Wednesday, April 24, 2013

 

Part 4 continued: the lengths to which the State will go...


Sometimes I believe the EU and some American politicians participate in a mutual admiration society. The EU is jealous of our unlimited ability to destroy our currency and export inflation, and the USA is in love with the progressive governmental structure dedicated to supplying cradle to grave social benefits and a bureaucracy without restraint.  Both governments want to duplicate the worst behavior of the other. I kept this in mind when Mr. Farage was introduced. Of the 20 or so speakers I would hear over the weekend, Nigel Farage and one other would be by far the most important. Only those with an interest in Europe (like someone having a brother and parent who live there), or someone who reads Zerohedge.com several times a day (also guilty) would have heard of him, so it's imperative I introduce him properly.

Officially, he a politician from the United Kingdom Independence Party (UKIP) who served in the European Parliament in Brussels. Perfectly true, and so inaccurate at the same time. His serving in the EU Parliament is roughly the equivalent of the Pope serving on the National Board of Planned Parenthood. To paraphrase Mr. Farage, he is not a Euro-skeptic. To say someone is a skeptic is to state he has doubt. Nigel has no doubt; the EU is a totalitarian exercise dedicated to destroying democracy across Europe. This isn't an exaggeration:


 




His screeds are the stuff of legend, and there is no limit to his rage. I loved it, and I couldn't agree more. Actually, I doubt you'd find anyone outside of the halls of power in Brussels who wouldn't say what happened in Cyprus was nothing short of despicable. Cheering and applause aside, the truth of his words cut to the quick of why we needed to be here. There is no end to what a government would do to preserve it's power, but not all nations are so dedicated to fleecing the population while destroying freedom and the rule of law.
In this vein, a subtext developed over the weekend. Invisible lines were being drawn all over the globe, with some nations hell-bent on their own destruction. Judging by the speakers, you can guess this list includes the USA, Japan, the EU (save Germany - sort of), the UK (somewhat), Canada (if only because of its relationship to the USA), and Argentina, which was relevant not only because of its multiple defaults, repeated debasement of the currency, price controls, suing newspapers that report true economic statistics, etc., but the fact it's next to Chile. 
On the other side were nations that not only aren't following this parade, but having seen the negative effects of these policies and strategies, not only rejected them, but used the other countries' bad behavior to demonstrate what opportunities exist in these other countries.



I read our schedule for the rest of the trip to have a sense of what places Simon was suggesting. Using the presenters a guide, safe havens included Panama, Brazil, Uruguay, even the Republic of Macedonia, along with Singapore, which seemed the pinnacle of the list. The only other nation that warranted mention turned out to be the true belle of our ball, Chile herself. 
Finally the opening (!) session was over. I was exhausted and completely energized at the same time. Back in my hotel room, I used Skype to call my girlfriend Paula. I thought I'd have roaming cell service, as per Sprint, but that was wrong. Skype was a better solution anyway, as it was free. Paula and I spoke for a little while. In the interim of our dating again and my trip, I really grew to care for her, and was missing her terribly. It was great to talk to her. Thankfully, she also has an iPhone, which allowed me to text her over the weekend using only the hotel's Wi-Fi, which I could not use to text anyone else. 
After speaking to my girlfriend, I wanted to share with my family and friends what I'd experienced, so I hoped on my phone and went to Facebook, where I posted rambling, oblique exclamations of unbridled joy. I hoped I would convey my excitement while at the same time hiding my real reason for being there from those I didn't tell.
While on Facebook, my father's coworker in Jordan, Samah, popped up in my chat window. Samah is one of the smartest and nicest people I've ever met, and watched out for my dad like he was family. I should also mention she knows EVERYONE in Aqaba. I'm not kidding. I love her to pieces, and my brothers, my dad, and I could never thank her enough. I went back and forth with her online, and I guess my dad tipped her off as to my plans. Actually, she probably figured it out on her own. I told her about my feelings concerning the USA, which she understood, and about my plans to teach ESL. She agreed it was an excellent idea, but not to teach in Saudi Arabia, which I'd put on a short list. I'd like Qatar more, and the money would be better. Point blank, if she said it, it's correct - no arguments. I suddenly wondered if she knew people in Qatar; it would not have surprised me.
With that it was finally time for bed. I'd seen three of the most influential people in the world that night, all because I took a leap of faith. I was in the right place, but still had so much to learn and do. What else did the weekend have in store? What would I discover and accomplish? I thought I had some idea, but was dead wrong as usual.



