Is Your Money Safe?

You may think I am asking this question about money in Panama and Panamanian banks, in fact I am asking the question about US banks.  Below is an article which comes from Doug Casey’s research team

Move Your Money Out of the Country… and Soon
March 30th, 2009

By the editors of Without Borders

Things are getting uncomfortable for individuals and corporations looking to deposit their money in tax havens around the world. Just recently, Congress introduced the so-called “Stop Tax Haven Abuse Act,” which is designed to do away with the privacy afforded by doing business or investing outside the U.S. and to eliminate or reduce tax benefits available offshore. Simon Black and Fitzroy McLean, ex-CIA operatives, investment pros, and globe-trotting editors of Casey Research’s Without Borders, weigh in with their no-holds-barred opinion on the topic…

We are patriots. We have proudly served in our country’s military, have extended a helping hand to its public sector, and have plowed our entrepreneurial enterprise into its once fertile soil. We love America, but these days, America does not love us back. It takes without giving and squelches free enterprise. These days, America is no longer the land of the free, especially when it comes to the market.

Just look at the headlines, seemingly ripped from the pages of Atlas Shrugged: Unconscionably large bank bailouts. Punishing regulations and tax requirements. An arctic business climate. Government money bombs. Riots and protests. Slowing trade. Protectionist rhetoric. Demonized corporate executives. Even pirates hijacking cargo ships. One can guess what will happen next.

We predict the next several years will usher in larger, more obtrusive governments, resulting in a decline of personal liberty and financial privacy. The world will become increasingly polarized between two groups: those who consider government intervention a great idea, and the rest of us who happen to be sane.

As such, you can bet your last falling dollar on some absolute certainties: bank nationalization is a given, at least de facto if not de jure; taxes are going up on those of us with any money left; the Fed’s money blitzkriegs will spark a blaze of inflation; and financial privacy will be a thing of the past in the United States.

The obvious and necessary solution is to position one’s finances outside of the United States, and to do so now, while the narrow and finite window of opportunity is still open.

To be clear, evading (or even avoiding) taxes at this point is not a wise move, given the size and scope of the ever-growing IRS. But there are significant advantages to expatriating your capital now:

For starters, you will actually have control of your own money. Yes, in certain instances you’ll be obliged to tell the IRS exactly where it is and what you’re doing with it, but no government agency will have the authority to reach into your overseas pocket and freeze or expropriate (read: steal) on a whim just so Team Obama can give it away to pay for someone else’s McMansion.  Plus, when exchange controls are implemented and Americans are forbidden from wiring money overseas, your capital will already be secured in another jurisdiction, where you will be free to do what you want with it.

Secondly, you will no longer have to assume the risk of insolvent banks or go through the hassle of petitioning the government to get your FDIC insurance bailout. Many overseas banks are far better capitalized than those in the United States, and some of them are in jurisdictions with constitutionally protected banking privacy.

Lastly, and probably most importantly, moving money overseas gives you a last chance at diversifying out of the dollar, which, in a very short period of time, will barely be worth the paper on which it’s printed.

Bank and Brokerage Accounts

Opening a foreign bank or brokerage account is easier said than done; the United States government severely restricts where and under what terms you can open a bank account, invest in a fund, or engage in other economic activities that facilitate the protection of and access to your assets. As the signatory on an overseas account, you are required by law to inform the federal government on Treasury form TDF 90.22 by the end of June each year. Ostensibly, this has been done in the name of fighting money laundering, but it has the effect of severely restricting your freedom of financial movement.

Many foreign banks simply won’t work with you… don’t worry, it’s nothing personal. Uncle Sam has been beating them down since the Reagan years, and between Qualified Intermediary rules, tax treaties, and the USA PATRIOT Act, Sammy gives himself a lot of regulation to bury the opposition with.

There are some jurisdictions that are still excellent banking centers; Switzerland may have rolled over, but Panama, Uruguay, Singapore, and the United Arab Emirates have thus far ignored the call for “greater transparency” (read: government access to private finance).

