This is a book about awareness and readiness. It is also samizdat literature. It offers a toolset and a preparedness framework to make you adaptive, flexible, open-minded, and difficult to control. It is much like the concept of being "FI" in the book Your Money Or Your Life, or the concept of "self-sovereignty" in The Sovereign Individual: it's a mentality, a paradigm, and by adopting it you eventually make it so.
In the modern era of creeping neo-feudalism, it has never been more important to remember your freedoms and make sure you hang onto them, even if that means picking up and moving to another nation-state that still honors them.
Perpetual Traveler is loosely related to some of the disaster planning books I've read in the past year or so (see Cody Lundin's wonderful book The Art of Keeping Your Ass Alive, or Fernando "Ferfal" Aguirre's excellent book on navigating Argentina's economic crisis for example), except this book gets you looking downfield to the point where you will already have plans in place long before disaster happens. The author of this book for example would never have been caught unprepared when Argentina's infamous corralito happened. He'd already have stashed assets elsewhere, he'd already have a backup passport, he'd already have alternative income sources in other currencies, etc. When a problem becomes big and obvious it's usually too late. You have to be already ready. Perpetual Traveler will help you.
[A quick affiliate link to Amazon for those readers who would like to support my work here: if you purchase your Amazon products via any affiliate link from this site, or from my sister site Casual Kitchen, I will receive a small affiliate commission at no extra cost to you. Thank you!]
The author is predictive and insightful, but a reader should not take all the advice in this book too directly or literally. Much of the information in the book has a half life. Things change. Bank secrecy and tax haven information tends to be obsolete the moment ink dries on the page. The governments of some countries turn into raging dicks, while the governments of other countries de-dickify. And there has been enough creeping totalitarianism in formerly free countries like New Zealand or Australia (both are, or I should say were, favorites of the author) that an alert modern reader can permanently cross them both off the list of possible domiciles. Certain parts of the book range from superficial to downright useless: see for example Chapter 12 with its worthless discussion on investing. And the book is overall not well-organized.
But this doesn't take away from Perpetual Traveler's profound usefulness. Read it, and ingest a new paradigm for thinking about which countr(ies) you live in and why, and how to think more broadly about where you call "home." If there's anything we should learn from the past four or five years of the COVID insanity, it's that our governments don't just want to control us and impoverish us, they literally hate us. We protect ourselves by being ready.
Finally, allow me to offer an "Individual Sovereignty" reading list, with links to book reviews or articles I've written where applicable. If you read all the works below, you will acquire a formidable cognitive, physical and financial toolset for personal empowerment.
The Sovereign Individual by James Dale Davidson (video)
Antifragile by Nassim Taleb
Early Retirement Extreme by Jacob Lund Fisker
[Dear readers: as always, what follows are my notes, quotes and reactions to the text. They are meant to organize my thinking and help me remember. It's way too long and life is way too short; don't bother reading any further, don't even bother skimming the bold parts.]
Notes:
Chapter 1: The Origins of PT
4 Interesting anecdote on what set the author on his road to self-sovereignty: his employer, a law firm. Also he offers some good second-order thinking on the prohibition back then against lawyers advertising: that it's a way to squeeze young lawyers starting out their careers, while early on learning the dangers of thinking out loud too much [something I wish I'd learned earlier too...]. "As a law student, in a class on ethics we were told that lawyers (at least at that time and place) did not advertise or solicit new clients away from other lawyers because we were about to become part of an honored profession. A fraternity. Not a commercial trade where cut-rate prices and promises of better, faster service could be touted. Because I was then working for a somewhat incompetent but established old line law firm with many good clients, I raised the question that the 'non-advertising, non-soliciting' canon of ethics was economically bad for young lawyers not affiliated with major firms and would have the effect of leaving clients unaware of alternatives. Years later, I was to learn that as a result of those and similar observations, my file was noted 'troublemaker, unethical, does not accept authority'. Such comments on confidential school and secret government/employer files make it difficult for me to find conventional employment. I am glad it worked out that way because I was forced to become an entrepreneur..."
4 "Those who were doing the conning, or those who were conned and would not question the then-conventional ideas and ways of doing things, felt that I was an enemy." [You will get thrown under the bus by those who you try to teach how not to be conned!]
5 The author begins to catch flack at higher levels: the government driving investigations and lawsuits against him. "Like many original thinkers whose ideas find their way into the mainstream, those in power perceived me to be a threat. Unlike Socrates or Jesus, I didn't stay around to be crucified. I had already prepared to become a PT."
5-6 [Thoughts here on various liabilities of being ostensibly rich, doing "rich people things," and being known in the community]: "All these 'rich folk activities', material possessions and all the employees that were supposed to make life easier became much more of a burden to me than I could ever have imagined. Oh... I left out the worst part. If you get a bit rich and a bit famous, you will be profiled in the newspaper. At first you're flattered by a nice feature article about the new, up-and-coming man-about-town. But I couldn't go to a men's room anymore without some insurance guy or somebody else wanting to sell me some hot stock or a terrific scheme for cocoa futures...once I had become a millionaire life got progressively more and more miserable." [The takeaway here is it's better to be an anon, and to not appear at all wealthy; also worth noting that by doing so you actually help your fellow human by lowering the visible status competition level.]
6 "At this point, I began to look around for some way that I could hold on to what I had and eliminate the hassles. Getting rid of the rich guy image was a first step. Getting my finances under control was step number two. PT was to come much later."
6 [Interesting approach here]: "What I eventually did was to find three very conservative Swiss bankers and I said, 'You guys run my portfolio. I'm picking a total of three managers. The best performer over a three year period will get more of my money to manage, plus friends that I'll send over as new clients. The worst of you will be dropped and replaced'. That's the policy I have followed for the last 20 years. It's worked out pretty well for me."
7 The author meets Harry Schultz [author of Bear Market Investment Strategies, a book I recently reviewed, interestingly!], learns about PT, or "Three Flag Theory" as Schultz calls it; Schultz shares with him: "What a marvelous discovery it was for a boy from Milwaukee to see that it was possible to make money in a totally alien environment. It gave me a sense of confidence that most people never get. We all could earn a living almost anywhere, but there is this fear that if we leave the nest something terrible will happen. The truth is, something wonderful will happen." [Remember that these guys were way ahead of the era of the digital nomad, this was long before the internet was a thing, yet they still figured out creative ways to earn money.]
8 "A basic PT tool is figuring out how your skills or talent can be adapted to fill local needs."
8 [Another interesting take here]: "Excessive familiarity with surroundings kills your spirit and breeds laziness of mind. Worst of all, you don't grow up as much if you remain among school friends and family. They continue to treat you as they did when you were a child. They remind you of your limitations and 'proper place'. They pressure you and mold your life into conventional predictable patterns."
8-9 Schultz wrote a book [Bear Market Investment Strategies, see above] and then launched an investor newsletter, HSL [obviously today you can do this sort of thing this via email or Substack far more easily] "I have written the HSL from Beverly Hills, Washington DC, London, Copenhagen, Paris, Monte Carlo and Sydney. After all these years, it is still going strong, coming out every five weeks. It has been printed in a dozen countries and like me, can move across the world on short notice... As a PT you are under no one's thumb."
9 Three Flags: 1) a second passport, 2) a safe haven for your assets outside your own country, and 3) a legal address in a tax haven. Then expanded to Five Flags: adding 4) a place of business and 5) a playground.
Chapter 2: What Is It All About
10 On individual sovereignty and emotional continence: "Many individuals choose to vent their frustrations with acts of violence. The PT merely avoids conflict by refusing to play where the rules are unfair to him."
10 "PT stands for many things, Perpetual Traveler or Permanent Tourist, for instance. However, a PT need not travel all of the time, nor any of the time for that matter. A PT merely arranges his or her paperwork in such a way that all governments consider him a tourist, a person who is just Passing Through. In the eyes of government officials, the PT is merely on a temporary sojourn or vacation... Unlike most citizens or subjects, the PT will not be persecuted for his beliefs or lack of them."
11 On the importance of being an anon: "...one of your first and prime objectives is to get off all computer lists and registers of any kind. This is easy to accomplish. PT's disappear from the voter lists, then vanish from the roster of property owners or taxpayers. Your present government will no longer be interested in you if they think you have left the jurisdiction and have ceased to be a citizen or subject. It is the goal of the PT to achieve this invisibility by taking on a new nationality and acquiring an offshore address."
11 [Hiding in plain sight] "It is impossible for any government to attack or wipe out PT's because we are an amorphous group without consistent behavior patterns. From the point of view of any government official, we appear to be the most desirable kind of tourist, respectful of local laws and authority, low profile and prosperous. PT's cannot be identified, classified or isolated from the general run of tourists. Thus, unlike some publicity seeking individualists or tax rebels, a PT courts no danger and invites no confrontations."
12 Example here of a Canadian moving to a tax haven; noting a major liability/problem for US passport holders to be discussed later; "There is no government that has the legal right or the practical ability to tax a PT who neither lives within its borders permanently nor has any assets there."
12-13 "As PT's we should be mentally, financially and physically prepared to leave anywhere we happen to be and go to the other end of the earth at the first whiff of danger or just in search of greener pastures. The PT is able to move fast and decisively, to disappear and resurface anywhere, anytime."
13 On going to a country where the thngs you want to do are perfectly legal: if you like to drive fast, go to Germany; also: "Many men and women in Ireland were forced to become PT's because divorce is not allowed", etc.
14 On optionality: "On the other hand, the PT can live in a highly controlled society if he so chooses, if for some reason this sort of community gives him a sense of security or perhaps even superiority. PT is all about options. The more options you have, the more free you are. A PT can live under whichever system suits him best."
15 "A PT can leave until things get better, then return. A PT gains the world, while giving up nothing except, of course, his rut, his treadmill."
16 "The best talent, the most productive people are always drawn to places offering peace, prosperity and a suitable climate for creativity. Major cities, economic opportunities and good weather will continue to attract many non-conformists and individualists. Becoming a PT expands the mind and increases the list of possible destinations."