 

Part 4 continued: Jim Rodgers, Adventure Capitalist....


Of any of the speakers or presenters I'd encounter over the weekend, Jim Rodgers has done more of what almost everyone attending wanted to do, including marrying a much younger woman. I include myself in this group (save the younger woman part honey!) As for a specific goal I'd love to duplicate, he and his wife hold the world record for driving around the planet in a customized Mercedes convertible. (I get all tingly thinking about it.) As an investor who reaches the heights reserved for Warren Buffet, after his road trip, which lasted 3 years, (damn, that tingle flared up again. If this keeps up, I may need a doctor, or perhaps a cigarette.) He moved to Manhattan, but decided opportunity was elsewhere, and NYC was just too damned expensive. 
 

He moved himself and his family to Singapore, itself a major destination (dream?) for the expat community, and a banking center overtaking the Swiss, Once there, he continued investing and writing. He enrolled his now 2 daughters in a school that teaches in Mandarin, and his daughters are fluent. I could describe further, but I let him tell you instead.

 



I thought about posting a Glenn Beck & Jim Rodgers video, but then I remembered I live in New York, as are most of those who would read this blog. I have heard much of this before, though he has fresh perspectives on Cyprus and the likelihood of such an action here in the States. He (and I) predicts another step prior to confiscation of bank accounts and banking holidays; pension plans would be confiscated first, before bank accounts. Don't believe it could happen?





Keep in mind that we both reckon banking holidays and the taking of savings will occur, just not right away. The pensions will be taken, then when that proves insufficient (i.e., spent like a drunken sailor), money in the bank would be next. I'm not a high on China as he is, but he's a billionaire, and I'm not. Until the economic data is more truthful, I wouldn't invest or look at China as a potential expat destination, but I can't deny his overall assessment that this is the Century of Asia, with America and Europe relegated to second-class status. I don't believe this is good, by the way. For all of her misdeeds, America's influence on the rest of the world has been comparatively benign. Research the atrocities visited by the British Empire, The Soviet Union, China's occupation of Tibet, etc., and compare them to America's behavior. The Chinese Empire won't be quite as gentle, and you can ask the Dali Lama for a personal testimony.

 Mr. Rodgers' new neighborhood will be a very different place to live for Americans and Europeans, who's lifestyle with be severely curtailed until the bad debt and mal-investments are washed away through default. Once these un-payable obligations (including Medicare, Social Security, and governmental pensions) are gone, the nation will be able to have real growth.

I loved listening to Jim Rodgers and couldn't believe I was maybe 20 feet away. He reinforced what Simon and Dr. Paul had already said. At this point I was nearly overwhelmed and nigh-elated. I had to imagine it was the end of the session. I figured wrong, of course. Next up? Nigel Farage.
Ah, fuck it:
 


Tuesday, April 23, 2013

 

Part 4: A murder's row, or the Austrian Economist's All Star Team

Ron. Fucking. Paul. That was the entire message. In the stunned silence prior to his comments, I saw the doctor on the stage, and my first instinct was to tell people. I took out my iPhone, and sent a friend an email. What good is it to participate in something so cool without getting to brag to others? In this case I'd be not only bragging, but openly gloating, as the recipient was the one most critical of my attending. Ah 'twas a sweet email to send.