Some individual banks, like Credicorp and Global Bank in Panama, or Banco Itau in Uruguay will not work with U.S. citizens anymore, but there is still opportunity with the hundreds of remaining banks in these jurisdictions.

Similarly, opening a foreign brokerage account is a shrewd move, not only to move your money overseas but also to have greater access to financial markets. Remember when world markets tanked on Martin Luther King Day 2008? If you were a U.S.-based investor and wanted to sell, sell, sell, you had to wait a full 24 hours until the markets opened after the holiday on Tuesday morning. If you had been invested with global depository shares through a foreign brokerage, you could have saved yourself several points and gotten out in time.

We would suggest looking at Verdmont Capital and PanaAmerican Capital in Panama, and Saxo Bank in Denmark.

Bullion Storage

If you have gold, it would be highly beneficial to get it out of the U.S. – fast. If you do keep it in the U.S., your only truly reliable and private option is to store it yourself in a safe that you bury in your backyard.  Otherwise, move it out of the U.S. now before Team Obama pulls an FDR and takes your gold from you.

At the moment, gold is not considered a monetary instrument by the U.S. Customs and Border Patrol, so there is no legal requirement to declare your bullion upon leaving the United States. Some countries, like Taiwan and Uruguay, require you to declare gold in excess of a certain value to customs officials upon entry.

We recommend Panama, Austria, Switzerland, and the United Arab Emirates as locations to store bullion; one particular favorite is a location called Das Safe (www.dassafe.com) in Vienna where anonymous safes start at 400 euro/year.)

Real Estate

It might sound counterintuitive after the subprime debacle, but real estate is a sound option for moving money outside of the United States; there are zero reporting requirements. It’s your business where you own property, and (so far) no one else’s. You can purchase property in a private way by setting up a corporate structure to hold the assets so that they’re not in your name (Panama is an excellent jurisdiction to set this up), and although there are many places with depressed real estate markets, there are also many with good growth potential: in Latin America, we would recommend Panama, Colombia, Uruguay, and Chile. In Europe: Slovakia, Albania, and Poland. In the rest of the world: Lebanon, Hainan Island (China), the Philippines, Cambodia, and New Zealand.

Time is of the essence – start looking for your safe haven now.
Full story can be found here:

http://news.goldseek.com/GoldSeek/1238196153.ph

Enjoy and Share...

A Croc. in your back yard

photo by Dan Heinrichs

This little fellow may look like he is smiling, but my those are big teeth.  I don’t know the difference between a Crocodile and a Caiman and I am not sure it really matters.   I am told that in the southern spheres of the world Crocodiles are called Caimans.  I just call them dangerous, but only if you corner them.  Where I live these caiman hide out in the fresh water lakes around the golf course.  They are extremely shy and even trying to get their pictures is difficult as they don’t like “man” at all.  I don’t think they care, man or woman, we all look dangerous to them.

On the other hand we had some nice big fat tame ducks that someone left in the lakes and we fed them corn as we passed in our golf buggies.  One day there a were 4 and the next day there were 2 and a lot of feathers.  Mr or Mrs. Caiman had eaten duck dinner.

Unfortunately this causes people to fear the caiman and so the Royal Decameron Resort had the lakescoured with nets until the caiman was caught and removed.  I am told the Panamanians love caiman tail.  Poor guy he was just being a caiman.  But hotels and resorts do not figure their guests want caiman in any form

Enjoy and Share...

The Artisans of Panama

In El Valle de Anton I recently found and photographed this feather painting, which I felt so brilliantly captured the artist’s craft.

Here on a feather is a depiction of what truly was a remarkable little creature but one that has pretty much been eradicated, perhaps thanks to man. The Golden Frog once lived in el Valle de Anton and then a terrible fungus struck the frogs of Panama practically eradicating all of them The Smithsoninan scientists have found some of these tiny creatures and some other frogs of Panama and are keeping them alive so they can study the fungus that is killing them, hoping to solve the problem and use the few survivors to repopulate Panama’s frogs.

So paintings are currently all you see of the yellow frog.   What a gift. To capture this little creature in such an elegant form. Be sure to look for these feather paintings, either to adorn your own home or to give as gifts. Your friends and family will love you for it.

Enjoy and Share...

Real Estate Boom in Panama Continues

I have been interviewing a lot of people in the real estate industry in preparation for the March Magazine and there is no doubt that the boom in real estate is alive and well. First of all in Panama there were never the excesses in the market that you saw in Dubai, in the United Arab emirates or London England or Las Vegas, Nevada and other places where the bubble exceeded all reason.  Secondly, retirement is a real issue and there are lots of people nearing retirement from all over the globe who find Panama interesting and attractive for a variety of reasons.

Many people want a second home to escape their own country at certain times of the year. In addition, many people are looking for a total change of lifestyle, in their retirement years and Panama is attractive to them. There is an incredible energy in Panama as business is still good. Many businesses from places around the world are moving here. Real estate is selling well, businesses are doing well, the banks are sell capitalized and ythere is little “sub-prime” debt except amongst the bigger international banks like Citi and HSBC.

Business in the canal and in the Free Zone is strong.  What’s not to like.

Come and see for yourself

Enjoy and Share...

Panama Hats

Panama Hats have been famous around the world for a very long time.  Remember the movie, The Tailor of Panama?  Well you may be interested to know that the Panama Hats of that movie were not actually made in Panama, but in Ecuador.  So why in heavens name are hats made in Ecuador called Panama Hats?

These hats made in Ecuador are of exceptional quality.  Today it is not unknown to pay more than $100 for a high end hat with beautiful colors, but the weave is so tight that the hat is waterproof and so soft you can fold it.  The reason it became known as a Panama Hat was that these hats were shipped form Panama to locations all around the world.  Remember Panama has long been a world shipping hub.

But Panama also made hats by weaving straw and adding black into some of the straw allowing them to make intricate patterns in the hat, usually just above the brim.  The highest quality “made in Panama” Panama hats are made in a little village above Penonome in Cocle province, called Pintada and in the surrounding area.  People love to take the trip up to Pontada to see the hats being made, and some people even order one especially for themselves.  Do you have a neat design yo would love to see in a hat?

So now you know why there are two very different “Panama” hats.

Enjoy and Share...

Editorial Honesty: The Other Face of Trump

More trouble for Trump: Families go into hock investing in his name

Enjoy and Share...

Others Agree; Panama’s Real Estate Market Continues Strong

Ivanka Trump: Panama Hottest Market

BY JOACHIM BAMRUD

Ivanka Trump, executive vice president of development and acquisitions at U.S.-based Trump Organization, is bullish on Panama.

“I have projects all over the world [and] have a unique sense of the global real estate climate and submarkets,” she tells Latin Business Chronicle. “With great conviction, [I can say that]Panama is one of the strongest, if not the strongest, real estate market. Our biggest problem is not having enough inventory. We only have a small percent of the building left.”

ROBUST MARKET

The 70-story Trump Ocean Club is scheduled to open next year, offering a combination of condominiums, hotel, yacht club, restaurants, stores and a casino. “Given the global downturn, the fact that sales remain so robust a testament to the product, the brand and Panama,” Trump says. The buyers are a mix of American, Canadian and Latin Americans, she says.

The Trump success in Panama echoes the sentiments of other real estate experts. Property Frontiers recently named Panama as its top property hot spot for 2009, while David Berger, managing director for Latin America and the Caribbean for NAI Global,  sees Panama as one two Latin American markets that will best weather the storm this year (the other being Brazil).

So what does Ivanka Trump see as the reasons for Panama’s success? “It’s got a great government that really supports developers,” she says. “I’m impressed with their forward thinking in bringing in new potential residents. I’m in New York and see as “escape to Panama”. I never saw that five years ago.”

TAX INCENTIVES

Panama also offers important tax incentives. “Some of the tax incentives are incredibly luring to international [investors], especially as we in America are being taxed to the hilt,” Trump says

Meanwhile, the $5.2 billion expansion of the Panama Canal is also generating strong growth, helping drive demand for real estate and other services.

And then there’s Panama’s combination of urban modernity and rural beauty. “Panama is an exceptionally diverse and beautiful country, with an urban and well-established

city in addition to gorgeous resort-type destinations,” she says.

