May 10, 2010
Undisclosed location

I’m going under the knife tomorrow… it’s a little unexpected, but apparently I need a rather urgent surgical procedure performed, and the doctors here have fit me in at their first available time.

To be honest with you, I’m pretty disappointed– no, not because of the operation. These things happen from time to time, and I’m pretty fearless. I’m mostly disappointed because I’m not in much condition at the moment to get on a plane and fly to another country where I would actually prefer to be operated on.

This is all rather ironic, because a couple of my friends had commented, “wow, I bet you’re happy that you just happened to be in the US for this!” Actually, no, I’m dismayed.

First of all, my US insurance company won’t cover the procedure… at least at the moment. If I wait a bit longer until the condition becomes life threatening, then they would cover it. But because I’m not presently terminal, I’m left to cover the costs on my own with cold, hard cash.

I figured this out ahead of time with the friendly folks at my insurance company, so when I went in to see the doctor here, I made him an offer.

“Look,” I said, “I’m paying cash. No insurance companies will be involved. Let’s make a deal.” Happily, he settled with me on a reasonable price, knowing that he would be paid immediately without having to deal with the usual bureaucratic runaround.

The price that we negotiated is just a fraction of the normal price that they bill to the insurance companies; it’s truly unbelievable how much excess doctors are forced to build into their prices simply because they know that they will only be paid a percentage of their invoices.

What’s even more unbelievable, though, is that the ‘reasonable’ price we agreed upon is still multiples more expensive than what I would pay for comparable, if not even higher quality care in the Orient.

This is the second chief reason I’m disappointed– aside from cost, I truly believe that I would receive better care in Asia. As for the operation itself, I’d say the odds are evenly stacked. It’s a simple procedure, and I’d trust a qualified surgeon of any nationality to carry it out without any significant errors.

What I’m more concerned about is the treatment I’ll receive before and after the surgery– the incessant forms they’ll have me fill out, the wasting away in a waiting room, the needless drugs they’ll pump me full of, the ridiculous OSHA and FDA regulations, the speed with which they’ll kick me out to make room for the next patient, etc.

These sorts of things seldom happen to foreigners in overseas hospitals. Overseas, foreigners are in control of their own treatment; they’re actually treated like a vested partner in the doctor/patient relationship instead of like a child, and this is certainly a nice change.

Frankly, this is what being a ‘permanent tourist’ is all about– maintaining that status as a valued customer who should be courted, instead of a regular citizen who will be milked and slowly bled to death… but I digress.

House calls are commonplace overseas… perhaps even more commonplace than they were in America back in the 1950s. It’s nothing for a doctor to swing by the house to check up on you, or even hire a few nurses out for the week to take care of you.

I was dumb enough to mention this to the attending physician; needless to say, he started arguing with me that the quality of treatment in Asia is substandard.

“Oh,” I told him, “so you or one of your colleagues has actually been to the hospitals in Hong Kong, Thailand, and Singapore to judge first hand?”

Silence.

It always puzzles me how rumor and stigma are perpetuated by the uninformed.

Lastly, having any medical procedure performed in the US has me a bit nervous these days. Nobody really quite knows what the Obama health system will look like (least of all the government), but I’m still concerned about ending up on a list in some government database as a guy ‘who has health insurance but doesn’t use it.’

Yes, I actually think the dastardly practice of negotiating directly with the physician instead of using a government-approved plan is going to land me in hot water with the IRS one of these days…. because, naturally, it falls to the Department of the Treasury to enforce healthcare legislation.

This is one of the other advantages to having medical procedures performed overseas; the records are actually private, and if you want, no one else will ever find out. It’s as close as you can get to dropping off the grid for your medical care without having to sacrifice quality.

To me, medical care is just another overseas flag that we can plant, especially if planned properly. In my case, I just got caught in the wrong place at the wrong time… which is ironic considering that I’m in the US at the moment undergoing treatment.

Look, I’m sure that things will be just fine tomorrow. I have no illusions that the surgeon is somehow unqualified or anything like that… but we all know that medical care is a package deal. And while the medical quality of US treatment may still be among the world’s best, many other countries are quickly closing the gap, and they’re already offering more attractive packages.

I could expand on this more, but if you’re interested, I would consider Dusit Bangkok and Bumrungrad in Thailand, and Raffles in Singapore.

March 12, 2010
Pattaya, Thailand

Greetings once again from the land of smiles.

First of all, I really appreciate all the responses after yesterday’s letter in which I announced that I will be speaking at the upcoming Casey Research Crisis and Opportunity Summit. I’m really looking forward to meeting with so many of you in Las Vegas.

For some reason, a few subscribers had difficulty with the link that gives more information about the event, so I want to re-post it here in case you’d like to join us:

http://www.caseyresearch.com/crpmkt/crpSolo.php?id=181

And with that, let’s move on to this week’s questions:

Stephen asks, “Simon – I don’t recall you mentioning the Seychelles as a potential offshore banking location? Any reasons not to incorporate there and/or open a bank account?”

Seychelles has a reasonably developed financial infrastructure and is a decent choice for offshore merchant processing… but I find it to be expensive to set up a company, and the due diligence requirements are fairly strict.

More importantly, though, I am generally mistrustful of very small countries that rely almost completely on their offshore industries. If the government has a string of bad years, they won’t think twice about imposing new taxes and fees on all the entities incorporated there.

Russ asks, “Simon, I know you’re busy, but I have a quick question regarding GoldMoney.com.  Is this account something that must be reported to the IRS as a foreign financial account?”

That’s a great question… a lot of people have asked it, and the bottom line is that there is no clear guidance one way or the other.

On one hand, GoldMoney should not be regarded as a financial account because it exists outside of the banking system and deals strictly with precious metals, which are not regarded by the government as a monetary instrument.

On the other hand, the service is clearly designed to be a banking substitute, and as all administrative and storage facilities are overseas, it certainly could qualify.

Jim Turk, the founder of GoldMoney.com, is one of the people who thinks that it does not qualify as a foreign financial account. Your best bet is to talk to your accountant and decide how you want to proceed.

Robert asks, “My father is Italian and based on my lineage, I am entitled to Italian citizenship.  I have already done most of the leg work, aside from getting the required apostilles, but I have been hesitant to complete the process as I live and work here in the good ‘ole USA.  In your expertise, would you find this to be a good option for a second passport?”

Western European passports are extremely valuable for most people– they entitle the citizen to live and work anywhere in the EU, and they’re fantastic travel documents, even better than a US or Canadian passport.

With any second passport, though, there are a few things that you really need to watch out for:

First, military conscription is a very real issue in many countries, including Italy. I believe the maximum draft age in Italy is 25, which means that anyone who obtains Italian citizenship between the ages of 18 and 25 must serve briefly in the military.

Second, you should also watch out for tax consequences. At the moment, Italy does not tax worldwide income, but as the economic situation there continues to deteriorate, it is entirely possible that the Italian government may start taxing its expats.

Christina asks, “Simon you’ve written before about the marquee international hospitals in Thailand like Bumrungrad International. Do you have any experience with ‘tier 2′ hospitals? Is there a major step down in quality?

I recently had the pleasure of carting myself off to the emergency room here in Pattaya. I’ve been to the ER in many countries, including in the United States, and as I think anyone could attest, you spend more time waiting around the ER than being treated.

Here at Pattaya International Hospital, though, I was literally being treated within -seconds- of my arrival. As soon as I showed up, I was met in the parking lot by two nurses who took me straight to a bed in the back where they triaged me.

The doctor came within 5 minutes, and he spoke flawless English, having studied in Canada.  To me, this speed is a major differentiator in quality and one of the reasons I routinely tell people that, in case I get sick, I really hope that I’m in a country like Thailand.

That’s it for this week! Thanks for bearing with me while I recover.

March 8, 2010
Pattaya, Thailand

I managed to pick up some nasty bug that has knocked me into next Tuesday… But while I feel completely miserable at the moment, this little bacterial bout has given me the opportunity to experience, first-hand, the joys of the Thai medical system.

First, doctors make house calls. When you’re as sick as I am, the last thing you want to do is get dressed, sit in the car, and go to the doctor’s office. Not a problem in Thailand… they come to you, all for about $30. And yes, they speak perfect English.

Second, if you’re a believer in medication, you can buy pretty much buy whatever you want over-the-counter– from antibiotics to codeine to Viagra. And everything costs a small fraction of what you would expect. You almost feel guilty, like you’re ripping off the pharmacy.

I paid 80 baht, roughly $2.50, for a 5-day batch of antibiotics, ibuprofen, and throat lozenges.

Third, if you so choose (and I do), you can have a team of nurses attending to your every need while you’re getting better. I’ve got a couple of ladies whose sole mission in life is to take care of whatever I need– changing the sheets, making a bowl of soup or tea, giving me a massage, or just sitting next to the bed with a wet washcloth over my forehead.

It’s funny what kind of misperceptions people have about medical care overseas. I’m frequently asked “What happens if you get sick overseas? Aren’t you concerned about the quality of medical care?”

Trust me, if/when I get sick, especially in an emergency, I truly hope that I’m in a place like Thailand or Panama instead of wasting away in waiting room back in the US, or paying through the nose for medicine.

Anyhow, I’m going to cut this short today for obvious reasons… depending on how I feel tomorrow I may or may not post something, so don’t be surprised in case you don’t hear from me.

February 5, 2010
Mexico City, Mexico

Greetings once again from Mexico; I’m sure many who listen to the mainstream press would be amazed to find that I have spent 48 hours on the ground here with nary a swine flu infection nor simple mugging to report.

I did, however, miss my flight to Canada.

What can I say… Mexico City traffic has got to be the most dangerous thing in this country. I was able to change my plans and will be in Vancouver this evening.

Before I get started on answering your questions from the mailbag, I wanted to mention a brief administrative note– if you ever have difficulties opening or reading the daily email in your inbox, you can always read it online at www.SovereignMan.com; in the meantime, my staff is working on resolving all readability issues.

Moving on to questions.

To start off, John asks: “Hi Simon- you don’t talk about politics much, though I have a feeling where you stand by reading your letter each day. Can you give me a better idea of how you see the world, politically?”

First and foremost, I want to make an important distinction. I am an avowed anarchist. Just the word itself has an incredibly negative connotation– it conjures images of subversion, treachery, and treason… or at least crazy guys hoarding guns in Montana.

People too often confuse ‘anarchy’ with ‘chaos’, usually citing examples like “if there were no laws, what would keep people from driving on the wrong side of the road?” or “who would come and put out the fire when your house is burning?”

These arguments are weak and only serve to indicate the extent to which governments have brainwashed people. Most citizens now believe that the political establishment is vital for their own survival, as if we would all spontaneously combust were it not for the FDA.

Anarchy is not chaos. The political establishment is chaos. Politicians have a horrific track record managing wars, finances, education, health care, and just about everything else they put their hands on… all at the expense of public resources.  Very little changes for the better, at least thanks to the government.

And yet, every few years, we still put on a charade to cast our vote, as if this ridiculous exercise has any meaning whatsoever. It’s an unpopular thing to say, but participating in the political process is a complete waste of time… particularly since we have a much more powerful voice.

The most important votes we cast are as consumers, not constituents… we vote with our dollars every single day. The best candidates, i.e. the producers, win our votes, and the worst candidates go bust. No amount of baby-kissing can save a defunct company.

Hell, not even a government bailout could keep Chrysler and GM alive.

Personally, I would prefer to have all of my tax dollars back in my pocket and pay a usage fee for privatized roads, or an annual subscription for a privatized library, rather than have some bureaucrat funding pet projects with my hard-earned money.

I recognize that this is all just a pipe dream, at least for now. Political institutions are here to stay, and the trend is bigger government, not more limited governments.

That’s one of the reasons why I have chosen this lifestyle– with a multiple flags approach, I minimize the impact that any single government has on my life.