Dr. Paul started to speak, but only after we took a few minutes to clap, cheer, and generally shower him with praise. His introductory remarks covered familiar territory: Personal freedom and economic freedom are inexorably linked. For one to truly value freedom, you must protect both, and the dichotomy of each party favoring one but not the other cannot continue. Also, the value of the free market trumps the efforts of the State, only gold is sound money, and the Federal Reserve is one of the worst things ever created. I already knew most of this, as anyone worried about liberty and freedom in America couldn't avoid his work if you tried.

Here's a sample of his work if you've never heard him speak:




Another part of his remarks was the pointed warning that America can no longer afford to start wars around the globe, and that our monetary policy would eventually cause America to lose world reserve currency status. I agreed with all of his remarks save one. He stated that young people were beginning to understand the value of economic freedom as well as social freedom. Uh, say what?! He couldn't be serious, except that I knew he was. Did he not pay attention to Occupy Wall Street? Did not realize the percentage of young people who voted for Obama? Ugh.

Again, if that was the opening session, if my hotel room was next, if my night was done, that alone was more than enough. I'd pierced the veil and found Galt's Gulch, and I was thrilled, but no, I wasn't done yet. There to the side of the stage was a titan of the investing world: Jim Rodgers. Oh. My Lord.
 

 

Part 3: The sounds of silence, or... Let the games begin!

Dialect: A variety of a language (specifically, often a spoken variety) that is characteristic of a particular area, community or group, often with relatively minor differences in vocabulary, style, spelling and pronunciation.
Thank you Wiktionary! I speak several dialects, such as Geek, Nerd, Right-Wing Conservative Catholic (my mother tongue), East Coast Liberal (unfortunate, but unavoidable when repeatedly exposed), and am functional in Pagan due to my alternative hobbies. My Libertarian/Materialism is weak, however, and this troubled me.
I was afraid because beyond the practical aspect of the conference was the social concern. To use a boxing idiom, you have to punch your weight, and I was moving up in class, and probably more than one. I was legitimately afraid I'd be completely lost and too intimidated to even introduce myself. Thankfully, I'm a decent talker, and due to work, an occasionally good listener. To at least pass as someone who belonged, I familiarized myself with a few political talking points to ease into a conversation, a few facts about Chile, and hoped the material we'd learn would do the rest. I always try to bring an unusual perspective to the table, so I brought up the possibility of the Democrats winning back the House in 2014, and then juxtaposed it with the other party's timeline for going offshore. This turned out to be an excellent topic. Chatting with my friend on the plane, he hadn't even considered this development, and the effect it would have on this schedule. All through the weekend, the mention of this possibility was usually met with silence, and occasional panic. No one used denial as a coping mechanism, which I'll take a good sign. 
After a long sleepless flight, I landed in Chile, paid my visa fee, and grouped together with a few others for a van ride to our various hotels. We chatted, and said we'd meet for dinner after the cocktail reception, which we did. The dinner was the only real chance I'd get to explore the city, though I didn't know that at the time. Naturally, I found an Appleby's, a Ruby Tuesdays, and a Starbucks. I reminded myself we were very close to the American consulate, and this should have been expected. What I didn't find were residents of Santiago. It was a holiday weekend, and everyone blew town. We were warned this would be the case, but I pooh-poohed the notion. It turned out Simon was not exaggerating. All but one of the restaurants was closed, as were all the shops, and even the high-end cigar store in the hotel, which was full because of the conference! This last part broke my heart, though my lungs were quite happy. Simon also remarked that he asked his favorite Italian restaurant to stay open, which the owner did as a favor to Simon; otherwise there would have been no place to eat. The dinner itself was great, as was the cocktail hour prior to food.
It was nice to speak to people who felt the same way I did, and had the same concerns, both personal and societal. As for the demographics of the conference over all, it was overwhelmingly white and middle-aged, with a strong conservative bent. There were a few die-hard Libertarians at the dinner table and in the seminar as well. Two of our dinner party came from Texas, one of whom actually had several offshore accounts, and another had gold in Singapore. I guessed they were there for immigration purposes, as they didn’t need help with offshore banking. Quite a few at the conference, and the organizers of our table, were from Southern California. This couple hailed from San Diego, the last Republican bastion in the Golden State outside of Fresno. With the new liberal super majority in the California Statehouse, there is no longer an ability to block dramatic tax increases (and Cali voters made it really difficult to raise taxes), so their offshore needs were by far the most pressing. Eventually, I had to admit what I did for a living (Civil Service? Are you a spy? Yes, I’m actually a sleeper agent for the Republicans. There are traitors in our midst indeed!), but I was able to frame it by saying I understood how dysfunctional the system truly was, and how I expected the debt-dependent system to crash around our ears. This helped smooth things over.
Displaying my educational credentials (however reluctantly) gave me an opening I hadn’t expected. My nascent plan for going offshore involves teaching English, and everyone at the table really liked the idea. The uniform positive feedback was appreciated, but it also illustrated the huge gap between myself and the others at dinner, and I assumed by extension, the rest of the attendees. I was the only one not looking to build a business either stateside or overseas. Everyone else at the table already owned their own businesses, even if it was just a side venture, or had self-directed investments, or property, or what have you. I had designs on getting a job, and according to a few of my favorite websites, not a very good one. I said it was a foot in the door, and that was and is true, but I really had nothing beyond that. Still, it was nice to keep up in the conversation. We all brought something interesting to the table as the coffee and wine flowed. My point was the proper use of the semicolon and colon (really!), which I suppose was a test to see if I was serious about teaching English. Thank you Stepinac and Holy Trinity for beating the English language into me.
We then had the opening session to attend, and all of us who had dinner sat together and waited to hear Simon. Our host began with a short video about the growing militarism of the developed West, with police in riot gear breaking up protests, knocking down doors, and generally misbehaving. The video also included the shenanigans on Wall Street, the banking actions in the EU (and this video was made before Cyprus, which became the topic du jour), and generally why we were all here, as if we needed a reminder. Cyprus scared and angered everyone, even myself, and I have no vested interest other than sympathy for the Cypriots. After the video, he spoke about the conference; why we needed the information he'd collected. If that was the meeting, it alone would have been impressive. It was a great way to kick off the weekend, but he wasn't done.  
After the talk, and some scheduling info, Simon brought up to the podium our keynote speaker for the evening. Amid hushed gasps and shocked murmurs, Congressman Dr. Ron Paul (R-TX) stepped up to the podium. A brief silence was followed by a thunderous standing ovation. For myself, I wondered how they could top this while I cheered. My adventure (there's that word again!) was in full swing, and I was grinning from ear to ear. Dr. Paul then began to speak. 

