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About The Author:
John Schroder of Ascot Advisory Services writes articles for a number of publications and e-zines regarding topics and issues of interest or concern to clients.  As an expatriate himself, John has lived abroad for many years, and assists clients with services related to the topics on this web site.
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Our June 15, 2007 Newsletter Edition
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IN THE NEWS:
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ECONOMISTS FORSEE 2007 GROWTH AS MOST SLUGGISH IN 5 YEARS
May 21, 2007 - By Jeannine Aversa, Associated Press
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WASHINGTON - Weighed down by a housing slump, the economy in 2007 will log its most sluggish growth in five years. But that showing should not cause businesses to really clamp down on hiring, economic forecasters say.  A forecast released today by the National Association for Business Economics puts the growth of the gross domestic product at 2.2 percent for this year. The rate was 2.7 percent in the group's previous survey, in February.  If the latest prediction proves correct, the growth rate would be the weakest since 2002. Back then, the fragile economy was emerging from a recession and grew by just 1.6 percent.  The expansion has descended from its cruising altitude, said the association's president, Carl Tannenbaum, chief economist at LaSalle Bank.  The main culprit is the sour housing market. It fell into a slump last year after a five-year boom. Nearly half of the forecasters think the market will not reach its bottom until this winter or later.
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http://www.chron.com/disp/story.mpl/business/4821271.html
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EDITORS NOTES:  In another related news story from the same day, the above journalist reported: Federal Reserve Chairman Ben Bernanke says he doesn't believe the economy will slide into recession this year, nor do Bush administration officials and many economists. But ex-Fed chief Alan Greenspan has put the odds at one in three.  As the famous Mr. Ripley used to say:  Believe it or Not.
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A NOT-SO-TRADITIONAL LOOK AT BECOMING AN EXPATRIATE
By Beth Monkarsh - Alumna of 2006 (George Washington University) 5/14/07
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BUENOS AIRES, Argentina - Why did I decide to move to Buenos Aires straight out of graduating from GW? Everyone asked me back in the States, and every Argentine I meet continues to inquire.  Had I ever been to Argentina? No. Did I have a job lined up for when I arrived? No. An apartment? Nope. Family, friends? Did I have any idea what I was going to do in a foreign country, alone and without any connections?  I could - and do - list many reasons for my decision to move abroad. I wanted a drastic change. I wanted to become fluent in Spanish. I wanted to travel. I wanted to avoid the reality that my career as a professional student was over. But more than anything, the single episode that motivated me to flee the comfort of the States was a box of latex gloves.  It was a Friday afternoon in mid-April when I had my first big job interview. It was the kind of job a journalism major salivates over: working as a copy editor for The Washington Post. In reality, copy editor was code for a job in the mailroom. My job: to open the reporters' mail and, to assist me in my work, my interviewer pointed to a large box of latex gloves. They were for my own protection, in case opening up the reporters' mail got messy or arsenical.  As I stood outside The Post after my interview, I felt deflated. After all the courses, all the good grades and non-paying internships, my first job out of college was going to be shifting through mail and checking for suspicious substances?  Like any college student, in moments of depression and anxiety, I went out to my sorority's formal and drank like I had just turned 21. After waking up the next day with a hangover I should have known how to avoid by senior year and a sprained ankle neither my date nor I could explain, I made my decision to move to Argentina - and just 6 weeks shy of graduation.  When I first told people about my newfound post-college plan, no one really believed me.  You mean like a vacation, right? my parents asked nervously, still unsure as to if Argentina was under military regime.  You love D.C. You don't really want to move and have to start over again, friends said. To be fair, no one took me very seriously because I'm not known for my spontaneity.  I've always been a girl with a plan. In fifth grade, I told my parents I was going to leave California and go college on the East Coast, by sixth I had decided to become a print journalist and after seeing a replica of Picasso's Guernica in eighth grade, I decided to study abroad in Madrid.  I fulfilled all the promises and goals I made to my 13-year-old self but it stunted me. I didn't realize until last April that I had managed to artfully avoid making a decision that would substantially impact my future since my Bat Mitzvah years.  Once I made my decision, I acted pretty quickly and had a ticket by the beginning of June to leave for the first week of September. As planned, I arrived in Buenos Aires sans job or apartment and yet, through the weeks and then months, I managed to create a niche for myself. I found a great apartment, a decent job, friends and even family.  Being an expatriate isn't for everyone and for many the appeal lies mostly in the fantasy. But post-college, everyone has to take some chances, some risks - eagerly or reluctantly. For me the biggest difference between college life and the real world is the decision of how big a risk you are willing to take on yourself. Everyone has had a latex glove experience that made him or her say, I want more than this.
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http://media.www.gwhatchet.com/media/storage/paper332/news/2007/05/14/Life/
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EDITORS NOTES:  Read the next article below from another young American woman doing the same thing.  Mere coincidence, or is this a new trend?  If a new trend (and of course the evidence is certainly not in just yet or concretely enough to say that it is), then why are well educated young people from the United States leaving almost directly after graduation?
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EXPATRIATE TAKES LEAP OF FAITH, RELOCATES TO ARGENTINA
By Soyia Ellison, For the Journal-Constitution, 05/27/07
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Buenos Aires, Argentina - In 24 hours, I'll be homeless, in a country where I barely speak the language. And where I don't know anyone.  A couple of months ago, when I announced I was quitting my job and moving to Buenos Aires to do some writing and learn Spanish, people I barely knew came by my desk to congratulate me and confide that I was doing what they'd always wanted to do.  Oh, they didn't necessarily want to go to Buenos Aires. But they wanted to go somewhere, far away from their jobs and their families, and live the life of an expatriate. I was so brave, they said. I started to feel a little smug. But what I feel at the moment is panicked.  Setting out on this adventure wasn't easy. I am not a free spirit. I'm the oldest child, the responsible one who's worked steadily since graduating from college. I agonize over the smallest of purchases. I squirrel away money in 401(k)s and Roth IRAs. And yet, here I am, unemployed in a foreign land.  Buenos Aires had captivated me 18 months earlier, when I took a weeklong vacation with a friend. Argentina's capital city has a definite European flavor, its hodgepodge of architectural styles reflect the large numbers of Spanish, Italian and Germans who settled here. Its people are beautiful and friendly. And since the peso crisis of 2002, it is unbelievably affordable.
