Get Prepared: The Government War on Cash May Result in a 'Cash Recall' of All $50 and $100 Bills

By Mark Nestmann

Cash has never been a popular asset with the totalitarian set. It’s difficult, if not impossible, to trace. Cash makes it possible to do business “off the books.”

For decades, with the US leading the effort, governments have engaged in a War on Cash. The original justification for this war was to fight racketeering. The War on Cash morphed into the War on Drugs, then the War on Money Laundering, and subsequently, the War on Terror.

The Greek Tragedy and What it Means About Bankster Attempts to Manipulate the Entire World

By Mark Nestmann

One of the assumptions of the eurozone – those 19 countries in Europe that use the euro as their national currencies – is that if any country left the zone, economic disaster would follow in its wake.

Only a few days ago, it appeared that heavily indebted Greece might be forced to drop the euro and return to the drachma, the currency it used before the euro.

During the 1990s and early 2000s, Greece was spending money like a sailor on shore leave with a limitless credit card. The government ran up debts amounting to hundreds of billions of dollars to prepare for the 2004 Olympics, among many other infrastructure projects. It also promised retired Greek citizens some of the cushiest pensions in the EU.

In 2002, Greece was among

One of the Biggest Countries in the World Just Caved on FATCA (And who will now need a tax attorney)

By Mark Nestmann

I’ve written frequently about FATCA, the Foreign Account Tax Compliance Act. This one-sided law forces other countries to enforce US tax laws. If they fail to do so, they’re effectively locked out of US markets and the US dollar – the world’s reserve currency (at least for now).

FATCA imposes a 30% withholding tax on interest, dividends, rents, and similar payments leaving the US. The only way to avoid the tax is for foreign financial institutions (FFIs) to act as unpaid IRS informants. Withholding came into effect last July, although the IRS postponed it for FFIs making a bona fide effort to comply with the law.

Entire countries are labeled “compliant” if they sign what the IRS calls a “Model 1” FATCA agreement. This requires that banks in those countries send the information demanded by the IRS to their own tax authorities to subsequently be sent to the IRS. Other countries, like Switzerland, have signed “Model 2” FATCA agreements. These agreements leave it up to financial institutions in that country to come to an agreement with the IRS.

But there are still some big gaps in the list of countries that have signed FATCA agreements. And the biggest gap of all is the world’s

Are You Making This Financial “Mistake”?

By Mark Nestmann, 

What’s the most hazardous financial activity that you can engage in?

It’s not investing in penny stocks. It’s not buying foreign currencies. It’s not even playing futures and options, as risky as they may be.

No, there’s one financial activity that could certainly end in catastrophe. And I bet you’d never guess what it is.

I’m talking about

While the Feds Won’t Confiscate Your Retirement Plan… They Will Do This

By Nark Nestmann

Over the last few weeks, I’ve had close to 30 consultations with Nestmann Group clients. And one of their top concerns is that Barack Obama or some future US president will find a way to confiscate the money in their IRAs or 401(k) plans.

It’s not going to happen. Now, I know that’s not what you’re reading from some of my colleagues covering the wealth preservation and asset protection beat.

What’s more, if I’m wrong and the government does confiscate retirement plans or requires them to make mandatory investments (e.g., in long-term government bonds, etc.), the solution some of my colleagues have suggested won’t protect the assets in your plan.

It’s All About Politics

More than 11 million Americans have IRAs. The average balance, according to a recent study by Fidelity Investments, is about $89,000. That amounts to about $1 trillion in money parked away for retirement.

Even more popular than IRAs are 401(k) plans. About 52 million Americans have them, with an average balance of around $86,000. That amounts to about $4.4 trillion.

Could President Obama sign an executive order tomorrow demanding that every dollar in these plans be sent to the US Treasury to pay down the US government’s $18 trillion debt?

Yes, he could. There are all kinds of laws and precedents he could invoke to justify an outright confiscation.

But it’s extremely unlikely that he will. The 63 million Americans with assets in these plans obviously would be outraged by an outright confiscation of their assets. And there’s absolutely no doubt they’d make their displeasure known in the streets and the halls of Congress. Simply put, if Obama or any other president tried this gambit, he’d be impeached in a matter of days or weeks.