The three-year old Punta Pacifica Hospital, affiliated with Johns Hopkins Medicine International, is also a big draw, Trump points out. It is located only a few minutes away from the Trump Ocean Club. And it doesn’t have the hurricanes of South Florida, while offering prices that are less expensive. “Panama is attracting [a] lot of baby boomers priced out of South Florida,” she says.

UNIQUE DESIGN

The Trump Ocean is being constructed in a market with plenty of luxury condominium offers, but Ivanka Trump believes it has been able to stand out thanks to its unique design and amenities, which include a private beach club at Isla Saboga in the Pearl Islands (of Survivor fame).

But the uniquely designed building is the main draw. “In terms of quality of construction it’s unlike anything Central America has seen,” she says. “It’s a beautiful building.” She especially singles out the pools and the large rooms and suites with all fixtures and amenities. “It’s a product that meets five star standard international levels,” Trump says.

And it will be managed by the Trump Organization. “We’ll be in Panama for many years after the building is ready,” she says.

Enjoy and Share...

The Smithsonian Institute… a Marvel in Panama

A Visit to Panama’s Living Lab

Enjoy and Share...

Panama’s Stimulus Package

Article found in The Statesman.  Panama fortuitously had a huge stimulus package organized well before it became obvious to the world that stimulus packages planned by the governments would be necessary and a good thing in almost any nation.  Whether or not it is the right thing to do only time will judge but certainly you continue to feel a buzz in Panama.  Things are still going strong and with an incredibly strong demand for rental accommodation for all the people coming to help with the canal expansion, even housing is balancing out.  As one of the developers told me, “Prices may not be going up like they once were, but they are not falling either.”

Panama hopes to beat the global financial crisis
Central American nation expects economic growth and budget surplus in 2009

By Jeremy Schwartz
INTERNATIONAL STAFF
Sunday, March 15, 2009

PANAMA CITY — Cranes hover over the skyline like futuristic insects, buzzing around half-finished skyscrapers that make Panama City look like Miami or Hong Kong.

If any country is poised to withstand the ravages of the global financial crisis, it just might be tiny Panama, which has quietly become a regional economic powerhouse in the past five years.

Fueled by a superheated real estate market, windfalls from the Panama Canal and a burgeoning banking system, economic growth hit 9.2 percent in 2008 after soaring to 11.5 percent the year before.

As nations from the United States to Japan confront shrinking economies in 2009, officials in Panama are predicting relatively robust growth of 4 or 5 percent this year.

“This global crisis arrived in a moment in which we find ourselves stronger than we have been in the past,” Minister of the Economy Hector Alexander said. “In Panama, the dominant topic isn’t the recession.”

While unemployment has soared in the United States, the unemployment rate in Panama fell from about 14 percent in 2004 to 6.5 percent last year. And as the U.S. is adjusting to life with 12-digit budget deficits, Alexander said Panama is hoping 2009 will be its third consecutive year with a budget surplus.

But the nation hasn’t been immune to the global recession. Its real estate market might be heading for a sharp downturn.

Matt Landau, a New Jersey native and Panama City investment consultant, said real estate sales have declined precipitously in recent months, especially among the U.S. and European buyers who largely fueled the boom.

“When I first got here (about four years ago), people were buying (properties) for $200,000 and then flipping them for double or more in six to 12 months,” he said. “That was happening even up to a year and a half ago.”

Now, Landau said, Panama City is bracing for a glut of high-priced condominiums.

And as global trade is pummeled by the recession, Panama Canal officials expect the number of cargo ships passing through the waterway — and the tolls they pay to the Panamanian government — to fall almost 6 percent this year.

Even there, Panama has an ace up its sleeve in the form of a $5.2 billion Panama Canal expansion, which will widen the canal’s locks to allow larger ships to pass through.

Although recession wasn’t on the minds of Panamanian voters when they approved the expansion in 2006, officials see the megaproject as a perfectly timed stimulus that will directly create nearly 7,000 jobs in a country of 3 million and spark the creation of thousands of secondary jobs, just as the economy begins to sag.