Monday, April 22, 2013

 

Part 2: In the interim, or...


Life is what happens when you're making other plans. I realize in my prior post that I oversimplified the preparations, and some of that was intentional as a narrative device. The truth is a bit more complex. I paid for the conference in January, but the conference was Easter weekend at the end of March. This left plenty of time for buyer's remorse, self-recrimination, and more than little criticism from my friends, some of whom chastised me for wasting money, and all of whom wondered what the Hell I was up to. The answer was, as always, no good. 

In addition to wondering if I'd made the right decision, two important developments occurred. One was, if not expected, at least unsurprising; I would never have guessed the other. The latter was that I'd begun dating someone. We had dated briefly last summer, but there was too much going on for us to work out. In February, I'd heard one of her family members had passed, and I sent her my condolences. We started texting, and eventually met for dinner. There's a funny story about finding places to eat on Friday evenings during Lent, but that's another post. Spending time with her reminded me how much I liked her,and enjoyed spending time with her. Naturally, I didn't bring up the Santiago trip in the beginning, as it tends to make me sound a little... er, crazy? Reactionary? Insanely right-wing? Take your pick, and it would probably be correct to boot. Even when I did mention where I was going, it took a while to really open up about the reasons. I shouldn't have worried, as it turned out. She didn't freak, and she was even curious as to what I'd do, how I'd do it, etc. I was a little surprised and very happy at this.
The first development was my mother's most recent hospitalization. As you can read in a prior missive, she had stopped taking her meds yet again, and the outcome was all but pre-ordained. Upon her release, the same pattern took place, and she was re-hospitalized not 3 weeks later. Please note that the post to which I refer concerns only the first time in the hospital and I was utterly fed up with this at that point. You can imagine how I felt after the second time.
The effect of mother's actions was to strengthen my resolve to attend the conference, and to jettison any concerns where my mother was involved. Whatever plans I made from that moment, my mother's welfare would not be considered. If she has no willingness to care for herself, then why should I? If it sounds harsh, that's because it is. Honestly, I should have taken this approach back in 2008. Still, thanks to no small amount of personal growth, I wasn't as emotionally derailed as I was 5 years ago, and was able to be effective at work, in my personal life, etc. My realization that I was going to be OK, and that I was still determined to attend to the workshop, only cemented the knowledge that this was the right choice.