16-17 How to Start: "An immediate full-scale PT lifestyle is appropriate only for those who have developed either a sufficient asset base or a source of income that allows them to be mobile and independent from government licenses and a permanent, full-time job in a high tax country. However, there are many exceptions to this."
Chapter 3: Your Five Flags
18 [This passage could have been taken directly out of The Network State] "Today, millions of the wealthiest and most productive people on the planet take advantage of the best that each country has to offer. Governments are viewed as providers of facilities and services, like hotel keepers. If they offer good accommodation and make you feel comfortable and prosperous, you stay. If your government becomes too demanding or too nosy, or if a competitor offers a better deal, you can move on. Economic opportunities, financial privacy, taxes, extradition treaties, social values, military obligations, quality of passport, stability of government, medical standards, respect for property rights, personal safety and freedom of travel, thought and action are all taken into consideration when choosing legal residence and citizenship."
18 [I never thought about it this way either, important insights here] People of intelligence and wealth owe it to themselves and their descendants to have more than one flag. No one with common sense should give all their assets or allegiance to just one. Why? No country or government has ever survived more than a few generations without totally annihilating itself or its own middle and upper classes. Even in that last bastion of capitalism, the US, people of property have been thrice pushed out of the country. In 1780, the entire middle and ruling class was forced to move to Canada, these were the Tories who supported England in the American Revolution or War of Independence. In 1865, it happened again. All large land owners who supported the Confederacy in the Civil War migrated to Mexico, Europe or South America." [See the disturbing history of the Pringle family for an object example here!]
18 "The PT's relationship with government is a matter of choice, an option. The passport you hold and the country where you live should not be a burden that you were born to and will be saddled with forever. No government can be trusted to control your money. They will not take your best interests to heart. Politicians are interested in redistributing wealth. In the end, they will only succeed in redistributing taxpayers. The major portion of all liquid private wealth, the smart money, has already been anonymously registered offshore. It has been re-flagged." [This is why, for example, wealthy Latinoamericanos store their wealth in places like Miami, not in their home country nor in their home currency.]
18 "Individuals can remove themselves from the control and jurisdiction of any government by acquiring dual-citizenship, investing internationally and becoming human multinationals. Departing physically and permanently is not required. A PT can live where he wants, when he wants. The secret is to effect a change of legal status."
19-20 Your Five Flags:
Flag 1: Passport and Citizenship: "from a country unconcerned about its offshore citizens and what they do outside its borders." Also, look for no tax or military requirement for non-residents. Passports must be available to foreigners.
Flag 2: Business Base: where you make your money, must be different from where you legally reside, also tax holiday or low/no tax, also should not be a place of over-regulation, access to a good labor pool, access to good business contacts. New York, Singapore, Zurich, Milan, etc.
Flag 3: Residence and Domicile: tax haven with good communications systems, bank secrecy, no threat of war or revolution. Monaco, Andorra, The Channel Islands, Campione [border region in Italy/Switzerland], Bermuda, the Bahamas.
Flag 4: Where your assets and securities are managed by proxy, a place requiring competent financial managers, confidential banking, low or no taxation of non-residents/non-citizens. Liechtenstein, Luxembourg, Austria, New York, Switzerland, London.
Flag 5: Playgrounds: where you physically spend your time: Quality of life is top priority. You might need 2-4 playgrounds depending on legal restrictions on how long you can stay. New Zealand [holy cow this one fell way off my list at least, thanks to the regime's COVID totalitarianism there], other ideas like Ireland for a summer home and Buenos Aires for a winter home, etc.
19 "Dual or multiple nationality is one of the cornerstones of the PT philosophy. The PT should strive to have several passports regardless of original nationality. A second passport always comes in handy and has often saved the skin of many an individual during times of war, persecution and political upheaval."
20 The author gives some example combinations:
Flag 1: A second passport from Canada, Brazil, Italy or Australia.
Flag 2: A business or source of income in New York, London or Singapore.
Flag 3: A legal or fiscal address in Monaco, a Channel Island or Andorra.
Flag 4: Bank accounts or other assets registered anonymously in either Luxembourg or through Liechtenstein holding companies, trusts or foundations. [In today's era of course you can store value in Bitcoin in pseudonymously held cold storage]
Flag 5: Friends and fun in Paris, Bangkok, Manila, Buenos Aires, Sydney and San Francisco.
20 "Every PT should know and understand that governments only have power, i.e., jurisdiction, over their citizens within their home territory or colonies. For this reason, the PT should generally stay out of the country on whose passport he travels. His major assets should be invisible and far away from the country in which he actually lives. His lifestyle should be as humble as possible."
20 "When formulating your own approach to freedom through individual sovereignty, remember to consider countries in the same manner that you consider competing companies offering you a service. When you come right down to it, that's all they are... Where, in an unfree world, will you receive the maximum freedom? In other words, where can you do the things that you like to do without breaking any laws or upsetting the locals?"
21 "Preclude Tyranny" Some very intriguing ideas here, some of these things never occurred to me: "Keep enough money or assets abroad so that if unjustly accused of anything or if faced with a crippling law-court judgment, you can get a fresh start somewhere else... Buy or rent a small place abroad. Do the paperwork so that you have the permission in advance, ie, a residence permit, to live in a safe haven on the other side of the world. Keep a spare passport outside of your country but where you can reach it without a passport or make an arrangement whereby your spare passport will be delivered to you in case of emergency. Try to obtain a second passport from a second country as well as a duplicate passport from your native country. Obtaining alternate nationalities is the best way to opt out of the unwanted burdens of an undesirable citizenship."
22 On being prepared ahead of time, not waiting until there's a war or crisis: "One out of every ten people in the western world has been displaced in our generation... it is only sensible to equip yourself now with essential survival equipment rather than wait until the need arises."
23 On being "Partially Transparent" and living low profile: "The key is to be what we are or would like to be, in a place where we blend in best. Nothing offers better protection than living a low profile existence calling only minimal attention to yourself... Conspicuous consumption and public display, such as ostentatious cars, expensive jewelry, spectacular homes, glamorous mistresses and journalist profiles should, for the most part, be avoided..."
23 "Insofar as possible, let no government or even any private business list your real name or home address on any of their computers. Live comfortably but not ostentatiously. Do not flaunt your lack of regard for local morality wherever you are. Fit in!"
24 On "Private Transactions": get emails and phone calls in a private way [today that means Protonmail and Signal]. "Self-protection can also be accomplished by simply using pen names for different activities... If you have a credit card, it should be from a distant foreign bank with bank secrecy. Bills should be paid directly by your bank. It is not a bad idea to also establish one credit card in a pen name like Joe Smith."
Chapter 4: Big Brother Tyranny
26 "Serious, life threatening troubles with government are like cancer. They strike unexpectedly. You could be lucky, but it is not always the guy next door who will be the victim, crushed by the grinding wheels of bureaucracy."
27 On how easy it is for a government bureaucrat to learn anything about you, your assets, the magazines you subscribe to, etc.
28 "In one of my own personal secret government files of some years ago, obtained with the help of the Freedom of Information Act, I chuckled at the illuminating information it contained. 'The author's well equipped modern office is on the thirtieth floor of a four-story building.' No wonder they concluded that I am in the outer-reaches of acceptable ideology."
28 On having so many laws and compliance requirements that "everyone becomes a criminal"; it's just a matter of selective enforcement, granting immunity to certain favored people while singling out others. "As almost no one is in full 100 per cent compliance with the various laws and regulations now in existence, we all become criminals by definition... The more a government can apply such selective prosecution, the more powerful it is. Government officials have the immense leverage of being able to grant favors, in the form of immunity, to their friends while doing in their enemies. In short, governments are in a position in which they can single out enemies of the establishment and put them away, for good." Note also the interesting anti-"official narrative" examples given here of Reverend Moon, Irwin Schiff [father of the infamous no-coiner Peter Schiff], as well as other examples given later in the chapter including Ernest Hemingway, Charlie Chaplin and Aldo Gucci.
29 "The American IRS, in particular, has a special task force created to do nothing other than scan news clippings to investigate high profile individuals. People of notoriety or fame receive such special treatment because, according to the IRS manual, well publicized cases create a large deterrent effect. In other words, by going after a celebrity, the IRS intimidates thousands of ordinary small business owners into submission." [Note that we saw similar tactics used against doctors who questioned the various government/CDC/NIH COVID treatment orthodoxies: see for example what happened to Meryl Nass, Paul Marik, Pierre Kory, and many others, sending a clear message to other doctors.]
30 [I did not know this] "In modern times, Richard Nixon got his big break prosecuting movie stars as the lawyer for the infamous Senator Joe McCarthy... Ronald Reagan formed his attitudes towards the IRS as a result of his own personal experiences with tax collectors in the late forties."
30 [Once again, don't be an elite! You become dangerously fragile to any change in regime.] "Top Dog Today--Under Dog Tomorrow": "If you are benefiting now or in some position of power within an established bureaucracy, you, most of all, should explore the PT option. The top dogs of today should, more than others, prepare for that inevitable time when their turn comes to assume the position at the bottom of the heap. Shifts of power and benefits are inevitable. More to the point, the next 'in-group' will reserve its greatest resentment for those it displaces. Those who go along enthusiastically with the existing regimes of today often end up branded criminals tomorrow by new administrations."
30-31 On the FBI's J. Edgar Hoover smearing and intimidating political enemies and others who were thought of as opponents of the existing order. "Yes, freedom of speech exists in the US, so long as no one listens." On the libertarian party and how, once it began getting candidates on ballots, "all manners of pressure came into play. The libertarian leading lights were extinguished fast through the use of false accusations ranging from child abuse to income tax evasion. This promising new voice in American politics was quickly defamed, fractionalized, infiltrated, decimated and rendered ineffectual." Also note this quote: "Opponents of the existing order, those regarded as troublemakers, are often framed, imprisoned or assassinated." [And, uh, suicided...]
