I just found about this very interesting post on Felix’s forum (Forex Peace Army) which talks about what could be a very disturbing development. Felix, for those of you who may not know is the guy behind what used to be www.forexbastards.com – a very popular forex review site. Now the site calls itself “Forex Peace Army” but still carries the same content as the old forexbastards.com site. Here is the post I was referring to:
This is Felix writing. In the middle of November of 2007, I had a gathering on a big yacht with 200 of our members. We discussed many things, but one of the things I suggested to people is to open bank accounts in Switzerland.
I suggested to people opening accounts with UBS, which at that time required a minimum deposit of only $100,000 US Dollars.
Today I received an email from my attorney who specializes in US Tax Law.
Here is exactly what the email said:
“I thought you would find this interesting: UBS is no longer accepting US clients…current accounts will remain, but no new accounts. This is an amazing development. There are other options, but most require large deposits ($3m+) from US clients.”
This email sent a shiver of disturbance up my spine for the following reasons.
1. I am not sure if you knew this or not, but after the stock market bust in the late 1920s, the US Government passed a law, which made “gold holdings” illegal. They instantly confiscated everyone’s gold, and gave them pennies of what it was actually worth, and whoever tried to buy gold again, became a criminal and was either heavily fined or went to prison. This was a desperate act of the government to inspire people to keep spending their money and stop them from hoarding it in other instruments.
2. I am not sure if you knew this or not, but just a short while back, in 2006, the US government stopped reporting the size of its money supply. That basically means that since 2006, it has been creating money, and nobody in the world officially knows how much money has been put into circulation. This means that the US dollars might be so overinflated in value than most people even realize.
3. In the beginning of 2008, Chinese officials have mentioned for the second time within a few months that they are holding too many dollars, and they would like to diversify their portfolio. Please note that Japan and China have been the two biggest parties buying up dollars, and their demand for dollars is what has kept it afloat.
4. Several times in 2007, and perhaps before that, there were serious suggestions made by some European country officials to set Euro as currency to buy and sell oil with. The fact that demand for oil has been high, and that in order to buy oil, one must buy it in US dollars, has also kept demand for dollars high.
So, to make the long story short, we have the US Fed printing as much money as they want, with nobody knowing how much exactly they have been printing, and I have a feeling that the supply of US dollars is increasing a lot more rapidly than demand for them. In addition to that, there are threats from many different parts of the world to hinder demand for US dollars even further.
Now, I hope you understand more clearly why that email from my attorney disturbed me. If a major Swiss Bank is stopping to accept US accounts, perhaps it’s one of many preparation steps from US government to make sure its citizens do not get their money out of the country, in case there is another major financial crisis similar to the Great Depression.
This is just another suggestion that if you have a lot of savings in US dollars or other US instruments, I strongly recommend to take it out of the country.
According to the words of my attorney, it seems like Switzerland has shut its doors, but perhaps doors into some other European countries are still open…
Interested to hear your thoughts and suggestions
I encourage you to visit his forum and share your opinions and thoughts on this matter. You may do so by visiting the link below: