INTERNATIONAL CASH GIFTING EXCHANGE ACCEPTING ALL CURRENCIES IRAQI DINAR NEW FREE IRAQ DINAR OFFSHORE ASSET PROTECTION FOR NON U.S. DOLLAR INVESTMENTS STRATEGIES PANAMA IRAQ BANK ACCOUNT IRAQ DINAR TRUST ACCOUNTS BANK ACCOUNTS ISX STOCK EXCHANGE
IRAQI DINARS EXCHANGE INVESTMENT STRATEGIES FOR LONG TERM NO RISK HIGH RETURNS

Files and information maintained outside the U.S. are neither part of, nor subject to, the scrutiny of the U.S. government agencies. The U.S. government can (under normal circumstances) only gain knowledge about your offshore activities if you tell them about it -- or -- if you are involved in some form of criminal activity in the U.S., and their investigation in this country reveals to them evidence of your offshore activities.

In recent years the U.S. dollar has eroded to the lowest level ever, yet are we to wait for it to totally collapse? Is this being a good American, holding the dollar regardless of our personal losses? I don't think so, in fact, the government has created this mess when they went off the gold standard, and now, are we suppose to pay for it? Not me.

CONCLUSION

Don't pass up the exceptional interest earnings available to you simply because you have blindly accepted, without question, the myths regarding offshore banking. A perfect example is Iraq. If you open a bank account in Iraq, the current iterest rates are 20% annually, and a new electronic platform is near completion for safe transfer of funds.

The fears and suspicions you may have held regarding offshore banking are nothing more than the protectionist scare-tactics used by the Government, the I.R.S., and the Bankers to keep your money within their grasp; limiting your earnings, by law (allowing them to keep the lion's share for themselves), while taxing the paltry earnings they do allow.

Why settle for the paltry earnings available to you through the restrictive, protectionist Federal Reserve System which has deceived all of us? To learn more on Iraq banking and investment opportunities, read below on how to secure an account now to enjoy these higher rates of return.
Given the U.S. dollars decline, soon to get worse, perhaps converting your dollars to dinar is the most intelligent strategy of all given the Iraqi dinar is on rise of 13% over just the past few months alone, with a potential revalue to even higher value.

The offshore banking community is available to you for your use. NO matter how small your savings ability may be, there is a place for you to earn maximum returns... all you need do, now that you know how Offshore Banking really works, is find the offshore situation that will work for you.

Borrowing offshore should only be considered when you have a good, solid, bankable funding situation -- but -- you are looking for the very lowest interest rate possible. If your funding requirement will not meet the standards of the U.S. banking community, the chances are it will not meet the standards in the offshore banking community either.

PERSONAL PRIVACY

Without a doubt, the greatest violator of the privacy of U.S. residents is the U.S. government itself. The various and many U.S. government agencies maintain a staggering total of over 3.5 billion files on U.S. citizens.

Considering the country's population, of 230 million people, the U.S. government agencies maintain an average of 15 files on every man, woman, and child in this country. When you consider that children, and other dependents probably don't have separate files of their own, the average number of files on adults rises even higher. Is it any wonder Americans worry about their personal privacy?

Update 2009: That was in 1986 ... today it is even worse.

Trustdinar.com

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1932: Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86.

1932–1949 1949–1971: Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971.

1959–1967: Iraq officially uncoupled the Iraqi Dinar from the pound sterling as a gesture of independence in 1959, but the Iraqi dinar remained at parity with the pound until the British unit of currency was again devalued in 1967.

1971: One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began.

1973: Upon the devaluation of the United States dollar in 1973, the Iraqi Dinar appreciated to US$3.39.

1980: It remained at this level until the outbreak of the Iran-Iraq War in 1980.

1982: In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt.

1988: In early 1988, the official dinar-dollar exchange rate was still Iraqi dinar (ID)1 to US$3.22; however, with estimates of the nation’s inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar’s real transaction value, or black market exchange rate, was far lower-only about half the 1986 official rate.

1986–2003: 1986–2003 between .33 cents to 1.32 to a dollar.

2001: Oil-production: 2.452 million bbl/day (2001 est.); note — production was disrupted as a result of the March-April 2003 war (2001 est.)

2002: GDP: purchasing power parity — $58 billion (2002 est.)

2002: Exports–partners:US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%, Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002)

2003: In october 2003, the official Dinar-dollar exchange rate was ID1 to US$0.00027.

2004–2005: August 2004 till 2005, the official dinar-dollar exchange rate is ID1 to US$0.00068. Population: 25,374,691 (July 2004 est.)

2006: As of Jan 1st 2006, the official Iraqi dinar-US dollar exchange rate is ID1 to US$$0.00067.

Positive Changes in Iraq

Upon Saddam Hussein’s deposition in 2003, Iraq has undergone political and economic changes. Many believe that the re-building of Iraq’s infrastructure will stabilize Iraq socially, politically, and economically. With the new government establishing a new monetary system that encourages foreign investment, and the central bank of Iraq awarding foreign licenses, many also believe that the value of the new Iraqi Dinar banknote is poised to escalate.

More Treasury Bills on the Way

The government of Iraq will issue more Treasury bills to the secondary market. For the first time in years, the central bank auctioned Treasury bills in July. Thus far, local banks have bought 900 billion Iraqi dinars ($628 million) worth of three-month bills with coupons ranging between 2.5 percent and 6.8 percent. To improve Iraq’s local currency, the dinar against the dollar, Iraq’s central bank also plans to build up its foreign-currency reserves.

Creating viable domestic capital markets will start the process of trimming the massive pre-war debt. Iraq’s path to debt reduction along with the generosity of the Paris Club by forgiving 80% of Iraq’s debt is good news for the Iraqi economy. Iraq’s growth-oriented policy, along with Iraq’s prospects of economic stability makes investing in the dinar potentially lucrative.

The Central Bank of Iraq

For the first time in decades, the central bank of Iraq awarded foreign bank licenses to the following banks: HSBC, Standard Chartered, National Bank of Kuwait, Iranian National Bank, Commercial Housing bank, and Bahraini Arab Banking Institute. The Bahraini Arab Banking Institute is listed on the Bahrain, Kuwait, and Paris stock exchanges, and its major shareholders include the Kuwait Investment Authority, the central bank of Libya, and the Abu Dhabi Investment Authority. Granting foreign licenses and liberalizing interest rates will create a vibrant free-market economy. Iraq’s re-invigorated banking policies will positively effect the value of the dinar in the near future.

The Potential of the Dinar

Prior to United Nations sanctions, the Iraqi dinar traded at 3.35 per U.S. dollar, and prior to the war in Iraq, the Iraqi dinar traded at .33 U.S. Dollars. During major combat operations, the Iraqi dinar declined to an all time low. However, after major combat operations, the value of the dinar increased 25%. Countries such as Germany (post WWII) and Kuwait (post Iraqi invasion) experienced a similar devaluation of their currency, but both countries recovered. Today, the dinar has increased from 3,500 against the dollar during the U.S. led invasion last year to 1,400 against the U.S. dollar. Imagine the growth potential of the Iraqi dinar once Iraq recovers and begins to enjoy the potential revenue of a country rich in oil and other natural resources.

The New Iraqi Dinar Banknote

Today, De La Rue, the world’s largest commercial security printer and paper maker based in Great Britain, prints the new Iraqi dinar banknote. The new Iraqi dinar banknote has various security features making the dinar very difficult to counterfeit, and the dinar banknote is now available in 50, 250, 1000, 5000, 10000, and 25000 bills. With the re-building of Iraq’s infrastructure and with the prospect of stability at hand, the Iraqi dinar is quickly becoming a very attractive investment opportunity.

With the Iraqi constitution voted in with an overwhelming 78% win with millions voting, the stage is set for an economic boom in Iraq. Combined with democracy taking hold, Iraq has just disclosed that they were sandbagging Saddam by not disclosing a new oil reserve which will put Iraq in as the number one in the world for oil. Combined with national debt of billions being forgiven, Iraq could be the investment move of history.

Order a sample affiliate package for only $30.00 and receive $1,925.00 in dinar currency which will someday be worth several thousand dollars, it is only a matter of when, not if. In my experience, this is as low risk as any investment comes, as well as offering the small investor the opportunity to make millions with only a few hundred dollars. Please visit

http://Iraqi-Investments.com to learn more.

PURCHASE NOW http://Free-Dinar.com

"More professional investors are buying. commodities, foreign currencies and equities, creating tension in the stock market."

Wall Street Journal 11/24/04

Iraq has been granted 32 billion dollars in debt relief. "The Paris Club agreement represents a major international contribution to Iraq's continued political and economic reconstruction. I encourage (other) nations to agree to comparable debt reduction for Iraq." George W. Bush 11/22/04

Opening International Trade has increased the wages to Iraq's 25 million people who have pent-up demand for goods and services. An estimated $33 billion has already been collected for rebuilding Iraq. Coca-Cola, Chevron, Texaco, and more are investing! "...wages are triple those paid elsewhere in the Middle East."

Wall Street Journal 11/24/04

More Iraqi's are holding on to the dinar as a savings vehicle after years of hoarding dollars.

The limited circulation of the new currency as compared to the open-ended printing of old notes by Saddam's political leadership.

"Iraq has a stable currency; value of the new dinar has already risen 25 percent."

US Department of State ? Bureau of Public Affairs 06/30/04

Iraq has the World's largest natural gas reserve and is the world's 2nd largest oil producer.

"No one doubts Iraq's potential for enormous production. Only 17 of its 80 known oil fields have been developed, and the costs of new production are among the world's lowest."

"A senior Iraqi leader evoked the eternal dream that Iraq could produce 10 million barrels a day."

The New York Times 05/03/05

The Kuwait currency devalued by the same margin in the '90's has completely rebounded.

"If post-war Kuwait is any example: A Kuwaiti dinar was valued at about a dime after the war. Each now brings in $3.40 ...If (Iraq Dinar) jumps to a few cents, (investors) can start paying off mortgages." Stars and Stripes Mid-east ed., 10/15/04

Following World War II, it took three years to institute a new currency in West Germany. Iraq has taken only six months.

Oil revenues and existing assets from the Saddam dictatorship are being pumped into government operations and reconstruction projects such as: paying 350,000 teachers (rehabilitating 2,200 schools), 100,000 doctors and healthcare workers,(30 times more funds over pre-war levels, restoring 240 hospitals), upgrading electrical grids, water, sewage, irrigation systems, and expanding oil output.

Several dozens of countries are contributing financially to the renewal of Iraq, and 19 countries are providing personnel for operations in Iraq.

The new Iraqi Government and the US treasury are working together to reinstate a strong decentralized banking system in Iraq.

Iraq has vast areas of fertile land and the most precious commodity of all in the Middle East, water. With the rejuvenation of the Tigris and Euphrates River, Iraq's agriculture sector may once again be the Breadbasket of the Middle East.

Iraq holds the second largest oil reserve in the world, with 95 percent of Iraq?s revenue coming from exported oil. Combine that with the continued rise of oil prices and you have the makings of a strong economic comeback. The Iraqi Dinar has also managed to appreciate in value from it?s all time low of 3000 Dinar to one US dollar to the recent level of between 1500 and 1400 Dinar to one US dollar. Before the 1991 war it was 1 Dinar to 3 US dollar. Keep in mind that the new Dinar has only been in existence since October 15, 2003. The monetary system established by the new government encourages foreign investment, a key to developing a strong economy.

A new stock market opened recently with over record trading volumes pushing stock prices drastically upwards for the 27 firms listed, with over 2 billion shares changing hands in only 6 trading sessions. Real estate in Iraq is booming, largely because of the severely depressed prices due to the restrictive policies of the old regime. With money flowing into Iraq, citizens are now buying houses in neighborhoods generally reserved for government officials.

Our advice is to educate yourself as much as possible. Get your news reports from multiple media outlets and contrasting viewpoints. Only then can you begin to see the situation for what it is, a great, affordable opportunity for investment.

Things you should know about the New Iraq Dinar.

-You can buy 1 Million Dinar for $1000 -That's 1/10th of a penny for 1 Dinar

If the dinar raises to .01 penny for 1 Dinar you just made $10,000

If the dinar raises to .32 (Pre war Value) you just made $320,000

If the dinar raises to 1 for 1 you just made 1 Million for a $1000 investment.

WHAT is Iraq Dinar, touted by some as the "next Microsoft of our lifetime" and "Like a sure-bet Penny Stock"? It is the NEW Currency issued following the fall of the Saddam regime in 2003. Prior to Gulf War I, Kuwait's Dinar was traded at a rate of $3.55 (US Dollars) to 1 Kuwait Dinar. When Saddam invaded, the value dropped to $.06 (six pennies) to 1 Kuwait Dinar. Those who KNEW to speculate and purchased, profited hugely when the price increased a year later to its Pre-war value! Iraq Dinar traded between $.33 to $3.35 per 1 Dinar prior to the second Gulf War. You can see the possibilities. Even if it moves to 1 penny, you score a profit!! In a speech, G.W. Bush stated "We also want to leave the Iraqi people with a strong Dinar".

Before Saddam came to power the Dinar was worth $3.30 PER DINAR.

That is a typical value for some oil producing countries in that region. For example Kuwait's currency is valued between $3 - $4 a piece now. After Saddam came to power, lost 2 wars (Iran & Kuwait) and years of UN Sanctions drove the Dinar down to it's lowest exchange rate ever. Right before Operation Freedom began, the official international exchange rate for the Dinar was $0.31 PER DINAR.

Right now you can buy 1 Million Dinars for less than $1000.00 US.

That is less than $.001 PER DINAR! Speculators have been buying the New Iraqi Dinar up in the Billions. Even if the Dinar only returns to be worth $0.01 PER DINAR, that 1 Million Dinar would be worth $10,000.00 US. Many think it is likely to go much higher than even their old exchange rate once Iraq gets their oil production back up to full capacity.

There is no international exchange rate set for the New Iraqi Dinar yet, that is why you cannot go to a bank right now and get it. It is also what makes this opportunity possible! The only way you can get their new currency is to be in Iraq. We bring it in legally through connections with money brokers we have there. If Iraq's new government continues to progress and stay on their timetable, the international exchange rate should get set in 2006. Once the international exchange rate is set, you should be able to take your New Iraqi Dinar to many international banks or money exchangers here in the US and exchange it as you could do before.

As Iraq regains its economy and its people celebrate its recovery and prosperity, you will be able to celebrate with them as you will reap the rewards right along with them!

We know you will want to get more information before buying New Iraqi Dinar. We recommend you start with our FAQ page and then go through our Links section as you will find some great information from unbiased, credible sources about why you should buy the New Iraqi Dinar. You will also find links to positive progress and good news on Iraq that you will not hear about through the mainstream media.

Frequently Asked Questions

1. I don't understand why the cost of 1 million Dinars in 25,000 notes is priced differently than 1 million Dinars in other denominations. Is it now or will it be more difficult to exchange certain denominations of Dinar?

The price differences are because of a few factors. Firstly, because of the differences in the amount of notes to make up 1 Million Dinar. 1 Million Dinar in the 25,000 Notes is the most efficient method - it only takes 40 notes. Next we move to the 5,000 Dinar note. It takes 200 notes to make a million. That is 5 times as many notes, which add to the cost of transport and then shipping to import, which is passed on to you. Then we add verification and inspection of the notes. They take 5 times as long to go through and verify their authenticity.

Finally the last factor is availability. The lower denominations are becoming more difficult to obtain. Especially the 1,000 Notes. We are of course only speaking of the uncirculated new notes. I can easily get circulated notes, but you don't want them for this type of investment.

As far as how this will effect exchangeability, it will not. The only thing they factor at exchange is what quantity you can exchange at once. If you only have 25,000 Dinar notes, you can only exchange your Dinar in increments of 25,000, so if you only want to change in 30,000, you can't - you have to change in 50,000 Dinar (2 x 25,000). Whereas with the 5,000 or 1,000 you get the added flexibility of smaller increments.

2. How fast will the value of the Dinar go up? Why won't it just stay at the price it is now? How long would I need to hold onto my New Iraqi Dinar?

The last official international exchange rate before Operation Iraqi Freedom began was $0.31 PER DINAR. When the new currency was introduced, the exchange was 1 for 1 for the old Saddam Dinars, and 150 for 1 of the Swiss Dinars, as explained in this article here. So after the New Iraqi Dinar was introduced, people in Iraq had the same amount of Dinar than they did before the new currency came out. Today the Dinar is worth about $.001 PER DINAR. What that means is that the average Iraqi went from having a Dinar that was reasonably valued to poor. For example, let's say you had 50,000 in the old Dinars when it was worth $0.31 PER DINAR. So you trade in your 50,000 Dinars for the new Iraqi Dinar so you've go the same amount of Dinar. Now your 50,000 Dinars used to be worth $15,500 Dollars US, except because the value is so low now, your Dinar is now worth $50 US. This is one of the reasons we expect the Dinar to return to it's previous official value sooner than later as it will restore the buying power of all the Dinar the Iraqi's have. How soon? That is what we've been watching, for what the official international exchange rate will be set at. All current economic reports point to early 2006. While it may be easy for most of us here to buy Millions of Dinar, it is not the case for most people in Iraq.

How long will you need to hold onto your Dinar? Well, if the exchange rate returns to $0.31 PER DINAR, you could certainly exchange it all then. There are many who plan on exchanging a small portion of their Dinar then, and then holding the rest of it and watching how Iraq's economy and oil production continues to progress. If you are looking to exchange your Dinar at $1 PER DINAR vallue or higher, you should expect to hold onto it for a minimum of 10 years, as that is how long it will take to substantially improve their oil production facilities and that is if oil prices stay where they are. Of course, the higher gas prices are, the more that will improve the value of Iraq's oil and gas holdings and therefore the value of the New Iraqi Dinar.

3. Where will I be able to exchange my Dinar?

Once the international exchange rate is set you will be able to go to any major international bank or money exchanger to exchange your Dinars for Dollars as it was before. Banks and money changers typically charge a 4% fee for the conversion.

4. What if Iraq decides to change their currency again?

Anything can happen, but this is very unlikely and we have not seen any indications by anyone in Iraq that they are unhappy for any reason with their new currency. In fact, the new currency has brought more stability and now increased value for them, so (as you will find in the news stories on the links page) many people who used to hoard Dollars for their value, have traded in their Dollars for Dinar and are holding Dinar. It has unified Iraq under one currency. You will also find in the news and links that the many people there are very proud of the new currency! It reflects a lot of great history and strength in Iraq and avoids any religious or political images. Having the new currency brought them a stability and peace of mind that they did not have with their old currency. It also got the a big reminder of Saddam out of their daily lives! The bottom line is that the new currency has been very well received. In fact, in 2004 they started making smaller denominations and coins to help accomodate for the increasing value of the dinar!

It is very expensive for a country to change it's currency. This new currency was developed after 3 months of study by some of the best treasury advisors and economists in the world. They studied the situation in Iraq and worked with their Central Bank to come up with the present currency as a long term solution. Since the New Iraqi Dinar was introduced, it has more than doubled in value. How did their currency board react to that. Did they even mention changing the structure of the denominations? Did the look at adding or subtraction zeros from the denominations? No, they started printing lower denominations and coins to adjust for the rising value - which shows a further commitment to keep what they have and work with it.

5. How can I follow the changing value of the Dinar?

You can find the week to week institutional exchange rate changes at the

Central Bank of Iraq.

6. Why can't I just buy the Dinar at the current rate that is listed at the Central Bank of Iraq?

That rate is only available to institutions in Iraq or to account holders at banks there. You are basically paying us (or any other Dinar dealer) a convenience fee to bring the Dinar to you. The exchange rate on the street in Iraq is about 1,000 Dinars to 1 US Dollar right now. Once we get closer to when the international exchange rate is going to be set, the supply will become unavailable to us as many people there will be unwilling to part with what Dinar they have. We pride ourselves that our prices are at the lower range on the web and we know we provide better service than other Dinar dealers. Besides, you know that if you pay peanuts, you get monkey business! We know that trying to save a few bucks working with another dealer has brought many back to us, after the anxiety and stress of not getting a response after sending someone your money is a horrible feeling. We try to be as responsive and available as possible, you would be surprised how many people send or leave messages with another dealer about questions or an order, only to not hear back for days if not a week! That is just not acceptable to us.

7. Is this legal?

It is perfectly legal to buy the Iraqi currency from a federally registered broker. It is a legal investment and if you go through the links on the site, you will see credible, authoritative sources that confirm this.

8. How can we verify your federal registration?

We are a registered MSB. That is a Money Service Business. We are registered with the IRS (A division of the Department of the Treasury). There is a listing of registered MSB's on the MSB website. That list has not been updated since April of 2005. We registered shortly after it was updated, so you would need to call them to verify our registration. To verify our registration you can call the contact number listed on the MSB website. It is: Detroit Computing Center Hotline #: 1-800-800-2877. Press 3 for the MSB department. You can then speak with an IRS agent to verify that we are registered. Please be forewarned that you are usually asked to leave a message and it can take a week or longer for them to get back to you. We have no reason NOT to be registered! Registration is free and there is no licensing involved. The registration requirement came as a result of the Patriot Act, and is to have any agency that deals with money movement or currency exchange to report money laundering or suspicious activity.

Help Finish the Job our Brave Armed Forces Began.

By helping Iraq and buying the New Iraqi Dinar, you are investing in the future economy of Iraq.

How does buying the New Iraqi Dinar help Iraq? Their new currency came out in October, 2003. People buying Dinar with Dollars have helped the New Iraqi Dinar more than double in value since then. This has mainly been due to speculative buying. This means people who get paid in Dinar, like Iraqi government workers, police, and security forces can afford to buy more things they need and make being a lawful part of their new society more attractive. Prosperity in the new Iraqi democracy helps to promote liberty and democracy while eroding support for the terrorist insurgency.

By buying Dinar, you will also hold a stake in Iraq's future success.

The Dinar has long been a strong currency. Right now it is at a historically low rate. It is similar to what happened in Japan and Germany after World War II. Their economies were shattered so you could buy up lots of their currency very cheaply. Once their economies got back on track, anyone who had taken advantage of that opportunity became extremely wealthy. The US Government has invested over 200 Billion Dollars in the future of Iraq so far. They have committed another 18 Billion Dollars in Reconstruction Aid. That is more than $2000 per US Household. Are you in a position to directly profit from that investment? You are if you buy Dinars.

CASH GIFTING OVERVUE BEWARE OF 1-UP RIP OFF SYSTEMS CHOOSE LONG TERM MENTORS NEVER PASS UP YOUR GIFTS 7 PROGRAM LEGAL REVIEWS FREE 7 VIDEO OVERVIEW INTERNATIONAL CASH EXCHANGE ALL CURRENCIES ACCEPTED

This is probably the number one question that pops up when people start to see the lucrative potential with this kind of activity, and it's certainly the first thing that I wanted to know too... after all, I have no interest in getting into any type of legal hot water, and I'm sure you don't either, so here's what I found out...

In researching this activity, it's important to keep in mind that there’s no book out there that tells you what is legal in our society, only what is not legal.