31 On the "truly unique and senseless" US legal system that "poses a very real threat to any individual who has acquired enough wealth to stand out." Citing RICO laws which are incredibly broad, citing the costs of a civil trial, win or lose, etc.
32 Quoting the WSJ here "Americans accused of a crime can be jailed prior to trial, their assets can be seized, the government can insist that an accused be fired from his job, and the person accused can be forced to repatriate his foreign assets as a condition of being released from jail, all before any conviction."
32 On the government's high win rate, which is "achieved through the exclusive selection of cases for which the defendant can effectively be portrayed as a bad, if not evil, person. The crime itself is not nearly as important as the ability of the prosecutor to paint a picture of the defendant as one who is completely unworthy of sympathy. The goal of the most effective prosecutors is to prejudice the jury against the defendant. Once stained and sullied, the defendant will lose the case regardless of the facts. Furthermore, most cases never even get to trial. The defendant is confronted with the fact that fighting the case will mean his financial ruin. Conviction under a not guilty plea will result in penalties far more severe than those that can be arranged through a compromise. As a result, even the innocent often cave in and cop a plea."
33 On how litigation will "almost always involve discovery proceedings through which you will be forced to reveal confidential records and testify on matters completely unrelated to the case at hand. If you only have assets that can be tied up locally, your options are limited. You will basically be forced to hang around for decades, defending and appealing a case against a determined adversary." Finally governments have no downside, they don't have to recompense you if they are wrong! "In a divorce case or a dispute with a government agency, you can waste unbelievable amounts of your time and money in court or preparing for court hearings."
34 "How elegant it is to simply opt out of litigation and disappear."
35 "For safety, you must never allow yourself to become a stationary target. A whiff of danger should be enough to send you off in a flash. Maximum safety comes from laying low until the enemy is tired of hunting you. A foreign country is the best place to be, as an anonymous tourist, preferably with an alternate identity, until you get a green light."
35-6 The author cites a Mexican friend who was one of the first test cases for a new, extremely draconian jaywalking law in Mexico City, his picture was on the front page of the paper, his show trial was publicized, he went to jail, etc. He also cites several other examples around the world. "The lesson for all is that Big Brother can at the stroke of a pen tear down any business or ruin any individual. Life is much too short for confrontations with powers of the state, confrontations that could result in the loss of freedom or even life itself."
37 "Don't accept your dog leash! Chew it off!"
Chapter 5: The Modern Day Gestapo
38ff The author describes a terrorist incident he barely missed when someone detonated a firebomb in a theater showing The Last Temptation of Christ; he then moves on to the subject of government-sponsored terrorism, citing France blowing up a Greenpeace ship in New Zealand which was protesting French nuclear bomb tests in the Pacific. "France trains and sends out terrorists."
40 Citing examples of governments seizing assets of foreign citizens in retaliation for other countries doing the same in their countries. "During the early phases of the Khomeni regime, the US seized and nationalized all private assets owned by Iranians. This move came as a surprise to some, as most holders of such assets were supporters of the Shah and thus also anti-Khomeni." [I mean, what the heck? What is the rationale for doing this?] "Again, during the Gulf War, Kuwaiti private assets were seized by both the US and England." See also Filipino assets seized of people with connections to the Marcos regime, etc. Also regarding internment of Japanese and confiscation of their property during WWII: "In short, this minority [Japanese people] had been performing a bit too well economically on the West Coast. As a minority race, it is always dangerous to be hard working and prosperous, in spite of what the promotional material enticing one to new lands may say." [See also Indians living in Idi Amin's Uganda during the 1970s.]
41 "Every government needs scapegoats. In wartime, incarceration without trial, frequent deaths by execution and the use of concentration camps can be justified. In peacetime, if you are wealthy or your ethnic group is perceived as too powerful or influential, you could become a target."
41 [Striking quote here given the recent US seizure of assets over the Russo-Ukraine war] "...the extent of US contempt for the sanctity of private property is not generally known nor understood. I find it surprising that anyone, under the present circumstances, ever invests a penny in the US. During every conflict or diplomatic crisis, one of the first things the US does is order the seizure of private assets. These generally involve privately owned American assets held in the names of citizens of the countries involved in disputes with the US." Comments here also on seizure of assets for "unusual activities," as the US will use the banking system to report activities of citizens, freezing accounts, etc. It's not even clear what "unusual activities" actually means [of course this is by design].
42 "Assets seized in 1941 were still being held by the Alien Property Office thirty years after the end of World War II. Some of the privately owned assets seized from Cuban-based capitalists in retaliation for similar seizures conducted by Castro have never been returned. Individual Americans have routinely lost their property or had it tied up for years because of disputes they have had with government agencies." See also "Unclaimed Property and Escheat Laws. Under these rules, mere inactivity for a period, sometimes as short as two years, results in the state stepping in and taking over your property."
42-43 ..."we say that no US property, stocks or bank accounts should ever be held in your own private name. Not under any circumstances!"
44 On the War on Drugs as "a ruse through which individual liberties will be stripped" from Americans; on the USA as the "world's top jailer"; on the war on drugs as a war against our own citizens.
45-6 Advocating for drug legalization. [It's interesting here that the government is actually doing this in this era, especially with cannabis legalization, but the angle here is that many governmental layers (from the Feds right down to small municipalities) can obtain additional sales tax revenues out of it.]
Chapter 6: What's Wrong with the Government
50 "Due to their very nature, governments continuously force one group or class of individuals to subsidize other groups. Democracy as an institution busies itself primarily with the redistribution of wealth... When working and being an honest taxpayer leads to less reward than being taken care of by government, the system will collapse... Dependency on public assistance always grows to meet the available supply."
51 On how government spending leads to more spending, assertions of what a good job they are doing, needs grow, employees and beneficiaries are now in place who "have a vested interest in the continuation and expansion of that program."
52 "When border controls were to be eliminated in Europe, the border guards went on strike."
53 Comments here on the USA debt [if only the author could see the USA debt levels today...]
54 Comments here on the growth of socialism in England: "A once mighty England has now floundered economically and today enjoys the position of a second-rate power at best." [See Correlli Barnett's excellent The Collapse of British Power for a tremendously useful read, both on the UK but also as a roadmap for what may happen to the USA.]
54 Pivot here to an example of a city that over time regulated private childcare services out of existence, leading to a de facto government monopoly.
55 Discussion of assistance to refugees and immigrants [this part is getting far afield], Scandinavian cradle to grave systems, etc.
55-6 "...during my travels I have discovered that generally people worldwide do not want freedom, they want protection... For the average man, freedom is not a priority. No matter how easy it is made for them, most people who are facing certain death, starvation and torture, will not make any move to escape their home country. They will instead accept an utterly repressive regime."
56 "It's Always Better to have Options": The widest possible variety of socialist, utopian and religious communities should be encouraged, as long as individuals can decide whether or not they wish to belong. As long as one can come and go without restraint, such systems do not pose a problem."
57 "History shows us that all things come in cycles. Ideas and institutions follow the biological model. They appear, grow, decline and then finally disappear. The burning issues of the time are continually relegated to history books as time passes and new problems materialize. Hence, democratic governments are almost always just temporary coalitions of politicians that therefore cannot be expected to have consistent policies. You should never expect a government to keep its word or stand by its solemn contracts... PT's should proceed with the assumption that nothing is permanent. All planning must be made subject to sudden shifts in political winds."
58 [Moment of self-awareness from the author here] "Although much of this report rants and raves about how bad politicians and bureaucrats are..."
59ff Discussion of various libertarian ideas, privatization of state-owned utilities, phone companies, etc.; on the idea of sunset clauses (for laws, gov't departments and programs), etc. Discussion of aspects of libertarian philosophy; the author also misnames Milton Friedman's famous book Free to Choose.
Chapter 7: The Search for Freedom
61ff The author describes his experiences traveling in Eastern Europe before the Iron Curtain fell; "When the state owns the means of production, there are no refunds or exchanges." Discussion of the insane bureaucracy, needing to wait in line to get a ticket to buy toothpaste in a Kafkaesque process that took more than two hours, etc.
64 "If people who have had no contact with economic reality are put in charge, governments create organizations as cumbersome and ineffective as the United States army or the Italian post of rice. People who have had dealings with either institution will know what I am talking about."
67 The author criticizes "Conservative" people who enforce behaviors (usually moral behavior) in ways little different from communist countries. On misconceptions on both sides of the iron curtain [and note how sad and discouraging it is now to read a Czech's propagandized perception then of what America was supposedly like: how wrong it was then but how today it is approaching the truth!]: "Similarly, the picture of the West painted behind the iron curtain existed only in the minds of some clever politicians. The average man on the Czechoslovakian street had no idea how rich the average western worker was. He believed that most people in America live in slums plagued by poverty and rampant crime. He thought that in the US, aside from a small elite ruling class of capitalists, everyone was exploited by big corporations." [While not true in every way, if you look at the creeping neo-feudalism happening in the USA, many of the things that Americans could do then--buy a house at a reasonable multiple of annual wages as one prominent example among many--are increasingly out of reach now.]
68 "With the fall of the Berlin wall, it seems that western democracies are all too ready to step in and take over the role previously fulfilled by their communist counterparts." [Today, one can cite the fake democracies in Europe banning/annulling elections of democratically chosen leaders in Eastern Europe.] "As explained in the previous chapter, there are regular cycles to every human experience whether it be economic or political. Personal freedom also seems to run in cycles. As it grows in the East, it appears to be undergoing a complementary decline in the West." [These are strikingly predictive statements given they were written in the mid 1980s].
69 The author then gives the example of Australia which was long-known for non-KYC banking. [(!) Nothing could be further from the truth today in that country.] Also on the US repealing Prohibition but leaving in place the tax evasion laws used to prosecute people (e.g., Al Capone) during that era: "After prohibition was repealed, criminal laws on tax evasion remained, though the reason they were imposed in the first place had vanished."
69 "In the modern US, people in conflict with the government often find themselves indicted for tax evasion." [Nixon was famous for having his political enemies subjected to tax audits.]
70 Discussion of the Island of Sark: "I discovered that Sark has a standard of freedom that no other country or community can come near."