What Will Happen

That’s not to say that Congress and the president wouldn’t like to confiscate your retirement funds. They’d do it in a heartbeat if they could find a way to do so without enraging 63 million voters.

What they’re doing now, though, is

Would You Like Fries With Those Taxes?

By Mark Nestmann

Fast food… greasy cheeseburgers, salty fries, and Diet Cokes in Styrofoam cups so large you could wash your feet in them. What could be more American?

Well, maybe not so much anymore. You see, one of the biggest fast food giants – Burger King – is trying to “divorce” America and re-establish its business in Canada.

Don’t worry, BK lovers. You’ll still be able to

Chase Bank 'De-Risks' a Porn Star's Bank Account and What It Means for Your Account

By Mark Nestmann

Recently, The Economist reported that Chase Bank closed the accounts of hundreds of porn stars.

Among them was blond bombshell Teagan Presley, star of Just Over 18 #10 and more than 70 other porn videos. Chase informed her it had closed her account because she was prominent in the “adult” business.

Teagan Presley’s loss of banking privileges is an example of a much larger trend. It’s called “de-risking,” the decision by a bank or other financial institution to end a relationship with a customer to avoid possible embarrassment or, worse, government witch-hunts.

In the last few months, US banks have closed down tens of thousands of

What You Need to do Now to Protect Your Money

By Mark Nestmann

What’s the most hazardous financial activity that you can engage in?

It’s not investing in penny stocks. It’s not buying foreign currencies. It’s not even playing futures and options, as risky as they may be.

No, there’s one financial activity that could certainly end in catastrophe. And I bet you’d never guess what it is.

I’m talking about depositing money in a bank.

Not many people give much thought to the financial standing of the banks to which they entrust money. That’s a mistake. When you deposit money in a bank, you become

Why I Chose Panama (Over Costa Rica, Mexico, or Canada)

By Mark Nestmann

In my consulting practice, I’m often asked about my own “Plan B” – what I plan to do when the s**t hits the fan (SHTF) in the good ol’ US of A. And of course, why I chose that plan.

In my case, it’s Panama. I’m now a permanent resident there and will pick up my cedula – my national ID document – next month.

In choosing Panama as my personal “bug out” location, I went through a comprehensive evaluation of that country versus several other possible alternatives. Here are the criteria I reviewed

The Great Country of Austria

By Mark Nestmann

This week, I’m writing to you from the departure lounge of the Vienna International Airport.

I lived in Austria from 2003-2005. I returned not only to renew old friendships, but to see firsthand the latest developments in this small country, which only a century ago dominated much of Europe.

The airport has changed a great deal in the nearly 10 years since I left. It’s expanded and made itself much more accessible to business travelers like me.

And Austria itself has changed too. Judging from what I’ve seen, the population is remarkably tolerant of cultural and political differences. Indeed, the most famous Austrian today appears to be a transvestite who calls herself Conchita Wurst.

But xenophobia is on the rise in Austria (as in much of Europe). The anti-immigration, rightwing Freedom Party (FPÖ) made big gains in the 2013 elections.

In recent years, immigrants, both legal and otherwise, have overwhelmed Austria. It’s easy for citizens of EU countries to relocate to, and work in, the country. Thousands of people from the newest EU members – Romania and Bulgaria – now make their home here.

Yet with continuing illegal immigration from Russia, Libya, and other countries, this influx has imposed great strains on Austria’s generous social services network. As a result, it’s become harder for “outsiders” without EU passports to obtain residence visas.

In most cases, residence applications from outside the EU are subject to quotas. And to stay in Austria legally, you must eventually become proficient in German.

I left Austria in 2005, because I couldn’t find a way to qualify for residence without spending a great deal of money in legal fees. But every time I return, there’s a part of me that wishes I had stayed.

Mercer’s, a major human resources consultancy, ranks Austria’s historic capital of Vienna as the world’s most livable city. As a former resident, I can attest to the fact that Vienna is an extraordinarily attractive place to live – and to visit.

On the evening I arrived last week, I walked from my hotel in the central district to the City Hall (Rathaus). Every summer evening, weather permitting, musical and theatrical productions are screened on an open-air video wall in front of this immense neo-Gothic building. Admission is free, and dozens of food stalls serve food and drinks. There’s nothing like settling in for an opera screening, accompanied by Wiener Schnitzel and an Ottakringer beer.