If you do your research online, you’re going to see there’s really nothing saying that cash gifting is illegal. Most of the time it's people expressing their personal opinions, not facts. And after years of experience and thorough research, no one has been able to show me the law in black and white stating that giving a cash gift is illegal.

In fact, I learned that both American and Canadian citizens have the Constitutional right to gift property, cash and other assets. Many other countries participating in cash gifting also have very similar gifting laws.

In the United States we have the Preamble, the Constitution and the Bill of Rights to protect a private citizen's rights to earn, pay taxes and give away property and cash as long as it's done according to the laws and codes of this country. The U.S. gifting rules are found in the IRS Tax Code, Title 26, Sections 2501-2504 and 2511. "Click here" for this document.

In 2008 in the United States of America, the law states that one or more individuals can give a cash gift to another individual of up to $12,000 each per calendar year without any tax liability to either the giver or receiver of the gift, because the tax on the gift has already been paid.

I also found that most well organized Cash Gifting programs require each participant to use some form of a Gifting Statement and/or Non-Solicitation form, which when signed, become binding agreements between two private individuals. These forms are used, it's said, to ensure the longevity and legality of a gifting program.

So giving a gift of cash to someone, be it a friend, family member or a stranger is legal according to IRS code. Again, there's no specific nation-wide law that I've been able to find to say that cash gifting is not legal.

Now, that being said, it's important to note that not ALL Cash Gifting programs may be legal in their structure. Certainly there are some that may not be. Unfortunately, there are still some "old school" Cash Gifting programs out there (mostly offline) that were not structured properly in order to sustain their efforts for any considerable length of time, and some of them use an illegal pyramidal type of structure.

Consequently, many of these offline programs in the past were closed by the feds because of this illegal "ever-widening base" pyramid structure and gave Cash Gifting a bad reputation. These went be many names over the past couple decades, but the first name I recall was the "airplane" plan. These were clearly pyramids which hyped the money all participants would earn if they put their money into it. These would cycle and often the same people would put their money into it again and again until it died, and make no mistake, they all died, and those who got in last lost their money.

However, in recent years, with the creation and development of the newest structure, things have changed and more and more people are benefiting through the use of these types of programs more than with any other previous Cash Gifting structure in the World. Typically, these original variations all required the 1-UP structure, whereby you would be required to pass your gift to your sponsor. Needless to say, this is not how one motivates your success, and with these old systems, most sponsors would take your only pass up gift and then drop you like a rock. Simply put, in your research, don't fall for the old 1-UP systems.

What you want is a mentor, not just a sponsor. What is the difference? A mentor is going to be there for you and assist you and insure that your are successful. Why? Simple, with our Magnetic System, just as the name implies, we want to attract good people and then insure we keep them. Our system rewards ongoing mentoring and support not just untl the first gift is received, but forever, to infinity, and here is the reason why. We utilize a shared gifting system which splits the gift so your mentor always recieves a portion of each gift you receive from your efforts, or the efforts of both you and your mentor, so a true team joint venture is formed which lasts forever, not ends after first gift is passed up to sponsor as in all 1-UP systems.

If you are going to join any gifting plan, make sure it is not a 1-UP structure for you will surely lose your money. The Magnetic shared wealth system rewards you as there is no pass up to your sponsor, and you retain the largest portion of first gift. As example, if you enter at the preferred $3,500. entry level, you receive and retain $2,500. and your mentor received $1,000. As you can see, not only will you be rewarded more quickly on first gift, a critical aspect for most just starting out, but more importantly, your mentor is reqarded for assisting you. Would your mentor remain loyal to you, or drop you like what happens with the old 1-UP systems? Of course, just as your mentor will stay loyal to you, but you will stay loyal to your members and become their mentor. It is all about team work, so you are never alone when you join our Magnetic Gifting system.

With international rules and regulations, one must check to see if they can freely accept gifts, and as long as you report it on your tax returns, there are usually no issues. Insuring everyone understands there are no gurarantees or expectations of an income, gifting is legal as long as you make certain you don't mislead anyone, and having them sign documents to this effect offers you the proof along with your gift that nothing is expected in return and insures there is no inducement to gift someone which would be illegal in some places.

To watch several video presentations and learning about our exclusive proven hands off marketing tools and strategies. This will cover all aspects of this new automated Pay It Forward Magnetic Cash Gifting System and along with your personal mentor, you will learn how to earn, and earn while you learn, no passing up of your first gift. This is an important and critical aspect which clearly defines our program from all the others. Please visit the below web sites to learn more and take the free video success tour.

How to choose the best support system: www.PayItForward-Cash-Gifting.com

Recession Proof Buisness Strategies: www.RecessionProof-Business.com

Buisness Marketing Cooperative: www.WealthWarranty.com

Video Lessons As Well As A Personal Growth Library.

Mike OSullivan

GGS "Tier 3" Qualified

"I Wish Above All Things That You
May Prosper and Be In Good Health"

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We keep all e-mail information private & confidential and do not give it out to any third parties.
There are no guarantees regarding specific cash-flow. Your results may vary.
The testimonials and examples used are based on actual results, however, they are
not intended to represent or guarantee you will experience the same results.

Ponzi Or Pyramid

by Gerald P. Nehra

Ponzi schemes are pyramidal in nature, but are they the same thing as a pyramid scheme? No, they are not, and here is why.

Ponzi schemes are investment frauds that share some characteristics of pyramid schemes but also have some different dynamics. A requirement of a Ponzi scheme is the promotion of what starts out to be, or appears to be, a real investment opportunity. It often involves the development of a valuable resource such as oil, gas, minerals or real estate. And what is being promoted often actually exists. The promoter does own a mine, or does own investment property. Where the resource actually exists, the promoter has grossly overvalued its worth. Other times, the asset or resource which is the basis for the investment opportunity is totally a figment of the promoter's imagination. In either scenario, the promoter convinces investors that the asset can be further developed with more capital, and the promoter will share the profits with the investors.

Early on, substantial dividends are paid out to the investors. The representation is that these dividends are "profits" coming from the successful development of the investment assets. What is actually happening is that the promoter is merely returning a portion of the investors money to them. These early and substantial dividends produce two results. The early investors increase their share of the operation, and additional investors are attracted to the scheme. The process of paying dividends continues and more investors come forward until the fraud is uncovered or the promoter absconds with the investment proceeds.

Not all Ponzi schemes start out as frauds. Sometimes a promoter in good faith really believes the asset will prove profitable. Investment money comes in, but the returns are disappointing. To avoid loss of investor confidence lies are circulated and dividends paid. More money comes in and the possibility of millions of dollars of losses occurs but for the truth being told early.

The traditional method of dealing with Ponzi schemes in the U.S. is under the Securities Laws, including the Securities Acts of 1933, the Federal Securities Exchange Act of 1934, and state securities laws, (sometimes referred to as Blue Sky Laws). They are not pyramids however, and the pyramid laws we routinely associate with the regulation of multi-level marketing companies do not apply. There are several distinctions between Ponzi schemes and pyramid selling schemes.

The pyramid scheme involves a person making an investment for the right to receive compensation for finding and introducing other participants into the scheme. There is a clear understanding among the participants that the success of the opportunity is dependent upon attracting additional participants.. This is different from the expectations of the Ponzi scheme participant who believes the investment is dependent upon the successful development of a productive asset such as a mine or real estate complex. Pyramids must fail because, by their nature, they depend upon endless exponential growth to succeed. Ponzi schemes must fail because the underlying asset upon which the investment was based either never existed, or was grossly overvalued. Pyramid schemes require active participants who bring in more participants. Ponzi schemes can flourish even with passive investors without any responsibility to promote the opportunity. Pyramid scheme participants "go for the gold" by attracting others to the scheme. Ponzi scheme participants "go for the gold" by increasing their investment and hopefully their share of the profits from the successful development of the productive asset.

The author is indebted to John Brown, Senior Manager of Government Affairs at Amway, for developing these distinctions and articulating them clearly and often.

