Feedback Friday - June 29, 2012

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Another week flew by and it's Friday again!  This week an angry man from California tells us to get out and don't came back!  A worried Canadian mother asks us if she should pull her kids from school and flee the country... and a gun nut says we are gold nuts!  And much more!  It's action packed, so let's get right to it.

STAND UP FOR YOUR COUNTRY AND FIGHT LIKE MEN!

Hi Jeff and The Dollar Vigilante Staff,

Do any of you own a residence & business in the United States?  Running away from home to escape the problems in the US is a chicken’s method isn’t it?  You expect everyone here in the US who earns a living and own  their business to uproot themselves & move to where they can salvage themselves from taxes but leave the business location, job & residence behind?  What kind of psychos would allow themselves to uproot not just themselves but their families?  Are you married with children or just a lonesome freelance old bachelor who can without strings roam the world at large or what?  Are you a realist or are you just a roust about who likes to try and influence others just to stimulate your own ego trips?  If you think you can escape the world’s present problems regards our Paper Aristocracy by moving around just give the Aristocracy a little time to pin your efforts down to their style.  Why don’t you people stand up for your country and fight like men?  Just leave and don’t come back is my advice.

Russ Smith, California

Jeff's Response:

Hi Russ, you opened a whole garbage can of worms all in one letter so let's tackle each issue one by one.

Do you own a business or a residence in the US?  There are about 10 of us here at TDV now (see the directory).  I was born in the geographic region known as Canada but left in 2003, travelled the world for four years, then lived in Thailand for two years and now live in Acapulco.  Our COO, Michael Bach, was born in the geographic region known as Denmark and has lived in Acapulco for the last 12 years.  Ken Johnson, VP of Marketing & Sales and head of TDVPassports and TDVOffshore hails from your own nanny state, Kalifornia.  He recently ran as fast as he could down to Acapulco.  Others such as Managing Editor, Redmond Weissenberger and TDV Senior Analyst, Ed Bugos, live in Canada.  Almost all the rest are from the US but now live in Acapulco.  Almost everyone stays in AcaCondos.  To answer your question more succinctly, no I don't live in the US and wouldn't even consider it.  I will never take my family to the US via airplane as I will not allow them to be subjected to the TSA.  I would also never consider incorporating a business in the US (highest corporate tax rate on Earth) and certainly would never keep any money there as the capital controls being put in place are as plain as day.

You expect everyone here in the US who earns a living and own  their business to uproot themselves?  Of course not.  We here at TDV have written plenty (see "Options for American Serfs") and continue to do so for those who cannot or do not want to leave the West on how to survive what is going on and what is coming.  And, coming this Monday we are introducing "Dear Slavey", a Dear Abby style column from a man who lives in Kalifornia and who helps people wind and weave their way around the dangerous state with all kinds of great tips on how to get out of debt and avoid the police state.  The focus of TDV is helping people survive the collapse of the US dollar and The End Of The Monetary System As We Know It (TEOTMSAWKI).  It just so happens that internationalizing your assets and your ass are some of the best ways to do it.

Are you married with children or just a lonesome freelance old bachelor who can without strings roam the world?  Married with children and chihuahuas.  However, admittedly, I found them all here in Mexico and didn't drag them along with me.  That said, if I lived in the US I'd be running, not walking, to get them out.

Why don’t you people stand up for your country and fight like men?  We all left "our countries" because we didn't like it.  And who exactly are we supposed to be fighting?  You want us to just go and punch a politician in the head?  Or a brainwashed neighbor?  Violence solves nothing.  Not to mention I don't want a "country" and certainly don't consider myself to be "Canadian" other than it is the area where I was born.  I'm a human being.  One of about 7 billion.  All these names, imaginary lines and pieces of cloth with colors on them that you salute mean nothing to me.  In fact they are dangerous and delusional.  John Milton stated it perfectly all the way back in 1666, "Our country is wherever we are well off."  I want to live free and away from people who think like you.  I've done that for the most part and am very happy.

Just leave and don’t come back is my advice.  Ah, that is my favorite thing to hear from house slaves like yourself.  It's like music to my ears and it gives me the opportunity to give my favorite response:  I already left and I have no plans to "come back".

Dear Jeff,

I have recently become a follower of TDV.  I was quite impressed to find that you founded Stockhouse.com since my husband uses the website daily to follow his favourite penny stocks.  Almost everything you speak about strikes a chord with me and I enjoy many of your videos.  I would love to pick up and leave Canada today to become a citizen of the Dominican Republic (DR) even though my situation is not as dire as that of a rich US citizens.  I do not have the finances that require such an elaborate escape but wonder about the future for Canadians.  