Betty sends along the following comment: “You wrote that hospitals in Boquete, Panama were substandard. You are badly misinformed. Hospital Chiriqui is a modern hospital with excellent doctors who speak English for the most part; I should know, I was in intensive care there for three weeks and had five specialists attend to me.”

Noted, Betty. Thanks.

Captain asks, “Simon, do any ex-US real estate markets employ US-style mortgages?”

Yes. Panama is one of them; foreigners can get a 50% to 70% mortgage, and a better rate if you become a resident. Many European countries also underwrite mortgages for foreigners.

The other thing to consider is developer financing instead of bank financing. This tactic is being used in a lot of places around the world to mop up extra inventory. I see this everywhere now– Spain, Thailand, Morocco, and here in Mexico.

Standard packages generally require 10% to 30% down, and will finance the balance on a 30-year amortization schedule for a 5-year term.

Nathan asks: “Simon- Regarding China, I know a lot of people have been high on the country for some time. But what is the real analysis here?”

To be clear, I am not a blind China bull… but I’m happy to call a spade a spade. The ‘good’ part of the analysis is fairly simple. In the long run, there are two things needed for sustained economic growth: technology and savings.

Technology makes production (i.e. wealth generation) more efficient, and a large pool of savings becomes investment capital to create businesses, build factories, etc… things that add value to an economy.

China has both, and so the foundation for its economic growth is sound. However, there are a LOT of potential problems with China– the economy succeeds despite its government, and I’m concerned about future political instability.

Furthermore, I expect one day that China will go through significant challenges as it finds that it can no longer compete with its neighbors for low-skill manufacturing. The country will have to develop entirely new industries, and that could be painful.

Lastly, the Chinese are become cultural consumers… shop-a-holics really. This consumption depletes the pool of savings, and if sustained, will create long term structural issues.

That’s all for today, I’m off to Vancouver.  Have a great weekend.

January 29, 2010
Boquete, Panama

It’s a beautiful day in the Panamanian highlands, and I’m taking the opportunity to explore the countryside for undervalued land deals.  The Chiriqui province of Panama, where I am now, is sort of like the Panamanian version of Texas– fiercely independent and proud… locals consider themselves to be citizens of Chiriqui first, and Panamanians second.

As we’ve discussed in previous letters, I have been sincerely exploring the idea of developing a subscribers-only sustainable community, and Chiriqui is on the short list of locations.

On that note, I really want to thank you for providing me with your feedback about the community concept; over 650 people have filled out the survey so far, and I’m convinced that the idea has tremendous merit. More to follow on that in the future– for now, let me get to some subscriber questions:

From Denise Dale: “Simon- I enjoyed your comparison between Panama & Costa Rica, but I felt you missed an important comparison:  the medical aspects of each country.  I, being 73 years young, would appreciate some statement regarding the medical facilities and medical personnel.  I do intend to move to Central America this year and may even renounce my current citizenship.”

Denise- Thanks for reminding us of such an important lesson… regardless of your situation in life– young, old, rich, poor, employed, jobless, etc., you can always expand your opportunities by looking overseas. Many US citizens are finding that the cost of healthcare is absolutely crippling, and you are sharp to consider opportunities south of the border.

In my opinion, *western* medical facilities and staff in Panama are unquestionably of higher quality than in Costa Rica– the hospitals are better equipped, the doctors are often US trained, and the costs are comparable to Costa Rica.

In regards to holistic and eastern medical practice, however, I would say that Costa Rica still edges out Panama, but this is a sector that is gaining quite quickly in Panama and I would estimate that within a few years it will surpass Costa Rica in its quality and breadth of service.

From Louis: “Simon, I noticed that the Swiss have halted their deal with U.S. authorities to turn over Americans with secret UBS bank accounts.  What do you think? Is this just a battle or has the whole war ended?”

Unfortunately, neither. It’s just a speed bump in the worldwide campaign to end financial privacy. I want to be very clear about this– you cannot rely on privacy with any financial institution in any jurisdiction, period… and do not expect that piling a complex array of bearer share companies and trustees will make the situation any better. It won’t.

Governments can obtain access to your bank and brokerage accounts, they will find out who the beneficial owners are, and they will absolutely demand their ‘share’ of the income. Rest assured, penalties from noncompliance will be severe.

The reasons for going offshore have nothing to do with hiding money, but rather planting multiple flags– diversifying away from a single jurisdiction. If you are a US citizen with all of your money in the US, you will really wish that you had moved some money to a foreign bank account once they impose capital controls.

If you’re tired of giving your hard-earned money to corrupt bureaucrats, and your goal is to cut down on taxes, there are much, much better ways of doing that without taking the risk of ending up in prison.

Use foreign bank accounts for what they’re best purpose: protecting your capital from regulatory, litigation, and administrative risks. If you want to cut down on your taxes and achieve a lucrative deferral benefit, consider what I have discussed in the past about proper offshore and retirement structuring. I will continue to revisit these topics in the future.

Clayton asks: “Hello Simon, I am a new member. Are there any articles on buying foreclosed property in Panama?”

No, I have not yet specifically addressed foreclosures in Panama.  Like most things in life, to get access to foreclosure deals in Panama you have to know someone, usually a senior bank executive. There are a handful of real estate agents in Panama that tout foreclosed condos, but most of the time the deals have been stepped on and marked up so many times they do not even resemble a bargain.

On that note, one of the troubles about Panama’s real estate market is the lack of integrity and competence among the majority of agents. I’ve been operating down here for about 7 years and have burned through hundreds who have shown me their true colors. That’s why I put together the Panama Black Paper, which provides a short list of agents here that I actually trust.

Next week I plan on organizing a call with one of my trusted Panamanian real estate contacts who will discuss the state of the market, foreclosures, and some of the best deals he is working on.   Initially, I will make the call available exclusively to everyone who purchased a Black Paper, and then to the rest of the community.  Stay tuned for more details about that.

Lastly, Ken asks: “Simon, what are your thoughts on Belize?”

I wouldn’t go there. It’s pretty, but so are hundreds of other locations. Belize lacks the freedom that I’m looking for, and one needn’t look any further than their recent ‘amendment #6′ to the Belize Firearms Act.

This recent change to the law is about as draconian as it gets, threatening imprisonment without bail or trial for three months (and up to 5-years) just for being caught in the vicinity of an unregistered handgun. I won’t set foot in the country as long as this law is on the books.

That’s it for today, and I hope you have a great weekend.

I was reading a menu, but I wasn’t in a restaurant.

Liposuction: $625
Tummy Tuck: $1,250
Breast Enlargement: $1,125
Sex change operation: $1,625

I did a double take. Yep, that wasn’t a misprint.

Thailand is renowned for a lot of things– beautiful beaches, crazy nightlife, political instability, etc. One of the things it should be better known for is medical tourism.

People often ask me because I travel so much, “Simon, what would you do if something happened to you– wouldn’t you be scared to go to a hospital in a foreign country?”

In a word, no. In fact, I sincerely hope that I am overseas if some bad accident or disease should happen to befall me, because I’m confident that I won’t die in the waiting room filling out insurance paperwork.

Health care in many developed countries is either bankrupt, too expensive, and/or incompetent. Here in Thailand, private care is among the highest quality and most efficient in the world.

It really makes one wonder which countries should truly be considered ‘developed’…

Bangkok has a few marquee private hospitals– Dusit Medical, and the more famous Bumrungrad. To call them ‘hospitals’ is a bit of a misnomer… realistically they are luxurious 5-star resorts that happen to be staffed with highly-skilled, western-trained physicians.

Whatever is ailing you, they can handle it– plastic surgery, cancer treatment, hip replacement, etc. The nice thing is that the doctors in Thailand are actually free to practice medicine in a low bureaucracy environment without constant fear of regulation or litigation.

This, along with the lower wages in Thailand, results in substantial cost savings. As for the quality? Well, I’d like to pass on a note from my friend Croc who recently had two surgeries at Bumrungrad in Bangkok. Croc is active, fit, in his late 30s.