Chapter 8: Passport and Citizenship Acquiring Dual Nationality
73 On the second PT "flag": passport and citizenship: "Dual or multiple nationality makes the life of the PT a great deal easier. It allows him the freedom to travel when and where he desires without the worries of having to follow the dictates of a single government. By having various nationalities, the PT is able to dip into his reserve and select the perfect document for each travel itinerary, no visas or other travel restrictions need apply... For the PT, his passports are merely travel documents, not some sort of a statement of patriotic affiliations with a distant government.
73 "As a rule, the PT does not even live in the country on whose passport he travels. He merely uses its documents to cross international borders as and when it is convenient. Similarly, the PT is certain to use an alternative document when he actually visits a country of whom he is a national. For the PT, a passport is good for travel to every country in the world save the one stamped on its front cover. If the PT never visits his country or countries of nationality as a known citizen, it is rather difficult for the governments concerned to tax him, force him to join their military or otherwise make his life miserable."
74 On being ahead of events: "One of the basic aims of this report is to convince you that preparations must be made far in advance. You should seek to obtain good alternate travel documents long before acute danger materializes. Besides travel documents, it is necessary to set aside assets abroad for self-support and possible petty bribes. Most important, you must have a plan of escape and options available well in advance. When time and money are available, it is possible to realize any objective in a perfectly legal way. Last minute, improvised departures for points unknown have a way of turning into personal disasters."
74ff "First and perhaps most important, your new country should not care about the activities of its non-residents, leaving them basically to get on with things as they see fit. Also, as you are choosing this country exclusively for the travel document that it has to offer, considerations related to its passport are of great importance. The passport should be good for visa-free travel to most countries." Also you should fit in with the profile of citizens of this country, including speaking the language; Finally, choose a country that is on good terms with the country you live in; the author suggests sticking with "small innocuous countries that are internationally known." See also the author's The Passport Report.
76ff On various idiosyncrasies on how to get a passport: sometimes by being born on the country's soil, by marriage, having a skill in short supply in that country, by ancestry (e.g., Ireland and Italy), if you open a business, make an investment of a certain size, etc. Some states will simply sell a passport (see St. Kitts and Nevis).
77-8 "The United States, the UK and just about every other country in the world have been known to make special arrangements that grant immediate citizenship and waive residency requirements for many categories of people. The trick is always to impress one or more powerful and influential politicians that can sponsor your particular cause... I can cite many instances of decisions to grant instant passports to athletes, spies, defectors, wealthy individuals, scientists, Nobel prize winners and defecting diplomats." See also deals by the US Witness Protection Program, or Switzerland which "used to grant nearly automatic citizenship to deposed monarchs, heads of state, industrialists and religious leaders who had been kicked out of their respective countries by communist regimes."
79 On provisional passports, good for travel but that don't indicate that the bearer is a national, granted by countries like Paraguay, Uruguay "and off and on again by Costa Rica."
81 Note that it's not like your home country gets notified when you obtain another passport: "Before citizenship can be lost, your home government must somehow be motivated or pushed into doing the paperwork to declare that you are no longer a citizen. This sort of confrontation normally can be avoided. Hence, as usual, the PT should refrain from rocking the boat, waving red flags or doing anything that can cause any government to take notice of him."
81 Note this passage however: "If you don't tell your home country that you have acquired a second nationality, who will? Unfortunately, in some cases, your new government will. Countries with reciprocity arrangements may notify your old country of a change in citizenship. For US citizens these include Austria, Canada, Germany, the Philippines and the UK..."
82-3 On holding on to your first passport: "You may be required to turn in your first passport if you obtain certain second passports in one foreign country, but not in others... However, if your home country does recognize dual nationality, even turning in its passport should not create any major problems. In most cases, you will be able to apply to have this first passport issued again. In this manner, you get your second passport and get to keep your first, unbeknownst to your new country." Note also the case of Pepe Lopez, a Texas child who died in infancy: 24 different people from Mexico were able to get certified birth certificates with his name that were used to get driver's licenses and then American passports. "Accordingly, the odds of getting your passport back without any questions after renunciation, seem pretty good."
83ff In general do not renounce citizenship: you'll probably not get your passport back, you lose a place you can have legal residence (in other words, you lose a major option); see examples of Uganda and Indians, Malaysia and Chinese, Mormons and Japanese in the USA, Jews in Germany, ethnic Russians in the Baltics; "It happens and will continue to happen to religious people, entrepreneurs or business owners during all leftist take-over[s]." Note that if you get deported, your original country must accept you; if you are facing criminal charges but go back to your original country, the other country has to first extradite you (whereas if you remain, you are simply jailed), etc. See the next chapter on USA citizens who remain liable for federal tax on worldwide income.
84 On thinking differently about passports; "At first reading, some are shocked and upset to hear passports, citizenship and places of residence discussed as strictly business or convenience propositions. Citizenship for some individuals is a mystic, quasi-religious concept bound up with acts of blind faith."
85 "The truth is that after a war or revolution is over, life goes on pretty much the same as it did before. People go fishing, eat, sleep, work, make profits, seek status, have sex and go on diets. Things don't change no matter who wins. The national enemies of yesterday become our close friends and allies of tomorrow. If nothing else, such observations show one that it is simply not sensible to belong to just one country, no matter how good and moral that country may seem today. It is better to have several disposable nationalities which you can use selectively. If wherever you are starts to feel dangerous, just leave!" A PT sees beyond the marching bands, empty slogans, national anthems, waving flags and memorials to the not so glorious dead. He refuses to be a blind patriot."
86ff The author describes changing citizenships using various metaphors: changing churches, going through bankruptcy, changing cars, etc.
Chapter 9: Business Base
88 Matters that you should take into consideration are:
1. Your familiarity with the center and its customs.
2. Your ability to communicate effectively in the language or languages commonly used in the center.
3. The structure and location of your existing businesses, if any.
4. The accessibility of the center, meaning both through telecommunications and air routes for the occasional physical visit to the places you will be spending your time.
89 "Whole industries can be wiped out at the stroke of a lawmaker's pen. Standard practices in business can be criminalized retrospectively."
89 "Socialist policies tend to squeeze local people who produce wealth and jobs, but offer incentives to foreigners who will come in and create just the same. The trick is thus to always invest as a foreigner, even if it is in your own former country. The PT who wants to go highprofile or run an active business should not do so unless provided with 100 per cent financing, free land, materials, no-strike guarantees, a permanent tax holiday and subsidized transport and communications. Then, if a government decides to break its word and nationalize your enterprise, the PT owner entrepreneur cannot possibly lose anything."
89ff On having fully mobile investments; income that floats with you; on having sales skills; "A good PT should strive for the complete freedom that comes with financial independence."
92ff On being retired and going where both the weather and the taxes are best. "When tax savings are considered, establishing a new residence almost anywhere will cost less than staying home in a high tax country." Also, although the author doesn't exactly phrase it this way, the idea here is to have a solution-minded attitude to come up with ideas: if you're a psychiatrist with a good reputation, you can set up in a tax haven and have your patients come to you; if you're an entertainer, recording artist, media worker, "...whatever you do, it is possible that the opportunities for doing it abroad are infinitely greater than doing it at home." Note the opposite example here of a fixed, non-mobile business, say, a farmer or someone with "a heavy investment in and commitment to fixed assets." Farmers have to "try and influence events and politics."
94 On trying PT part time at first, testing it out by renting a place abroad for a while, then returning home. "Set up your second nest before you are obliged to leave the first."
94ff Extended discussion on consulting and how it fits well with PT: you don't need a license, only need a computer and mailing/email address, the work can be done anywhere, with little capital involved, etc. [The same goes for investing, except for the "with little capital" part.]
Chapter 10: Passport and Citizenship Special Considerations for US Citizens
97ff "Americans and the mythical Uncle Sam have a certain vague moral superiority over the rest of the world, a superiority complex that is no longer sustained by the facts of life, if it ever was... Only Americans who have not traveled or lived abroad believe that the United States is still the greatest." On how the American consulates and civil servants are among "the least supportive of citizens with problems abroad." On how American citizens abroad are taxed unreasonably: "Even jettisoning citizenship to avoid such draconian taxes may not do the trick. If the US comes to believe that you only abandoned citizenship to avoid taxes, they will continue to tax you for a further twelve years. No other country on earth would even dream of instituting such a law." The author goes through an argument here on how this tax on Americans' income abroad actually crushed entire American industries, like international construction, and crippled the US balance of payments by instantly making lots of small export and service companies uncompetitive.
100ff Note also the American law banning paying bribes/giving gifts, etc., which makes American companies less competitive too. "Americans are prohibited from competing effectively through unique laws that prevent salesmen and negotiators abroad from engaging in customary practices. Jimmy Carter once felt it was the duty of the American Divine Mission to bring the rest of the world up to the US levels of morality. As a result, the common practice of giving gifts to those who help secure a contract was made a felony for Americans, even if it was done abroad where it was a legal, common and acceptable practice... This gave Americans, as players in the game of commerce, a whole set of burdens not shared by the other participants." [Then again, readers of Confessions of an Economic Hit Man will remember countless examples of huge advantages the US and it's largest companies takes internationally.]
103ff Interesting to see the author's conclusions despite his frustration with the USA: "I feel that in most cases it is still desirable for US passport holders to keep both US citizenship and an updated passport, one way or another. My advice is that if you are an American citizen, tread slowly and carefully. First, obtain a second or spare US passport. Second, start the ball rolling for one or more alternate nationalities. Only under extreme circumstances should you ever surrender your one and only US passport." Interesting and disturbing also to see this quote: "As attorney-client confidentiality has been removed in tax matters, US tax lawyers and accountants have been transformed into something more akin to government agents than client representatives."
104 On filing a tax return every year to the USA; on forming a company or trust to channel investment income, pay you a salary, etc. Note also that your new country of residence may be in close contact with the US government: "Information exchange treaties and agreements of cooperation between governments are becoming more and more popular."
