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Brainless Bureaucrats and the Mother of
All Passport Fiascos
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July 9, 2007

The            Sovereign Society Offshore A-Letter 

 

Monday, July 9, 2007
Vol. 9 No. 163
In Today's Letter:
Comment: Brainless Bureaucrats and the Mother of All Passport Fiascos
Wealth: Misery Returns to the Gas Pumps as Oil Shoots Above US$75 a Barrel
Privacy: The Real Reason Bush's Immigration Bill Went Down in Flames
Brainless Bureaucrats and the Mother of All Passport Fiascos

Today's comment is by Bob Bauman, Legal Counsel and author of many books and reports on second citizenship and the offshore world.

Dear A-Letter Reader,

The so-called "Western Hemisphere Travel Initiative" (WHTI) is the brainchild of faceless (and, it would seem brainless) bureaucrats in the U.S. Department of Homeland Security. These worthies spend billions of Americans' tax dollars with the professed goal of catching terrorists, but they display the common and practical sense of a two-year-old.

In a nutshell, the WHTI required all American citizens to present a valid passport when flying home to the U.S. from Canada, Mexico, the Caribbean, and Bermuda, after January 23, 2007. (In January 2008 the projected plan was that a passport would be required to leave and return to the U.S. by all modes of transportation.)

The official requirements according to the U.S. State Department website were: "All persons, including U.S. citizens, traveling by air between the United States and Canada, Mexico, Central and South America, the Caribbean, and Bermuda will be required to present a valid passport, Air NEXUS card, or U.S. Coast Guard Merchant Mariner Document, or an Alien Registration Card, Form I-551, if applicable."

The Run on Passports

We have been warning for months that these rigid requirements would result in a massive passport mess. We also said that, given the unreasonable time frame, this imminent fiasco was beyond immediate solution. In recent weeks, thousands of frustrated, angry Americans lined up at passport offices all across the country, and the U.S. State Department mails were clogged with piles of passport applications submitted months ago. So the helpful government finally did something.

The "something" was to allow a piece of paper showing one had applied for a passport to be accepted as a passport on reentry. Those caught in the passport trap were instructed to go to the State Department Internet website and fill in a form, then print it out and use it as an interim passport. Too bad if you didn't have a computer or a printer. Last week the U.S. House of Representatives took the matter into its own hands and voted to delay implementation of WHTI until at least June 2009. The Senate is expected to follow and approve this.

A Means of Control

If there's still any question whether the Big Brother government was using these Draconian passports as control documents, this passport fiasco is stark proof.

No longer is a U.S. passport a document for free travel. It is a means for government to watch you and catalogue your every move in and out of the country.

The supposed objective of this bureaucratic nightmare is to catch terrorists. But the odds of achieving this objective by mandating a new passport initiative are slim at best. If fact, forcing millions of Americans to buy costly passports for visits to countries where previously a picture ID or driver's license was sufficient, falls into the stupid category of "do something" politics. However unreasonable, the government must appear to be "doing something."

As I wrote recently, the 9-11 terrorist attacks are being used by the U.S. government and many other nations, to tighten formerly easy visa rules for foreign travelers for reasons far beyond anti-terrorism. Soon all Americans and visitors to America may be forced to have digital, biometric passports with detailed personal and physical information readable by computers. The EU and the U.K. are adopting similar passport standards.

The U.S. and other governments want to use passports as the major means of proof of individual identity, both of their own citizens, and for visitors from abroad. And these high-tech passports, complete with electronic transmitter RFIDs, may contain everything from your DNA to your blood type and scans of your irises. Hooked to official computers, these biometric informers will track your every movement. And they also may be turned into national ID cards to record and control your domestic activity.

Break Free from Big Brother

This entire fiasco makes it clear that Americans should obtain a second passport. I dislike saying it, but the time has come when being identified as an American is not just a threat from foreign sources, but a threat from your own government.

I am the author of a book on the subject of dual citizenship and second passports, and as such, my advice is to consider obtaining a second passport now, while you still can. That second, non-U.S. document may allow you to break free from unreasonable government surveillance and snooping and to preserve what's left of your personal and financial privacy.

It's not yet too late - and I'll tell you exactly how to do it legally.

That's the way it looks from here,
BOB BAUMAN JD, Legal Counsel

EDITOR'S NOTE: Click here to read a Special American Security Alert from Bob Bauman.

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Misery Returns to the Gas Pumps as Oil Shoots Above US$75 a Barrel
 
Don't look now, but crude oil prices have quietly surged up to US$75 per barrel again, for the first time in nearly a year. Oil is fast closing in on fresh record highs.

The catalyst this time around is "renewed unrest in Nigeria's delta oil producing region." One of the world's largest and yet most unstable oil fields. No news there. After all the Middle East isn't exactly a model of stability either. And let's not even talk about Venezuela.

In Nigeria, violence by militant groups has cut the country's oil output by at least 25%. Recently Royal Dutch Shell, Nigeria's largest foreign oil producer, announced that it would not restart its oil production in Nigeria for the rest of this year, due to the ongoing violence.

In the Middle East, the Organization of Petroleum Exporting Countries (OPEC) refuses to raise its output quotas, which is helping to boost prices even more.

OPEC, the oil cartel that controls about 43% of global oil production, refuses to even contemplate raising output before a meeting scheduled for September. Clearly this is just a policy stance intended to push prices even higher in the meantime.

Surging demand also plays a key role here. Gasoline inventories in the U.S. have been falling, due to strong summer demand during our peak driving season. Pump prices that have been persistently north of US$3 per gallon are apparently not keeping cars in garages this summer.

Also, airline travel is booming again, just ask anyone who has recently flown a jam-packed trans-Atlantic flight (including yours truly). Or ask anyone who's been bumped recently from an overbooked domestic flight.

Last week U.S. refineries pushed utilization rates past 90% to crank out the highest level of gasoline since at least 1982, when record keeping began. Refineries running flat-out like this are a big drain on U.S. petroleum reserves, which also pushes energy markets higher. And the 2007 Atlantic Hurricane season hasn't even turned ugly yet.

The renewed uptrend in crude is not a big surprise to me. The bull market in energy seems like it has much more upside in my view. It's a long-term secular trend that's not about to end anytime soon.

MIKE BURNICK, Senior Editor & Global Markets Analyst

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Privacy&Rights

 The Real Reason Bush's Immigration Bill Went Down in Flames

If you heard about the defeat of President Bush's immigration bill in the news, you might have read that the bill failed because conservatives didn't want to grant illegal immigrants amnesty.

But that's not the real reason. 

In reality, the Senate voted to delete the portion of the bill that would have required employees to submit to prospective employers what would essentially be a national ID card. 

This "Real ID" initiative, authorized in a 2005 law, is in big trouble. Numerous states have enacted legislation stating they won't comply with it.  Proponents of the immigration bill hoped to force employers to demand Real ID, in effect mandating a national ID card through the backdoor. But when the Senate voted to strip out Real ID, the proponents of national ID backed away, and the bill went down in flames.

Even without Real ID, the bill would have required employers to receive permission to hire prospective employees from a database maintained by the Department of Homeland Security (DHS). That requirement was to be enforced by having the Social Security Administration turn over all employment records they receive quarterly (with payroll taxes) to the DHS. The DHS would then cross-match the payroll records against the names of persons who had been hired. 

There's little doubt that lawmakers will find another way to force a national ID card on us. But it won't be through the immigration bill - at least not this year.

MARK NESTMANN, Privacy Expert &
President of The Nestmann Group
www.nestmann.com

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