If you qualify, after 10 years of permanent legal and uninterrupted residence, you can apply for Austrian citizenship and passport. You must demonstrate fluency in German; pass a test on Austria’s history, constitution, and geography; have a clean criminal record in the country; and possess a “positive attitude” toward Austria.

Austria also has an accelerated citizenship option in its immigration law, although it’s not a “program,” as such. You may qualify for “instant” Austrian citizenship and passport by performing extraordinary achievements in the interest of Austria. If you’re a famous scientist, opera singer, or sportsman and relocate to the country, you may qualify. But most of the handful of individuals awarded citizenship annually under this option make a hefty contribution to support or rehabilitate an Austrian cultural, religious, or historical facility or location – generally in the €2 million (US$2.7 million) range.

Booming Economy

Austria’s official economic forecast predicts the nation’s economy will grow only 2-3% in 2014. But in Vienna, business is booming. Of course, visiting this city in the midst of tourist season exaggerates the underlying economic activity. Even beyond the tourism-focused city center, the signs of growth are everywhere. Vienna recently extended its U-Bahn (subway) network. One route now extends northwest out to a new city being built from the ground up: Seestadt, or Lake City. Here, more than 10,000 new apartments are being built with an estimated 20,000 jobs created.

It makes sense to build on the city outskirts, as land and property in the center have become very expensive. A real estate magazine in my hotel room featured dozens of listings in the city center… with a starting price of €1.9 million. But prices are rising in the suburbs as well. A friend I met for dinner told me that the apartment he had purchased in 2005 about six miles outside the city center for €160,000 had nearly doubled in value.

Banking Options for Americans

Austria has also evolved into a sophisticated international banking center. While Austrian banks don’t have as many foreign clients as Swiss banks, virtually every banking and brokerage service you can imagine is available. Banks in Austria offer similar services as those in Switzerland, but at a lower cost and, historically, with a somewhat lower profile.

Unfortunately, the vast majority of Austrian banks – and non-US banks in general – no longer deal with Americans. I wrote about the reasons for this exclusion here. During my visit to Austria, I met with the two banks in Vienna that I have confirmed will work with US clients. One of them does so with reluctance and requires a personal visit – although the minimum investment is as low as €1,000. The second bank works through a network of agents – including The Nestmann Group – but requires a minimum investment of $500,000.

But if you’re simply looking for a place to store your valuables – precious metals, jewelry, etc. – there are opportunities to do so that are far more accessible to US clients. I met with two private vault services during my visit that offer affordable, secure, and (in one case) completely anonymous storage opportunities.

Little Austria has come a long way since the last Soviet soldiers pulled out in 1955. While it’s hardly a tax haven, over the decades, it’s become an extremely attractive place to live, invest, and do business. If you haven’t been here, I highly recommend a visit… and while you’re here, raise a Prost (toast) to this unique country.

Mark Nestman writes the Nestmann Notes.

Why Congress Wants to Revoke Your Passport

By Mark Nestmann

For the third time in as many years, legislation has been introduced in Congress that would revoke the passports of US citizens with  “seriously delinquent tax debts.”

Similar proposals failed in 2012 and 2013, when Congress tried to sneak this provision into the highway funding bill. And now, as on schedule, Sen. Ron Wyden (D-Ore.) has once again introduced the bill, complete with a passport revocation measure.

The Joint Committee on Taxation estimates this measure will raise $388 million in tax revenues over the next decade. That’s enough to pay for about 0.1% – one tenth of one percent – of estimated highway expenditures during that period.

In other words, the passport revocation measure has nothing to do with actually raising revenue. It has a lot more to do with showing US citizens “who’s the boss.” And the boss is not

Here’s One Fight Uncle Sam Can’t Win

By Mark Nestmann

Just the other week, I witnessed economic imperialism at work. It came courtesy of a secretive US Treasury bureau called the Financial Crimes Enforcement Network (FinCEN).

The event occurred while I was visiting the island of Nevis. On May 20, FinCEN issued an “Advisory” that warned banks worldwide to apply special scrutiny to individuals identifying themselves as citizens of St. Kitts & Nevis.

The Federation of St. Kitts & Nevis is one of a handful of countries that offer “economic citizenship” to individuals who can ante up a six-figure sum and pass a stringent background check.

