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Subprime Dollar and Banks Imploding: What to Do?
By admin | September 19, 2008
Wow, what a week so far! And as I wrote at Q Wealth Report, Congressman Ron Paul says this is just the beginning. Of course, that idea is nothing new to regular readers of this blog. For quite a while we’ve had a page here about how to protect yourself from the falling greenback, or to use another expression the sub-prime dollar. Those who have not yet heeded the warning probably still have time – if you act fast.
In fact, the dollar’s been going up recently, which is odd in some ways because it certainly doesn’t make sense given the underlying financials. But then, if the US is pouring a trillion dollars of taxpayers’ money into supporting the US financial system, I guess it should at least have some short term positive effect on the dollar, right? Mark my words: The long terrm consequences will be disastrous. But there will also be huge opportunities to profit for those who are in the know and prepared to take some risks.
My advice to clients doesn’t change. Now is not the time for short term speculation. Multi-currency offshore bank accounts will provide some short term flexibility, so you can keep your money safely in the bank without being locked in to the dollar. Multi-currency accounts typically function in Euros, US and Canadian Dollars, Pounds Sterling, Swiss Francs etc and allow to switch currencies on demand via online internet banking.
But ultimately, now is the time for holding on to real assets. Gold is a strong asset that will always be in demand, not least because the Chinese have a centuries-old love of gold! People will always need places to live, whatever happens to fiat currencies – so real estate is good if you buy proper, liveable real estate at a knock-down price. Remember: location, location and location!
Not much more to say at the moment except wait and watch the world financial system collapsing. Reminds me of the predictions I read a decade ago in the book The Sovereign Individual by James Dale Davidson and William Rees-Mogg. That book was certainly a wake-up call to me back then! Ron Paul says that what follows will be more totalitarian government, so if you haven’t already, perhaps it’s time to think about a physical move to one of earth’s more anarchic places.
Or if you can’t face too much anarchy, look at a place like Andorra, prosperous, clean, free, family-oriented and regulated at the same time – and protected by geography. Or what about the out-islands of the Bahamas? These are just two of the places I am recommending to clients at the moment. There are, needless to say, others which I would not even write about in public.
If you’d like further reading on the crisis, I found an interesting paper on the site of the St Louis Federal Reserve Bank, entitled Is the United States Bankrupt? I wouldn’t agree with it completely, but it raises some interesting points.
There’s also an interesting site where you can watch the crisis unfolding called the Bank Implode-o-Meter. Worth visiting and subscribing to their RSS feed about secure and not-so-secure banking.
More coming soon, as time permits. I’m doing an offshore bank, private banking and wealth creation conference in Panama next week so will very busy. But not as busy as the Feds will be, I’m sure!
Have fun, and please let me have your feedback: info@petermacfarlane.net
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