“It’s as if we are increasing public sector spending by 35 to 40 percent,” Alexander said. “Today it works as a fiscal stimulus.”

Percentagewise, the canal expansion dwarfs any stimulus project the United States is planning. The project represents nearly a quarter of Panama’s $23 billion gross domestic product. By comparison, the $787 billion stimulus package in the U.S. represents about 5 percent of America’s $14 trillion gross domestic product.

Counternarcotics officials have long suspected that Panama’s boom has also been aided by an influx of money from criminal organizations. According to the U.S. State Department’s 2008 International Narcotics Control Strategy Report, the country’s construction and offshore banking sectors are particularly susceptible to money laundering.

But Panama’s economy has been helped by a stable and peaceful political scene, which the nation has enjoyed since the 1989 ouster of dictator Manuel Noriega.

When Noriega was captured by U.S. troops, Panama’s economy was in shambles, paralyzed by an economic embargo of Noriega’s regime. Successive democratically elected administrations have focused on economic recovery, enacting reforms and privatizing sectors such as telecommunications and electricity.

But some critics say Panama’s spectacular economic growth in the past five years has left out the majority of its people.

“The problem is that the growth has stayed in a few hands,” said Rolando Gordon, a University of Panama economics professor. “The economic boom hasn’t been able to resolve any of the great social problems of the country.”

Gordon said government statistics obscure the fact that even as the country’s economy exploded, the percentage of Panamanians laboring precariously in the nation’s informal sector — doing things such as selling fruit at intersections — has risen from 33 percent in 2001 to 44 percent today.

Gordon added that public schools are underfinanced, and access to drinking water remains problematic for many Panamanians. At the same time, the price of basic foodstuffs has increased.

“This boom we’re having is tremendous,” taxi driver Jose Cano said. “But for the poor, the humble, we aren’t seeing the boom. The price of food is going up. I have my own taxi, so I’m doing pretty well, but there are a lot of people who are recycling cans and stealing scrap metal.”

jschwartz@coxnews.com

Enjoy and Share...

Panama Pacifico

The Old Howard is the new Panama Pacifico, that’s hwat their literature tells you.

But for those of you new to Panama “Howard” was an old American Airforce Base. it is a huge plot of land surrounded by the Pacific ocean and it is very close to Panama City, just across the Bridge of the Americas. However the plans for Panama Pacifico call for it to be a whole new city, never mind its proximity to Panama City. Costa Del Este has developed a whole city on the east of Panama city and unless you have to work in Panama City you don’t have to leave Costa Del Este.

Panama Pacifico is 10 times the size of Costa Del Este and so the plans are to make it a major economic center as well as providing a wonderful new area for living. As a result many North American companies are moving there;for example, HP and Dell are already there in old accommodations until their state of the art new commercial space is ready.

Naturally there is an airport already there, but it is interesting to know that it is suitable for International Traffic and there is lots of talk about bringing some of the charter jets in there. It would make wonderful sense as the charter jets are generally bringing people into Panama for some of the huge resorts along the Pacific ocean, such as the Royal Decameron resort. What a blessing it would be for everyone on those jets, not to have to travel through Panama City before commencing their journey up the Pacific coast to the resort where they are staying.

The first phase of this development is progressing rapidly and the English company which is the Master Developer has committed to spend at least $100 million here on this project.

There is a Greg Norman Golf course planned and in fact the preliminary steps towards the creation of that golf course are well underway. Some of the homes will be built around the golf course and there wil be condos, and town homes and Villas available so there will be housing options suitable for all budgets.

Other homes are planned to be built closer to the business sections of the project. Live and work from home is indeed going to be a very viable option.

There will be several hotels located around the property some catering to the business traveler and others to those looking for some downtime at a fantastic tropical resort. This is going to be an environmentally savvy project and there will be consideration to maintaining the beautiful green that we all love from the tropical rain forest locales

While the rest of the world is suffering an economic downturn Panama is growing in all directions. Maybe it is time for you to come and see for yourself.

Enjoy and Share...

Next Page »