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Phuket’s JW Marriott makes Condé Nast Top 25 awards

JW Marriott Phuket Resort & Spa has once again been recognized by the prestigious world-class travel magazine Condé Nast Traveler in their Reader’s Choice Awards.

JW Marriott Phuket Resort & Spa is only resort on Phuket that has achieved this acclaimed award and recognition for second consecutive year.

The Reader’s Choice Awards are held annually by Condé Nast Traveler by conducting a poll of their readers for the best in the travel industry. More than 128,000 travellers took part in this 28th annual Reader’s Choice survey to choose the best from resorts, spas, cruise ships, airlines and airports.

“We are very thrilled to receive this prestigious award for second time in a row. Among the greatest of accolades a resort could be honoured with. Every single day we strive to provide the finest hospitality and epicurean experience to our guests, and to maintain to be recognized as one of the Best Resort in Asia, granted by Condé Nast Traveler’s readers is extremely rewarding for our associates,” said Oriol Montal, JW Marriott Phuket Resort & Spa’s General Manager.

Since opening in December 2001, JW Marriott Phuket Resort & Spa has clinched more than 200 awards and is highly recognized in Asia for its outstanding Family, Eco-friendly, MICE and five-star luxury resort facilities.

Being on this year’s Reader’s Choice Awards complements other awards that the resort has won, such as The Certified of Excellence Hall of Fame by TripAdvisor, which is granted only to businesses that have won the Certificate of Excellence for five years in a row.

JW Marriott Phuket Resort & Spa has also listed first in the Top 25 Hotel for Families in Thailand as well as fifth in the Top 25 Hotels for Families in Asia category by TripAdvisor,a s well as Smart Travel Asia Reader’s Awards (HK) Best in Travel Poll, Eat Drink Travel (EDT) Top 10 Travel Family Fun Time, by edt guide; and an Award of Excellence for Resort Hotel (80 rooms and over) in the 10th Thailand Tourism Awards by Tourism Authority of Thailand.

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As internet penetration rates continue to rise in Southeast Asia, ASEAN grows more interconnected by the day.

Home to over 663 million inhabitants, the region is projected by many to be among the world’s most promising markets for a variety of internet based services.

Chief among these are services involved in what has been coined the “sharing economy” – a loose collection of peer-to-peer services known to substantially lower costs for key necessities such as transport and accommodation.

In a 2014 study conducted by Nielsen, Indonesia and the Philippines ranked as two of the top five populations worldwide primed to participate in the sharing economy. While Indonesia ranked second in the study, with 87 percent of respondents reporting a willingness to utilize products within a sharing economy, the Philippines only trailed by two percentage points, earning fourth place Vietnam

Thailand: New KYC Guidelines Issued

Thailand’s central Bank of Thailand (BOT) has introduced new regulations to ease the Know Your Customer (KYC) process using the electronic process (e-KYC) to open accounts on deposit acceptance of funds accepted from the public. Financial institutions globally are increasingly being required to comply with KYC guidelines under the anti-money laundering law (AML). As per the BOT Notification No. SorNOrSor. 7/2559 the following guidelines have been issued.

E-KYC procedures must have the same standards as KYC procedures and available only for individual customers using electronic means such as computers, mobile phones, other electronic devices etc. Financial institutions however, must get prior approval from the BOT.
Electronic signatures are acceptable.
Verification of customers must be done using ID cards or a smart card reader
Financial institutions must retain all information including KYC documents or their copies as per the AML law.

The regulation went into effect in August.

Vietnam

As Vietnam increasingly becomes a hub for foreign businesses, the government is streamlining the mergers and acquisitions (M&A) process to encourage investment in new sectors of the economy. While establishing a business in Vietnam may prove too cumbersome for some hopeful entrants, the M&A route provides a unique solution to many of these obstacles. With this path, investors will enjoy preexisting access to consumers, locations, and distribution channels. This local knowledge can prove critical to successful operations within Vietnam’s vibrant but rapidly changing investment environment .

To successfully carry out M&As within Vietnam, it is important to recognize the legal foundation of current policies, and to understand the procedures and limitations associated with acquisitions in Vietnam..

