• Four Reasons to Open an Offshore Bank Account Now

    Email Print
    Share

    Recently
    by Simon Black: The
    Most Dangerous Woman in America

    There’s
    a lot to cover today, so let’s dive into this week’s questions.

    First, Charles
    asks, “Simon, when you write about international diversification,
    I appreciate that you have so much personal experience. Multiple
    passports, overseas business,
    foreign bank accounts
    , storing gold abroad, etc., you’ve
    actually done it all yourself. For newbies, which of these do you
    think is the most important?”

    I think everyone
    ought to consider opening a foreign bank account and moving a portion
    of their savings there. This is the most important step, for four
    key reasons:

    First, most
    western banks are sitting on hundreds of billions of dollars in
    losses to their asset portfolios, not only from the sub-prime debacle,
    but also from sovereign default issues.

    Since 2008,
    there has really been no positive change in asset quality…
    and rather than update their balance sheets to reflect this grim
    reality, governments have simply authorized funny accounting tricks
    to hide the truth.

    To put it bluntly,
    the bank which holds your money in the US or Europe is probably
    insolvent. And your government, which theoretically guarantees the
    deposit, is insolvent too.

    Many foreign
    banking systems are much, much healthier. Singapore has never had
    a banking failure. Ever. Banks in the Middle East (such as Abu Dhabi
    Islamic Bank) are extremely well capitalized. Other foreign banks
    (like Capital Security Bank in the Cook Islands) hold their deposits
    in cash and don’t make loans.

    These banks
    are much more secure stewards of your hard-earned savings.

    Second, foreign
    banks typically make it easier to diversify your currency exposure.
    If you want to get out of the dollar or euro, for example, a single
    bank account in Hong Kong lets you diversify into over a dozen different
    options – Chinese renminbi, Singapore dollars, Aussie dollars,
    etc.

    When I was
    in Mongolia a few weeks ago, I opened up a bank account there in
    the local currency (the tugrik). It’s been one of the best
    performing currencies in the world for the last few years, and what’s
    more, my account pays a whopping 13.5% interest just to hold cash.
    Not too shabby.

    Third, foreign
    banks are often much more innovative. Banks in the west think they’re
    innovative when they launch a Facebook fan page. Asian banks let
    you hold gold bullion in your savings account… or buy into
    the next big IPO at an ATM machine.

    Read
    the rest of the article

    The
    Best of Simon Black

    Email Print
    Share