All my Registered Retirement Savings Plan (similar to 401k or IRA in the US) investments seem to be rapidly losing ground and I would like to “retire” in the next 3-7 years.  My problem is this: we have more in RESP’s and real estate as well as RRSP’s that cannot be easily transferred or liquidated.  We also have two kids at home (11 & 16).  I am 53 and my husband is 54.  Do you have any advice that would be relevant to us?  Should our kids abandon the education system in the Western world (which touts itself as the only ticket to a better life) and should we cash it all in to live in the free third world?  Won’t my pension be taxed no matter where I reside?  Interestingly, my husband is British and so, I am entitled to a British pension through him, even though I have never lived or worked in the UK.  Should I be pursuing a British passport instead?  Maybe there is a tropical place under British rule that would work as well as the DR?  As much as I would like to jump off the virtual cliff to freedom, I cannot abandon my kids just yet and my husband thinks I’m nuts anyway.  Any thoughts?

Cheers,

Pauline

Jeff's Response:

Hi Pauline,

Thanks for your letter.  We hear a very similar story to yours countless times throughout the day.  Now you can see why governments push you into things like Registered Retirement Savings Plans (RRSPs) and Registered Education Savings Plans (RESPs).  They serve to trap you.

As for your kids abandoning the education system, that is a conversation you need to have with them.  If your son wants to be a doctor then, the way the system is currently structured, he cannot without going through the education system's channels.  If he wants to be an entrepreneur, however, then he is just wasting his time in the system and would almost certainly be better served getting out and working on entrepreneurial style projects.

As well, you have to consider your own personal and financial situation as well.  If you are like most, both you and your husband have to work in order to stay afloat thanks to the tens of thousands of dollars of taxes that are stolen from you each year.  This means that even if you did yank the kids from school neither of you would be around to supervise them.  This is the main reason parents like school... it is just babysitting.

As for your passport situation, I definitely recommend you get another passport just to give you options.  As TEOTMSAWKI continues we will see countries putting more and more capital controls into place and taxing more and having a second passport may give you some extra options at that time.

As a final comment, I would say, try to relax.  While a lot of what is going on in the world seems insane that is because, as John Lennon said, "The more real you get the more unreal the world gets".  If you have had the bad luck to have run across TDV as it "strikes a chord" with you then you will likely continue to become more and more aware of the insanity of how most people think and how most countries are run and it can seem overwhelming.  But, don't let it stress you out too much.  You are already well ahead of the pack in that you are aware of some of the problems and are aware that a complete financial collapse is not only inevitable but possibly imminent (in the next few years).  Just take prudent actions to protect yourself and you should be ahead of the game.

I consider most governments to be a dangerous, ravenous bear.  And, it's like the old saw, you don't have to actually run faster than the bear.  You just have to run faster than your friends and neighbors!  By tuning in here at TDV and subscribing (subscribe to TDV here) we offer regular thoughts, analysis and commentary on how to do that.

DO I HAVE TO REPORT FOREIGN GOLD HOLDINGS ON AN FBAR

IN RESPONSE TO: "FBAR, 8398, FATCA, And Capital Controls - The Trail That Leads To The Forced Repatriation Of Your Foreign Assets"

Dear TDV,

Where does physical gold and silver stand in the realm of things if held abroad and outside any financial institution?  Does this need to be reported if there have been no capital gains on a sale?

Bill

Vin Maru, Chief Editor of "Getting Your Gold Out Of Dodge" (GYGOOD) Replies:

Hello Bill,

When it comes to reporting precious metals held outside the US, the following forms from the IRS must be filed by anyone who qualifies, which pretty much includes every US citizen, resident alien and most domestic entities that have an interest in foreign financial accounts.  The IRS recently published a chart (here) showing what is reportable, and not reportable, under FBAR and 8398.

When it comes to precious metals, if you meet the minimum threshold for the value of assets held in a foreign financial account, then YES they are reportable on both forms.  If your precious metals are held with any financial institution in an account in which you have a financial interest (deposit or custodial), then you should file.   If you are in doubt, then check with your foreign financial institution on their reporting requirement to the IRS. If they are required to submit the information, you should report the holdings as well.  For Form 8938, Statement of Specified Foreign Financial Assets which is due with your income tax,  must be completed if you exceed the $50,000 threshold.  Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR) has a threshold of $10,000 and is due June 30th.  We suggest you visit the IRS link above to see if you qualify for reporting.  Failing to file the FBAR and Form 8938 accurately and when due renders you subject to civil and possibly criminal penalties, so it is in your best interest to file these forms if you are in doubt.  

If you are required to fill out form 8938 for income tax report purposes, you should also report the sale of your precious metals even if does not trigger a capital gain.  It clearly states that if you have a an interest in an account or asset, you are required to report it.  This includes any income, gains, losses, deductions, credits, gross proceeds, or distributions from holding or disposing of the account or asset are or would be required to be reported, included, or otherwise reflected on your income tax return.