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February 15, 2019ZONEZI No commentsBusiness, News

The Thai Government’s push to drive up property sales by making mortgages more accessible to millions of people through transfer and mortgage registration relief has made headlines for months.

Customers seek home loan details from officials of the Government Housing Bank. The bank has offered cheap rate loan under the government’s property stimulus package. Photo: Bangkok Post / Phrakrit Juntawong

However, scores of people have yet to fully understand what the rule changes are, and what the changes mean to them. (See story here.)

The first factor to keep in mind is that the changes so far are only a temporary reduction of Thai real estate transfer and mortgage registration fees, effective October 29, 2015 to April 28, 2016.

Here, the rest of this article aims to explain in simple terms what the changes are:

The relevant details of the three regulations providing for the fee reductions are as follows:

Part 1. UNREGULATED LAND AND BUILDINGS

Law: Ministry of Interior Regulation Regarding Registration Fee under the Land Code for Housing (published in the Royal Gazette on October 28, 2015)

To boost the sale and purchase of immovable property in Thailand, the Cabinet on October 13, 2015 resolved to set the registration fee under the Land Code for the transfer and mortgage of housing property as follows:

Clause 1: Registration fee for the transfer of residential: detached house; twin house; row house, and commercial building, and any of these buildings with land where the building is located and such land is NOT under Land Allocation Act or under any development by the government, and mortgage of the said transferred property, would be at the rate of 0.01%.

Clause 2: This regulation is effective from October 29, 2015 to April 28, 2016.

Note: 0.01% applies to:

– Transfer of any of these buildings;

– Transfer of any of these buildings + land that is not under Land Allocation Act or government’s land development;

– Mortgage of any of the above (if for example Mr A receives a house by gift or inheritance then he mortgages said house, he will not get this reduced rate);

– Not applicable to raw land (that is not in the licensed development);

– Not applicable to land that is not the location of the building even though such extra land is transferred (and mortgaged) at the same time as the house + land.

Part 2. LAND AND BUILDINGS WITHIN A LICENSED DEVELOPMENT

Law: Ministry of Interior Regulation Regarding Registration Fee under the Land Code for Immovable Property Licensed under the Land Allocation Act (published in the Royal Gazette on October 28, 2015)

To boost the sale and purchase of immovable property in Thailand, the Cabinet on October 13, 2015 resolved to set the registration fee under the Land Code for the transfer and mortgage of immovable property that is in licensed development under the Land Allocation Act as follows:

Clause 1: Registration fee for the transfer of land, land and residential building: detached house; twin house; row house, and commercial building, under Land Allocation Act or under any development by the government, and mortgage of the said transferred property, would be at the rate of 0.01%.

Clause 2: This regulation is effective from October 29, 2015 to April 28, 2016.

Note: 0.01% applies to:

– Transfer of land only, or land and any of these buildings in the licensed development project or the government’s development project;

– Mortgage of any of the above (if for example Mr A receives a developed raw land by gift or inheritance then he mortgages the land, he will not get this reduced rate);

– both first hand and resale.

Part 3. CONDOMINIUMS

Law: Ministry of Interior Regulation Regarding Registration Fee under the Condominium Act (published in the Royal Gazette on October 28, 2015)

To boost the sale and purchase of immovable property in Thailand, the Cabinet on October 13, 2015 resolved to set the registration fee under the Land Code for the transfer and mortgage of condominium unit(s) under the Condominium Act as follows:

Clause 1: Registration fee for the transfer of the following condominium unit under the Condominium Act and mortgage of such transferred unit, would be at the rate of 0.01%:

(1) Transfer, and mortgage of all units at once in any licensed condominium under the Condominium Act;

(2) Transfer, and mortgage of any condominium unit in any licensed condominium under the Condominium Act.

Clause 2: This regulation is effective from October 29, 2015 to April 28, 2016.

Note: 0.01% applies to:

– Transfer of the whole condominium building or individual unit;

– Mortgage of the above (if for example Mr A receives a condominium unit by gift or inheritance then he mortgages the condo, he will not get this reduced rate);

– both first hand and resale.

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For several years now, commentators – particularly in the business community – have opined that Thailand is in need of a significant infrastructure upgrade such as its mass transportation, road and railways systems.

Investment in state infrastructure projects may pay off better for some, depending on the understanding of what rights and forms of redress they may have.

The government appears to agree. Despite the differences between Thailand’s two main political parties, both of them have presented proposals for large scale and comprehensive infrastructure projects. Both parties continue to agree that Thailand needs to invest significant amounts to modernize and improve its infrastructure.

In such circumstances it is not uncommon for a government to encourage private sector investment. Such private participation may have several benefits for the government. These may include technical or managerial expertise not available domestically, a larger and more competitive bidding pool for the project and, depending on the type of private participation, project financing.

Where the potential private investor is foreign, a significant consideration will be an assessment of the protections afforded to the investment. Internationally, this is usually provided by substantive rights and enforcement provisions in a public-private contract (“PPC”) between the host State and the foreign private party or under any relevant investment treaty (“IT”) or both.

The following will briefly explain what types of rights and enforcement provisions are commonly available to foreign investors under these two options and conclude with a brief comment on the current investor-State situation in Thailand.

SUBSTANTIVE RIGHTS

The rights afforded to an investor under a PPC are for the contracting parties to determine and may vary with regard to the type of investment. However, a common concern for foreign investors is that the State may enact or change its law relevant to the investment such that it would diminish the investment’s value. Thus, an example of a substantive right commonly included in the PPC for the investor is a provision, which applies the law of the host State – at the time of the investment – to the investment throughout its duration. This is commonly known as a “freezing clause”.

Whereas the investor will need to convince the host State to include investment protection provisions contractually, ITs provide such protections to the investor without such requirement.

ITs take three common but different forms:

Bilateral agreements between two countries (BITs) and to which Thailand is currently a party of at least 34 such agreements;
Multilateral investment agreements between more than two countries (MITs) and of which the 2009 ASEAN Comprehensive Investment Agreement (ACIA), to which Thailand is also party, is a good example; and
Free-trade agreement (FTA), which although not dealing only with investment protection issues, commonly include such provisions. The 2009 ASEAN-Australia-New Zealand Free-Trade Treaty (AANZFTT) is a good example of an FTA and to which Thailand is a party.

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Tourists and foreign residents’ personal security, safety, beach tourism sustainability, jet-skis, taxis and tuk-tuks were all highlighted as ongoing issues of concern by five European ambassadors in talks with Phuket Governor Chamroen Tipayapongtada.

The high-powered ambassadorial delegation comprised Mark Kent of the UK; Brendan Rogers of Ireland; Philip Calvert of Canada; Karel Hartogh of the Netherlands and Peter Prugel of Germany.

Speaking after a 90-minute closed-door meeting, British Ambassador Kent told the press, “We had a good meeting today. We explained that we are ready to support the Phuket Governor in his efforts in making Phuket one of the most attractive tourism destinations in the world.

“There is still work to do but the Governor has set out his attention to work on these issues.”

But that requires focus on three main areas that need attention, Amb Kent noted.

“One of these is safety, whether that be people on motorbikes, jet-skis or boats; and even water quality. We want them [tourists] to be safe.

“The second area is the reputation of Phuket as a tourism destination. It still has a good image for tourists, but some of the behaviour and the prices charged by tuk-tuk and taxi drivers has led to a fall in confidence and a drop in tourists because they’re a little bit scared about what has happened, so we think this needs to be addressed,” he added.

“Third is the areas around the provision of government services such as visas and work permits for residents and some of the issues around property need to be tackled so there is clarity and transparency and no demand for additional fees which are not stipulated.”

“British tourists to Thailand still come here a lot. It is one of our most popular tourist destinations. We have one million tourists come every year, and the number of tourists to Phuket remains high.

“It is beautiful place. That’s why we want to work for mutual benefit with the governor and officials here to ensure that remains the case, that it remains a very good source of economic benefit for the locals who live here and a safe, enjoyable tourist destination for our tourists.”

Regarding jet-skis, Amb Kent noted, “We are aware that there some issues that need to be tackled.

