Is the Constitution Bailing Out the Banks?

Brokers Will Never Tell You This There's a special class of stocks outside the conventional Wall Street system that could make you a small fortune. For the first time ever, an analyst from Baton Rouge, Louisiana has agreed to share this secret on camera. As you'll see, one man from Houston used this secret to make $19,400 on just one trade... and a physician from Arizona tripled his money trading these stocks. To find out if this strategy is right for you, click here now. Is the Constitution Bailing Out the Banks? By Bob Bauman JD, Offshore and Asset Protection Editor Dear Sovereign Investor, Who caused the most damage to the historic Fort Trumbull neighborhood in New London, Connecticut? Was it Benedict Arnold or the United States Supreme Court? In 1781, during the American Revolutionary War, one of the major colonial grievances was the confiscation of property by the King and his agents. Fort Trumbull was attacked and captured by British forces under the command of the notorious turncoat, Benedict Arnold. The British lost that war and Arnold was hanged for treason. In 2005, 224 years later, Fort Trumbull was attacked again. In a revolutionary five to four decision, Kelo v. New London, the U.S. Supreme Court ruled that under the power of "eminent domain," the government has the right to take private property, not only for public use, but to give the property to private developers as part of a plan to bolster a local economy. The plan was an abject failure. And today, some local politicians in Richmond, California, are advocating an outrageous application of eminent domain as a supposed remedy to the U.S. housing market collapse … and the results will be disastrous. Advertisement "By December 23, 2013, America's Biggest PONZI Scheme Will Collapse…" One of the first financial research groups to warn investors about the global derivatives crisis is now warning of an even bigger crisis – the collapse of a Ponzi scheme 318-times bigger than Madoff's. In their newest special report, they'll show you how you can avoid this coming economic disaster. To learn more, click here. The brutal result of the 2005 Supreme Court Kelo decision was that the waterfront Fort Trumbull neighborhood was destroyed. Fifteen families were evicted and their homes bulldozed. The giant Pfizer Corporation, central to the proposed property-grab development plan related to Kelo, welched on their offer and skipped town. The area was eventually turned into a dump for storm debris. Undeterred by that disastrous government property grab, politicians in Richmond, California, are now seeking to undertake an equally reckless and ill-fated eminent-domain scheme of their own. And if it catches on, America may see a national "New London" scandal on steroids. Scarcely touched by the nation's housing recovery, Richmond is about to become the first city in the nation to try eminent domain as a way to stop foreclosures. The city plans to use eminent domain to buy both current and delinquent loans, with the city writing down the debt to allow homeowners to refinance at a new, lower amount through a government program. Naturally, the original lenders have warned that such a move will bring a host of lawsuits and halt mortgage lending in any city that adopts such an unconstitutional scheme. What promises to follow is a mess of epic proportions. Government Run Amok The Fifth Amendment of the Bill of Rights states that no person shall "... be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation." Until the Kelo ruling, eminent domain had been strictly defined as the right of a government to expropriate private property for public use, with payment of fair compensation. Today, government in America has become so paternalistic, and so soft-headed, that politicians now want to abuse eminent domain to "save homeowners" by buying up "underwater" mortgages, a mission clearly divorced from what is spelled out in the U.S. Constitution. About half of all mortgaged homeowners in Richmond are underwater, meaning that they owe more than their home is currently worth. Certainly profit-hungry banks and irresponsible mortgage lenders are partly to blame for the housing mess because they have been pushing unsuspecting people into the wrong loans and unaffordable properties. And those banks and mortgage lenders have been subject to civil and federal lawsuits. But at some point, the individual bears some measure of responsibility. If you need a magical mortgage with no down payment, no interest payments for the first two years and a 1% teaser rate just to afford a house, then maybe you shouldn't be buying that house in the first place. Surely some responsibility rests with the buyer to ask what an adjustable-rate mortgage is and what it means when rates adjust upward. If you don't bother to ask those questions or think about how your monthly payment may change with rising interest rates, then you are responsible for whatever consequences come your way. What's clear is that government should not be in the business of saving risk-takers from the consequences of their actions. Government should NEVER be in the role of picking winners and losers, choosing homeowners over investors. The proper role of government is to enforce laws and make sure that everyone has equal rights. Full stop. Just imagine what great fun the mayor and city council of Richmond can have picking and choosing which homeowners to help based on past or prospective voting. But there is hope. The Kelo decision stirred up the proverbial hornet's nest in America, spurring lawmakers in 44 states across the country to adopt laws to prevent similar private gain from public eminent domain in their states. Many local governments have adopted similar restrictions. These actions may well block the crudely political Richmond eminent-domain plan. In 2012, the U.S. House passed bipartisan legislation that would withhold for two years all federal development funding to states or local governments that take private property for economic development. The U.S. Senate has taken no action. You can write your senators to voice your support for the House bill. And you can stay abreast of the latest examples of government overreach and offshore opportunities by reading our daily Sovereign Investor alerts. Solutions Exist Offshore One of the basic tenets of The Sovereign Society credo states: "Every individual has the natural right to keep, control and dispose of his or her property." We know that our fundamental natural rights are under continuing attack, not just in city councils, but from the White House and in the United States Congress. So why not consider a home offshore in a reliable tax haven such as Uruguay or Panama? U.S. law does not require reporting to the IRS the direct ownership (in your own name) of real property in a foreign country. That means a U.S. person can own an offshore vacation or retirement home with considerable privacy. We will be pleased to help you with the offshore brokers we have vetted and to give advice on offshore real estate. Faithfully yours, Bob Bauman, J.D. Chairman, Freedom Alliance P.S. If you want to live a comfortable life under the radar – out of Uncle Sam's grasp – in a place where you'll never worry about running out of money... If you want incredible medical care at affordable prices despite Obamacare… If you want to live freely without having to answer to Big Brother … Then you may be interested in reading my special report. In it, you'll discover just how easily you could attain this life. For full details, click here. TODAY'S EDITOR Bob Bauman, J.D. From second passports to offshore trusts, Bob can help you make the most of what offshore has to offer with his Offshore Confidential. Click here for his latest report. BECOME A SUBSCRIBER When the next economic crisis hits – will you be prepared? As a subscriber to The Sovereign Individual, we will arm you with the tools and strategies needed to prepare and prosper in the months ahead. 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