The IRS guideline chart clearly states that "precious metals held directly" are not reportable under either form.  While there is no clear indication by what “held directly” means under FBAR and 8398, we take that to mean that these assets are not held in any type of account and are held in your possession where you have access to it.  This would include precious metals you store outside any financial account and institution (they are required to report your holdings), such as a private property or a safety deposit box in which only you have control and direct access to, you are not required to report it.  Precious metals held directly off shore has the same reporting requirement as foreign real estate, foreign currency and personal property such as jewellery, cars and collectibles.  None of these items are reportable on either form.  We assume that if you are not required to report precious metals held directly while offshore, then most likely you are not required to report its sale either.  If the tax authority never knew about your directly held precious metals, and you are not required to report it, then the reporting of the sales of these precious metals is up to you, however we suggest speaking to your tax accountant for clarification.  You don't want to assume anything when it comes to the criminal IRS.

The IRS probably left the interpretation of the law vague on purpose, so they can always get you later on because of mis-filling, yet they don’t tell you how to file.  With all these crackdowns and vague reporting requirements, it will be more difficult to store wealth out of the US without the authorities knowing.  Expect by next year that no US or European citizen will be able to store assets with a financial institution outside of their country without the authorities being fully aware of it.  All western governments and bankers are now working together to make reporting a worldwide necessity or risk penalty or confiscation.  We've all heard about one world government.  Well, it starts with a one world banking system of reporting, and that will most likely be in place by next year.  

Here is the good news for US tax slaves looking to store precious metals in other countries.  We, at Getting Your Gold Out Of Dodge, have found a solution where you can have your physical precious metals stored safely in various countries around the world without having to report these holding on form 8938 or FBAR.  Contact me if you are interested in this option or you can read about it in our special update to GYGOOD coming out soon.  This option will be made available shortly to anyone who purchased the report ($44.95 here) or free to all TDV subscribers (subscribe to TDV here or TDV Golden Trader here).

GOLD NUTS ARE CRAZIER THAN GUN NUTS!

Hi,

Every time I read about you gold nuts, I think about trading a cold coin worth over $1500 for a loaf of bread or a rack of ribs after the crash.  That's dumb.  Buy ammo.  You can trade it or use it to get what you need to survive on.

WWR

Jeff's Response:

Hi WWR,

I'm not sure why you think we are "gold nuts".  We do suggest holding gold and silver as a significant portion of your assets but holding what has been money for thousands of years and is still held as such - central banks increased their purchases of gold by 571%, from 77 tonnes in 2010 to 440 tonnes in 2011 - doesn't make us "nuts".  It makes us prudent.

And we certainly don't own gold to buy some bread after TEOTMSAWKI.  That would be dumb!  That's what silver coins are for.  At $25 a silver coin is perfect for buying some basic necessities.  Gold is held for large purchases (perhaps buy a hotel for a few gold coins as was done in Germany during the Weimar Republic hyperinflation) or as a store of wealth.

We aren't against holding bullets... or generators... or cigarettes or alcohol.  In fact, given the right place at the right time, you could possibly make a fortune with a warehouse full of generators when the power goes out.  

Any of the items listed above are all things that people will likely want/need during the Great Transition.  However, if you are right and the thing that is most in demand are bullets then we suggest you just leave whichever area you live in.  If the thing that people need most are bullets I'm not too sure I want to be around there to see how it all turns out.

FROM WHENCE DO THY HIPPIES COMETH?

IN RESPONSE TO: "The Weekend Vigilante June 24th, 2012"

Jeff,

In the Weekend Vigilante you stated, "Hippies have long been a mainstay of the left culture but their philosophy made no sense."

This is because the left co-opted the hippie out of the mistaken belief that since "he" rose most prominently during the Nixon era, he must be anti-Republican. And as we all "know", if one is not a Republican, one MUST be a Democrat. It bugs the hell out of me. 

The truth of the matter is that the hippie was anti-government. He was always rallying against the man. And while some of his misguided brethren may have gravitated toward the left, many others gravitated to communes and off-the-grid self-sufficiency. Those of us who were around during this time remember the hippie's constant fight against THE MAN. Not THE REPUBLICAN MAN. Just THE MAN.

Mac Beaulieu

Jeff's Response:

Hi Mac,

If that is true, that is good to hear!  Although I am sad because I was certain I had discovered a new species of anarchist.  Some further research I've done refutes some of what you say, though, as it seems to imply that the hippie movement was an extension of the utopian socialist movements of the 19th century. 

But, having seen everything and anything co-opted into the left-right statist paradigm I am definitely open to your comment that the movement was co-opted and skewed.  I was just very happy, and surprised, to sit down with a glassy-eyed man with dread locks and a bongo drum and talk about the non-aggression axiom and property rights!  From whence they came is of no great import... I'm just happy they are here! 

That's all for this week! As always, send us your hatemail or threats to leave your country to tdv@dollarvigilante.com.  Stay free!