Dear Simon,

I have just done something that in the US, or most of the world for that matter, is impossible: three days after arriving in Bangkok, I had underwent two surgeries, complete with the requisite tests and appointments.

For the cost of typical yearly insurance premiums in the US, I had facial plastic surgery, and I had my torn meniscus repaired. What really impressed me, aside from my $360 MRI and my $42 x-ray, was the kindness, professionalism and shocking efficiency of Bumrungrad Hospital.

Thailand is not a country generally known for Swiss organization… but when you consider the financial dire straits that western civilization has found itself in, especially regarding health care, finding efficiency, kindness, quality, and great value at a hospital is certainly worth passing on.

One million patients are treated at Bumrungrad Hospital every year, and roughly six hundred thousand are foreigners. Most of the staff speaks English, and they have translators for just about every language you could imagine.

The hospital’s pricing is out of reach for most local Thais, but Bumrungrad’s a la carte menu of services is priced at a phenomenal discount to what you would pay in the US. There is no shame in being uninsured here. On the contrary, people paying cash are accorded a VIP status.

From the moment I entered the hospital, I was checked-in and awaiting my first consultation in under fifteen minutes. After my initial consultation with an English speaking knee specialist trained at Harvard, I was sliding into a GE-brand MRI machine.

In all, I met with three doctors, had two surgeries, blood work, x-rays, and an MRI. It all cost me around five thousand dollars and took three days. In between visits I sat next to the pool at my hotel getting a twenty-dollar massage.

Bumrungrad makes no bones about its desire to cater to paying foreigners. The business model works, as evidenced by waiting rooms of Arabs, Aussies, Europeans and even a few Americans.

For a few thousand dollars you can actually get some real medical work done in Thailand– teeth cleaning, heart surgery, breast augmentation… you name it, anything is possible here.

Simon again. Thailand is not alone, there are at least a dozen other places in the world with top quality medical care at a paltry cost, and as Croc’s story testifies, there is no sacrifice to quality or service.

For me, medical tourism is the cornerstone of my health care plan. I have a high deductible US insurance plan that covers me against emergencies and catastrophes when I am in the states (only about 3-months each year). For smaller issues, I pay cash at specialty clinics, which I’ve found to be fairly cost effective.

For larger issues, though, I’m on a plane. The cost savings of the medical care alone more than makes up for the travel expenses of the trip.

I’m curious to hear what you think– would you fly to another country for medical care? If not, why not? Bear in mind, the cost savings of the treatment more than covers the travel expense.

Remember that Croatian commando-turned-entrepreneur from dinner last night?

Well it turns out he’s an aerobatic stunt pilot too… he’s got an old Soviet-made aircraft that is only designed to do one thing– be as unstable as possible. It does the trick.

This morning around 11am Central European Time, we met at a private airfield outside of Zagreb. He strapped me in to the cockpit, took me up to about 2,500 feet, and proceeded to test my manhood.

Let’s just say I’m glad I skipped breakfast.

I have never had to withstand five times the force of gravity before, nor had I much of a clue what that even meant. And yet, over 12-hours later, I am getting queasy all over again just telling you about it.

Fortunately we had the video cameras rolling, and I will be posting footage to the site in a few days for your enjoyment… but first, a little taste of where I happen to be right now in the lovely Italian Alps-

Now… since this is Friday, I wanted to take a moment to review a few topics from this week:

NATIONAL HEALTHCARE

I am deeply appreciative of the intensely personal anecdotes that were provided on the health insurance piece, particularly those accounts with specific prices and treatments.

Several stand out in my mind, including Mike’s “Chile saved her life,” and Jai’s “About a decade’s-worth of care in Asia spent in one morning.” These are powerful testimonials to overseas healthcare solutions that do not rely on insurance companies or government bureaucrats.

A few readers took umbrage with my characterization of national health plans. Fair enough. For every negative example highlighting the failures of the system (VA, Cannuck, NHS), there are certainly a plethora of examples of patients who have been healed due to the quality of care received.

My intention is not to take anything away from the medical professionals who serve under these systems, but rather to demonstrate that bureaucrats fail miserably at everything, especially healthcare.