Gerald P. Nehra is an MLM Specialist Private Practice Attorney. He is one of only a few attorneys nationwide whose practice is devoted exclusively to direct selling and multi-level marketing issues. His 25 years of legal experience includes 9 years at Amway Corporation where he was Director of the Legal Division. He can be reached at 1710 Beach Street, Muskegon, MI 49441, 616-755-3800, 616-755-4700 FAX. Credentials and Billing Information are available through Fax-on-Demand at 803-548-3299, ext. 3088, and E-Mail Auto Responder at MLMAtty@memo.net. His E-Mail Address is MLMAtty@aol.com Permission is hereby granted to duplicate this article, AS LONG AS the biographical information above is included.

Permission is hereby granted to duplicate this article, AS LONG AS the biographical information above is included.

Premuim Links Directory

Back in 1986 ... 20 years ago ... I wrote and published a short booklet, "Offshore Banking Is Not Evil!" -- Over 85,000 copies of it were sold (for $10) or given away.

While surfing the net recently, I found it posted on over a dozen sites ... some of them even gave me credit for writing it (most didn't) ... others used pieces of the report and included their own opinions -- SO ...

Here it is as it was first published back in 1986 ...nothing has really
changed since then.

OFFSHORE BANKING IS NOT EVIL!

If it weren't for the lies, distortions, and self-serving propaganda
distributed by the Government, the I.R.S., and the Bankers, you wouldn't cringe every time you hear the term "Offshore Banking."

Why? - Because most people haven't the foggiest idea of what Offshore Banking is, they simply accept the distortions they read in the controlled media and ASSUME that Offshore Banking is some form of criminal activity. Or, they ask their lawyer, accountant or financial planner and he, being as uninformed as they are, advises that it is too risky, illegal, immoral, or unethical.

The fear and suspicion surrounding Offshore Banking is really only a matter of "Lack of Knowledge & Information". Very few people, including both those who condemn it and those who promote it, really KNOW what offshore banking is. BUT, the Government, the I.R.S., and the Bankers do know that money held outside the U.S. is money they cannot legally control, tax, or use for their purposes. That's why they are adamant in their defamation and condemnation. They don't know what it is, but they know it takes money out of their hands.

Unfortunately, those who promote offshore banking have done little, or nothing, to alleviate or satisfy the fears and suspicions of the public. As a matter of fact, because they themselves do not know what offshore banking really is, these promoters have given the Government, the I.R.S., and the Bankers the ammunition needed to keep the public in a state of fear and suspicion regarding offshore banking, investments, and opportunities. Helping keep your money in U.S. banks; paying you less and taxing what little you do earn.

So... before we go any further... lets define Offshore Banking. Then, unlike the politicians, bureaucrats, bankers, and promoters, YOU will know what the term means.

WHAT IS OFFSHORE BANKING?

The term "offshore banking" actually has TWO (2) different and very distinct definitions; but, I couldn't find either one of them in any of my dictionaries. One meaning is "MECHANICAL" and the other is "FUNCTIONAL".

Only by knowing both definitions and understanding the relationship, yet distinct differences, between the two, will you be able to make a decision based on KNOWLEDGE rather than ASSUMPTION.

Since the "Mechanical" and the "Functional" definitions of offshore banking have been so intermingled and confused by almost everyone, it will be necessary to, first define them separately and distinctly, and then explain why the confusion exists.

MECHANICAL DEFINITION

In the "legal" community (lawyers, governments, etc.) the term Offshore Banking is: A bank "licensed" to do business only outside the jurisdiction in which it is chartered & licensed.

That means: A bank holding an offshore banking "license" may engage in most, some, or all activities (including but not limited to checking, savings, loans, etc.) normally carried on by any other bank -- but -- that bank CAN NOT offer or provide those services to the "residents" of the jurisdiction in which the bank is chartered and licensed.

An example: A bank, "licensed offshore," in the Bahamas may offer its banking services to anyone outside of the Bahamas -- but -- that bank CAN NOT offer or provide those services to the residents of the Bahamas.

Some jurisdictions allow offshore "licensed" banks to provide any and all services normally provided by any other bank. Other jurisdictions (such as the United States) limit an offshore "licensed" bank to providing some few specified services.

YES -- the United States, through the Federal Reserve Board, does authorize offshore banking -- but -- so U.S. bankers can continue to defame and condemn offshore banking, the Federal Reserve Board has decided to call the U.S. Offshore Banks by the officious title, "International Banking Facilities (IBF)."

"International Banking Facility" or "IBF" means a set of asset and liability accounts segregated on the books and records of a depository institution, United States branch or agency of a foreign bank, or an Edge Act or Agreement Corporation that includes only international banking facility time deposits and international bank facility extensions of credit. -- 12 C.F.R 204.8(a)(a) published at Fed. Reg. 32429 (1981).

The U.S. law, although it does not call itself offshore banking, contains the very elements under which offshore banks are licensed in other jurisdictions -- i.e. the IBF must be licensed as a bank; maintain a set of asset and liability accounts on the books; and CAN NOT provide services to residents of the United States.

As you can see from the U.S. law authorizing IBF's offshore "licensed" banks are most often (but not always) A BOOKKEEPING SYSTEM ONLY.

Offshore "licensed" banks, by and large, are BOOKKEEPING SYSTEMS ONLY. For that reason, they have a very, very low overhead cost in doing their business. They do not spend their depositors money on fancy buildings; redundant employee's wages; or the expensive, non- productive accoutrements found in most U.S. banks. Therefore, an offshore "licensed" bank is in a position to pay higher interest to its depositors by virtue of the fact that less money is spent on fancy and expensive non-productive frills.

Because offshore licensed banks are, by and large, Bookkeeping Systems Only, they keep and maintain their operational cash accounts in "checking accounts" with other commercial banks. Checks drawn on the account are used by the offshore licensed bank to pay its debts, make loans, invest, pay interest, or any other normal business purpose.

The Bookkeeping System of an offshore licensed bank, which records the assets, liabilities, income and expense of the bank, maintains the records of the bank's depositors and allows the officers of the bank to make investments and loans from the public deposits held. The yield from those investments and loans are the earnings of the bank, which are used to pay the expenses of the bank and interest to the depositors and the net operating profit to the bank are much, much higher than in a commercial bank with all of its expensive, non-productive costs.

FUNCTIONAL DEFINITION

To the "depositor public" at large, an Offshore Bank is: ANY BANK OUTSIDE THE COUNTRY IN WHICH THE DEPOSITOR LIVES.

That means: Any bank outside the United States is an offshore bank, if you are a resident of the United States.

An example: If a U.S. resident maintains an account of any kind in a bank in Canada; that bank is an offshore bank for that account holder/depositor. And, the same holds true for a Canadian having an account in a U.S. bank.

Any time you have money deposited in, or invested with, a bank in a country outside of the country in which you live and work, you are "Banking Offshore," even if that bank is just across the imaginary borderline between the U.S. and Canada.

Throughout this report, the terms "Offshore Bank" and "Offshore Banking" shall be used for any bank or banking service that qualifies under the FUNCTIONAL DEFINITION, -- at anytime we refer to a bank under the MECHANICAL DEFINITION, it shall be referred to as an "Offshore Licensed Bank." Of course, any bank situated in the country where you live and work shall be referred to as a"Domestic Bank."

WHAT ARE ESSENTIAL DIFFERENCES?

A Bank is a Bank is a Bank is a Bank -- whether that bank be a Domestic Bank, an Offshore Bank, or an Offshore Licensed Bank.

No matter how a bank is structured, where it is licensed & chartered, or where it does business, ALL BANKS use the same channels (exchanges, clearing houses, etc.) to facilitate the movement of funds internationally and/or domestically. Therefore, since all of the banks in the world are indirectly connected through their correspondent and inter-bank relationships, there is no real confusion arising from the transacting of banking business.

The confusion regarding Offshore Banking is only a matter of "legal jurisdiction," arising from the fact that no country may impose its laws in another country without the country's consent and cooperation.

Because of the wide variety of laws around the world, what is illegal in one country may be entirely legal in another country. Any country can, through its various policing agencies, investigate any person residing in their country for a violation of their laws. That same country, however, has no legal right to investigate the activities of any person in any other country without first obtaining the consent and cooperation of the country in which the investigation is to be conducted. Even then, the investigation must be conducted under the law of the country in which the investigation is to take place, not under the laws of the country conducting the investigation.

As an example: The U.S. can not investigate anything in Canada, without the consent and cooperation of the Canadian government, and the Canadian Government is totally within its international rights to refuse to consent or cooperate in the investigation,

Further, countries will not (usually), without a specific treaty or
agreement, assist another country in enforcing or investigating a crime that is not a crime in their country.

As an example: income tax evasion is a crime in the U.S., however, in countries that do not impose an income tax, income tax evasion is not a crime. Therefore, those countries are not obligated (and usually don't) assist the U.S., or any other country, in enforcing or investigation a tax law which does not exist in their own jurisdiction.

THEREIN lies the confusion -- Offshore Banks, and Offshore Licensed Banks, located in countries that do not have income tax laws do not (usually) assist the U.S. Internal Revenue Service in enforcing, or investigation violations of U.S. tax laws. Therefore, without the consent and cooperation of those countries, the I.R.S. cannot (in most cases) get information regarding financial transactions conducted in those countries by Tax Evaders in the U.S.

Since the I.R.S. is the tax-collecting arm of the U.S. Government; upon which the Government depends to collect moneys for its self-serving purposes, the Government readily and willingly supports the I.R.S. in its condemnation of Offshore Banking. But, why do the Bankers join in the condemnation?

The reason is simple. If you take your savings account out of a U.S. bank and place it, offshore, in a bank in another country, the U.S. bank doesn't have your money to use any more. To keep you from doing that, the Bankers jump on the bandwagon to condemn Offshore Banking; even though a good many of them do have deposits from other countries and do, therefore, benefit from Offshore Banking themselves. As long as they can keep YOU confused, fearful and suspicious about Offshore Banking, they have YOUR MONEY in their banks to use for this purpose.

IS IT ILLEGAL TO BANK OFFSHORE?

The U.S. DOES NOT and WILL NEVER have a law forbidding the taking of money out of this country.

WHY? No country that depends upon international commerce for its existence can write such a law without destroying its own economy. And, if you will notice, the U.S. has consistently and continuously had an international trade deficit; which simply means we "buy" more internationally than we "sell".

If the U.S. had a law forbidding or restricting the movement of U.S. Dollars outside this country, we would have NO international trade. Companies overseas would not be able to buy U.S. goods because they wouldn't have any U.S. dollars, and companies in the U.S. would not be able to buy goods overseas, because the companies in those countries wouldn't be able to accept U.S. dollars.

Therefore, you, as a resident of the U.S., may legally move your money anywhere in the world you want. There is NO RESTRICTION on the amount you move, where you move it, or how you move it.

The ONLY REQUIREMENT imposed upon you by the U.S. Government is that you must "REPORT" any movement of cash or certain monetary instruments out of this country of $5,000 or more.

If you've ever been on an international flight of the U.S., you can probably remember being given a form to complete that asked you if you were carrying cash or bearer form negotiable instruments over $10,000 in value. If you read the complete form, it told you that it was NOT ILLEGAL to have the money with you, or to take it out of the country, but it was illegal not to report
it.

REPORTING REGULATIONS

How many times have you been told that, if you send a deposit of more than $10,000 to an offshore bank, you MUST report it to the Government?

THAT'S WRONG!

The law (P.L. 91-508, 31 USC 5316) requires ONLY the reporting of the transportation of "currency or certain monetary instruments" in an amount exceeding $10,000. That means:

You may move as much money as you want offshore, at any time, WITHOUT REPORTING IT TO ANYONE, as long as you don't send "currency or certain monetary instruments."

You probably know what "currency" is, but what are the "certain monetary instruments" referred to in the law? Both "currency" and the "certain monetary instruments" are defined at law 1 CFR 103.11, as amended), and those definitions are repeated here:

CURRENCY:

The coin and currency of the United States or of any other country, which circulate in and are customarily used and accepted as money in the country in which issued. It includes U.S. silver certificates, U.S. notes and Federal Reserve notes, but does not include bank checks or other negotiable instruments no customarily accepted as money.

MONETARY INSTRUMENTS:

Coin or currency of the United States or of any other country, travelers' checks, money orders, investment securities in bearer form or otherwise in such form that title thereto passes upon delivery, and negotiable instruments (except warehouse receipts or bills of lading) in bearer form or otherwise in such form that title thereto passes upon delivery. The term includes bank checks, travelers checks and money orders which are signed but on which the name of the payee has been omitted, but does not include bank checks, travelers' check or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements.

If you will notice, the last phrase of the definition of "Monetary
Instruments": clearly states, "does not include bank checks, travelers' checks or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements."

(By the way, a "person" under the law includes any individual such as you or me, and any legal entity such as a corporation or bank.)

So... if you make a check or money order payable to an offshore bank (which is a "person" under the law), even if it is for over $10,000, you DO NOT have to "report" the transaction to anyone.

Or... if you have a check or money order which is payable to you, you can endorse it with a restrictive endorsement -- i.e., "Pay To The Order Of: XYZ Bank" -- and you DO NOT have to report the transaction to anyone.

By the way, the U.S. Customs Service has published a circular (Circular: ENF-4-$:E:P) for its employees which clearly defines and illustrates (with drawings and pictures) exactly which monetary instruments must be reported and which ones are "exempt" from reporting requirements.

Although you DO NOT have to report your transactions to anyone -- no matter how much money you send for deposit offshore unless you send "currency" or the "certain monetary instruments") - - you will still have to file a "Report of Foreign Bank and Financial Accounts". (Treasury Form 90.22.1) on or before June 30 each year -- but -- if you have 25 or more foreign accounts, you
won't have to report where those accounts are or how much money you have in each account; unless the Department of Treasury specifically asks you for that information at a later date.

Update 2006: Owing to the various "terrorist" acts initiated since
9/11/2001, there have been some up dating's and changes in most of the rules and regulations regarding the movement of money worldwide. For that reason, you may want to a search for "P.L. 91-508, 31 USC 5316" on Google. Although I didn't find any major changes, there are some new rules and regulations of which you should be aware.

UTILIZING AN OFFSHORE ACCOUNT LEGALLY

Anyone who holds a Checking or Savings Account in a U.S. Bank may, legally, move that account to any other bank, anywhere in the world (offshore).

If you have a Savings Account in a U.S. Bank, the odds are that you have already paid your income tax on that money; before putting it in your Savings Account. Therefore, your only further tax obligation on that money is to pay the income tax on the interest you earn.

As an example: If you are a tax-paying, law-abiding person, and have saved $100 from your paycheck, you have already paid the taxes on your income. The $100 is your after-tax money, therefore you don't pay taxes on it again. At the end of the year, when the bank sends you your Savings Account statement, you add your interest earnings to your income tax statement and pay your taxes
on that earned income.

The same thing holds true if you have your savings account in an offshore bank. At the end of the year, when you get your statement, you simply add the amount of interest earned to your income tax and pay the taxes on that earned income.

HIGHER INTEREST EARNINGS

Statistically, Eurodollar (offshore) accounts pay at least 20%more than domestic U.S. dollar accounts. You can prove it for yourself by simply comparing the current U.S. T-Bill rate to the Euro-Dollar Bond rate; as published in the financial section of your daily newspaper. The Euro-Dollar Bond rate is ALWAYS higher by at least 20% or more.

