 émigrés is hardly a rush for the exits. But the recent trend is, nevertheless, intriguing. As recently as four years ago, only 200 people checked out of America for good. Back then, surrendering US citizenship would have seemed as unthinkable to most Americans as declining a free vacation to Hawaii to pay for a vacation in Newark. It would have seemed as crazy as: ...giving away a brand new Aston Martin Zagato to buy a used Buick Le Sabre. ...surrendering your membership at Augusta National in order to start playing Augusta Municipal. ...trading away an original Van Gogh painting for an original Peter Max poster ...refusing a date with Mila Kunis in order to watch re-runs of her animated counterpart, Meg Griffin, in Family Guy. ...abandoning a beachfront mansion to live in your car. Giving up citizenship would have seemed as incomprehensible as...go ahead, create your own metaphor. Bottom line: Surrendering US citizen was absolutely unthinkable. But not anymore. Now it is “thinkable,” albeit still relatively rare. The absolute numbers are still tiny, but the trend conveys a very large message: Discontent is on the rise. Increasingly, the used LeSabres and Augusta Municipals are winning the contest. And probably not because they are so alluring, but rather because the “Aston Martin” is starting to sputter like a used moped and “Augusta National’s” fairways are starting to sprout more weeds than its deep rough. To be clear, your California editor remains an American citizen with a valid American passport...and no pending petitions in any American embassies to surrender his citizenship. His observations, therefore, are not personal...but they are heartfelt. When Americans begin abandoning the “Land of the Free” to seek greater freedom elsewhere, it is time to sit up and pay attention; it is time ask yourself, “Why? Why are they leaving? What’s wrong?” Is it just a “tax thing” or are other forces in play? Is it because folks don’t like: ...drones watching their every move while the mow their lawns or skinny dip in the pool with their spouses. ...enduring a political “ethic” that increasingly declares, “What’s yours is mine and, if not, it ought to be”... ...suffering financially for behaving responsibly, while Wall Street bankers reap rewards for behaving irresponsibly. ...cohabitating with an NSA that builds mega-spy centers in the Utah desert to eavesdrop on their phone calls with Granny or their steamy chat messages with a significant other. ...living in a land that increasingly seems to be saying to would- be democracies around the globe: “Do you need a Constitution? Why not take ours? We’re not using it.” [Thanks, Jay Leno]. Who knows the exact reason why 1,800 Americans chose to leave last year — nine times as many as left four years earlier. Certainly, each one of them had their reasons. But like a corporate insider that sells his own stock, there’s one thing you know for certain about his motives: he is not selling because he believes the stock will go up. Maybe he doesn’t believe the stock will go down, but no one sells a stock they believe will go up. Likewise, Americans who bail on their country may not think things are going to get any worse any time soon, but they clearly do not believe things are going to get better. So far, the pitter-patter of footsteps heading for the exits is barely a murmur...but the murmur is getting louder. Regards, Eric Fry for The Daily Reckoning Joel’s Note: Have you recently expatriated? Are you considering doing so? Does the lifestyle of the “penthouse gypsy” appeal to you? If so, we’d like to hear your story...what caused you to leave/consider leaving? What hurdles did you/will you have to overcome? To where did you/will you relocate? Feel free to email us at the address below. We’ll feature a selection of your expat experiences in future issues. Watch this space for more... Only 62 People Know Exactly Why These Four Companies Could Change the World Now you’re #63 “on the inside” — and you’re on the verge of raking in lasting wealth. This could go down in history as the story of our era. Click here for all the details. ALSO THIS WEEK in The Daily Reckoning... The Path to $10,000-an-Ounce Gold By Dan Amoss Jacobus, Pennsylvania There’s a plausible path to $10,000 an ounce gold. And it doesn’t require a breakdown in civil society...Speculators see central bankers as modern-day superheroes, able to push markets around with a single phrase. In the minds of most investors, Ben Bernanke, Mario Draghi and Masaaki Shirakawa might as well be wearing tights, masks and capes. These superhero central bankers continuously swoop down into the financial markets to defend them from downticks...and to insure that they always deliver capital gains. I’ve Been Totally Wrong About Uruguay By Suzan Haskins Punte del Este, Uruguay Sitting beneath the canopy of a chic new restaurant overlooking the rambla, a jazzy cumba on the sound system softly keeping time with the ebb and flow of the waves beyond, I nurse a cold mojito and watch the sun slowly drop into the vast Atlantic Ocean. I have to admit that I’ve been totally wrong about Uruguay. Independence Day...and the Glories of a Strong Military... By Bill Bonner Paris, France Fritz Bayerlein knew war — modern war — better than almost anyone. The 45-year-old general had served in Hitler’s army his entire adult life. He had fought on all major fronts — in Poland, North Africa, Russia and France. By 1944, he was getting tetchy. At first, the idea of a German Empire, stretching from the Atlantic to the Pacific...from the Baltic to the Mediterranean...had made him feel proud. The Race between Science and Politics By Ray Blanco Last week, the big news was the Supreme Court’s ruling upholding Obamacare. Stocks, already down for the day, plummeted further on the news. Emerging biotechnology companies were among the hardest hit...briefly. Most biotech stocks have already re-bounded from the one-day Obamacare selloff and have soared to new multi-year highs. The One Retirement