I simply don’t think the same government that took the better part of a week to deliver water to New Orleans should be running a national healthcare program. Not to mention the idea of nationalized healthcare makes a mockery of the Constitution.

To reiterate, my solution is to build my own network of doctors in places where care is inexpensive– Panama, India, Brazil, Thailand, etc. And if you find it crazy to jump on a plane to seek quality, cost effective, potentially life saving medical care in a foreign country, then you are probably reading the wrong missive.

EURO SHORT

As always, very bright comments from everyone… and Gernot, I am on the way to Germany this weekend to verify what you said. I agree that the euro may likely show signs of stability and even strength in the short-term on the backs of the Germans and BENELUX.

My assessment of a eurozone collapse, however, is a long-term view. And betting in favor of the dollar to take a short position in the euro does not make sense to me in the long-term.

Currency markets are all about capital flows; when risk tolerance is high, institutional wealth pours into emerging market currencies and away from the dollar. When risk tolerance is low, the dollar strengthens and bond yields fall.

When investors begin to lose confidence in the euro, capital will flow away from the eurozone and have to find a home somewhere. At that point, it probably won’t be the dollar. But where?

There are only a handful of instruments in the world that can absorb hundreds of billions of euro in capital flows– and the Japanese Yen is one of them, and my sense is that the Renminbi may be one as well someday.

Long-term contracts for the future values of the Euro/Yen and Euro/Renminbi cross rate are tradable in Chicago, and a variety of overseas exchanges as well.

Furthermore, many online FOREX brokers provide the capability to short the euro against gold and silver (buy XAUEUR and XAGEUR), both of which I expect to perform even better against the euro than the dollar in the longer term.

In the meantime, selling the euro in favor of the dollar in the short-run is too risky for my taste, and I wouldn’t advise it.

Nationalized healthcare doesn’t work, and I’ll tell you why:

I hold as my personal mantra in life that governments screw up everything they touch… and this goes for all governments, not just the United States Congress.

As I travel the world looking for great opportunities, I always try to understand the quality and efficiency of the local healthcare system. Sometimes I even go through it myself.  My conclusion? Most, if not all public healthcare systems are broken and drowning in red ink.

I could cite hundreds of examples– the English cancer patient who had his treatment cancelled 48-times in a row; the 25-week waiting period for heart surgery in Sweden; 2-3 year waiting period for simple blood tests in Canada; Cubans dying waiting in the emergency room; Hungarians who have to bribe their doctors for treatment.

The Italians, who run their budget deficit into the ground to pay 10% of GDP in annual healthcare costs, are routinely congratulated by the World Health Organization for quality healthcare… the WHO, of course, is the crack squad of bureaucrats that spent weeks laboring over whether or not to call the H1N1 outbreak a ‘pandemic.’

Meanwhile, the Italian government is in debt over 100% of GDP with an annual budget deficit equal to its healthcare costs. They can’t afford it, and they can’t find anyone to loan them the money to keep it going anymore.

The United States will not be able to afford its healthcare either, notwithstanding the extra ‘surtax’ that the government plans on pinning to the wealthy.  Even the concept of a national surtax is ludicrous– ‘wealth’ varies from place to place.

The $350,000 cut-off for the healthcare tax buys a different standard of living, depending on location; $350,000 is an enormous income in Houston, TX.  In New York City, after-tax, it barely pays the rent.  This is [one of] the same problems with minimum wage, but we won’t go there right now.

I would invite any member of Congress who thinks that the government can efficiently run a national healthcare system to take a tour of any VA hospital in the United States– you know, those places where doctors exposed 10,000 veterans to HIV and the hepatitis virus, and where they routinely botched radiation treatments to cancer patients…

Similarly, waiting lists at VA hospitals can take years… and I can attest from personal experience.  I simply cannot begin to imagine the disastrous inefficiency that will ensue when a national health plan, that no legislator has actually read, is rolled out across America…

In the words of Canadian Supreme Court Chief Justice Beverly McLachlin wrote, “access to a waiting list is not access to healthcare.”