“It is important to not just have the regulations, but to also ensure that the regulations are enforced and that the jet-ski owners act in an appropriate manner,” he said.

Going Dutch

Netherlands Ambassador Hartogh rated beach safety, beach management, accommodations, competitive pricing, including that of taxis and tuk-tuks, and specifically targeted jet-skis as key areas of concern.

“Most people in the Netherlands are not very fond of jet-skis. They want to know if Patong will change its policy. If it will not, then they will look for different beaches.

“Tourism is a very competitive industry. There are lots of other options in this part of the world to find proper beaches without jet-skis.

“Not only behalf of Dutch tourists and expats am I raising these questions, but I am also asking on behalf of the local people here, as this affects the tourism industry – and all these points could be improved on.

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China, Thailand ink MOU for Kra Canal

GUANGZHAO: China and Thailand are reported to have inked a memorandum of understanding on the construction of a canal that would cut through peninsular Thailand, linking the South China Sea with the Andaman Sea.

Once completed, the ‘Kra Canal’ would offer an alternative sea link between Asia with the Middle East and Europe, bypassing the Strait of Malacca, a key shipping lane for world trade.

The Straight of Malacca is one of the world’s busiest international shipping lanes with up to 40 per cent of the world’s trade passing through it.

Chinese and Thai officials are said to have signed the memorandum of understanding in Guangzhou this week. The canal is would take 10 years to complete at a cost of at least US$28 billion (934.5 billion baht), reported the Hong Kong-based Oriental Daily.

The current proposal is for a two-way 25m deep canal measuring 102km in length and 400m wide. (For comparison, the Panama Canal is 15m deep and measures 304m at its widest point).

The route would reduce shipping distances for vessels entering the Gulf Of Thailand from the west by 1,200km, bypassing Singapore entirely.

According to the Oriental Daily, Chinese officials described the project as part of the country’s proposed ‘Maritime Silk Road’, which aims to revive a trade route from China through Southeast Asia and the Indian Ocean to Europe.

In documents sourced by The Phuket News, the most likely route proposed for the canal would be from Satun on the Andaman Coast to Songkhla in the Gulf of Thailand. It could follow the current path of Route 406, which runs through the only significant in the range of mountains that runs north-south down the peninsula.

That route is the one recommended in a report by Pakdee Tanapura, the international director and acting spokesman of the Board of Directors of the International Executive Committee for the Study of the Kra Canal Project in Bangkok.

Although it is the longest of a dozen or so possible routes, Mr Pakdee regards it as the best because there is very little development and a low population, and both ends – in Satun province and Songkhla – are most suitable for the building of ports and industrial zones.

The route is an old one. Phuket-based author Colin McKay, in his seminal book, A History of Phuket and the Surrounding Region, suggests that the route from Satun to Songkhla may date back as much as 1,100 years ago.

“There is sufficient evidence from excavations done in the region by archaeologists from Cambridge University and elsewhere, to speculate that around the 10^th century [AD], an ancient waterway system may even have been dug across much of the peninsula from near Satun on the west coast to the great Thale Luang Lake and Songkhla on the east coast,” he wrote.

The canal through the Kra Isthmus has been discussed since the 17^th Century, when King Narai commissioned a French engineer to assess the possibility of building a waterway from Songkhla to the Andaman Sea). But the idea was dropped because there was not the technology at the time to do it.

The idea has been resurrected several times since, but the signing of the MOU this week is the furthest things have ever got.

UPDATE, May 19, 5:55pm

Since this story was first posted by The Phuket News and a number of Thai websites, debate has raged as to whether the Kra Canal project is actually likely to be realised. The debate has now been taken up in interntional forums.

For example, Singapore’s Channel News Asia reported, “… a Thai Transport Ministry official said the project is not in the pipeline. The Ministry of Foreign Affairs also stated there has been no agreement between the Thai and Chinese governments on this matter.”

It named no officials apart from Dr Panitan Wattanayagorn, “security advisor to Deputy Prime Minister Prawit Wongsuwan, [who said] the reports from China might have been a result of a misunderstanding.”

Amid all the denials, however, no one yet named has denied that an MOU was signed.