Beyond that statistical difference, Offshore Banks can usually offer much higher interest rates than their U.S. counterparts because one of the highest non-recoverable costs of doing business in the U.S. is taxes (income, property, ad valorem, etc..), significantly reducing the earnings available for distribution to their depositors and investors. Banks operating in, or from, tax haven jurisdictions; not being burdened with those non-recoverable tax costs, can offer their depositors a much higher return.

As a matter of fact, in some jurisdictions (outside the U.S.), banking establishments are tax exempt on their earnings, or they are allowed certain exceptional write-downs of earnings, in order to protect the bank's depositors.

With the huge drop in interest rates in the U.S., Offshore Banking
opportunities have become even more attractive. At this writing, interest rates offered in the Offshore Banking community are as much as 2 to 4 times the interest rates available from U.S. Banks. (And, some offshore investment opportunities are averaging as high as 6 to 8 times the interest earnings available from U.S. Banks.)

MYTHS & FACTS

MYTH: Offshore Banks can't really pay the high interest rates they offer because, if banks could really pay those rates, U.S. banks would try to meet the competition and do the same.

FACT: Take a closer look at the financial statements of any U.S. Bank. You will find that their "gross" profits against public deposits can range from 25% to 40% -- but -- they have written laws to limit the amount of interest they can pay you on your deposit. The U.S. banks put their earnings into unnecessary and non-productive accouterments, while offshore banks do without the fancy buildings and unnecessary frills and share their profits with their customers.

MYTH: Offshore Banks aren't regulated, so you run the risk of losing all your money.

FACT: Nothing could be further from the truth. Every country in the free world has laws, rules and regulations governing banks and financial institutions. Those laws, rules, and regulations, however, are far less restrictive than the "protectionist" U.S. banking laws, rules, and regulations, allowing those banks greater latitude in earning much greater profits for their
depositors and investors.

MYTH: Offshore Banks are not insured by the F.D.I.C.

FACT: Some of them are but, thank God, not that many. If they are, they must comply with the same protectionist banking rules and regulations as any other F.D.I.C. insured bank. But, the vast majority of offshore banks are insured; one way or another.

Some countries have established depositor insurance programs similar to the F.D.I.C. program, by which the banks in those countries have their deposits insured. Other banks in other countries have their deposits insured by independent insurance companies who, unlike the F.D.I.C., insure 100% of the banks
deposits; not just those under $100,000. (By the way, many banks in the U.S. are not F.D.I.C. insured, and some of them insure their deposits with independent insurance companies.)

For the most part, offshore banks are "self-insured." That means those banks maintain a liquidity factor equal to 100% (or more) of their public deposits. For every $1 held in public deposits, those banks have $1 (or more) in liquid assets with which they can cover any depositor demand.

Self-insured offshore banks are actually more secure than F.D.I.C. insured U.S. banks. The reason being, F.D.I.C. insured U.S. banks are allowed to maintain a liquidity factor equal to about 10% of their public deposits. (Ever wonder why they U.S. has more bank failures each year than any other country?)

Which would you feel more secure dealing with? -- A. U.S. bank that has 10 cents in cash for every dollar on deposit? Or, an offshore bank that has $1 in cash for every dollar on deposit?

MYTH: Offshore Banks aren't as big or strong as U.S. banks.

FACT: Of the largest and strongest leading banks in the world (in assets), ONLY one is located in the U.S.

(Back in 1986) The leading banks in the world, according to a survey done by American Banker, were, in order:

Dai-Ichi Kangyo Bank - Tokyo
Fuji Bank Ltd. - Tokyo
Sumitomo Bank Ltd. - Osaka (Japan)
Mitsubishi Bank Ltd. - Tokyo
Citibank NA - New York, U.S.A.
Banque National de Paris - France
Credit Agricole Mutual - France
Sanwa Bank Ltd. - Osaka (Japan)
Credit Lyonnais - France
Norinchukin Bank - Tokyo

Update 2006: Only the names have change.

MYTH: Offshore Banks can't be too good, or they would advertise their interest rates and services in the U.S. publications.

FACT: Offshore Banks are restricted by law from advertising in U.S. publications; unless they subject themselves to the very same protectionist rules and regulations imposed on U.S. banks. For that reason, you should be wary of any offshore bank that publicly advertises in U.S. publications. They have sold-out to the U.S. banking establishment and may subject you to their sell-out.

MYTH: Offshore Banking is only for people with a lot of money.

FACT: Some 20 years ago, that may have been true. Today, an offshore savings or checking account can be opened with a minimum deposit as low as $100. (Back in 1986) I know of one offshore bank paying 9%, compounded daily, on regular quarterly-statement savings accounts with a minimum deposit of $100.

Update 2006: In 2001, Bank of America in the Bahamas was paying 5.5% on Savings Accounts while Bank of America in the U.S. was paying only .5% (one-half of one percent).

MYTH: Opening an offshore account is complex, and you can't get your money back when you need it.

FACT: Opening an offshore account is no more complex than opening an account with a money market fund (or ordering from the Sear's catalog), by mail. Getting your money back is just as simple.

HOW TO OPEN AN OFFSHORE BANKING ACCOUNT

There are organizations in the U.S. that will assist you in opening an offshore bank account (in Switzerland and other countries). Their "fees" for helping you open an account can range from a few hundred dollars to a thousand dollars (and, in some cases, much more) -- BUT -- don't waste your money. You don't need them.

To open an offshore bank account, all you need to do is write to an offshore bank and request information about opening an account. The bank will send you all of the necessary forms; tell you what their minimum deposit requirements are for various accounts; and their materials will explain how to open an account and how to make your withdrawals. Making a withdrawal from your offshore account is just as simple. Depending upon the type of account you open, you write a check or draft to deposit in your U.S. bank account; send a withdrawal form direct to the offshore bank; or send your certificate to the offshore bank for redemption. The time it will take for you to get your money probably won't be much longer than the 10 to 15 days hold most U.S. banks are now placing on your deposits.

Today, with instantaneous international communications, the world is getting smaller every day. Now, you can enjoy the exceptional interest earnings available from offshore banks as easily as you deal with your local bank, stock broker, money market fund, or Sears Roebuck -- by mail, telephone, or telex.

CHECK IT OUT FOR YOURSELF

Before dealing with ANY banking facility, check it out first.

When dealing with an internationally known and recognized banking institution, such as Barclays or Citibank, you can forego much of your investigation. However, I would still recommend that for your complete peace of mind, you request and receive a copy of their annual report before opening your account. (It is a matter of good, sound practice to ALWAYS keep yourself informed about he banks you deal with.)

If the offshore banking institution you are anticipating dealing with is lesser known, you should ALWAYS request, and receive, a copy of their annual report before making any deposits. Any "reputable" bank will ALWAYS be able to provide you with adequate information upon which to base your investigation.

"Private" offshore, and offshore licensed, banks are a completely different animal.

Before dealing with a "private" banking operation you should request from them their latest financial statements (preferably audited) -- AND -- the names and addresses of their principals and promoters.

Inevitably, when I speak on offshore banking and investments, I am asked,"How can I go about investigating these companies?"

My answer is, "Don't investigate the company; investigate the principals and promoters. Know the principals and you will know the company."

You should be extremely wary of any "private" banking operation that cannot, or will not, provide you with the information you need to satisfy yourself as to the credentials and credibility of its principals and promoters.

The wise investor must deny the separateness of business and come to the realization that behind each business entity there are real, flesh-and-blood people who pull the strings and control the works.

By the way -- when was the last time you looked at the financial statements of your local bank, or spent the time to learn who the principals (people) are who are controlling your money?

BORROWING FROM OFFSHORE BANKS

The internationally accepted definition of a "bank" is an institution specifically established and licensed for the purpose of "accepting deposits and making loans." If it does one, or the other, but not both, it is usually referred to as a "non-bank bank."

That being the case, any "bank" that accepts deposits ALSO makes loans.