106 On being famous or known for spending lavishly and how this makes you an obvious and easy target for the IRS. "The IRS can easily lay the burden on you to prove a non-taxable source for all the other money you are obviously spending."
107 "The citizen abroad cannot be harassed, ordered to appear for any examinations or arrested for a tax offense. An American tax collector has no more power over someone in France or Zimbabwe than a Zimbabwe tax collector has in Texas. The US citizen abroad is immune from any and all US administrative or judicial procedures. Even in the case of a flagrant big spender, the IRS can do nothing to enforce any tax claims until the taxpayer returns physically to the US, if he ever returns."
107 Various tactics suggested here [including obsolete tactics like crossing the Canadian or Mexican border on foot via popular tourist crossing points using your driver's license]; also on applying for your passport via an address in the USA [this is also obsolete now] to avoid the IRS crosscheck.
107 Sobering examples here of how in the past, the US required gamblers to pay for and obtain a federal gambling stamp, then arrested the stamp buyers and prosecuted them for violating anti-gambling laws, likewise a similar technique used with marijuana dealers. The point here is not to pay a fine to avoid supplying specific tax information as it will get you put on a list of likely tax evaders.
109 On settling your tax liability with the IRS via amnesty programs or compromise; "Better deals are always made if the taxpayer is abroad... If you have a problem get yourself a good tax lawyer to represent you and work out a settlement before you show up at the border."
109 "If you ever have any trouble getting a new passport, ask for a three month emergency extension or revalidation of an old one. These are given out with far less formality."
110 "If any tax collector in the US or any private creditor in the US says you owe money and you are about to leave the country, you can and probably will be tossed into the pokey. In order to get out you will have to either pay the debt or post a sufficient bond to guarantee that you will meet your potential obligations... The important moral here is that if you leave a country to avoid some obligation, debt or accusation, it is obviously quite risky to return, whether you do it legally or otherwise."
110-1 Great quote here on Elizabeth Taylor: "Elizabeth Taylor, one of the original reasons for the institution of the income tax on Americans abroad, eventually gave up her Swiss residence and decided to go back to the United States. From time to time she has had second thoughts. Her alternate nationalities and passports allow her to either stay put or move when she feels like it. Elizabeth Taylor shocked people years ago when she responded to critics who felt there was something wrong with sleeping with a future husband before being legally divorced from the last. She asked them, 'What do you expect me to do, sleep alone?' Spoken like a good PT!"
111 Instances of passports denied to Americans suspected of having unreported assets, accused of money laundering; "Thus, an American who already has been denied the right to travel, needs more than anyone else to become a PT with a second or third passport."
Chapter 11: Residence and Domicile
113ff On the third PT flag: residence and domicile; On Harry Schultz changing his view (in the 1960s) from recommending getting a residence permit to (in the 1980s) saying that "the only contact with government that was absolutely necessary was to get one or more passports. Once a passport has been granted, one can then quickly abandon the point of contact given on the passport application." On how this is a function of the PT's absolute lack of trust in any government; "I personally prefer to operate according to low profile principles, trusting that if no government can locate either my person or my assets, their tax-men cannot tax me regardless of what my actual legal tax status may be."
114 Possible tax havens: "Andorra, the Bahamas, Bermuda, Campione, the Channel Islands, Monaco and the Netherlands Antilles" [we can also add Puerto Rico now.]
115 "As already explained, US passport holders must abandon nationality in order to avoid US income tax." Also on the difference between domicile and residence: "The basic idea is that your domicile is the country or state to which you plan to return, meaning that it can be different than your country of residence. Generally, whereas your residence determines your liability for income tax, your domicile determines your liability for federal, estate, gift, capital gains and inheritance tax... The issue of domicile poses a problem primarily for high profile PTs who do not spend at least some of their time each year in an established tax haven. Basically, if you leave a high tax country and cannot demonstrate a permanent home elsewhere, you will remain domiciled, and possibly resident, in your home country."
116 The author talks about the negatives of Monaco: "However, even there I found my freedom to be restricted. I was obliged to furnish an apartment, not to sublet it to anyone else while I was away and actually occupy it for six months a year or risk having my status revoked. Furthermore, I was warned that if I got too many parking tickets, unfavorable publicity abroad or perhaps offended a neighbor or local cop for anything, I might have my residence permit summarily revoked."
116ff Other details on other countries: Mexico offers tourists a six month visa/tourist card, you can leave and return the same day for another six month stay. Switzerland doesn't require visas or stamp passports, thus a person who "does not make waves" will be left alone. "...most countries of the world simply will not bother a foreigner of independent means. To be absolutely safe in most European countries, one should observe the formalities and depart every three months. That is not hard to do when from any point in Europe the nearest border is usually only a short drive away." Also on the author's "the renegade PT approach": "the typical PT who does not meet any of the above exceptions should not become a legal resident anywhere. He should be a tourist insofar as the government is concerned where he makes his nest."
Chapter 12: Asset Management: Keeping Your Money
119ff "This fourth PT flag concerns asset management or, in other words, how to keep your money in your hands once you have made it." General [and largely superficial] thoughts here on not being a sheep investor who gets pulled into markets late in booms or gets panicked out at bottoms/busts. On how nobody calls market turns; on hedging/using put options, etc.
121-2 Note this horrendous sentence suggesting that the author knows little about investing: "My simple advice concerning the stock market is that if you are absolutely intent on the idea of turning a big profit, take a course specifically dealing with the subject or read the famous textbook by Graham Dodds." [Yes he wrote "Graham and Dodd" as "Graham Dodds"]
123 On Harry Browne's notion of having one brokerage account for stability and income and another for risk and playing hunches.
124ff On diversifying across currencies [I wonder what this guy would think about Bitcoin now that it's the ultimate "diversification across currencies"] Also, see this quote: "Recently, the US budget deficit managed to exceed the US $1.2 trillion mark." [Given that this book was written in the 1980s what the author means here is $1.2 trillion in government debt, not "deficit." And of course, note that at the end of 2024 the debt had hit a sickeningly large $35 trillion.] Discussion of gold "I like holding gold" [except a PT needs to be light and mobile, gold is anything but, thus you need to trust a third party custodian somewhere... Also note the author makes no mention of Executive Order 6102, a gigantic oversight.]
127ff Should a PT own property? Per Harry Schultz, "emphatically no. ...First, real estate or property ownership impairs not only mobility, but also judgment. Political changes or danger warranting an immediate move may be ignored if one feels that one must protect an investment or wait for a good price. Many a person has perished economically and even physically because he refused to leave home." ... "Nonetheless in spite of this argument, forming such attachments is a part of life and its enjoyment. The answer is simply to have the right mental attitude. You must be willing to just walk away from possessions and, if necessary, abandon your home overnight. You must be the strong person who packs up and leaves even if some members of your family refuse to go... If a home does not tie up too large a part of your investment capital, say ten per cent, it is easier to cultivate the proper mental attitude."
127 "Second, with property or real estate, the government knows where you are." Third, countries can unilaterally declare local property owners as residents for tax purposes, thus this defeats a major part of being PT. Note options here are to rent the unit out for cash flow when you're not there to recoup your investment, have a mortgage so your capital invested is relatively low, etc.
128 Examples of governments hiking property taxes ridiculously: "In 1988, after decades of paying the most nominal taxes, part-time non-resident tourist owners of property in the south of Spain, particularly in the area of Marbella, were hit with a 2000 per cent increase in charges in one year! With great frequency, once an area is built up and home owners are locked in, governments change their liberal, low-tax policies. These same policies by intention or inadvertence form part of the attraction that entices visitors to invest in a second home in the first place. Furthermore, when taxes are raised, property values often drop drastically. More often than not, they take decades to recover. This is what happened in the South of Spain."
130 "A good PT does not link his property ownership or its mortgages to other assets. That way, if you must abandon a bad property investment, the former owner or the bank lender can take back the property while your other assets remain safe, sound, secret and separate."
Chapter 13: Asset Management: Hiding Your Money
132 "The basic idea is that if you and only you know where your assets have been stashed, then it will be literally impossible for either an overly zealous government bureaucrat or former spouse, business partner or friend to get their hands on what rightfully belongs to you. This chapter will outline and detail various simple procedures that you can put into practice that will ensure your safety, even if the most disastrous of unforeseen consequences come your way."
133ff On the enormous amount of information out there about you: gov't files, credit reports, tax filings, AML filings, "bankers [in the USA] are required to make all bank records accessible to the IRS and other government agencies on demand." "First, if you are even remotely interested in financial privacy, the US is the last place on earth in which you should be handling your affairs. Second, even if you are already operating entirely outside of the US, do not get too set in your ways. Other countries have a way of following the US lead." "The knowledge that a portion of your wealth is waiting for you, where nobody but you can touch, will create a sense of security and freedom from fear. That is a level of security that cannot be had at any price."
135ff "Years ago, before learning that it was best to keep things simple, I let professional consultants convince me that I had to form corporations, trusts, offshore banks and foundations. I made many expensive arrangements. These were supposed to make me judgment proof, but later I discovered that I could achieve the same result far more cheaply, simply and elegantly." [Lately I've been coming to think of trusts as sort of an aspirational product designed to extract legal fees from upper middle class people.] "While putting lawyers in charge of these arrangements gave me the satisfaction that I was in competent hands, the truth was that these hands were mainly interested in getting into my cookie jar. My lawyers constantly and consistently generated maximum fees for themselves."
135 "It took me some years to find out that all these expensive legal structures were entirely irrelevant as a solution to my problems. In fact, by employing this small army of tax consultants and registered corporate agents, I was generating additional risks. The more people who are aware of your affairs, the more chance there is that someone will tell your secrets."
136 On not appearing wealthy, on having no visible assets or substantial means, thus not being a target for blackmail, theft, kidnapping, lawsuits, etc. Also on the PT stashing assets:
1. Outside the country where he is a citizen.
2. Outside the country where he is a legal resident.3. Outside the country where he is normally physically present.
138 On opening an account at a foreign bank, but not at a foreign bank's branch in your home country; better still, use a bank that has no branches in your country at all. On Swiss banks now sharing information-sharing treaties with the USA, and Austria now inheriting Switzerland's reputation as a place for banking secrecy. "The ordinary public is currently unaware of the fact that Switzerland is slowly moving itself out of the category of a desirable haven for capital."
