Off Shore Banking

[Egon]

I'm completely ignorant about offshore banking.

Consider contacting some offshore banks and find out what is required to open an account.

 

[riptides]

Leave the country for a tax year, open an account in another country, deposit your per-deim there. Change some it it to U.S. dollars. Physically visit as needed. You'll need to prove you have business in that "another country".

 

[charlz]

As long as you report the accounts and claim any income on your taxes I think it is all perfectly legal.

But is it practical? If we did have a period of hyperinflation would you be looking to stay in the US and convert monies back to dollars as needed or would you move to the other country and draw on the account as you 'wait it out'?

I know during the Argentinian crisis there were stories of workers being paid twice a day because inflation was going up by the hour. They had to take a wheelbarrow load of cash to the grocery store to buy bread because the money had so little value. In this scenario even having off-shore money might not be worth what you think. You would want to make lots of small conversions to offset the rapid depreciation. Each time you convert money you pay a fee so the fee's might add up fast in that scenario.

I found this white paper which talks about inflation, hyperinflation etc. Have not had a chance to read it but it looks interesting:

http://www.dallasfed.org/research/er/1993/er9304c.pdf

I read an article a while back that said every country whose debt exceeded their GNP has gone through hyperinflation. They said the US was either 78 or 85% of the way there, don't remember exactly. Of course just a bad economic period where the output of the country drops below the debt threshold could put you in that situation. The income goes way down but the debt stays the same. Suddenly the government has no credit and can't fund through debt instruments (credit flight) and the merry go round stops.

 

[riptides]

You can draw on favorable currency exchange rates during the wait out.

 

[riptides]

I had a friend that had an "offshore" account... with lots of money... than one day, he didn't...

Gee was he following U.S Government guide lines? Or was he in a banana republic?

Some major allies of our don't sieze assets and if your playing by the rules your OK, plus on some contracts in some countries, your not going to have a choice in US Greenbacks.

 

[Egon]

In dysfunctional times bank accounts may not mean anything. The whole monetary system only works with stability.

 

[riptides]

In dysfunctional times bank accounts may not mean anything. The whole monetary system only works with stability.

Or major nations fixing rates and controlling currency.

yeah, stable, and free ---- NOT

 

[brin]

In dysfunctional times bank accounts may not mean anything. The whole monetary system only works with stability.

Or major nations fixing rates and controlling currency.

yeah, stable, and free ---- NOT

Egon..you and riptides hit it on the head...If as George W. Bush once said " This Sucker could Go Down " - Then I submit..all bets are off and there is no safe place because if our dollar goes down and it is the reserve currency of the world, what happens to all the other currencies..Right now for what it's worth I still believe to be safe ...just stock up on food, water, medicine ,seeds etc. - the things commonly in demand...everyone has to eat etc.

Let's all just hope we can stop an implosion from taking place.

 

[MoKelly]

I have som ethouights on this subject:

1. If somehow the world decided to switch from the US Dollar to another currency (Euro is all that it could be), think of the hit China and Japan would take (they have HUGE US Dollar receivables). China is pretty powerful and won't let that happen.

2. Even if it did happen, the world wouldn't end. We would still us US dollars in the US and exports would get cheaper and drive up demand to build in the USA.

I think you are thinking too much here.

MoKelly

 

[brin]

I have som ethouights on this subject:

1. If somehow the world decided to switch from the US Dollar to another currency (Euro is all that it could be), think of the hit China and Japan would take (they have HUGE US Dollar receivables). China is pretty powerful and won't let that happen.

2. Even if it did happen, the world wouldn't end. We would still us US dollars in the US and exports would get cheaper and drive up demand to build in the USA.

I think you are thinking too much here.

MoKelly

Mo....I think you are probably right ..In fact I choose to believe your version...It makes sense to me ! Thanks for putting some water on the fire..Now you gotta be right Mo...:laughing::thumbsup: