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Author Topic: Offshore Banking and Currency Diversification  (Read 2716 times)

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Offshore Banking and Currency Diversification
« on: May 25, 2016, 04:19:41 PM »
Both the Sovereign Society and Nomad Capitalist promote the wisdom of not keeping all of your assets in the USA or in the US Dollar.  The general suggestion is to keep a basket of Commodity Country or Safety Country Currencies in case the world de-dollarizes or the Chinese invade North America like they have Africa or the USA markets implode - again. 

It makes sense not to have all your eggs in one worn out basket.

The Sovereign Society is changing a bit and is now the weekly Sovereign Investor News Letter and the Bauman Letter and both have a long-standing relationship with Everbank in Jacksonville FLA and their many different baskets of currency CDs that are FDIC insured.

Good info from this weeks Bauman Letter especially in light of the recent Panama Papers scandals (Full disclosure I have their basic $49.00 annual subscription):

THE BAUMAN LETTER | May 25, 2016

Greetings! My dad, ex-Congressman Bob Bauman, was editor of the Offshore Confidential newsletter before I took over. A man like him just doesn’t “retire” … he always has something to say. He often jumps in to answer reader questions before I’ve even had a chance to look at them. (I often kid him that he’s a bit like King Lear, albeit without all the drama.)

Dad also remains one of our most important sources of information about offshore matters due to his extensive contacts and personal knowledge of specific countries. For this week’s Bauman Letter Weekly, I decided to give him the pulpit, from which he addresses some questions related to offshore residence and banking.

Articles seem to pop up periodically about the Iraqi dinar, but lately there seems to be a lot of chatter about many currencies being revalued, making it an attractive alternative. Is there any validity to this?

The Sovereign Society was founded in 1997, and over the years I cannot count the many inquiries we have received about the Iraqi dinar. Based on the opinions of our associates, including currency experts, we have always warned against what amounts to an unreasonable craze — a mini-version of the infamous 17th-century Dutch tulip mania. That position has been well expressed by Robert Laura, Forbes contributor and retirement expert:

Let me reiterate that the Iraqi dinar and the Vietnamese dong do not fit into a retirement portfolio in any way, shape or form. Both monetary units are often referred to as “scam” currencies for good reason. Countless warnings and blood soaked war stories are prevalent online, but to my surprise, investors continue to fall for it, throwing good money at a very bad idea.

How does Nicaragua stack up against other countries for obtaining a second passport? What are the terms, conditions, protocols, costs and time considerations? I have not seen that in your previous publication issues. I am seriously considering Nicaragua as an “escape to” place. I like the Rancho Santana area. Appreciate your thoughts and recommendations.

The government of Nicaragua may grant temporary or permanent residence status to foreigners. Citizenship by naturalization may be conferred on a person who has lived legally as a resident in Nicaragua for at least three years. On average, most countries (such as Panama) require five years of residence before naturalization. Here is an immigration attorney on whom we have done due diligence:

Roberto Arguello, Arias & Muñoz
M 4½ Carretera Masaya, Edificio BAC, 5th Floor, Managua, Nicaragua
Phone: +505-2274-0480
Fax: +505-2274-4123

Thanks for the great updates! Do you have any banks you might recommend for establishing an offshore account either in Singapore or Panama?

This bank is one of the few in Singapore that will consider opening an account without requiring the applicant to appear in person. They welcome Americans as well.

OCBC Bank (Overseas China Banking Corporation)
53 Ang Mo Kio Avenue 3
#B1-32/33 AMK Hub
Singapore 569933

While Panama banks aren’t generally hospitable to American or foreign accounts, if the U.S. or foreign person lives in Panama, or has a second home or a legal entity based there, they are usually welcoming. Don’t contact these banks directly, however. Panamanian banks uniformly require an introduction from a local professional to open an account, and may want an initial personal visit. We have arrangements with four reputable banks (see below). Rainelda Mata-Kelly, a senior member of our Council of Experts, assists our members in opening bank accounts and making introductions. There may be a fee for these services.

Rainelda Mata-Kelly, LL.M.
P.O. Box 0818-00534, Panama City, Republic of Panama
Suites 406-407, 4th Floor, Tower B, Torres de las Americas, Punta Pacifica, Panama City

Banco Panameño de la Vivienda, S.A.
Ave. La Rotonda & Boulevard Costa del Este, Panama
+507-306-2000 / +507-306-2100 / +507-300-4700

Multibank Inc.
Vía España # 127, Edificio Prosperidad, Apdo 0823-05627, Panama, Republic of Panama
+507-294-3500 ext. 1530

Punta Pacifica Branch — Centro Commercial Plaza, Pacifica, #9, Republic de Panama
+507-297-5200 / +507-215-5450 / +507-215-5457
Kind regards,

Ted Bauman
Editor, The Bauman Letter

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Re: Offshore Banking and Currency Diversification
« Reply #1 on: May 25, 2016, 04:29:06 PM »
Curious how this will effect our various currencies?

The negotiations around the TTIP may have great impact on the future of the USA and the EU. We discuss the TTIP pros and cons and if it is a good idea. Share your views on this trade agreement.

US-EU trade agreement

The aims of the Transatlantic Trade and Investment Partnership (TTIP) are to create a free-trade agreement between the EU member states and the USA.  Boosting the economy is particularly important after the economic crisis. But this major issue also has long-term policy implications and the potential to undermine democracy in both EU member states and the USA. Whilst the EU stresses in its economic assessment that both the EU and the USA will benefit from “significant economic gains” as a result of the free-trade agreement, some economists have expressed concerns about the distribution of these benefits, with investors and shareholders being the most likely beneficiaries and workers in manufacturing industries being the most likely losers, with a serious risk of becoming unemployed. The debate about the pros and cons of the TTIP remains well entrenched. Many groups in civil society are now campaigning against this agreement, trying to force decision-makers to change it.

TTIP pros and cons

The main advantages that the TTIP may bring to the US and EU are:

The TTIP agreement is expected to boost the US and EU economies.
Create new business and trade opportunities on both sides of the Atlantic.
Opportunity to set common standards and similar regulations that may facilitate the action of companies.
Removal of some market barriers and promoting the free-market.
As a consequence of the removal of tariffs, many products will be cheaper for consumers.

But that is not the whole story, there are also problems associated to the US-EU trade agreement, such as:

The new common standards will probably be lower than those previously existing (mainly in Europe).

The new investor-state dispute settlement (ISDS) procedures may infringe principles of sovereignty and, in cases, go against the democratic rules of countries.
Red tape: since companies may sue governments and officials, the latter may become more cautious and bureaucratic to avoid legal troubles.
The lack of transparency during the process of negotiations reduces accountability and the capacity of citizens to understand its potential impact.
In some regions, where the industry is less competitive, many jobs may be lost.

Overall, what do you think? Will this EU-USA free trade area have a negative or positive impact in the long run? What effects would the TTIP have on different stakeholders? Will Europe benefit from the agreement as much as the USA?