139 "...never make any transfer from your foreign bank directly into or from your home bank where you are known. You must move your funds into this new and secret account in a manner that will break what is known as the paper trail." Methods here are using physical cash, but you'll need to mind the AML $10k max which means you'll probably get reported on any cash deposit of $8k or more. Also carrying large amounts of cash means you can have it seized. Another method: withdraw cash, then go to a bank where you are not known to obtain bank drafts, bank checks, postal money orders or travelers checks. You can then mail them to the new bank. Also bearer bonds or bearer shares [note that these are almost nonexistent nowadays].
140-1 Sobering example here of a safe deposit box with gold coins and a lawyer with access to the box who stole the coins, plus the fact that the author got into legal trouble by reporting the crime!
141 On how different countries have differing rules about anonymous property ownership: the author gives an interesting example here of an ownership change but with the entity that owns the asset keeping the title: "For example, suppose you buy a nice mansion or farm in the name of The Presbyter Foundation, ie, any name but your own. A few years later you sell it at a profit but instead of following the standard procedure you just hand over the bearer shares to the new owner. On the land register, there is of course no change. The Presbyter Foundation owned the property before you sold it. The Presbyter Foundation still owns it after you sell, but the new buyer now owns and holds the shares of the Presbyter Foundation." The author's point here by this example is this avoids transfer costs as well as capital gains taxes.
141ff "For greatest secrecy, new bank accounts, safe deposit boxes, property or whatever should eventually come to rest in a name other than your own." Also on having your business registered in the name of a corporation, so "you are more insulated against personal liability in lawsuits."
142ff On asset categories:
Category 1: assets easily located and liened
1) fee simple title to property; where you live is easily discoverable. "For the true PT a home should always be just a rental.
2) Leaseholds: which are publicly recorded
3) Interests in real property like mortgages
4) Partnership interests, cars, yachts, aircraft, horses, any property requiring a license
5) Bank accounts, CDs, stocks/bonds
Category 2: assets that are harder to locate but still not immune to discovery or seizure
"This category includes cash, gold, travelers checks, bearer bonds, paintings, stamps, coins,
beneficial interests in trusts, out of town property and property owned in company names." These can be located by analyzing old bank statements, tax returns or even newspaper articles.
beneficial interests in trusts, out of town property and property owned in company names." These can be located by analyzing old bank statements, tax returns or even newspaper articles.
Category 3: assets immune to seizure or that are undiscoverable
1) assets in foreign countries that are forgotten or overlooked in countries with true bank secrecy
2) assets controlled by others for your benefit, trusts
3) annuities, pension plans, cash value of life insurance policies, beneficial interests in irrevocable trusts
4) certain small amounts of property may be exempt depending on local laws.
145 "Stash your assets in several strategic locations like the old pirates did and tell no one. The most important thing to remember is that to keep any secret account secret, you cannot brag about it to anyone." "For a younger person, a foreign account can be started with a small deposit and added to discreetly. The accounts or investments made abroad should never be repatriated, reported or brought home for any reason."
145 "You can fight back in this war against privacy by changing even just a few of your accepted habits. Start by not volunteering so much information about yourself on the various forms so loved by bureaucrats. Simply put n/a, for not applicable or not available, on lines or in boxes that seem too probing. Every little effort that confronts Big Brother does not go wasted."
Chapter 14: Playgrounds
146ff "The fifth and final PT flag concerns the places in which you will actually physically spend your time. None of your assets should be located in these playgrounds. None of your passports or other paperwork should be issued by them in most cases. Playgrounds are those places on the planet in which it is safe for you to relax and enjoy life. The local government should see you as nothing more than a tourist, just passing through and generous enough to leave a bit of your cash behind through the support of local enterprises."
146-7 [Great quote here, basically recommending "do the opposite"] "To begin with, do not even consider following the advice offered by mass media, at least when it comes to finding a desirable place to live. For the past few years, the popular press has published the results of annual "scientific" findings on where to go for the highest quality of life. Invariably, the top scorers of such studies are Finland and Denmark. Sweden is occasionally thrown in for good measure. I know all of these countries well and can personally tell you that you will not find a greater collection of aggressive, perpetually depressed clapped out alcoholics anywhere."
147 Note also the harsh comments here on Sweden; note also that the author of The Great Taking foolishly decided to base himself in Sweden!
150 On doing something healthy instead of worrying about the end of the world: "Is there any realistic strategy for life after a global catastrophe? Sure there is! If you are worried about such a possibility, get a residence permit and perhaps a passport from an independent country in a remote corner of the world."
151ff On staying out of a rut by moving around, making new friends, expanding your social circle, widening your horizons, staying youthful.
153ff On Harry Browne and his book How I Found Freedom in an Unfree World: "Much human misery can easily be avoided as it is nothing more than the product of belief systems that inevitably lead us into a whole series of traps. A vast majority of people are unfree and live unhappy frustrating lives only because of irrational and damaging beliefs. For instance, if you believe that an all-powerful government has complete power over you and that you must blindly obey the law, then you have given other people a power over you that they do not really have. You have abdicated responsibility for your own future... Once you realize that you can say no or back out of a wide variety of situations, you will be able to walk away unscathed."
155 "The important thing for a would-be PT is to develop the mental attitude that he is not obliged to stay home and face whatever comes. You should strive to make yourself into a world traveler, an old hand comfortable wherever you are and experienced at adapting to different cultures."
Chapter 15: How Much Do You Need to Live The Life of the PT
156 "This chapter will cover the costs of PT life as it applies to someone who is single. However, if you are lucky enough to be living or traveling with a special someone, the fact is that as a sensible twosome you can live almost as cheaply as one." The author then cites "the bare minimum" as $4k a month, thus 500k in capital. [Note that using the 4% rules, you'll need $1.25m to generate 4k/month safely; further I think you'd likely have to double this number today to have a "bare minimum" life in most developed countries, although the numbers move around if you're considering a range of countries with a range of standards of living. In general you'll also need to at least double pretty much all the numbers he talks about here--maybe even quadruple them--to account for inflation.]
158 On home exchanges; a hack here as the exchange is the accommodation layer, but the costs can vary: see the example the author gives here where he swapped his ocean view house in Big Sur for a small penthouse in Tokyo, but the cost for the Tokyo apartment was six times his Big Sur rental cost; also on the idea of having a home in Monaco but leaving when the Grand Prix happens and during high season, which is when all the home exchangers will want to be there. "Monte Carlo is a place that people will visit anytime. The winters are mild. The summers are beautiful."
160ff Interesting, creative idea here for a high-budget option of a long term stay at a hotel, especially if the hotel grants a discount for month- or longer stays. This can work when business is slow, when there's a downturn, when the hotel is willing to negotiate, etc. "They would rather rent out at below cost and defray staff costs than preside over an empty hotel. Not to mention the fact that when the hotel is nearly empty, you'll get plenty of attention... Some PTs may find that by abandoning their homes in a high tax country what they save on taxes and overheads more than covers all the costs of first class hotel living. Running a big home in a high tax country takes a lot of money: gardener, pool maintenance, local property taxes, insurance, heat, electricity, gas, garbage disposal, special assessments, repairs, housekeeper. Not to mention the fact that staying in five star hotels means a lot less hassle. If something doesn't work, you call the hotel manager. Fixing the air conditioning or the leaky faucet is his problem, not yours."
162 Another good rule of thumb: multiply your rent by 4 (rent consumes 1/4 of your budget, food and eating out another 1/4 and 1/2 for the rest) to give you a sense if a certain location is within your budget.
Chapter 16: The Movable Nest
164 On how humans are "conned into believing there are limits to their capabilities and opportunities. Sometimes we are conditioned to think we must have a nest in a fixed location and follow the standard, stifling routine expected of us. If we move away or try something unconventional, like freedom, we are fearful that something terrible will happen... The restrictions we accept are totally in between our ears."
164ff On getting rid of your stuff, lightening up; having a PT mini-nest, the author gives an example of his small apartment in Paris; on storage of sensitive documents: use an offshore bank or a private client bank. "If you need something sent or delivered to you, it is best to have each item concerned in a separate completely sealed envelope or packet. Furthermore, they should each be clearly marked with a code that you can refer to when and if you want something removed from your file and sent to you."
166 Interesting anecdote here: "For example, you might have an understanding with your banker that in a serious predicament, he might just have to come out to visit you personally, always at your entire expense of course. For instance, you are in Paraguay accused of some trumped-up crime, not so uncommon in South America. Your passport has been pulled by the police. You have been ordered to show up for trial in two weeks. The prosecutor has indicated that it will cost you a US $25,000 gratuity to get your passport back and to have all charges dropped. You contact your banker in Gibraltar or wherever and say, "Bring envelope GP and 10K to me at the Hotel Excelsior, Asuncion, next Tuesday." GP stands for German Passport and 10K means US $10,000 in cash. Such an arrangement may get you out of a predicament far more cheaply than by paying the necessary bribe."
166 "In Columbia, Mexico, South America and Africa, when one turns over a requested bribe, all too often this results only in the money being kept and the ante being raised. It is better to always do things through an escrow arrangement with a trusted intermediary. A local bank manager usually can serve this purpose. However, for a quick getaway, a second passport can often be all that is needed. Sometimes it is difficult to get out of a country on a passport which does not have an entry stamp. In the case of a friend in Paraguay, he left by hiring a boat to take him across the river into Brazil. There, he checked in with the authorities, got his German passport stamped and reported his seized US passport as lost. He got a duplicate passport from the US consulate in Brasilia by courier."