Having published Offshore Banking News from January 1983 until the early 1990's, I have been asked countless times, "Why don't you publish the names and addresses of offshore lenders?" We did; every month. The problem is, their ads go around disguised as ads seeking depositors.

REMEMBER THIS: If a "bank" accepts deposits, it ALSO makes loans.

Therefore, to borrow offshore all you need do is follow the same procedure you would follow in seeking a lending source in the U.S. Simply write a"short" (not more than 1 page) letter of inquiry to the offshore bank of your choice. Explain your funding equirements, and ask the bank if they would be interested in seeing a full financing package on your project. (Have your"package" ready to go should one or more of the banks indicate an interest.)

But -- don't think because the banks are offshore they are "easy" or"stupid". Just like any bank in the U.S., an offshore bank will require all the same documentation, background and financial information normally required. As a poorly presented project will be rejected in the U.S., it will also be rejected offshore.

The major advantage to borrowing offshore is the same advantage in banking offshore. The interest rates are less. As there are jurisdictions where you can earn higher interest rates for your deposits, so too are there jurisdictions where you can borrow at lower interest rates.

As an example: Switzerland is well known for its banking secrecy, but it is notorious for its low interest rates.

Beyond the prying eyes of the government, your nosey neighbors, business competitors, ex- spouses, and other snoopy people may well attempt to keep track of your financial activities for their own purpose. In this country, even some of the more inept private detectives can easily gain access to your most personal records. However, records and files on your activities outside the U.S. are impossible for these snoops to get their hands (or eyes) on.

Banking offshore and maintaining your financial records and files outside the U.S. allows you the maximum Personal Privacy available.

LEGAL TAX ADVANTAGES

As you are well aware, in the U.S., there are a multitude of totally legitimate, and legal, "tax shelter" opportunities available. The same kinds of"tax shelter" opportunities are also available in almost every country in the free world.

Since the various I.R.S., Treasury, and Securities Regulators governing "tax shelter" opportunities are constantly changing, I will not attempt to give you specific advice regarding such opportunities. But, by realizing that legitimate and legal "tax shelters" exist both in the U.S. and in other countries, you can better understand that you can legally and legitimately shelter your income from taxes; either here in this country or through a tax-shelter opportunity in another country.

When you find a "tax shelter" opportunity, whether in the U.S. or offshore, have your accountant or other tax professional check it out to see if it conforms with governing regulations. Those professionals are in a position to keep on top of the governing regulations in effect at that time and advise you as to the legality and tax advantage to be gained.

SCOFF-LAW APPLICATIONS

As the government (any government) writes more and more laws regulating the personal activities of the citizenry (especially if those laws infringe the citizen's earning capacity), more and more of the citizens will violate those laws without compunction, guilt or remorse. As an example: How many people do you know who have driven faster than 55-miles-per-hour on a Federally funded highway?

Scoff-laws are, by definition, people who scoff at, or flout, the law. They have no compunction about violating those petty laws, rules or regulations that they feel are unreasonable, unrealistic, or infringe their personal right to life, liberty, and the pursuit of happiness.

These people know that a government that writes that many laws can't possibly expect to catch the vast majority of people who violate them. Besides, even if they get caught, unless they are a major offender, the penalties aren't that severe or the powers-that-be may simply choose to overlook the offense. As an example: Most police officers simply overlook people driving faster than 55 m.p.h., but do stop those people driving recklessly at any speed.

Because of the multitude of federal, state, county, city and township tax laws in this country, the vast majority of people in the U.S. have become tax scoff-laws. It is physically impossible for any one person to know (or understand) all of the various and many tax laws, rules, and regulations. And, the people all know that it is impossible to be in 100% compliance with all of those laws and, it is just as impossible, for the government at its many levels
to know who is, or who isn't, paying which taxes under which laws, rules and regulations. So... most people just report the earnings, and pay the taxes, they absolutely have to, and feel no remorse if they don't report some of the income they know they should. If they do get caught, the penalties aren't that severe (usually just a fine) and the odds are they won't be caught.

In the article entitled, "Offshore Tax Havens Lure Main Street Money," which appeared in the August 1, 1983, issue of U.S. News & World Report, Robert Mirshberger, an assistant regional commissioner for the I.R.S. in New York was asked about the risk involved in tax cheating. His answer was, "It would be an unfortunate happenstance if you were caught. You would be a very unlucky person."

The article continued with some examples of the ways modern-day scoff-laws use offshore bank accounts to cheat the U.S. tax collectors:

A doctor received a payment from a patient and deposited the check in his offshore bank account. Since the deposit doesn't appear in his business records, the chances are it would never be found, even if the doctor is audited.

One couple sold a piece of art work and had the buyer send the payment direct to their offshore bank account. Later, the couple used that money to enjoy a vacation outside the U.S. Mr. Mirshberger with the I.R.S. said, "There's no way we would ever discover that."

Another example told of a bank customer who got his "unscrupulous" banker to transfer large amounts of cash to an offshore bank account without reporting the transaction to the I.R.S. Then, the customer borrowed the money back from the offshore bank. Since loan proceeds are not taxable, no taxes were paid.

But these examples are only the tip of the iceberg. It is no longer just the wealthy with art works to sell or the professionals and businessmen with extra income to hide. There are hundreds of thousands (maybe even millions) of blue collar and middle-management white collar workers using offshore bank accounts to reduce the unbearable tax load imposed by the federal, state, and
local governments.

To assist these tax scoff laws, literally hundreds of professional advisors in the U.S. and offshore are busy teaching tax scoff-law techniques; organizing methods and techniques to make discovery impossible (or, at least, highly improbable), and actually providing the services necessary to implement those methods and techniques. Some are purely tax evasion. Others tread the fine line between tax evasion and tax avoidance. While others are legal and legitimate tax shelter opportunities.

Americans have simply never liked being taxed. In 1776, the tax scoff-laws of that time revolted against unreasonable taxation. In the 1980's, the modern-day tax scoff-laws, with instantaneous communications and high-speed international mobility, have chosen to avoid and evade rather than take up arms against the tax oppressor.

How long this trend will last, before the modern-day tax scoff-laws choose to follow the example set by their forebears and take up arms to defend against tax tyranny, is a question that should be in the mind of every government official.

OFFSHORE BANKING IS THE SMARTER ALTERNATIVE

As you have now learned, Offshore Banking, in and of itself, IS NOT evil, illegal, immoral or unethical. We have all been misled to think otherwise as the powers to be want to insure citizens keep their money and assets in U.S. Just look at latest law attacking online gambling which entails mostly offshore entities. The effectively handcuffed us all with a law forbidding the movement of funds to offshore casino firms, so is this freedom as we were assured in constitution? Not to me it isn't.

The scandalous defamation and condemnations of Offshore Banking is only another ruse foisted upon the gullible American public by the U.S. government and the U.S. banking establishment. Their purposes, not offshore banking, are evil in that the intent is to maintain control over YOUR MONEY for their own self-serving uses.

No matter what the government and bankers tell you, their purposes are not intended to restrain the criminal element. They know, as well as you do, that criminals will do their evil deeds no matter what laws they have to violate; it is the nature of their endeavors. The true purpose of the government is to keep YOUR MONEY within their jurisdiction. The true purpose of the bankers is to keep YOUR MONEY in their banks.

Using an offshore bank account legally; paying your taxes and reporting your transactions, you can legally enjoy passive income 2, 3 or even 4 times greater than what you can earn in the U.S.

If you choose to use your offshore bank account for tax scoff-law purposes, the matter will be between you and your conscience. But, remember, your illegal use of an offshore bank account does not make offshore banking illegal. If you get caught, you, not the offshore bank, will be at fault.

For many years, moneyed people have known about and used offshore banking opportunities in order to increase their earnings, protect their assets, legally avoid taxation, and gain personal privacy for their financial affairs. Now, anyone with a good income, or modest savings, can enjoy the same exceptional advantages and free themselves from the negative forces active in this country.