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http://www.ajc.com/news/content/travel/otherdestinations/int_stories/2007/05/24/0527buenosaires1.html
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EDITORS NOTES:  I have made the comment that over the years, our clients have become younger and younger.  Whereas we used to see mostly retirement aged persons, of those heading very close to retirement, we are NOW seeing young families and young business owners.  The New York Times recently reports on young Americans in Poland (May 27, 2007) and writes the following:
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There is a lot of creative energy here, said Garrett Van Reed, 25, a writer from Pennsylvania, who is part of a growing expatriate community that is turning Krakow into Eastern Europe's newest bohemian capital.  There's tons of artists and street performers. And there is always something going on in Rynek Glowny, he said, referring to the picturesque main square.  You are constantly stumbling upon something new.  And with the euro climbing against not only the dollar but other foreign currencies, too, younger travelers have another reason to flock to Poland's second city. At about 2.9 Polish zloty to the dollar, Zywiec beers are still under $2, dinners rarely exceed $10 a person and a hostel bed goes for $15 a night.  Krakow has exploded, said Thymn Chase, 26, a musician and writer who moved to Krakow shortly after graduating from Skidmore College in 2003, and started Lost in Krakow, an English-language-zine, which he first published in September to give voice to the growing expat community. A brooding man with a goatee and long hair, Mr. Chase embodies the backpacker-philosopher type who might have chain-smoked in Prague during the early 1990s. Within a half-hour of arriving in Krakow, I knew this is where I wanted to be, he said over a beer at Lokator, a new lounge on Ulica Krakowska.  Krakow has an incredible artistic atmosphere. In October, a dozen expats and Poles gathered at Mr. Chase's grungy apartment in Old Town. Sprawled on beat-up couches and flea-market chairs, they were a motley crew of unemployed artists, Web designers, writers and musicians eager to make their mark as cultural pioneers, colonizing a new frontier in Eastern Europe.  You don't have the pressures of London, New York or Austin. And you don't need two jobs to survive. (end of New York Times copy)
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http://travel.nytimes.com/2007/05/27/travel/
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So, the reason for moving to Poland is that you do NOT need TWO JOBS to survive, so says the young American.  Life is better, more relaxed and more enjoyable than the life they left behind?  It would seem then that many young people from America are expatriating before they even start their careers or before they become embroiled in the daily grind of life after University.  Stay tuned, but if the United States is losing its talented and educated young people so early in life, this is a very significant and important trend to keep an eye on (as it pertains to the long-term economic and social fallout in the US, again - if indeed this is a new trend as we suspect it might be).
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BUSH MAKES POWER GRAB - May 24, 2007
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President Bush, without so much as issuing a press statement, on May 9 signed a directive that granted near dictatorial powers to the office of the president in the event of a national emergency declared by the president.  The National Security and Homeland Security Presidential Directive, with the dual designation of NSPD-51, as a National Security Presidential Directive, and HSPD-20, as a Homeland Security Presidential Directive, establishes under the office of president a new National Continuity Coordinator.  That job, as the document describes, is to make plans for National Essential Functions of all federal, state, local, territorial, and tribal governments, as well as private sector organizations to continue functioning under the president's directives in the event of a national emergency.  The directive loosely defines catastrophic emergency as any incident, regardless of location, that results in extraordinary levels of mass casualties, damage, or disruption severely affecting the U.S. population, infrastructure, environment, economy, or government functions.  When the President determines a catastrophic emergency has occurred, the President can take over all government functions and direct all private sector activities to ensure we will emerge from the emergency with an enduring constitutional government.  Translated into layman's terms, when the President determines a national emergency has occurred, the President can declare to the office of the presidency powers usually assumed by dictators to direct any and all government and business activities until the emergency is declared over.  Ironically, the directive sees no contradiction in the assumption of dictatorial powers by the President with the goal of maintaining constitutional continuity through an emergency.  The directive specifies that the assistant to the President for Homeland Security and Counter Terrorism will be designated as the National Continuity Coordinator. Further established is a Continuity Policy Coordination Committee, chaired by a senior director from the Homeland Security Council staff, designated by the National Continuity Coordinator, to be the main day-to-day forum for such policy coordination.  Currently, the assistant to the president for Homeland Security and Counter Terrorism is Frances Fragos Townsend. Townsend spent 13 years at the Justice Department before moving to the U.S. Coast Guard where she served as assistant commandant for intelligence. She is a White House staff member in the executive office of the president who also chairs the Homeland Security Council, which as a counterpart to the National Security Council reports directly to the president.  The directive issued May 9 makes no attempt to reconcile the powers created there for the National Continuity Coordinator with the National Emergency Act. As specified by U.S. Code Title 50, Chapter 34, Subchapter II, Section 1621, the National Emergency Act allows that the president may declare a national emergency but requires that such proclamation shall immediately be transmitted to the Congress and published in the Federal Register.  A Congressional Research Service study notes that under the National Emergency Act, the President may seize property, organize and control the means of production, seize commodities, assign military forces abroad, institute martial law, seize and control all transportation and communication, regulate the operation of private enterprise, restrict travel, and, in a variety of ways, control the lives of United States citizens.  The CRS study notes that the National Emergency Act sets up congress as a balance empowered to modify, rescind, or render dormant such delegated emergency authority, if Congress believes the president has acted inappropriately.