169 "My experience has been that more than 98 per cent of the people I meet feel as if they are stuck in a rut and vaguely unhappy. They don't like where they live. After many years of marriage, they find their relationship has gone a bit stale. Work isn't terribly exciting or challenging, not like it used to be. Too much hassle from the bureaucrats constantly makes life difficult. Yet these same people fail to see how they can move on or change things to have a better life. Such restrictions exist strictly between their ears."
169 "Another special hint for men only, wives who stay home and do nothing except cook, clean and gossip tend to get plump and dull. Get 'em out in the world and into aerobics. Promise them some fancy new clothes if they get in shape and lose a few inches around the middle. You'll find your dull old wife might shine up better than you would have hoped for in your wildest dreams!" [Holy cow]
Chapter 17: How a PT Crosses Borders
171ff On keeping things uncomplicated, on not calling unnecessary attention to yourself; "Never ask a government official a question that you don't already know the answer to, or you could wind up in jail!" "...Of course all questions should be answered so that you appear to be the typical innocuous tourist."
173 On finding backyard routes that avoid border controls [this may have been true when the book came out, I wonder how accurate this sort of thing would be now]: "...in most countries of the world, there are many ways to get in and out of the country without attracting even the smallest amount of official attention. Border posts are not always manned on many small country roads. In many places, such border posts do not even exist at all. I personally know of several places between Canada, the US and Mexico, where no one is ever stopped or asked for identification. From Switzerland, one can ski across unguarded borders to or from six different countries. For countries with wide open vast borders, a cruise boat, private fishing boat, private plane or freighter is often the best way to enter and leave inconspicuously." "I emphatically do not advise illegal border crossing just for the fun of it, but in times of war, persecution or false accusation, flight to safer grounds may be more prudent than taking on hostile border guards."
173ff If you're a US citizen, don't use a foreign passport to enter or leave the USA: "You should also be exceedingly careful when visiting your home country after having acquired a second nationality. For example, a US citizen or former US citizen should never enter or leave the US with a foreign passport that gives a US birthplace. If he does it will sound alarms at the border. The US does not permit current US citizens to exit or enter the US with a foreign passport. Most countries have similar rules... In short, this means that it is likely that anyone caught crossing an international border with more than one passport will have all but one of his passports confiscated... The moral of the story is that you should be aware that getting caught with a second passport on your person or in your luggage will provoke a confrontation... When traveling, before crossing a border, it is easy enough to mail or send ahead by courier service any and all passports that you do not need for the border crossing at hand."
175 On blending in: "The basic idea behind PT border crossing is to attract as little attention as possible. In other words, look like a tourist! A silly hat makes one appear more like a clown and less like a threat. A camera around the neck is also a good prop... Don't speak their [the border officials'] language, even if you know it, unless of course your passport and identification makes it obvious what language you speak. Understand what they are asking for only selectively. Smile! Say, 'Desolay niente comprendo.' That's tourist talk. A useful combination of French, Italian and Spanish for, "Sorry I don't understand." In fact, a few choice phrases in Esperanto are one of the best ways to convince a customs official that you are too stupid to be taken seriously, which is exactly what you want him to think."
Chapter 18: Avoiding Taxes Legally
177ff Discussion of what is a fair and reasonable tax, the author argues 10-20% max; Also "...about one third of the people in the private sector are fully or partly employed in coping with government. Just think about how many lawyers, accountants, compliance officers and the like have become necessary in order for you to run your business legally." [good point here of course but you have to realize that once you have a system where people feed off of government complexity, there becomes a system of interested vested specifically in maintaining that complexity at all costs]; on the fact that the rules keep changing: "Governments lure people into arranging their economic lives in a certain way. They offer legal or tax advantages and then when enough suckers have taken the bait, they pull the rugs out from underneath them, change the rules and confiscate all the chips." Sobering example here of "changing the rules" from Costa Rica: "Fifteen years ago [thus this would be around 1970], Costa Rica offered foreign retirees a tax break and a guaranteed income if they would deposit the equivalent of US $50,000 into a Costa Rican bank and move to their beautiful sunny country. All went well for a while, but when things got a bit rough for the government, this foreign deposited money was the first to be confiscated." Another example from Spain: "Spain lured real estate developers to tourist centers by promising nominal taxes on developed property. Then, in 1991 taxes were raised to a new figure that was 6000 per cent higher than the rate originally established."
178 "The honest taxpayer does not only have to make vital economic decisions based on tax repercussions, he also has to work into his calculations the odds of future changes."
180-2 There's a three or four paragraph segment at the end of this chapter that is repeated--one of many editing oversights in this book.
Chapter 19: Should You Become a PT
183ff On being unhappy in your new country, on Soviets even being unhappy after leaving the USSR; the author claims the "reason for such unhappiness is simply lack of preparation and the proper mental attitude." [He's likely right.] On how many are conditioned to do what they are told, and after years of this becoming a PT is impossible. "Not everyone can intelligently handle the reality of being entirely responsible for his own destiny." The author considers PT living suitable for 2% of the population. [Intriguing also to think of PT as a function of neuroplasticity, that you might lose the ability to do it as you get older or get set in your ways.]
184ff Interesting and helpful anecdote here of two twin brothers, one who did PT and the other who didn't; this is a useful case study: the one brother worked as a non-domiciled alien in England and thus legally avoided taxes on his income, got a second passport and only visits the US as a tourist using his non-US passport, he found getting a new passport to be a major step at the time but no big deal in retrospect, etc.
186ff List of reasons for doing PT: the freedom to do as you please; the new perspectives from living in different countries and systems; meet like-minded people; move past the deadwood in your life ("When you are 15,000 kilometers away, unwanted regular social obligations are history!"); you can follow the weather you want, divide your time between places and people we like best; PTs are treated better than locals by the authorities ("A tourist or potential investor is not just another subject or citizen to be bled dry for taxes or sent off to die in the War of the Week.") [This is a gigantic takeaway from this book: countries treat tourists way, way better than citizens. The tourists can and will leave and governments thus have an incentive to attract them; citizens are just there to be milked and exploited and are thus taken for granted. And holy cow even a superficial reading of the history of Russia or Sweden during Peter's and Charles XII's era shows exactly what he means here, both monarchs literally bled their own people dry, neither thought twice about it.]
Chapter 20: PT and Morality
188ff On being wary of false philosophies; the author drops a witty remark here about certain former communist leaders actually doing PT themselves and ending up in South America [ha!]; on the fact that governments are controlled by quasi-religious leaders in a sense, not necessarily a formal religion but more like belief sets in politically correct views; On the "Anti-Pleasure Lobby": "The fact of the matter is that there always have been and always will be people who revel in self-denial and do their best to insure that everyone else is just as miserable as they are. Such thinking was best expressed by Benjamin Franklin who once defined a religious person as 'someone who goes to bed at night with the gnawing fear that someone, somewhere in the world might be enjoying themselves.'" On people wanting a ready-made moral code and behavior code set out for them.
192 On fighting the power vs evading it: "Crusaders and activists cannot have pleasant lives while fighting against an establishment in power. In the end, those who oppose oppression at great personal risk or by force are not nearly as effective as those who preserve a certain sense of physical detachment and even a sense of humor." [He makes a good point here] "Even Karl Marx was an armchair revolutionary who lived as conventional and comfortable a life in Paris and London as can be imagined."
Chapter 21: Your Personal Goal
194ff This chapter contains a test to measure where you are on the PT quality of life index.
196 "The PT must set down, preferably in writing, exactly where he is in life and where he would like to be in five, ten and twenty-five years. This is the process of setting goals. It is impossible to get where you want to be if you do not know where you want to go." [The same is true for financial goals.]
197 "For goal-oriented individuals, ie, those who do not simply drift where destiny leads them, happiness or disappointment is related to perceived progress or setbacks in connection with goals. Happiness is affected only to a small degree by objective reality."
198ff Discussion of the author's marriage counseling session and the insights he got from it, which for him were a metaphor for life: we could stay as we were [people often secretly enjoy their misery, or enjoy blaming it on others, it's easier to stay in a rut and complain]; we could stay together and find happiness by changing our perceptions; or we could change the physical facts by separating. "The reason this advice was so important was that it gave me a new way of working out what I perceived as problems. From that point on, life was much easier. I saw that I had been stuck in a trap. Bound up by the idea that marriages were forever and one had to try endlessly to work things out. Maybe what I was seeing as problems were really opportunities. A good swift kick in the rear is sometimes needed for one to get out and seek a complete change of place and partner. It might be terrific or it might be out of the frying pan and into the fire, but without experimentation we can't know the result. The option of just walking away wasn't really that unthinkable! So I walked. There were times when I regretted it, especially during the first few months of loneliness, but eventually life became a series of experiences that I would never have traded for another round of snarls and growls with Millstone [it's hilarious here that the author doesn't name his ex-wife, he just calls her "Millstone." Ouch!] The same concept I later applied to citizenship and nationality... The passport you hold or the country you live in is irrelevant except to the extent that the proper papers and a good environment facilitate getting on with the life you want to lead." [Interesting take, and an excellent example of laterally transferring an insight in one domain into a totally different domain.]
203 "Sometimes it is dangerous to be original or to think, meaning that PTs must not only be intelligent, but must know also when to conceal their intelligence." [Worth remembering the example in Chapter 17 above about knowing other languages, but knowing also when to conceal the fact that you know those languages for tactical reasons.]
203ff Extended section here on investing in yourself, being an autodidact; "If you are thus prepared, even if deprived of wealth, your little two pound brain will always be able to provide an income... Do not depend only upon your investments for security."
Chapter 22: Big Innkeeper, Not Big Brother
206 "With almost 240 different political entities to choose from, there is certainly no shortage of governments in the world. The PT, due to his unique perspective, is free to regard governments as something like those big hotel management groups which rent space and provide services in their hotels. Hotels are okay for a visit, but you wouldn't want to stay in them forever. There are just too many interesting places to visit. Why park yourself in one hotel (one country) for a lifetime?... A PT always keeps his options open and avoids expensive or unpleasant permanent entanglements. This goes for all alliances with governments, institutions and individuals... Once you have given others dominion and authority over you, you are no longer a PT."
