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You Have Friends in Panama Minimize
 

 

Monday, April 17, 2006 - Vol. 8 No. 76
In Today's Letter: Comment: You Have Friends in Panama
Offshore: Forbes Quotes Sovereign Society
Wealth: Investors Still Pay the Highest Fees for Canadian Mutual Funds
Privacy & Rights: Smile for the City Camera!

 

You Have Friends in Panama

Dear A-Letter Reader:

In 1979, I first paid an official visit to Panama, shortly after President Jimmy Carter signed the Torrijos-Carter treaties that promised the eventual handover of the Canal to Panama in 1999. Although I opposed the treaties and viewed them as a wrongful surrender of the Canal to the unstable and unfriendly Omar Torrijos government, our House subcommittee had the role of drafting the implementing legislation required to carry out the treaty provisions. Naturally, I tried to make the law as beneficial to the United States as possible, while recognizing the rights of Panama.

From the very first I was impressed with the people of Panama.

Years of contention over control of the Canal with the United States made nationalism a major theme in politics here. Much of the time this meant whipping up emotions against the Yankee gringos. Based on my long years of association with them, at every social level, I can assure you that you’ll find most to be friendly, open and hospitable, even to strangers, and especially to foreigners. Panamanians are used to foreigners, many who just come for a visit, and a good many that stay. And you’ll learn that Panamanians may drive a hard bargain, but they learned that from a century of dealing with Americans.

And Panamanians are a patriotic people. In 2003, they celebrated noisily the centennial of their independence from neighboring Colombia. While the United States was instrumental in achieving that independence, for its own ends, Panama had long chafed in its status as a rural outpost of an unresponsive government in far away Bogotá. Several uprisings and revolts aimed at independence had failed over the years before independence finally was achieved in 1903.

It was no doubt a disappointment to Panama’s early leaders that, after gaining independence from Colombia, they were forced into near total dependence on the District of Columbia — Washington, D.C. that is. After the long association with and domination by Americans, the reclaiming of the Canal from US control finally truly liberated Panama as a nation, and Panamanians as a people. That long sought action affirmed both the peoples’ pride and their national identity.

But a 2004 report in the Los Angeles Times accurately described the attitudes of Panamanians today: “Four years after the last US troops pulled out and Panamanians gained control of the canal that is their most important national asset, the Yankee footprint here remains deep and surprisingly welcome. Although anti-Americanism is on the rise in much of Latin America, Panamanians heartily embrace their onetime occupiers’ values and symbols, from language to music and fashion — and the almighty dollar.” “The motto here today is ‘Gringo come back,’” said Tomas Cabal, a TV commentator and English professor. “Panamanians would like to see American troops come back and build a base on the Colombian border.”

Much of these good feelings are the result of extensive intermarriage and dual citizenship during the US control of the Canal Zone. A rotating group of more than 10,000 US troops and civilian contractors lived in the Zone until the waterway was handed over, and children born here to US citizens had the right to Panamanian citizenship after the US withdrawals. Hundreds of ex-Zonians have stayed on, strengthening the bonds between the two nations.

When you come here, either for a visit or a longer stay, I predict you’re going to fall in love with Panama and its people. They are proud of their rich cultural heritage and they are glad to be free from US colonial domination. But contrary to what history might suggest, Panamanians are used to Americans in particular, and foreigners in general — and, if you’re a decent human being, they’ll welcome you and make you feel right at home. The local joke is that more people here speak English here than they do in Miami.

This is a country where folks are friendly and laid back, willing to live and let live. Life does move at a slower pace than frantic American gringos are used to up north. The humid, tropical weather alone has a tendency to lull you into slower acting, even slower thinking. And that’s not all bad.

I hope to see you May 17-20 in Panama at our annual Sovereign Society Total Wealth Symposium. Use the LINK below to register.

That’s the way that it looks from here,
BOB BAUMAN, Editor

Editor’s Note: Still interested in attending The Sovereign Society’s Total Wealth Symposium? Click here to learn how you can save $100 just for signing up early! But hurry – this “early bird” discount expires TOMORROW!

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Offshore

Forbes Quotes Sovereign Society

It's a compliment that when Forbes magazine writes about offshore tax havens, it turns to Sovereign Society Council of Experts member, Gideon Rothschild, for advice. In its current issue Mr. Rothschild, a leading US estate planning attorney, is quick to point out that asset protection does not involve evading US income taxes, but he notes that there are strategies that can help save estate taxes with offshore trusts. Using private placement life insurance products is another strategy. He also commends Switzerland and Monaco for refusing to make concessions without sacrificing their strict financial privacy laws.

We agree with some of Forbes 2006 "best tax haven picks" (Switzerland, Belize, the Cook Islands) but they are obviously out of touch because they missed one the best tax havens of all -- Panama. Tax Haven Getaways 2006: LINK: Please click here for more information.

Wealth/Investments

Investors Still Pay the Highest Fees for Canadian Mutual Funds

Canadian mutual fund investors continue to pay the highest fees among the world’s most industrialized economies. Despite booming asset growth over the last twenty years ( 5,674%), the Canadian mutual fund industry has raised management fees since 1986. The average Canadian-based equity fund now levies a fat 2.68% per annum in fees versus 1.53% for US-based stock funds. In Canada, mutual funds are allowed to charge trailer fees, or broker-related compensation packages tied to mutual funds sales. This provides the broker/dealer with a perpetual income stream until the client sells the fund. In the end, the investor is left paying an even higher fee schedule. In Canada, analysts and investors use the Total Expense Ratio (TER) matrix to derive a net figure for mutual fund charges. Over time, a high expense ratio can seriously harm your total returns. LINK: The Investment Funds Institute of Canada. http://www.ific.ca
Eric Roseman, Investment Director
The Sovereign Society
 
Privacy&Rights

Smile for the City Camera!

Surveillance cameras already follow your every movement in banks, stores and subways, and soon they’ll be taking your picture on city streets. Last week the New York City Police Department announced they would add 505 new cameras to 253 different locations on New York’s streets. The police officials say these new cameras will help catch terrorists. They also say they want to preserve people’s privacy, but police are plowing ahead with these new street scanning techniques. Their brilliant solution for protecting people’s privacy? Pleasant signs reminding you the police are monitoring the area. Thank you, Big Brother.  LINK: Please click here for more information.
 
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