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NSPD-51/ HSPD-20 appears to supersede the National Emergency Act by creating the new position of National Continuity Coordinator without any specific act of Congress authorizing the position.  NSPD-51/ HSPD-20 also makes no reference whatsoever to Congress. The language of the May 9 directive appears to negate any a requirement that the President submit to Congress a determination that a national emergency exists, suggesting instead that the powers of the executive order can be implemented without any congressional approval or oversight.  Homeland Security spokesperson Russ Knocke affirmed that the Homeland Security Department will be implementing the requirements of NSPD-51/HSPD-20 under Townsend's direction.
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http://www.chattanoogan.com/articles/article_107907.asp
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EDITORS NOTES:  Before we pass comment on what probably is one of the most important (and disturbing as well) political acts taking place inside a so-called free democratic nation, here is the link to the White House web site that offers the information quite directly, and below some additional news articles as well:
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http://www.whitehouse.gov/news/releases/2007/05/20070509-12.html
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NEW LAW OF THE LAND BYPASSES CONGRESS - Friday - May 25, 2007
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Without input or approval of, and lacking any oversight by Congress, President George W. Bush signed two new directives on May 9 that grant extraordinary, nearly dictatorial powers to the office of the president in the event of a national emergency declared by the president. The directives - National Security Presidential Directive 51 (NSPD-51) and Homeland Security Presidential Directive 20 (HSPD-20) - establish under the office of the president a new national continuity coordinator whose job is to make plans for National Essential Functions of all federal, state, local, territorial and tribal governments, as well as private sector organizations to continue functioning under the president's directives in the event of a national emergency.  In the directives, catastrophic emergency is loosely defined as any incident, regardless of location, that results in extraordinary levels of mass casualties, damage, or disruption severely affecting the U.S. population, infrastructure, environment, economy, or government functions.  The news of the directives was revealed by Jerome R. Corsi, Worldnetdaily.com. Corsi reports that, in essence, if the president determines a catastrophic emergency has occurred, the president can take over all government functions and direct all private sector activities to ensure we will emerge from the emergency with an enduring constitutional government.  In simpler terms according to Corsi, a Political Science PhD and co-author of several books including Unfit for Command: Swift Boat Verterans Speak Out Against John Kerry (co-authored with John O'Neill), following his declaration of a national emergency, the president can now declare to the office of the presidency powers usually assumed by dictators. At least until the emergency is over. 
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Corsi also reports the directive makes no attempt to reconcile the powers created for the national continuity coordinator with the National Emergency Act, which requires that such proclamation shall immediately be transmitted to the Congress and published in the Federal Register.  The National Emergency Act sets up Congress as a balance empowered to modify, rescind, or render dormant such emergency authority if Congress believes the president has acted inappropriately, according to a Congressional Research Service study.  NSPD-51 and HSPD-20 appear to supersede the National Emergency Act through the creation of the new position of national continuity coordinator. The new position is created without any specific act of Congress authorizing the position.  There is no reference to Congress in the new directive, and Corsi reports the language of the directive appears to negate any existing requirements that the president submit to Congress any determination that a national emergency exists.
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http://www.tanasijournal.com/
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BUSH TO BE DICTATOR IN A CATASTROPHIC EMERGENCY
By Lee Rogers - Global Research, May 21, 2007
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The Bush administration has released a directive called the National Security and Homeland Security Presidential Directive. The directive released on May 9th, 2007 has gone almost unnoticed by the mainstream and alternative media. This is understandable considering the huge Ron Paul and immigration news but this story is equally as huge. In this directive, Bush declares that in the event of a Catastrophic Emergency, the President will be entrusted with leading the activities to ensure constitutional government. The language in this directive would in effect make the President a dictator in the case of such an emergency.  So what does this mean? This is entirely subjective and doesn't provide any real concrete definition of what such an emergency would entail. Assuming that it means a disaster on the scale of the 9/11 attacks or Katrina, there is no question that the United States at some point in time will experience an emergency on par with either of those events. When one of those events takes place, the President will be a dictator in charge of ensuring a working constitutional government.
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The language written in the directive is disturbing because it doesn't say that the President will work with the other branches of government equally to ensure a constitutional government is protected. It says clearly that there will be a cooperative effort among the three branches that will be coordinated by the President. If the President is coordinating these efforts it effectively puts him in charge of every branch. The language in the directive is entirely Orwellian in nature making it seem that it is a cooperative effort between all three branches but than it says that the President is in charge of the cooperative effort.  Further on in the document it states the following.
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The President shall lead the activities of the Federal Government for ensuring constitutional government.
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This directive on its face is unconstitutional because each branch of government the executive, legislative and judicial are supposed to be equal in power. By putting the President in charge of coordinating such an effort to ensure constitutional government over all three branches is effectively making the President a dictator allowing him to tell all branches of government what to do.  Even worse is the fact that the directive states that the Secretary of Homeland Security will serve as the lead for coordinating overall continuity operations. We already know that the Homeland Security department is not really working to secure the homeland. Instead the Homeland Security department is really working to enslave the homeland just like the Home Office over in the United Kingdom has made that country an Orwellian hell of closed-circuit TV spy cameras. If such an emergency is declared, we can only guess what sort of surprises the Homeland Enslavement department will have for us.
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http://www.globalresearch.ca/
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MEMORIALIZING AMERICA: July 4, 1776 to May 9, 2007?
May 25, 2007
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Just in time for Memorial Day, America, land of the free and home of the brave and the best hope for all of humankind, appears to have died.  Although conservatives have been warning of the imminent death of our constitutional republic for some time, the death still comes as a shock to many.  The cause of death appears to be abuse by the executive branch, although the Bush administration has refused comment to date.  All that is known for sure is that on May 9, 2007, President George W. Bush signed a presidential directive that would grant dictatorial powers to the office of the president in the event of an emergency.  And who would be authorized to declare such an emergency?  Hard to believe, but that would be the same person to whom those dictatorial powers would accrue; namely, the president.  Allowing dictatorial powers to end up in the hands of a termed-out president with approval ratings hovering around 30 percent probably does not pass the Civics 101 smell test.  Even worse, this president's woes are compounded by an extremely unpopular war, a hostile congress including members of his own party, and an amnesty scheme that could destroy American sovereignty, language, and culture by legalizing 12-30 million third world illegal aliens.  Given the political realities that George W. Bush faces, one cannot help but wonder if the president's May 9 directive will, in effect, also serve as a death certificate for the most successful and prosperous society in recorded human history?
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http://www.americandaily.com/article/18967
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EDITORS NOTES:  Once again, why devote so much time and attention to a seemingly obscure presidential order not mentioned in the least by any of the mainstream media organizations, nor even commented upon by representatives in Congress (the US legislative branch)?  Perhaps that fact alone is enough to warrant your attention.  But for those that argue such Emergency Powers were enacted in the past (during the so-called Great Depression of the 1930s) it is noted that: the previous National Emergency Act (enacted during the Depression) sets up congress as a balance empowered to modify, rescind, or render dormant such delegated emergency authority, if Congress believes the president has acted inappropriately.  This new presidential order would seem to take the legislative branch (Congress) out of the picture completely.  But since we are making references to the politics of the Depression Era, IS it mere coincidence that this theme comes up again now in 2007?  Which is to ask:  IS this new authority meant to quell or address FOREIGN threats, or IS it meant to quell or address DOMESTIC unrest that may be looming because of the economic situation that is developing?  I do not know the answer, but pose it as a question none the less.  Alan L. Roland comments (and is someone who makes the connection with a possible move towards war with Iran instead of our speculation towards other domestic issues):  Blueprints for a dictatorship which includes, of course, classified Continuity Annexes which I am sure cover mass civil unrest and rendition procedures utilizing FEMA and the National Guard, which is now completely under control of the president.
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See: http://blogs.salon.com/0002255/2007/05/26.html
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Summing up or making a connection between economics (results of globalization and income inequalities) plus the tendency towards tyranny , here is a quote from a famous Greek philosopher that lived more than 2,000 years ago, who went by the name of Aristotle:
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It is therefore the greatest of blessings for a state that its members should possess a moderate and adequate property.  Where some have great possessions, and others have nothing at all, the result is either an extreme democracy or an unmixed oligarchy; or it may even be-indirectly, and as a reaction against both of these extremes- a tyranny.  Where democracies have NO middle class, and the poor are greatly superior in number, trouble ensues, and they are speedily ruined.
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If you understand the meaning of this quote and how it relates to the above news stories plus the current financial environment (or we can say chain of events involving the economic schematic), my only advice is to Think About It.
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NAFTA: KICKED UP A NOTCH - By Laura Carlsen - May 24, 2007
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The North American Free Trade Agreement is the world's most advanced example of the U.S.-led free trade model. It is not just about economics any more. The expansion of NAFTA into the Security and Prosperity Partnership reveals the road ahead for other nations entering into free trade agreements. It is not a road most nations -- or the U.S. public -- would take if they knew where it led.  The first problem is that very few people know about this next step of  deep integration.
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The official U.S. web page describes the SPP as a White House-led initiative among the United States and the two nations it borders, Canada and Mexico, to increase security and to enhance prosperity among the three countries through greater cooperation.  White House-led is a key element. When the heads of state met in Waco and in subsequent meetings to follow up on NAFTA, both Canada and Mexico had some very serious concerns. Canada was embroiled in trade conflicts with the United States (soft lumber, beef) that it wanted to see resolved through NAFTA mechanisms. Mexico's right-wing government, meanwhile, has found increasingly untenable the stark contradiction between open borders for merchandise and the criminalization of immigrants. On the one hand, it had a commitment to greater integration under the free trade model; on the other it was under tremendous political pressure to defend Mexicans migrating to the United States. None of these issues made it into the SPP. U.S. security concerns, and corporate demands for fewer obstacles to border-hopping production and sales, hijacked the tri-national agenda.  Instead, the SPP has three fundamental objectives. The Bush administration wants to create more advantageous conditions for transnational corporations and remove remaining barriers to the flow of capital and cross-border production within the framework of NAFTA. It wants to secure access to natural resources in the other two countries, especially oil. And it wants to create a regional security plan based on pushing its borders out into a security perimeter that includes Mexico and Canada.