Plan Obama Can’t Touch If you’ve already retired, or want to retire soon, I urge you to watch this video presentation before we have to pull it down. This “Secret $200 Retirement Blueprint” shows you step-by-step how to grow a monster-sized nest egg with a little time and a tiny grubstake. Click here to watch this video presentation now. The Weekly Endnote... And now, it’s over to a few readers with some thoughts on the worsening conditions on the farm...and gettin’ outta Dodge... First up, Reckoner Marc writes in regarding Eric’s “gettin’ outta Dodge” musing... Many thanks for assembling your fabulous publication. I read the foregoing piece with interest given that I emigrated from the US to New Zealand in 2010. I must say that leaving the United States is one of the best things I did. New Zealand is not perfect, but it is far freer than America. I registered my business simply by filling out some forms online in a matter of minutes. When I did my personal taxes, it took me five minutes online through the IRD (IRS equivalent) website and my refund arrived in my bank account in forty-eight hours. Incidentally, I opened a bank account very easily without having to provide my IRD number (equivalent to a Social Security number). Similarly, when I fly into New Zealand from a holiday abroad, the customs people are courteous. In fact, none of them carries firearms, just like the police. Many Americans think the gun laws here are stringent but the opposite is true. Aside from handgun permits, which are difficult to obtain, a person can register to own firearms and have as many rifles as they want, subject to a few stipulations. Admittedly, it is not as free as I like, but at least I do not feel as if I need to arm myself to the teeth to protect myself from the government, although I am ready just in case. I do not have to worry about the government murdering me in the middle of the night because I am a “terrorist”. The roads in New Zealand are free of potholes and the countryside is beautiful. Of course, the place is not perfect, but at least the government here realises it needs to lower taxes and foster entrepreneurship to stay competitive. The government is even retrenching some state employees and is making cuts to the benefit system. In fact, New Zealand should have a budget surplus in two years and has government debt to GDP ratio that will peak at 30%. I suggest to Americans to get the hell out while they can. Latin America has some good places, but I felt New Zealand was a better fit for me. When the financial system finally collapses and the US government can no longer borrow to feed the underclass vermin, then the US is going to devolve into a state of anarchy with mass riots and looting. It will be like what happened in the former Soviet Union after it collapsed, except the American underclass do not have the resilience of Russians nor are they accustomed to enduring privations and hardship. It will be an unpleasant situation indeed. Next, Reckoner Elise writes... I have been watching the numbers myself. We left the US most recently in 2005 and I’ve been increasingly ready to make it official. This never even crossed my mind the ten years that I lived in Germany in the ’80s-’90s. But today, I really don’t see any value. I’m very curious to see what this years’ numbers are since it now costs to turn in your passport, cash on the spot. I’m fortunate to be in a position where I can easily pick up an EU passport. So this could be my year. And finally, on another subject, a Reckoner sharing your weekend author’s surname writes... I’ve been an avid reader for about 13 years. Sometimes I’m too busy eking out a meager existence, so I hold an article hoping to read it later. Alas, I sometimes miss your best stuff. I AM prejudiced for the military. My son is a Green Beret, currently doing a tour in Afghanistan. I know what he makes. It really isn’t a lot, but the ‘perks’ are pretty good. Now to my point, I also am alarmed at the direction of our nation. Your word picture about Ben Franklin, while a bit overdone, really woke me up. I also feel helpless regarding our fiat currency situation. Inflation continues to eat away at buying power. The non-working ‘have nots’ here in NYS are better off than the working have nots, if you make less than 32,000 per year. I make $28,000 per year and contribute almost $340 per month toward my health care premiums. Working for a small business, our plan, while adequate, is no Cadillac plan. That in NY is reserved for teachers (in Buffalo, their plan even includes plastic surgery). Sadly, my work ethic does not allow me to quit to take advantage of the system. Thanks for all you do to try and keep us informed. --- Remember, we’d like to hear your own expat musings. The “whys,” the “hows” and the “to wheres” are of particular interest. Email your expat experience to the address below and... ..enjoy your weekend. Cheers, Joel Bowman Managing Editor The Daily Reckoning ---------------------------------------------------------------- Here at The Daily Reckoning, we value your questions and comments. If you would like to send us a few thoughts of your own, please address them to your managing editor at joel@dailyreckoning.com Independence Day...and the Glories of a Strong Military... The Misguided Focus of the US Military-Industrial Complex How Government Spending Continues to Add Fuel to the Fire US Manufacturing Plunges! Consumer Confidence Falls...Again Eurozone Leaders Surprise the Markets The Daily Reckoning: Now in its 11th year, The Daily Reckoning is the flagship e-letter of Baltimore-based financial research firm and publishing group Agora Financial, a subsidiary of Agora Inc. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas. Published daily in six countries and three languages, each issue delivers a feature-length article by a senior member of our team and a guest essay from one of many leading thinkers and nationally acclaimed columnists. 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