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The Growing Risk of US Dollar Default Requires Offshore Solutions
By admin | December 2, 2008
Only last year, my predictions of a huge forthcoming financial crisis fell mainly on deaf ears. People thought I was crazy. My business, as I have often said, was consulting and writing articles about offshore banking – you know, corporate accounts, offshore brokerage accounts and the like. I am not and never was an economist. My good friend Richard was the wealth creation expert. I was the nuts and bolts guy who gets things done in the background.
But somehow, traveling round the world visiting offshore banks (and even a few onshore banks), you pick up signals that many bankers who are stuck in their own little worlds seem to miss. Besides, I have certainly met some interesting people over the years! Somehow, and I can only guess why, my clients and readers tend to be a little ahead of the sheep. After all, the key to success in investing is to be ahead of the crowd, not to follow them.
Today, therefore, I’m writing a blog posting with more dire predictions. Most likely they will again fall on deaf ears. The US dollar has soared, gold is heading down again, and you might say I have no right to write postings about economics when I should stick to the nuts and bolts of offshore banking.
But… I’m going to go for it anyway. Who knows, it might help somebody. And that somebody might just be you!
The major question that people have been asking me is, if the US dollar is about to collapse as I’ve been predicting for several years, then why is it going up? I found a good, convincing article by Jim Willie (who by the way runs a great site about investing in gold) at the UK Market Analyst site Market Oracle:
The two main factors pushing up the US Dollar have been liquidation of speculative trades funded by it, and redemption of credit derivatives paid in it. These are not signs of any inherent investment in the US Economy itself, but rather its liquidation. Evidence abounds of severe deterioration within the United States, a collapse of confidence, a fall in business investment, ruin in retail demand, an avalanche of job loss, and a spread of corporate breakdown beyond the financial sector. Demands for nationalization have begun outside the financial sector in a wave certain to grow in strength and breadth.
I agree. Despite the news media talking up Christmas demand to the point of one poor soul being trampled to death in a shopping frenzy at a Wal-Mart last week (what a crazy world we live in) both supply and demand in the consumer goods market is falling rapidly. As evidence of this, take a look at the Baltic Dry Index.
What is the Baltic Dry Index, you ask? It is “an assessment of the price of moving the major raw materials by sea” and you can look at it here for example. Note how drastically it has fallen. This represents an unprecedented decline in world trade. The lead time on goods shipped by sea is usually some months, but after the holidays you really can expect to see a lot of empty shelves in supermarkets.
Anyway, above I have just scratched the surface of the problem with two examples: the almost unthinkable risk of a US government default on its debt (which you really should be thinking about) and the 90%+ decline in world trade over recent months. I’m sure we could all quote many more examples – I haven’t even talked about the credit crunch, world housing markets and so on.
My job, to hammer the point home, is not to be a prophet of doom and gloom. My daily bread comes from providing practical and positive offshore banking solutions. I’m in business to make money just as much as you are, so let’s do business and let me provide secure offshore solutions to protect your wealth and your assets!
What is your next step? You can either enjoy my blog which I will update as and when time permits, or you can take out a free subscription to Q Bytes and/or a paid subscription to The Q Wealth Report which will give you access to more in-depth articles not just by myself, but by a whole panel of offshore experts.
If you would like to take it to the next level and start work immediately on your own offshore plan, contact my office in confidence via info@petermacfarlane.net and we will take it from there, with either a telephone conversation or an introductory meeting at a convenient location. You can also contact me via the Q Wealth offices in London, but please note I am based in Panama and the Caribbean region so you won’t be able to reach me by telephone.
Will you be one of those who lets my warnings of worse to come fall on deaf ears? Or will you start your own financial protection plan today? I’ll leave that decision up to you.
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Topics: Banks and banking offshore, Investing in precious metals | No Comments »
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