Now, before you eat me alive and tell me that private insurance companies in America are corrupt and perverse, let me cut you off at the pass and tell you that I am inclined to agree. Insurance companies are in business to make money, and they generate the most profits by taking in the highest premiums paying out the fewest claims.

Naturally, the interests of the insurance companies are at odds with the patient.

I am a firm believer that the best and highest value in any situation can be created when interests are aligned. This is why the existing private system is a flawed solution (though a slightly better one than a public system).

So what can you do about it? How can you align interests with your healthcare provider?

Internationalize. Establish direct relationships with hospitals and physicians.

Because I travel so much, people often ask me what I do when I get sick… simple: hope like hell I’m not in the United States.  In Panama, I have a variety of doctors’ personal mobile phone numbers. We are on a first name basis, and I have no problem calling them on Sunday night if I need anything.

My experiences in private Panamanian hospitals have been fantastic. I took a friend to get a full body work up including X-rays, multiple consultations, and pharma… total price tag? Less than $100.

My friend and partner Matt has a heart surgeon on speed dial during the time of year he lives in Buenos Aires; the doctor makes house calls for 150 pesos ($39) to take care of the kids…  a heart surgeon for $39.

More on healthcare in future missives; I would like to open this up to discussion as I’m sure you have personal experiences… please comment to share.

You probably know the story of the boiling frog.

The premise is simple.  If a frog is placed in a pot of water that is already boiling, it will immediately sense danger and jump out, relatively unscathed. If it is placed in a pot of cool water, the frog will happily stay in the pot while it is slowly heated to a boil.  By the time the frog realizes the danger, it is too late.

The metaphor is used to describe how society is allowing itself to be slowly boiled– small changes that go unchallenged will lead to imminent danger.

History has seen plenty of examples– everyone always cites Nazi Germany or Rwanda, but there are countless others that don’t involve fascism or genocide.  I think today’s Argentina illustrates this point clearly.

After that country’s 2002 economic collapse, Argentina’s legislative assembly granted extraordinary power to the president on the grounds that unprecedented times call for unprecedented measures.

Seven years later, the president is still holding on to those powers, and usurping even more.  The federal government completely dominates Argentina’s economy, either directly through shareholder control, or indirectly through regulation.  Government sponsored thugs execute a mafia-like grassroots agenda, and now the government is seeking to limit the voice of what little free press remains.

The moral of Argentina’s story is simple: the greater the power given to the government, the less likely they will ever relinquish it.

In the United States, the growing tide of government power over the last decade has been equally disturbing.  Each passing bill– the USA PATRIOT Act, the Emergency Economic Stabilization Act, etc. raises the temperature in our collective pot of water by a few degrees.

One by one, some frogs are wising up and are starting to jump out

I find the recent morass to be especially boiling. The CFTC, under the spurious motive of protecting the people, has announced hearings to discuss limiting oil speculation… this is the first step in price controls, and methinks corn and wheat cannot be that far behind.

Further regulatory developments include a proposal coming from the FDIC to limit the size and scope of commercial banks. Comrade Bernanke has endorsed the idea, indicating that it is ‘legitimate’ to artificially restrict the growth and profitability of a private enterprise.

And now we have, within the last few days, the economic luminaries on Capitol Hill unveiling a special tax on the nation’s top earners to pay for the 1,000+ page health care bill… that no one has actually read.

Without even a cursory understanding of the bill, Congress is proposing to legislate the majority of Americans into health care by legislating a minority of Americans out of their wealth. Perhaps the ‘stimulus surtax’ will follow close behind.

Is it getting warm yet?

As a casual outsider who has checked out of the nation-state system, I find myself curiously peering inside from time to time wondering about that boiling point… what will it take for people to finally realize the peril that they are in?

It’s clear to me that subscribers to this letter are a cut above. You are a thinker who will keep working to improve your personal lot in life despite the foolish behavior of politicians.  But each of us has a breaking point… a point where we, like Howard Beale in the film Network (clip below), decide that we’re just not going to take it anymore.

What’s your breaking point?  I’d like to know.  Make your voice heard by commenting below.