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NAFTA was signed before the current Bush administration took office and before the terrorist attack of September 11.  SPP on the other hand, was born in the global war on terror era and reflects an inordinate emphasis on U.S. security as interpreted by the Department of Homeland Security. The head of Homeland Security Michael Chertoff, along with Secretary of State Condoleezza Rice and Mexico's Secretary of Finance Carlos Gutierrez, represent the three ministries charged with attending SPP ministerial conferences.  National security is not simply part of the political sell. It is central to the NAFTA-plus agenda. The SPP explicitly ties together the U.S. trade and security agendas under the pretext of greater integration. Its accords mandate border actions, military and police training, modernization of equipment and adoption of new technologies, all under the logic of the U.S. counter-terrorism campaign.  For Mexico and Canada, these new security priorities attached to regional integration are not only misplaced, but expensive and politically threatening. Mexico has historically been reticent to allow U.S. agents to operate in its territory because, historically, the United States has posed the greatest threat to its national security. Mexico also has a policy of neutrality in international affairs that prevents its government from becoming embroiled in conflicts that do not directly affect the nation.  There are many problems with the SPP and the White House goal of deep integration.  Perhaps the most fundamental is that it takes place at a time when North American integration faces a crisis. Economic integration under NAFTA has led to job loss and the erosion of job security and quality in the United States, while also increasing unemployment in Mexico. Over thirteen years, the model has confirmed, rather than reversed, Mexico's status as the less-developed partner. The rise in immigration to the United States attests to the failure of NAFTA as a development mechanism. Moreover, it has not increased the U.S. competitive edge although it has delivered record profits to a few major global traders. Unfortunately for the majority, those few are now driving the efforts to deepen integration under the NAFTA-plus-Homeland-Security model.  But to deepen integration would mean deepening the contradictions and the problems that have led most Americans to express their rejection of the free-trade model in recent polls, and that has spurred widespread public protest in Mexico and Canada.  Currently four more free trade agreements are before the U.S. Congress. The Security and Prosperity Partnership for North America demonstrates that this model of economic integration has taken on a momentum of its own, unaccountable to legislatures and citizens, and driven by interests that do not represent the public good
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http://www.speroforum.com/site/article.asp?idarticle=9616
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EDITORS NOTES:  Mr. James Babka says (click on the link to read the full article) or asks in the article titled - Immigration Reform Attempt to Impose Stealth National ID?
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http://www.freemarketnews.com/Analysis/64/7626/ji.asp.asp?wid=64&nid=7626
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Could a Real ID (national ID) become a hallmark of citizenship? There are those (as has been much commented on in the alternative press) attempting to create a North American Union out of Canada, Mexico and the United States. The ability to extend such a national ID to citizens of other nations or to meld IDs of several nations could make such a merger far easier.  Under REAL ID deadbeat Moms and Dads, drunk drivers, jaywalkers, and anybody else who does anything wrong at any time, can be punished simply and quickly, without prison, and perhaps without trial, simply by turning them into a non-person in terms of the required employment background check. Let's say you don't ever do anything wrong, but you still end up with a black mark next to your name anyway, just like what has happened to people with the terrorist watch list? How long will it take, and how much will it cost, to get your name cleared? And what if you can't get your name cleared, simply because of bureaucratic inefficiency, like with the terrorist watch list? Will you starve because you can't get a job? And what about your family? Your kids?
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Ms. Diane M. Grassi in an article titled: NAFTA Superhighway has Guiliani as Key Player, posted on May 7, 2007 says (see:  http://www.hawaiireporter.com/) writes:
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Legally, a treaty would require a two-thirds majority of the U.S. Senate to concur for its ratification as determined by the U.S. Constitution. Cleverly, however, since the SPP is not a treaty, the President was able to avoid such a required procedure by using the power of the Executive Branch. And in August 2006, President Bush additionally crafted a Signing Statement to passed legislation declaring it Constitutional for his administration to withhold information from or deny authority required from the U.S. Congress on the SPP and its negotiations.  With the recent swell and frequency of free trade agreements being passed in the U.S. Congress in the past few years alone, seemingly rushed through without genuine debate or challenge, it would be easy for the public to assume that the SPP was authorized by Congress and thinking matters pertaining to it were in the best interest of the American people. And sadly, many U.S. free trade agreements do not directly better the workers of the countries involved, but are solely reserved for big business profiting from cheap labor, and foreign lobbyists and bureaucrats enriching themselves.  But the SPP is cleverly disguised as a boon for all three North American countries and its citizens, yet has lacked input or oversight from federal, state, or municipal legislators nationwide.
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IN VERMONT, NASCENT SECESSION MOVEMENT GAINS TRACTION
By John Curran, Associated Press - June 3, 2007
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MONTPELIER, Vt. --At Riverwalk Records, the all-vinyl record store just down the street from the state Capitol, the black US Out of Vt.! T-shirts are among the hottest sellers. But to some people in Vermont, the idea is bigger than a $20 novelty. They want Vermont to secede from the United States -- peacefully, of course.  Disillusioned by what they call an empire about to fall, a small cadre of writers and academics is plotting political strategy and planting the seeds of separatism.  They've published a Green Mountain Manifesto subtitled Why and How Tiny Vermont Might Help Save America From Itself by Seceding from the Union.  They hope to put the question before citizens at Town Meeting Day next March, eventually persuading the state Legislature to declare independence, returning Vermont to the status it held from 1777 to 1791.  Whether it's likely is another question.  But the idea has found plenty of sympathetic ears in Vermont, a left-leaning state that said yes to civil unions, no to slavery (before any other) and last year elected a socialist to the U.S. Senate.  About 300 people turned out for a 2005 secession convention in the Statehouse, and plans for a second one are in the works. A poll this year by the University of Vermont's Center for Rural Studies found that 13 percent of those surveyed support secession, up from 8 percent a year before.  The argument for secession is that the U.S. has become an empire that is essentially ungovernable -- it's too big, it's too corrupt and it no longer serves the needs of its citizens, said Rob Williams, editor of Vermont Commons, a quarterly newspaper dedicated to secession.
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http://www.boston.com/news/local/vermont/articles/2007/06/03/
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EDITORS NOTES:  The new independent nation of Vermont?  Will the new country called Vermont become a member of NAFTA?  Nah, probably not in both cases, but it is interesting this is being talked about in a state that came in existence in 1791 after its secession, so to speak,  from New York and New Hampshire (both claimed the area of Vermont belonged to each other, prior to Vermont becoming a state in its own right).
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NEW YORK CITY'S POOREST - By Rich Herschlag
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To go along with law enforcement using dum-dum bullets, the City of New York has enacted yet a new dum-dum policy. Since an incredibly ill-advised settlement in 2005, the starting yearly salary for police officers has been cut to $25,100. This is not a typo. The first two digits have not been reversed. The cut represents a return to the starting pay for cops in the year 1986. We knew the '80s were coming back eventually, but who knew it would be the salaries?  Forty percent pay cuts are normally reserved for faltering professional athletes looking to make a comeback and airline employees after a reorganization. The city is barely hospitable for citizens making around $40,000. At $25K, one can hardly afford the court costs for filing bankruptcy. Carl Pavano makes more per inning sitting on the DL. Michael Bloomberg's blind trust generates more in less time than it takes to play down talk of a presidential run. Bernie Kerik and Judy Regan used to drop more on dinner and a nightcap.  Bizarrely, the pay cut was part of an overall effort to recruit more police officers. And this move will put more cops on the street -- in cardboard boxes. Though City officials may be guilty of smoking the same crystal meth they have charged the police with removing from the streets, there is a hidden logic at work. As one theory goes, nothing will make the police more sensitive to the working poor than becoming one of them. Therefore, in addition to hand-to-hand combat, crowd control, conflict resolution, and hostage negotiation, police training will now include squatting, panhandling, and cashing food stamps. Their new motto will be to protect and serve and scrounge.  There are other not-so-obvious benefits to a police salary so small it may not jeopardize their amateur status. The policy has effectively narrowed the income gap between regular and auxiliary cops, thereby leveling the playing field not only for professional versus aspiring peace officers but also for career versus up-and-coming criminals. In the life skills department, recruits will learn how to live off of credit cards, making NYPD Blue NYPD Red. And finally, nothing will steel inexperienced police recruits for long hours on the job quite like moonlighting on docks, warehouses, and 7-Elevens.  Fortunately, there are plenty of perks. The benefits package still includes suicide counseling and medical treatment for depression. Appropriately, broken window policing will now be carried out by broke civil servants. For ambitious young officers looking to make ends meet, paychecks can be fattened by cleaning up those very same broken windows. Officers inclined to tidying while on duty will find a little extra something in their pay envelopes come Christmastime. And for the many recruits facing possible eviction, it's reassuring to know squad cars are more plushly appointed than ever.  While the city is already facing a shortfall of almost 1,200 officers, who are we to ask a media mogul billionaire-turned-politician to apply simple supply-and-demand economics to recruitment efforts? This is a man who last year personally fired a City employee for having video solitaire on his PC, saving the City possibly minutes in lost productivity. Though critics say the new pay scale has helped with police recruitment the way roadside ambushes have drawn recent high school graduates to Iraq, there is cause for optimism. The NYPD will soon have its pick from a wide variety of petty thieves, spousal abusers, drug addicts, and schizophrenics, all of whom bring to the table special insight into the criminal mind.
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As Michael Bloomberg brings his philosophy of governance to a national audience, there are still greater lessons to be learned. For instance, when trimming a municipal budget, always start with core services while leaving in place funding for botanical exhibits and tourist kiosks. Moreover, competitive starting salaries and recruitment bonuses may appear to attract quality candidates, but in reality they promote softness. What is needed is a kind of economic hazing, the theory being if you can make it through a year of poverty and homelessness, hanging out in a Dunkin' Donuts talking about treatment for your intestinal ulcer should be a relative breeze.  Coincidence or not, earlier this month the Drum Major Institute came out with a study that concluded a middle class existence in New York City required a yearly income of at least $135,000. Some say this paints a bleak picture of the city's future. On one hand you have a Tribeca studio apartment overlooking an air shaft fetching $1,250 a square foot. On the other hand you have brave young officers sworn to uphold the law raking in $371 a week on a waiting list for the air shaft.  And therein lies the solution. Luxury condos have both the means and incentive to hire and train their own police officers, who will receive superior salaries, exhibit fierce loyalty to their employers, and remain unhampered by nuisances like the Miranda Law. A new bold breed of privatized cop will roam the streets, as long as they are the specific streets paying their wages. Let the recruiting begin!
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http://www.freezerbox.com/archive/article.php?id=493
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EDITORS NOTES:  The above article, which was sent in by a client of ours in New York, highlights the idea that downward pressures on wages do not only apply to the private sector alone.  Here we have a case of new police officers earning US$1,930 per month, BEFORE taxes are taken out, and I can only imagine what they have left over afterwards (actually the author got it right, it comes out to about US$1,400 per month after taxes).  I wonder if the crooks in New York City, in a shall we say act of civic generosity, have decided to take a pay cut also, or in the least, simply decided to rob less going forward?  According to the FBI, the murder rate increased again in 2006 while of course robberies are up 6 percent.  Is having underpaid cops really the answer?      
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VIOLENT CRIME INCREASING IN US, FBI REPORTS - Associated Press - June 4, 2007
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WASHINGTON: The murder rate rose slightly in the United States last year, but the number of robberies skyrocketed by 6 percent, preliminary FBI data released Monday show.  The statistics were part of an overall 1.3 percent rise in violent crime across the country in 2006, the second consecutive annual increase.  Car thefts, arsons and other property crimes dipped for a second straight year, the data show.  The modest increase in murders reflected a mixed bag for cities. The number of homicides in major metropolitan areas, those with at least 1 million residents, climbed by 6.7 percent. Smaller cities, meanwhile, saw their murders decrease by a collective 11.9 percent.  The spike in robberies marked the largest increase in any category of crime surveyed in the FBI report, which was compiled with data from more than 11,700 law enforcement agencies nationwide.
