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We Are the Borg, Resistance Is Futile:
Part I
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Tuesday, May 9, 2006
Vol. 8 No. 92
In Today's Letter: Comment: Part I: Transforming into Borg 
Offshore: Tax Havens Are Still Out There
Wealth: Time to Buy Biotechs
Privacy & Rights: Sporting Cheese Hats, Not Microchips
We Are the Borg, Resistance Is Futile: Part I

Today's comment is from Mark Nestmann, LL.M., a widely published author on privacy and wealth preservation, and author of The Lifeboat Strategy.

Dear A-Letter Reader:

If you're a fan of the Star Trek spin-off television series, The Next Generation, starring Patrick Stewart, you know about the Borg. 

Existing thousands of years in the future, the Borg is a highly advanced and aggressive network of humanoid drones that is part organic, part artificial life. At birth, a Borg infant is implanted with chips that give it improved mental and physical abilities. The chips link the baby's brain to a collective consciousness which gives it seamless access to all knowledge assimilated by the Borg over thousands of years.  The resulting drone is collectively aware, but not aware of itself as a separate individual. 

The Borg travel in giant cube-shaped spaceships that seek out and assimilate technology. When a Borg ship encounters humans, it captures them and makes them Borg using the same implants that babies receive.  It informs them, "We are the Borg...resistance is futile."  Humans who refuse assimilation are killed. 

Returning to the present, are we becoming the Borg?  We are...and we're embracing the transition.

Consider "VeriChip," a microchip implant from Applied Digital Solutions (ADS) recently approved for human use by the Federal Drug Administration.  The VeriChip is implanted under your skin, and scanned with a reading device to reveal medical data.  The chip is linked to a database that provides additional information about your medical conditions. 

VeriChips are currently being implanted in Alzheimer's patients and other persons deemed incapable of caring for themselves, although thousands of perfectly healthy people are now getting chipped, "just in case."  In Mexico, the attorney general and his top aides were chipped for security purposes. ADS has proposed replacing military "dog tags" with the VeriChips.  The technology is also used in animals.

Of course, the chips don't have to just carry medical information-they can contain information about anything.  For instance, with an e-commerce application called "VeriPay," rather than swipe a card or pay cash, you can buy anything with a mere wave of your hand.  At the Baja Beach Club in Spain, patrons with a VeriPay microchip implant can pay for cocktails with a swipe of the arm.  If a swipe of the wrist requires too much effort, there are already prototypes that can scan your purchases of products containing a compatible RFID (radio frequency identity) chip, and deduct the balance from your bank account, as you walk through the door. 

This is possible using technology developed and patented by IBM.  The patent application describes a process under which every manufactured product contains an RFID tag with a unique identification number.  Each number is registered to the person who buys it.  IBM also proposes that the government track people through their RFID tags using a "person tracking unit."  This device can zero in on RFID tags and track people in any public place.

The method of paying for RFID-numbered products isn't particularly important to IBM, so long as the purchaser can be positively identified.  And what could be more convenient-or secure-means of identifying someone than an implantable microchip?  When these technologies converge, we will have developed something that looks surprisingly similar to a Borg technology prototype...

MARK NESTMANN, Wealth Preservation and Tax Consultant
on behalf of The Sovereign Society
assetpro@nestmann.com
http://www.nestmann.com

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Offshore

Tax Havens Still Exist - You Just Need To Know Where to Look

The OECD and the EU have been on a crusade to put all tax haven countries out of business over the last few years. These groups have repeatedly insisted all countries freely share tax information, which would damage bank confidentiality. But there are still countries that repeatedly stand up to this intrusive trend. According to the Financial Times, the EU's and OECD's tax directives aren't "watertight" because the best tax havens have not given in to this directive. These nations (including Switzerland, Austria, Liechtenstein and Panama) don't freely share tax information just because the OECD and the EU thinks they should. As Peter Zipper, a member of our Council of Experts and Vice President of Austria's Anglo-Irish Bank, says, "Austria doesn't give into the big bad bullies of the world." And there are other nations out there who don't give into these bullies either.  LINK:  Please click here for more information.

Wealth/Investments

Biotechnology Stocks Drop - Creating a Window of Opportunity

From their all-time highs in March, biotechnology stocks have dropped 10% and now rank as one of the worst performing sectors in 2006. But this recent correction presents an ideal opportunity for long-term biotech investors to purchase some promising companies. Biotech stocks are home to some of the fastest-growing corporate earnings. Biotechnology stocks were all the rage in mid-1980s and their popularity was coupled with booming mutual fund inflows by 1989. Rising healthcare costs, former President Clinton's initiative to cut into drug stock profits and general overvaluation ultimately contributed to the sector's pullback from 1992-1994. But throughout the late 1990s, biotechnology stocks surged and have continued to rally this decade despite suffering some big losses earlier in the last bear market. Since 2004, large-cap drug companies are increasingly losing patent protection combined with rising competition from generic drug manufacturers. In order to fuel new discoveries and fatten their coffers, the pharmaceutical companies have vied for strategic partnerships with high-risk biotechnology firms since 2005. Large-cap drugs fund new research and development while hopefully earning the right to claim new discoveries and patent protection. In the late 2000s, biotechnology is making a comeback as some promising companies are injected with billions of dollars in R&D spending.

ERIC ROSEMAN, Investment Director
on behalf of The Sovereign Society  

Privacy&Rights

Wisconsinites Rule Against Microchips

Wisconsin is taking steps to ensure their residents don't become "the Borg" Mark Nestmann discusses above. In fact, no Wisconsinite will carry a microchip under their skin anytime soon - at least not without their consent. Last month, The A-Letter commented the Wisconsin state legislature was considering a bill to forbid anyone from forcibly implanting a microchip in a Wisconsin resident against their will. And thankfully, the bill just passed.

Wisconsin State Representative Marlin Schneider introduced the bill because he doesn't want employers forcibly implanting their employees just so they can track employees when they go to the bathroom or leave the office building. Schneider said: "That is very intrusive, even more so than anything [George] Orwell ever dreamed of." No but apparently, the creators of Star Trek: The Next Generation did. Fortunately, Wisconsin is outlawing this practice before it becomes an issue. Hopefully other states will follow their example. LINK: Please click here for more information.

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