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Thursday, April 6, 2006 - Vol. 8 No. 69
In Today's Letter:
Comment: Patriot Paranoia?
Offshore: Trusts Busted in the U.K.
Wealth: Market Warning: Treasury's Approach Critical Yield 
Privacy & Rights: Thwart NSA Wiretaps.
Patriot Paranoia?

Dear A-Letter Reader:

I think it was the late drug-addled Kurt Cobain who, before he died at his own hand, sang in one of his grunge ditties: "You're not paranoid if they're really after you." The thought was hardly original with poor Kurt, but these days, with the Bush administration and its open-ended war on terror, the phrase has new resonance.

Put aside for the moment the horrendously unconstitutional PATRIOT Act and its evil consequences; secret police spying on all our finances and banking; arrest and detention for years of US citizens without charges filed or right to counsel. Put aside the secret, Bush-approved NSA wiretapping and FBI searches without warrants clearly required by federal law. You can even forget for a moment the confiscation and forfeiture of millions in private bank accounts, based on nothing more than a presidential directive and suspicion by federal money police with no due process and no judicial appeal.

But consider these choice items in the news, mostly ignored by the "mainstream" media:

1) PATRIOT Act games:  This was supposed to be an "anti-terrorist" law. We previously have noted that the Act is being used for easy secret police action against any alleged "crime" they choose. Two federal judges ruled in secret that the Act can be used in any criminal investigation, not just those involving alleged terrorism. Yesterday's Wall Street Journal ran a front page article showing how the greatly expanded Act powers, that waive many usual constitutional rights, were used to convict, possibly wrongfully, a US citizen of Lebanese extraction, of buying stolen baby food! Eight years in prison based on evidence obtained with secret anti-terrorist investigations that the defense counsel was not allowed to see. LINK (subs only): Please click here for more information.

2) Drones may prowl US skies: Unmanned aerial vehicles have soared the skies of Afghanistan and Iraq, spotting enemy encampments, protecting military bases and even launching missile attacks against suspected terrorists. Now police UAVs may be flying over the USA. Testimony before Congress this week from police agencies envisions using UAVs for everything from border security to domestic surveillance high above American cities. Smile when you look up! LINK: Please click here for more information.

3) Federal mass detention centers: Shades of the mass roundup of Japanese Americans in 1941-- the US government has awarded a $385 million contract (to Halliburton, of course) for the construction of "temporary detention facilities." These would be used, the US says, in the event of an "immigration emergency." Read  this one and wonder what's next -- LINK: Please click here for more information.

4) Get out the RAID: The Pentagon is trying to develop insect cyborgs able to sniff out explosives, or "bug" conversations (pardon the pun), by lurking unseen with micro-transmitters strapped to their bodies. The cyborgs -- half insect, half robot -- would be created by inserting tiny devices into the bodies of flying, hopping or crawling insects while in their larva or pupa stage, so that the mechanisms become part of their bodies and ultimately allow them to be moved by remote control. And you think we are making up this stuff? LINK: Please click here for more information.

5) No longer "safe" deposit boxes: The rumor is that in the event of a "national emergency" agents from the US Dept. of Homeland Security will be in charge of opening safe deposit boxes and determining what items will be given to bank customers. No weapons, cash, gold, or silver will be allowed to be given to box owners. Bank employees have been told not to discuss this matter in public. LINK: Please click here for more information.

In pop culture, "paranoia" is used to describe excessive concern about one's own well-being or persecutory beliefs concerning personal threats to ourselves or our property, often linked to a belief in conspiracy theories. In psychiatry, "paranoia" describes a mental illness. So are we all going crazy?

That's the way that it looks from here...but I wonder who else is looking?
BOB BAUMAN
Editor

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Offshore

Trusts Busted in the U.K

If you live in the UK and are planning to set up a trust, think again. UK Chancellor Gordon Brown just tightened control on all UK trusts. All trustees must pay an inheritance tax of 20% on all gifts to trusts. Trust holders must pay a 6% charge on the trusts that exceeds £285,000. Add that to beneficiaries' inheritance taxes. Tax lawyers are screaming bloody murder over the new policies - saying "virtually every will in the country" will have to be rewritten.  LINK: Please click here for more information.
 
Wealth/Investments

Market Warning: Treasury's Approach Critical Yield

Since 2003, equities worldwide have powered to fresh pre-9/11 highs and, in some cases, new records altogether. But with U.S. bond yields now testing 48-month highs, fears are growing that the long overdue stock market correction is rapidly approaching. U.S. and international stocks have now logged over 41 months of gains without posting a decline greater than 7%. That low volatility and long bull run have made many investors dangerously complacent once again.  Yet, in the US and abroad, bond yields are now at their highest levels since June 2004, as central banks grudgingly ratchet up short-term interest rates. In the US in particular, the ten-year Treasury recently hit 4.87%.  If bond rates rise over 5%, you can expect stocks to suffer a sharp correction as higher financing costs squeeze corporate profit margins, and put the kibosh on the US consumer's relentless buying binge. I expect we could at least see a pull back of 10% to 15% from current levels.  Increasingly, cash is looking good in 2006 as rates head higher.
Eric Roseman,
Investment Director of the Sovereign Society

Privacy&Rights

Thwart NSA Wiretaps

There's an easy way for internet users to make phone calls secure enough to frustrate the NSA's extrajudicial surveillance program -- Phil Zimmermann's newest encryption software, Zfone. Zimmermann, the man who released the PGP e-mail encryption program to the world in 1991, only to face an abortive criminal prosecution from the government, has been trying for 10 years to give the world easy-to-use software to cloak internet phone calls. On March 14, Zimmermann released a beta version of the widely anticipated Zfone. Get it here: LINK: Please click here for more information

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Your Rights & Liberties Are Under Attack

Here's what the PATRIOT Act can do to you! Learn how and where you legally can bank offshore -- without fear of US interference.LINK:  http://www.isecureonline.com/reports/190SPATY/E190G404/

 
 
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