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http://www.iht.com/articles/ap/2007/06/04/america/NA-GEN-US-Crime.php
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EDITORS NOTES:  Does the increase in robberies have anything to do with the economy?  Of course, Ben Bernanke and folks at the Bush White House say don't worry about it (the economy, that is).  Cities with big increases in the number of murders included Orlando and Miami in Florida; Oakland and San Diego in California; Phoenix, Arizona; Corpus Christi, Texas; Grand Rapids, Michigan; Reno, Nevada and Little Rock, Arkansas.  Orlando, Florida has big increases in murder?  Isn't that the home to family friendly Disney World and cute Mickey Mouse?  What's the next news headline going to be - Goofy has got a gun?
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READERS WRITE IN:
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Hi John - I read your Dominican Republic Report about 4 to 5 years ago because of my frustration with the situation in the U.S. and I now develop property in Bavaro.  I wanted to say thanks, and I will be adding your link to my new website.  My old one will be up for about one more week.  Please look at what your advice has accomplished.  I began with 1 apartment and now am on number 7.
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EDITORS REPLY:  Thank you for your letter.  Incredibly enough, we do have a number of clients that are doing positive things, and are both making money and living what they consider to be a better life.  I think the point is, while relocating to another country has its problems and adjustments, nothing is impossible, and one can perhaps find success as a result (both materially, and otherwise as well).
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ANOTHER READER WRITES:
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Hi, John - I think you forgot to mention a very important part to consider when thinking of living in the Dominican Republic, and that is the weather! I've gone to visit there twice and if it weren't for the burning sun, I would have enjoyed my stay.  I can barely stand the weather when I visit. I can't imagine living there.  The heat gets to me so much that I don't want to lift a finger. I normally take  2-3 showers a day, but showering seems like such a chore there! I can't stand the sticky feeling on my face with 10 layers of dirt piled on it.   Mind you, I have family there so I'm obligated to visit every couple of years.  I do have to admit that I end up missing it afterwards!  I hope you enjoy your time there.
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EDITORS REPLY:  Well, I think it is true that any time you change climate, that your body does take about one year or two to adjust.  I can remember laughing at many local Dominicans who put on a sweater or light jacket during December, January and especially February.  I have to admit, I am not laughing any more because I do the same thing.  And forget about visiting Constanza in February (you will need a heavy duty jacket for the evenings, and it is no joke if you forget to bring it).  On the other hand, never having to shovel snow again does not bother many people one bit, so take your preference I guess.
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ANOTHER READER WRITES:
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Dear Editor: (Regarding The Total Picture of Life in the Dominican Republic).  You always make good comparison cases for why the DR is better than the USA.  But a balanced coverage would also include the undeniable negatives:  1.  Poverty/hunger---sea refugees to Puerto Rico, 2.  Constant electrical outages,  3.  Traffic/pollution in Santo Domingo,  4.  Malaria risk,  5.  Hurricane risk,  6.  Etc.   Admittedly no place is perfect.  And I do see the USA  trending away from the freedoms that made it the greatest country.  One should, however, always weigh both the pros and the cons before jumping into the deep end.  I think you should share at least 2 or 3 local newspaper headlines every time you send out an Ascot-Advisory to balance and support your points.
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EDITORS REPLY:  I do appreciate your letter and your opinion, but my true goal has always been to motivate readers to think, and perhaps more importantly, to think for themselves (and not necessarily to make a specific comparison case that the Dominican Republic is superior to the United States as the main goal or agenda per say).  Indeed, we have some clients that very much like the Dominican Republic, and some clients who do not.  Some of our clients prefer Panama, Ecuador, Argentina, Belize, South Korea, South Africa, just to name a few other countries, and I am not offended at all when that is so.  Which is to point out, there is something far deeper and far more important going on, other than to simply engage in a school yard argument of my country is better than yours.  There is crime, traffic jams, mosquitoes, poor people, wealthy people, political corruption, power outages, stray dogs, and whatever else the world over, in every country to one degree or another.  Once again, the real question remains to be:  Is there more, less or about the same of these things elsewhere (in comparison to where you are living at the moment) ?  And with that said, what are some of the other issues motivating people to relocate regardless:  Taxes, Cost of Living, Freedom or Civil Liberty Issues, Quality of Life?  For sure, there are a number of economic issues that historically have almost always resulted in certain outcomes, even though our noble politicians would love for us to believe that the laws of physics and economics no longer apply.  Which is to say in terms of what is going on inside the US:  the growing inequality of incomes, the INCREASE in the percentage of citizens living in poverty, a very low domestic savings rate and in recent years - negative personal savings rate, loss of jobs and technology (cutting edge research and development is now being done elsewhere), and the list goes on.    
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When examining the bigger picture, as they say, many Americans are indeed starting to question the future economic prospects and quality of life issues going forward in the US, and often enough, making a decision to relocate as a result.  Your focus seems to be on the political or civil, whereas I believe it is the economic and financial issues that are driving much of these changes, and that is the real problem or concern because this involves matters not always under domestic control (whereas politics are of course domestic).  And indeed your thinking is very typical that is so common with many Americans, and I do not say this to insult you.  Most Americans do not see this in themselves, as it is something indoctrinated or instilled at a very early age (the US is the greatest nation on earth, always moral, always correct, the best economy, the rest of the world is full of uneducated pigmies, etcetera and so on).  Such blind nationalism and failure to think retrospectively and introspectively clouds the mind, and makes any suggestion to the contrary very painful to suggest or think about.  Many Americans do not want to think that their nation may be in decline, because this is in direct contrast to what they have been taught to believe their entire lives.  Thus the idea that another country may in fact offer a better life, economically or even politically, tantamount to a form of heresy or blasphemy.     
