July 10, 2002

In This Issue: 
* COMMENT: Imaginary Constructs 

* OFFSHORE: More Swiss Bank Rules. Irish Tax Prosecutions. Isle of Man Unsure. Sealand Revisited. Hong Kong Taxes. Costa Rica, Grenada. Panama: Harris Organization Evicted. Democrats Say Kill Tax Havens.
 
* WEALTH: Basle Bank Rules. U.S. ADR Boom. IRS Targets Client Lists. Diversify Family Wealth. Case for Cash. World Index. Queen Mary II. * PRIVACY & RIGHTS: U.K. in an Uproar Over 'Entitlement ID Cards' 

* COMMENT: Imaginary Constructs Dear A-Letter Reader: 'Semantics' is the study of the meanings of words; more especially the historic and psychological study of changes in the significance of words, often as used in propaganda to create intentional ambiguity. Perhaps the classic example of modern semantics in literature appears in George Orwell's riveting account of life in his famous book, '1984.' 

There Big Brother's loud speakers incessantly blare slogans such as 'War is Peace', 'Ignorance is Strength' and 'Freedom is Slavery'. Semantics is also the title of an article in the current issue of Reason magazine, which observes: 'Truth may be the first casualty of all wars. In the war on terror, coherence seems to have taken a mortal wound, too.' This observation was prompted by police denying that the shootings last week at Los Angeles International Airport were, in fact, acts of terror. Reasons believes 'national security officials have taken the dangerous route of letting word games drive policy. Pretty soon, if not already,' suggests Reason, 'imaginary constructs will carry more weight than real world events.' 

But hasn't that been the major thrust of much of what has followed from governments since the horrors of September 11th last? Policy and law is now based on 'imaginary constructs' that suit the needs of an expanding state, the police who are its enforcement arm and politicians who think they are assuring their own re-elections. Financial privacy now has become 'money laundering.' Investing 'unusual' sums of money is considered 'suspicious activity.' Bankers or investment advisors, once trusted confidants, now are official government spies. The simple act of placing assets offshore is treated as prima face evidence of criminal intent. Guilt is presumed until the accused can prove otherwise. Probable cause and due process are replaced by faceless bureaucrats who, without offering proof, draft lists that freeze millions in bank accounts, and allow raids on foreign owned jewelry stores based on a hunch. 

But we are told, we must trust government, in order to be safe, that these things are necessary. It was William Pitt the Younger, who said: 'Necessity is the argument of tyrants, it is the creed of slaves.' As our recent Independence Day neared I re-read Patrick Henry's powerful address delivered on March 23, 1775 to the Virginia House of Burgesses. He spoke for me when said: 'Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God!' Amen!
 
That's the way that it looks from here. 
BOB BAUMAN, Editor
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COMMENT 
LINKS: 
* Reason Express, LINK: http://www.reason.com/re/current.shtml 
* Airport killer held grudge over US flag. LINK: Click Here.
* Jewelry Stores Raided in Al Qaeda-Related Probe. LINK: Click Here. 
* The War Inevitable, by Patrick Henry LINK: http://www.webleyweb.com/klh/pathenry.html 
* Poll: Half of Americans willing to suspend freedoms, 
LINK: http://www.detnews.com/2002/nation/0207/08/a03-531241.htm

 PANAMA: WORLD CLASS RETIREMENT HAVEN

Panama offers some of the cheapest beach front in the Caribbean, the best retiree benefits in the world and it's the most sophisticated offshore haven in the Americas. Here a piece of tropical island beach front costs just $25,000, your bank account secrecy is protected by law and, as a foreign retiree, you get a 50% discount on hotel stays, a 30% discount on public transport and much more. Armed with International Living's Panama Country Kit, an in-depth guide to top legal, tax, banking contacts and real estate opportunities, you can take advantage of every exciting opportunity in Panama right now. To find out more, click here: LINK: http://www.agora-inc.com/reports/120SPVOM/W120C7S1/