 That confidence came in handy, as information was hard to come by. Simon was less than forthcoming with specfics. Some of us attending were speculating on what would happen, but we had very little confirmation. We did get periodic updates, but very little in the way of specifics. In retrospect, the organizers must have been giggling at our predictions; we weren't even close. We were right about the papers we should bring, and I put them together with ease. It helps I never throw anything out. I did know international banks would be there, and some Chilean immigration attorneys, but that was it. Eventually, I got the discount code for the W hotel, and finally booked my flight via airline miles, though I was fated to fly out of Newark. I hate that airport, but I was stuck. 

In the midst of all this was the nation of Chile itself. Simon owns a 2000 acre farm there, and he encouraged us to investigate it as an off-shore location. I knew I wouldn't stay longer than the conference, but I did intend to investigate the city itself. Specifically, I wanted to find "cafe con piernas" which translates to coffee with legs. Imagine Starbucks crossed with Hooters, and you're in the general vicinity. Of course, I gave up coffee for Lent. I also learned Chile is very welcoming to immigration, as the transformation from Pinochet's quasi-fascist dictatorship to democracy and a stable market economy is complete. Combine this with the knowledge that immigration attorneys would be there, and the notion of an idea of a plan began to form. 
On the day before the event, and only after juggling my work schedule like a circus clown, I left the office for the airport and the off-site parking. I'd run the numbers, and I could afford the trip. I had the papers; I had business clothing, and I had my passport. My flight took me to Dallas first, where I changed planes and boarded a full flight to Santiago. As there aren't many flights to Chile, I knew other attendees would be with me. I didn't expect to sit next to one, but when I saw his book "Currency Wars" I knew I found a fellow attendee. We spoke all through the flight, and was introduced to others whom he met at the airport.  

 

 

Sunday, April 21, 2013

 

The conference, part 1: descisions, descisions...

Finally, after two weeks, I am ready to process and write about my trip. The running joke surrounding my attending the Sovereign Man Offshore workshop in Santiago, Chile was that I'd either have a mind-blowing experience unlike anything I could have expected, with knowledge gleaned that I could never have found on my own, be inspired to move forward and prepare for the difficult times ahead, or I just put $2500 in a pile and set it on fire. It never occurred to me it could turn out to be both.

First, some background is in order. Why I went was simple; I believe America is in for a very difficult time economically, with major social and political upheaval coming along with it. Economic conditions change like the tides, but what I find different is our ability to constructively respond to these situations has reached the point of diminishing returns, politically, socially, and economically. I don't believe the sky will inexorably fall, but absent a sea-change in several areas, it will. Even if it didn't I believe this, there are plenty of opportunities outside the USA, and it behooves me to investigate them. Attending this conference was an attempt to solidify a back-up plan, which is the motivation for why I do a lot of things.

Still, whether or not domestic circumstances would reach the point where I would need to leave isn't really the issue. For one, my willingness to leave is not contingent upon these larger forces. My good situation professionally was always counter-weighed by my increasing dissatisfaction with the direction of the nation, combined with my utter failure personally, and I'd be happy to explore life overseas.

I have studied expatriation since the start of this blog and before, both in the true sense of the term - giving up my American citizenship - and the more commonly understood use: merely living outside of the USA. I consider myself an early adapter on this subject, from the perspective of my Generation X friends, anyway. The easiest approach would have been to gain a degree in English, then teach ESL overseas in Korea or Japan, eventually working my way up to the Middle East, where the real money was. After college, I had what I thought was a serious girlfriend, and I was similarly convinced I had a managerial job in the Poconos. Moreover, my degree is a B.A. in Psychology; a major I chose by accident, like so many other things in my life.

 I've written at length on this subject, though not for quite some time. What I've rarely done is put any real effort into achieving that goal. Until the conference, the only tangible attempt at preparing for leaving the USA, was trying to take my school's TESOL program, which would have certified me to teach English home or abroad. Without stepping on my prior posts, I'll only indicate it didn't work out very well. You see, I have this annoying thing called a career, and it was either an amorphous pursuit with no sure payoff, or my livelihood. Well, give me a minute to sort things out. Bloodied but unbowed, I immersed myself back in my research, which included near-constant Internet surfing, the buying of magazine subscriptions, the ignoring of an entire library of books in my house, car, and office, general fretting, rambling blog posts, and becoming a member of Sovereign Man Confidential. The membership was the most important, as it lead to Santiago, though I would never have guessed it at the time. In fact, I almost gave up my membership, something I'm very glad did not occur. 

As for the conference, this wasn't the first time this company had one, and there are quite a few other businesses that have them as well. Though the subject isn't discussed in polite company (thereby demonstrating I am not, in fact, polite company.), the topic has engendered a cottage industry with a few principal players. I know them well; I've sent them all money.  Still, my faith in Simon Black was (and is!) greater than the other companies in this field. Why the benefit of the doubt? It was his choice of target audience.

"Follow the money," stated Deep Throat, and successful businesses do the same.  For the companies targeting potential expats, the targets with the most money are the Baby Boomers close to retirement. Whether they are recently unemployed with no job prospects, or facing an existential crisis as to their own irrelevance or mortality, or realizing they'll far outlive their meager retirement savings, they make an excellent market. For one, they do have money to spend on a conference such as this one. Two, they have been socialized to feel as if they are still the cultural vanguard of America despite their age, which I find laughable. Anyone who successfully reinforces this notion will make bank.

Simon Black tends to eschew this group, aiming instead for a younger,  or at least more entrepreneurial, cohort who isn't just looking to take whatever capital it possesses and live out the golden years like a Venetian prince on less than the average monthly social security check. It really isn't possible anyway, but it's the most common scenario (and dream) sold by less truthful companies. They leave out all the difficulties, culture shock, etc. inherent in such a move, though your dollar can stretch further, especially if you live in an expensive area such as Westchester, Coastal California, etc., but you can move to Florida and gain the same benefit. They're really selling an adventure like Gandalf to Bilbo Baggins, all while leaving out the fire-breathing dragon. It's selling the sizzle, but you're the steak. Mr. Black talks extensively about these challenges and how they can be overcome, without ever minimizing the work, which I appreciate.

All these ideas collided when I received the notice of the symposium in mid-January. His company had a conference 2 1/2 years ago in Panama, but I didn't feel I had the money  to spend, and I simply wasn't ready to take the leap. Besides, I figured this would be a yearly occurrence, so I had the next year's event, right? Wrong, as it turned out. With only this in mind, and having no other knowledge as to what I could expect, I took out my credit card and purchased my seat. Airline miles were used for the ticket, and I got the hotel rate at the W Santiago, the best hotel in Chile and the host hotel. I was filled with excitement at what I could accomplish, the people I'd meet, discovering Chile, and what the speakers and leaders would teach me. Attentive readers will understand I bought the dream they were selling, i.e., the sizzle. What about the steak? Well, as it turned out, I got my money's worth and then some, but I concentrated on the wrong things I'd find. Instead of scheming on what I'd learn about the world and it's opportunities, I really should have wondered what I'd learn about myself.

Part 2 coming soon. 


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