Today's comment is by Mark Nestmann, Wealth & Preservation & Tax Consultant for The Sovereign Society.

Dear A-Letter Reader,

I'm bewildered over all the fuss surrounding the recent revelations that every international traveler entering or leaving the U.S. for the last four years has been given a "terrorism risk" assessment. And this assessment will reside in a secret file for 40 YEARS after the border crossing.
I'm not disputing that this is an outrageous and unacceptable invasion of privacy, and that 40 years is far too long to keep this information on file. But come on now, people, what do you expect?

We've accepted the "no fly" rules like sheep. How do you think the government has decided who to put on the no-fly list? Through the secret terrorism risk assessment system, of course. Indeed, I suspect the no-fly list wouldn't exist without this system in the first place.

I've long maintained that the "no fly" rules have very little to do with security and are in fact designed to identify political opponents to the Bush administration. This may sound like a paranoid fantasy, but here's my reasoning.

According to the Homeland Security Administration (HSA), about 400 million people enter or leave the U.S. each year. HSA won't say how many of these people it considers terrorists, but there are about 44,000 on the no fly list, as of late September. We know the overwhelming number of these people are NOT terrorists. After all, people like Sen. Ted Kennedy are on the list. But let's say that 1% of the people on the list are, in fact, terrorists.

That means that for each terrorist the HSA's super-duper data-mining software correctly identifies, it misidentifies 100 people as potential terrorists. If in fact, the HSA's efforts have resulted in terrorists being apprehended-and the HSA is not saying is has-then some might believe this is an acceptable cost. But consider that the people on the no-fly list include 14 of the Sept. 11 2001 hijackers who have been dead for five years. It also includes convicted terrorist Zacarias Moussaoui, now serving a life sentence, and Saddam Hussein, who has been sentenced to death in Baghdad. Given these facts, you begin to wonder how accurate this system really is, and what its actual purpose might be.

The HSA surely knows this. Yet it persists in its data-mining program, ostensibly to find terrorists. They persist in spite of the number of falsely identified terrorists vastly outnumbering real terrorists, not to mention having numerous dead and incarcerated real terrorists on its no-fly list. So then what is the real purpose of the HSA program?

It turns out that looking for other types of people who are not as rare as terrorists is much more plausible using data-mining technologies. For instance, there are a lot of international travelers who don't like George Bush. Some of them may subscribe to anti-Bush publications, make phone calls to other people who don't like Bush, etc. Since all of these records are "mined" by the National Targeting Center, it would be easy for the HSA to use this information to identify Bush political opponents.

In other words, while the HSA program is almost useless for identifying terrorists, it's an extremely effective way for the government to engage in mass political intelligence gathering. And that's what I think it's being used for.

MARK NESTMANN, Wealth Preservation & Tax Consultant,
on behalf of The Sovereign Society

EDITOR'S NOTE: Did you hear that? If you're an international traveler, they keep a secret terrorist file on you for 40 years! So if you went to Europe last summer, the U.S. government will have your terrorism file until 2046. And that's assuming you never fly abroad again. If the government has a whole file on you just because you dared to fly overseas, imagine what they know about your finances. It's time to fight back to claim at LEAST your financial privacy, if you can't even fly without creating an entire file.    

• Privately control a family fortune, and pass it on to your heirs completely free of excessive estate taxes.
• Open a numbered account...and access an entire untapped resource of 'forbidden' offshore investments.
• Use private, creditor-proof 'family foundations' to secure your wealth.
• Set up a tax-advantaged offshore corporation with an impenetrable corporate veil.
• Eliminate your financial concerns with a single step.

• Tax-free capital gains!
• Corporate tax rate of 17.5%
• Personal income tax rate of just 15.5%
• One of the world's shortest tax returns -- just two pages