SWISS BANKS GET TOUGHER MONEY LAUNDERING RULES ZURICH: 
Know-your-customer laws to be extended to politicians and high risk businesses. (Aren't they the same things?) LINK: http://www2.swissinfo.org/sen/Swissinfo.html?siteSect=111&sid=1225427
* Swiss resolve should be as strong as its defense fortifications. 
LINK: http://www.canoe.ca/Columnists/margolis_jul7.html 
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ANSBACHER CAYMAN LIST MAY BE PROSECUTED DUBLIN: P.M. Ahern says tax collectors will pursue offshore account holders but others say prosecution is unlikely.
 LINKS: Click Here.
http://www.examiner.ie/pport/web/ireland/Full_Story/did-sgfLtBRnFqoaQindex.asp 
* Ireland's Own Troubles. Comment by Cal Thomas. 
LINK: http://www.nandotimes.com/opinions/story/460140p-3682300c.html
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ISLE OF MAN ON SLIPPERY SLOPE? DOUGLAS. 
Officials down play impact of OECD exchange of information agreement and suggest possible EU membership. LINK: http://www.tax-news.com/asp/story/story.asp?storyname=8731
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 KINGDOM OF SEALAND IN THE NEWS AGAIN Internet restrictions cause server boom for HavenCo.
 LINKS: http://news.bbc.co.uk/hi/english/sci/tech/newsid_2115000/2115887.stm http://www.havenco.com/about_havenco/
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HONG KONG TAXES MAY GO UP. Long a low tax jurisdiction, deficits may cause a tax boost. 
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=8725 
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NEWS UPDATES: 
* More about that police raid on offshore operation in Costa Rica. 
LINK: http://www.offshorebusiness.com/emailalerts/july0602.htm 
* Liquidators report on First International Bank of Grenada. 
LINK: http://www.offshorebusiness.com/Documents/FIBGReportThree.PDF 
* March Harris organization evicted from Panama offices. 
LINK: http://www.offshorebusiness.com/harrisdocs.htm 
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DEMOCRAT SAYS STOP OFFSHORE TAX HAVENS US House Leader Rep. Gephart says abolish them. 
LINK (scroll down): http://www.usnewswire.com/topnews/first/0708-132.html

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* WEALTH *

OFFSHORE BANKS SET FOR MAJOR CHANGES BASLE, Switzerland. New world banking regulations pending. LINK: Click Here. 
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U.S. CASH FLEES TO OFFSHORE COMPANY A.D.R.s NEW YORK. US traded shares of foreign companies way up. LINK: Click Here. 
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I.R.S. STEPS UP ANTI-TAX SHELTER ATTACK Client lists demanded by IRS agents chasing 'abusive tax shelters'. LINKS: http://www.tax-news.com/asp/story/story.asp?storyname=8736 
Wall Street Journal subscribers only: http://online.wsj.com/article/0,,SB1026175963173705040-search,00.html 
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DIVERSIFY YOUR FAMILY WEALTH Forbes shows you how to diversify all your wealth.
LINK: Click Here.
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THE CASE FOR CASH Jim Grant writes in praise of cash investments. 
LINK: http://www.forbes.com/forbes/2002/0722/205.html
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WORLD COST-OF-LIVING INDEX Tokyo is still the most expensive city in the world. 
LINK: http://www.economist.com/markets/displayStory.cfm?story_id=1216261 
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QUEEN MARY II WILL BE A GIANT At 150,000 tons and £538 million, Cunard's Queen Mary II will be a giant of the sea. Better book now for 2004.
 LINK: Click Here.

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* PRIVACY & RIGHTS*

BRITISH PRESS ATTACKS NATIONAL I.D. CARD PROPOSAL A proposed national 'entitlement card' system is blasted. 
LINK: http://www.observer.co.uk/comment/story/0,6903,750832,00.html 
* Unworkable and highly vulnerable cards denounced as liberty threat. 
LINK: http://www.vnunet.com/News/1133300 
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BRIT 'KNOW YOUR CUSTOMER' RULES FAIL LONDON. They cause more problems than they solve. 
LINK: Click Here.
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BRIT POLICE FLOODED WITH FALSE REPORTS Anti-terror money law swamps police with phony tips. 
LINK: Click Here. 
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U.K. REVENUE RECOVERS CASH Nearly £13 million from prosecutions for tax evasion. 
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=8703 
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* WIRETAP BACKDOORS COMPROMISE TELEPHONE PRIVACY. Special report by Sovereign Society editorial director Mark Nestmann. 
LINK: http://www.sovereignsociety.com/vmembers.php?nid=393 
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