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Is expatriation the solution for everyone?  Of course not.  But I do think it is very interesting to see some people getting their emotions elevated over this issue, and it usually is the person that clearly understands what the possibly long-term result might be, and is also someone perturbed to see others fly the coop, as it were, when they cannot or will not leave themselves, for whatever reasons.  As I have said before, there will come a time, I believe, when there will be a backlash, both politically and socially if this continues (even though that will not solve the problem, but rather motivate people even more so to get the heck out of there).  You ask me directly why I do not highlight news items about crime or whatever else in the DR?  The very simple answer is, why bother?  Most Americans (but not all) already are brainwashed to believe the rest of the world is mired in poverty, unfair or failing political institutions, corruption and whatever other social or economic ills (issues or topics that they think or would prefer to believe are not so bad or perhaps even better inside the US, and always far worse elsewhere).  Instead, my goal or intent is to motivate you to think about what you do not know, or what you are not being taught by the so-called common wisdom.  The other negative stuff regarding other nations or life outside the US, most Americans are already convinced of, regardless if it is completely accurate or not, and regardless if I highlight it or not (which to say the commonly believed stereotype inside the US regarding life outside the US is negative regardless).  However (or ironically), many people in other countries are convinced that while the United States has (or had) tremendous material wealth, that the country and the society is morally and spiritually bankrupt.  Perhaps this explains why the sales of legal anti-depressants (such as Prozac) is now skyrocketing, not to mention the fact that the US consumes almost 70 percent of the worlds illegal drugs, while claiming a mere 4 to 5 percent of the worlds population.  Which is to ask, if the religion of America is consumerism and chasing the material, what is left of the believe system or the soul of the society when the money runs out?  Perhaps that is the true problem behind the drugs (both legal and illegal).  There are indeed many positive things that can be said about living in the US, but the same is true for living in many other countries as well - it all depends, at the end of the day when you add up your list of positives and negatives, which scores higher for you personally.  In summary, live where you want and do of course have your eyes wide open, both in terms of what is going on in the rest of the world AND your own country as well at the same time.  In this regard, I do agree with you.   
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ANOTHER READER WRITES:
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Hello John - Excellent newsletter, as always.  I heard something interesting on the radio today...Rush Limbaugh's show no less. A woman called in and mentioned that Bill and Hillary Clinton are building a mansion in the DR. I guess they're looking to bail out too, after they do whatever damage they can muster here in the U.S.  That made me think of something I've often thought...that even though there's lots of lip service from Congress and the Senate about money going offshore, they really don't want to close that offshore door completely, since many of them have moved, or are planning to move, whatever spoils they've accumulated through that offshore door themselves someday.  Keep up the great work.
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EDITORS REPLY:  Well, I believe there is no shortage of hypocrisy when the topic of politicians comes up.  Which is to say, they usually say one thing publicly and then go do something different.  But in terms of this theme specifically, a spokesperson for the Clintons in reply to this story that appeared in some US newspapers, denies that they are building a house in the DR, but of course the local rumor here is that they have bought property and are building using a nominee or third party proxy (I guess it would not look too good if someone running for President of the US was busy building a home in a foreign country - that would be gosh darn Un-American, no?).  Then again, who knows what is true and what is not?  I do know they visit the Dominican Republic quite a bit, whatever that might mean or tell you.   
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ANOTHER READER WRITES:
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If I open a high-yield peso account and then change what I receive in interest over to dollars, is that legal as long as I don't bring the money here to the U.S. to pay bills, buy a car, etc???
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EDITORS REPLY:  US citizens can legally open and own bank accounts, brokerage accounts, and make whatever other investments that they wish overseas, at least as far as the current regulations or laws are concerned in the US (some speculate that may change, but for the moment, that is the case).  However, US citizens are technically required to report and pay any related taxation on the interest or gains earned from such accounts.  There seems to be some sort of misunderstanding that providing US citizens do not repatriate those funds back to the US, that the interest earned is somehow tax-free as far as the US tax authorities are concerned, which is not the case.  Of course, on the other hand, interest on bank accounts or other kinds of investments may be locally tax-free in many, many countries and because of that fact, local financial institutions do not report to their own local governments, never mind any other foreign government.  But, in terms of the Dominican Republic, there are NO currency controls:  you can deposit funds, take them out and convert back and forth between Dollars, Pesos and Euros the whole day long if you wish.  Also, with many of the local banks in the DR, you can open a savings account in USD, Euros and of course Pesos as well - all at the same bank branch.
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ANOTHER READER WRITES:
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I am also interested in relocating to the D.R. and you mentioned about real estate bargains. I called and inquired about a 3 bedroom apt. in this new building called Torre Vierremar on the Maleacon on the corner of Pasteur Ave. The selling price was $485,000.00 U.S. Is that what the prices of apts. are actually going for in that country. I would love to have something close to the water and near all of the action....have any other options or suggestions?
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EDITORS REPLY:  There are a large number of high end luxury apartments being built at the moment in Santo Domingo, and of course existing apartments worth considering as well.  But your direct question seems to be: IS US$485,000 the typical or normal cost for a higher end apartment (condo) in Santo Domingo, and the answer to that question is NO.  There are a number of apartments on the market, some with ocean views and on the waterfront ranging from 2,000 square feet up to 2,700 square feet with prices from about US$200,000 to US$375,000.  And of course if you can consider living without an ocean view or on the waterfront, then in that case you can find new higher end luxury apartments ranging from say the equivalent of US$140,000 up to perhaps about US$200,000 all depending upon size, building amenities and so on.
© Ascot Advisory Services 2007

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