207 "For the last hundred years, the middle class has been more and more oppressed and squeezed. Why stay behind and put up with it all? We should not continue to be patriotic about our country when an oppressive group of bureaucrats have seized power. Only a country with maximum levels of personal freedom, permitting wide diversity for the views of individuals deserves our patronage. Blind loyalty and patriotism have no place in civilized society."
207 "If we think of government as only a management group running a hotel or chain of hotels, it can do wonders for our perspective. Each group of managers has a different style. Some of them, just like people who have become political leaders, can be self-destructive and irrational. Politicians and hotel managers have a lot of other things in common. One of them is that they control some desirable and some not so desirable chunks of property. Both of these managers need paying guests. For us as PTs, there is no shortage of choice."
207 "Once you have made the mental switch to become a PT, choosing your government will be like choosing a hotel. PTs look for location, service and price. Expressed another way, once you leave the jurisdiction and control of your old home country, that country no longer has any power to restrict, control, draft, tax or jail you. If a government has neither the power to put you in jail or to confiscate your assets, then they have no way of controlling you or making you their subject."
208 "Hence, the PT has formulated his plan of action. One key element is that his passport will be from a different government than the place where he actually lives. Furthermore, the place where he lives must be different from the place where he keeps his serious money. Finally, the place where he invests actively and visibly in real estate or a going business is in still another place. The locations of all these mini-centers of his diversified activities are decided purely on the basis of which country, which innkeeper, offers the lowest costs, best deal, most fun and best climate."
209ff The rest of this chapter reviews and summarizes the previous "flag" chapters: where should you conduct your business, which passport(s) should you carry, should you have a domicile and if so, where, where should you store your capital, where should you spend your time, etc.
Chapter 23: Are We All Sheep
214ff Comments here on wars and the risks to the PT: "For the PT, wars are especially dangerous. What government officials consider to be harmless eccentricity during times of peace can easily be regarded as unpatriotic treason during times of war. Thus, the PT must have his paperwork and avenues of physical escape open long in advance of any military escapades. This involves more than just thinking about it. Second passports and a safe haven must be established through physical visits, by advance transfer of assets and by acquiring all the necessary travel documents so that one can leave a danger spot at a moment's notice. If one is prepared, PT style, for the worst catastrophe, preparation for lesser problems, such as lawsuits, wrongful criminal charges, etc is automatically achieved."
214 "A world of local, self-governing autonomous communities, relatively free of taxation, government regulation and controls, is the best of all possible worlds." [This sounds just like Balaji's Network State.]
217 Reference here to the sequel to this book, The Personal Privacy Report, which "deals with specific nitty gritty details of PT, the practice. It is full of detailed advice on topics of value to the PT, involving everything from how to structure your life around the roaming lifestyle of the PT to how the PT can make use of mail drops, computers, telephones and fax machines. There is also an extensive section on private asset management and advice on how you can disappear completely, should the need ever arise, so that no one can find you. The Personal Privacy Report is essential reading for those who have read and digested the basics of the PT theory and are now ready to seek out real freedom through this unique perspective."
Chapter 24: Case Histories
219ff On "Mr. Nelson" who lived on a grand scale in Nigeria, held a US passport; Nigeria shared his tax information with the US government; note that not filing taxes is a felony even if you don't owe anything; he was jailed when he entered the US at JFK, billed for $12m in back taxes and penalties; ultimately he went to jail and lost all his capital. The learnings here are:
1) don't live ostentatiously
2) all Americans living abroad are basically suspected tax evaders
3) the man returned periodically to the USA using his own name and his US passport, a mistake
4) American citizens have to file tax returns even if you live permanently abroad and even if you owe no tax!
225 "If Nelson had known what was in store for him, he could have made alternate arrangements for entering the US. He would certainly have been well advised to come into the US with a busload of European tourists on a one day sightseeing excursion from Windsor, Canada. Or when first questioned at the airport, he could have simply disappeared. If he was a good PT and had a different passport in a second name stored somewhere safe, he could then have had it delivered to him in the US. He could have used this second passport for a trip back to Africa via Mexico or Canada, but poor Nelson was not prepared thoroughly."
225ff On Carmelita Gomez, who owned a ton of California properties, never paid taxes, and when she received a large bill for the tax liability, she quickly sold all the properties, sent the proceeds to her bank in Panama and then moved to Mexico City, out of the jurisdictional reach of IRS agents. She moved on "at the first whiff of trouble." A key takeaway here is to have more than one place to go for asylum, and in particular be sure it is a country where that government won't give you up to another government.
231ff On Sven, the Swedish pensioner who "put Australia, New Zealand, Thailand, the Philippines, Bali (Indonesia) and Malaysia on his itinerary" for places to explore and move to. "The place chosen for domicile (legal residence) need not necessarily be a place where Sven was going to spend much time. The only requirement was that it could provide a cheap or free address and the right legal papers to show the Swedish authorities."
235 "The US is one of very few countries that has made entry-visa requirements mandatory. As a result, many countries which might have admitted Americans freely have retaliated by imposing similar requirements. They treat US citizens as badly as their citizens have been treated by US customs and immigration services. Yanks in general are blissfully unaware of the fact that having any passport other than a US passport for traveling is, in itself a form of freedom."
235ff Very interesting section here on Vietnam draft refusers who were in some ways early proto-PTs: "Having been given amnesty during the Carter era, these ex-Americans now have the best of all possible situations. They can visit and do business tax-free as foreigners in the US. They can have, as foreigners, secret untaxed bank accounts in the US. They pay no capital gains, income or inheritance taxes. They can visit the US and stay for up to four months a year before they are classed as residents for tax purposes. They qualify for tax exemption and special cash grants given to foreigners who set up US businesses. Should they ever desire a US passport, they can get one easily."
235-6 "Ex-Americans as well as non-Americans have discovered that foreigners everywhere get a better deal than the locals do. Ex-Americans are, of course, foreigners in the US. This situation is not unique to the US. In China, Poland, the Philippines, Ireland, New Zealand and almost all countries of the planet, citizens who have emigrated and changed citizenship are being courted and encouraged to return with a cornucopia of incentives. Those who stayed and plodded on are just there to be milked, sheared and ignored. What a paradox! One must abscond and get another passport in order to return as a first-class respected guest."
236ff On Peter Clyne: a celebrated tax dodger in Australia who bragged in the media how he and his money was untouchable: "Clyne had to be stopped if the government was going to retain any credibility. In the eyes of the public prosecutors, Clyne was a far more serious threat than any common criminal. Why? Because he was flaunting the fact that he was a Prior Taxpayer, earning a princely living and paying absolutely no income taxes."
237 "Every professional criminal knows that the only perfect crime has no collaborators, no witnesses and certainly will involve no public bragging or confessions." Clyne was arrested after a meeting with a DEA agent in the USA. Then after jumping bail he bragged in the media about the money he had stored in Liechtenstein: "The second lesson, after low profile and avoiding confrontations, is that if you are going to hide your money successfully, no one, and that means no one but you should know where it is. Even spouses and children or your own lawyer cannot be trusted."
238 "One important lesson from this episode is that if you are going to hide your money somewhere, the bank or lawyer you hide it with should not be vulnerable to any pressures from your home government. In other words, if you are Japanese, your bank abroad should not have a Japanese branch. If you are American, the foreign lawyer you trust with your secret assets should not have a ranch in California registered in his name. If your bank, lawyer, trustee or otherwise has any personal assets registered to him in any place where you could conceivably be sued, remember what happened to Peter Clyne! To put pressure on the man or bank with your secrets or your money, a government can tie up totally unrelated assets. Such tactics by the United States Attorney General have been used repeatedly to get Swiss banks to give up information on their clients. Entire Swiss bank branches in New York have been tied up in litigation in order to get the home office in Zurich to produce banking records of Americans who thought they were protected by bank secrecy."
241ff The story ends with the box in Liechtenstein being opened and in it were some gold coins and a recording of a terrible singer singing with the Vienna Philharmonic: Clyne had arranged for his girlfriend to hired the symphony for her. All the charges were dropped against him but the Australian government continued harassing him for years afterwards on spurious charges, wearing him down and bankrupting him, he died at age 60 of a heart attack. "Clyne was another casualty of the futile war of the individual against Big Brother."
243 "This sad story has a few more morals to be drawn from it, the most important being that confrontations with governments are to be avoided by sensible people. The second is that even assets deposited in safe places like Liechtenstein can be taken from those with loose lips. If you want your funds to be safe, if you want to be judgment proof, then keep your mouth shut."
243 "If you give tax advice, do it quietly. Don't seek to be controversial or blatantly antigovernment. PTs don't want to evade taxes, we just want to avoid them, legally. But giving advice on evasion or legal tax avoidance is, according to the government's point of view, setting a bad example for the public. Thus, anyone can expect trouble if they get on a soapbox and promote tax avoidance blatantly. [Note the story of Irwin Schiff in the USA, made an example of by the IRS!] The PT should try to be seen as an ordinary, nonthreatening, law abiding tourist of insignificant wealth. We must avoid being identified as part of some movement that needs to be crushed. We are in fact simply a bunch of unrelated individuals with no common goal or purpose."
243 "Finally, it should be remembered that a moving target is much harder to hit than one that is stationary. A PT should never stay in one place long enough for the authorities to get a clear idea of who he is. Generally it takes about three years for a government to focus its sights on an individual and turn him into a compliant taxpayer. If the PT moves several times a year and is a Perpetual Traveler or is at least perceived as such, he will be safe and free."
Resources:
For the author's full collection of works, visit: https://www.
To Read:
W.G. Hill: How To Think Like a Tycoon
W.G. Hill: The Passport Report
W.G. Hill: The Personal Privacy Report
W.G. Hill: Banking in Silence
Harry D. Schultz: How to Keep Your Money and Your Freedom
Peter Trevellian: The Invisible Investor [some overlap here with PT]
Harry Browne: Why the Best Laid Investment Plans Usually Go Wrong
Harry Browne: How I Found Freedom in an Unfree World
Milton Friedman: Free to Choose