It’s predictable…
A government in need of cash will turn to destructive “solutions.”
Money printing, higher taxes, and more regulations often come first. But, unfortunately, these are just the hors d’oeuvres before a 10-course meal.
As they become increasingly desperate, governments implement increasingly destructive policies. This might include capital controls, price controls, people controls, bank holidays, currency devaluations, wealth confiscations, retirement account nationalizations, harassing domestic political opponents, and much more.
The same pattern has played out again and again around the world and throughout history. The worse a government’s fiscal health gets, the more destructive its policies become.
This is the root of political risk—the risk to your personal and financial wellbeing from your government.
It’s no secret that political risk is snowballing in many parts of the world. This is especially true in the US, Canada, and Europe, where welfare and warfare spending continues unabated.
It doesn’t matter which party is in power. They are all headed in the same direction, albeit at different speeds.
Somehow, someway, your home government will keep squeezing your pocketbook harder. It will keep subjecting you to escalating, arbitrary, and burdensome regulations, restrictions, and taxation.
In short, it’s only prudent to expect more government and less freedom.
Each week, the window to protect your personal and financial freedom closes a bit more.
Fortunately, thanks to international diversification, you don’t need to be hostage to a desperate and out-of-control government.
Most people have medical, life, fire, and car insurance. Of course, you hope you never have to use these policies, but you have them anyway. They give you peace of mind and protect you if and when the worst does happen.
International diversification is the ultimate insurance policy against an out-of-control government. I call it “freedom insurance.”
International diversification frees you from absolute dependence on any one country. Achieve that freedom, and it becomes challenging for any group of bureaucrats to control you. The results can be liberating.
Think of it like how a diversified investment portfolio helps to reduce the portfolio’s overall risk. In other words, if you put all your asset eggs in one basket, you could lose your entire portfolio if that basket breaks.
The same concept applies to political risk.
If your home country “breaks”—as it did in Russia in the 1920s or Germany in the 1930s—and turns to the destructive policies I mentioned, you could lose everything.
That’s why obtaining some Freedom Insurance now is so essential.
International diversification is a time-tested route to true freedom. Wealthy people worldwide have used it for centuries to effectively protect their money and families.
It’s a strategy that involves obtaining multiple passports, putting your savings into assets that your home government can’t confiscate or inflate its value away, moving your business and income streams to friendly jurisdictions, and moving your digital presence—email, website, cloud storage—to countries with the best privacy guarantees, among other things.
It may seem daunting at first, but it really isn’t. In any case, these are all necessary steps to ensure your personal and financial freedom to the maximum extent in the coming chaos.
It’s crucial to place some of your savings beyond the easy reach of your home government. It prevents that government from trapping your money if and when it implements capital controls or outright asset seizures. Any government can do either without warning and under whatever pretext they find convenient.
That’s where physical gold comes in.
Gold has been mankind’s most enduring form of money—for over 2,500 years—because of unique characteristics that make it suitable to store and exchange value.
Gold is durable, divisible, consistent, convenient, scarce, and most importantly, the “hardest” of all physical commodities.
In other words, gold is the one physical commodity that is the “hardest to produce” (relative to existing stockpiles) and, therefore, the most resistant to inflation.
Gold is indestructible, and its stockpiles have built up over thousands of years. That’s a big reason why the new annual gold supply growth—typically 1-2% per year—is insignificant. In other words, nobody can arbitrarily inflate the supply. That makes gold an excellent store of value and gives the yellow metal its superior monetary properties.
People in every country of the world value gold. Its worth doesn’t depend on any government or any counterparty at all. Gold has always been an inherently international and politically neutral asset. This is why different civilizations around the world have used gold as money for millennia.
Buying physical gold is perhaps the easiest step to diversifying your savings.
When you buy physical gold, you trade in paper money—which the government can devalue and confiscate at will—for a universally accepted hard money that no group of politicians control.
In other words, simply buying physical gold is the easiest way to lessen the political risk to your savings.
I suggest not delaying because the situation is increasingly urgent.
Even though most don’t fully realize it, political risk is the most significant risk facing you today. And it’s growing every day as governments slide deeper into financial, intellectual, moral, and spiritual bankruptcy.
In short, the US—and most of the rest of the world—are on the cusp of chaotic historical changes.
The sad truth is that countless millions throughout history were wiped out financially—or worse— in times of profound change because they failed to see the Big Picture and take appropriate action.
Don’t be one of them.
Editor’s Note: We think everyone should own some physical gold. Gold is the ultimate form of wealth insurance. It’s preserved wealth through every kind of crisis imaginable. It will preserve wealth during the next crisis, too.
The coming economic and political crisis is going to be much worse, much longer, and very different than what we’ve seen in the past.
That’s exactly why New York Times best-selling author Doug Casey and his team just released an urgent video. Click here to watch it now.