The process takes as little as

What You Need to Know About the IRS if You Plan to Cross a U.S. Border (In either direction)

By Mark Nestmann

If you’re a US citizen and believe you have an unfettered right to leave your country – and come back – think again.

Since the events of 9/11, your government has imposed draconian restrictions on international travel:

• Initiatives like

Will the IRS Reschedule the Death of the Dollar?

By Mark Nestmann

Ever since President Obama signed the ill-conceived “Foreign Account Tax Compliance Act” (FATCA) into law in 2010, I’ve been warning about the death of the dollar.

And I haven’t been alone. Other experts have cautioned about FATCA’s potential to literally shut down the global economy when it goes into full effect July 1, 2014. But the IRS has now postponed that day of reckoning – for at least some – until January 1, 2016.

The idea behind FATCA is simple: Demand that other countries enforce America’s imperialistic tax laws. And to do so by the confiscation of foreign assets, if necessary.

Under the provisions of FATCA, interest, dividends, rents, and similar payments leaving the US will be subject to a 30% withholding tax. The only way that most foreign banks and other foreign companies will be able to avoid this tax is to act as unpaid IRS informants. Non-US individuals investing in the US will be affected, too. If their foreign bank isn’t FATCA-compliant, their US income will get whacked by 30%. It will be possible to recover the tax in some cases, but even so, I can’t think of a better way to scare foreign investors away from the US.

Something I call “FATCA contagion” would be even worse. In this scenario, since they couldn’t be completely certain that foreign recipients are FATCA compliant, US banks might

We Finally Won One Against the Police State!

By Mark Nestmann

The “War on Drugs” is a great example of America’s slow descent into a police state.

Only 120 years ago, you could actually buy cocaine – and syringes – out of a Sears catalog. Cannabis (marijuana) was widely used as a painkiller and to treat seizures. You could buy morphine over the counter at any pharmacy.

Admittedly, some people became addicted to these substances. By 1900, around 3% of Americans were addicted to drugs – mainly morphine.

The War on Drugs actually began in 1914, when Congress restricted the marketing of opiates and coca/cocaine products. Advocates for the new law spoke of “drug-crazed, sex-mad Negroes” murdering whites and “Chinamen” seducing white women with opium. Congress later imposed

Is Puerto Rico the Perfect Tax Haven for US Citizens?

By Mark Nestmann

One of the advantages of being around as many years as I have is a long memory.

And, during my entire 30-year career, Congress has been trying to figure out the best way to help the struggling economies of the US territories: Guam, Puerto Rico, the US Virgin Islands, and the Northern Mariana Islands.

Puerto Rico, which in the last year has exploded into prominence as a “tax haven” for wealthy Americans and businesses, is

The Strongest Asset Protection Laws in the US

By Mark Nestmann

Asset protection used to be easy. If you got in trouble, you’d just move to Florida, buy some property there, and then declare bankruptcy.

In the 1980s, Marvin Warner, former US ambassador to Switzerland, football team owner, and horse lover, was

Will the U.S. Government Soon Be Able to Revoke Your U.S. Citizenship?

By Mark Nestmann

You might not fit the profile of Osama bin Laden. But if your government suspects you of terrorism or treason, it can confiscate your passport and, in some cases, even strip you of your citizenship. Then it can arrange for a cooperative government to assassinate you.

From the government’s viewpoint, this strategy is very useful. You lose your passport and any diplomatic protections your country extends to its citizens. You must

A Radical Way to Opt Out of Obamacare

RW Note_This solution is not for everyone. However, if you are planning to travel overseas for an extended period, there is information here that you should consider.

By Mark Nestmann

In 1965, when I was nine years old, President Lyndon B. Johnson signed a new entitlement called “Medicare” into law.

Proponents of LBJ’s “Great Society” celebrated. No longer would America’s senior citizens be denied health care if they couldn’t afford to pay for it. It would be guaranteed.

And the cost? Why, only about $1 billion annually. Sure, that was a lot of dough, even in the 1960s. But compared with the defense budget (which was then at $62 billion), it was a mere drop in the bucket.

Still, my father, a dedicated physician who practiced medicine for 40 years, grumbled. “It’s socialized medicine,” he announced at dinner. I had no idea what he was talking about at the time, but