The Phuket News is rechecking with its sources and will contact other sources tomorrow to see whether the signing can be confirmed or not.

One usually reliable source told The Phuket News, “There are outside interests that will not want this project to fly and it looks like they have already started…”

As Japan investment is shifting to services, information technology and trading, which require less capital, Chinese investments are targeting heavy industries, thus surpassing Japanese input in Thailand for the first time.

Chinese investments in Thailand for the past eight months have surpassed Japanese Investments for the first time in history

After the Board of Investment adjusted its foreign direct investment promotional incentives BoI secretary-general Mrs Hirunya Sujinai explained Chinese investments were higher than Japanese investments for the first time because several Singaporean projects were Chinese-funded.

Altogether 332 projects worth 50,267 million baht applied for promotional privileges during the first eight months of this year.

Of these, 51 projects worth 13,100 million baht came from Singaporean investors; 37 projects worth 10,000 million baht came from Chinese investors and 92 projects worth 9,900 million baht came from Japanese investors.

After investigating the sources of investment funds, the agency found that many Chinese companies invested in Thailand via Singapore, so it considered China to be the largest foreign investor for the country this year.

Of the total investments during the first eight months, 39.5 percent were investments on alternative energy development, especially solar energy.

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If your retirement dreams include a beautiful climate, new cultural experiences, access to affordable healthcare and a lower cost of living, you may be thinking about retiring abroad. One destination popular with retirees is Thailand, a small country in southern Asia known for its natural beauty, pristine beaches, exotic cuisine, temples and friendly people.

According to International Living, a publishing group that covers living and retiring overseas, Thailand has one of the lowest costs of living in the world, adding to its appeal as a top retirement destination. Here, we take a look at how much money you need to retire in Thailand, plus how to make your retirement dollars last longer.

Good Starting Point
The requirement for a retirement visa is 65,000 baht per month (about $2,000) or savings of 800,000 baht ($25,000) in a Thai bank account. Steven LePoidevin, InternationalLiving.com Thailand Correspondent, says this is a good starting point for a retired couple. “This would provide for a basic but comfortable lifestyle,” he reports.

Like anywhere, it comes down to location; some places in Thailand will be more affordable than others. “[A retired couple] would obviously live a much higher quality lifestyle in Chiang Mai than in Bangkok,” says LePoidevin. “As a retiree, I personally would not want to live here with less than $1,500 to $2,000 per month income. This is assuming you are renting, not living in your own condo or home.” For more on Chiang Mai, see Retire Abroad: Cosmopolitan Cities.

For the Really Budget Conscious
Though $2,000 a month is a good starting point, it is possible to get by with a much smaller budget. LePoidevin points out that the average Thai resident lives on less than $1,000 per month. “If you want to live in a small apartment, eat only local food, never travel, not have any health insurance and rarely take part in any form of entertainment, I suppose anybody could live on this small amount of monthly income,” says LePoidevin. Most expats, however, would have a difficult time living within a $1,000 per month budget and should count on a bit more – even if they are really budget conscious. “I still believe that it is necessary to have a steady income of at least $1,200 to $1,500 per month for a bare minimum,” says LePoidevin.

Living Large
$5,000 per month would give you a very lavish retirement in most of Thailand, according to LePoidevin. “This would be enough money to rent a two-bedroom condo in the heart of Bangkok or in one of the many beach areas. If you purchased a condo, then you could definitely live a very good lifestyle on this amount,” says LePoidevin.

Aside from living in a choice location, a $5,000 budget would allow other perks. “[$5,000 per month] would provide enough money to eat out on a regular basis, employ a housecleaner a couple of times per week, use AC on a regular basis, have high-speed internet and still have more than enough for entertainment expenses,” says LePoidevin.

Factor in Healthcare
LePoidevin notes that healthcare is one cost that is frequently overlooked, but that expats need to plan for it. There is no public health insurance in Thailand for expats. For those older than 60, private health insurance can be quite expensive. “It is necessary to consider your own family history and the risks involved before you begin to seek the best insurance plan for your situation,” says LePoidevin.

“Because of the low cost of healthcare in Thailand, many expats rely on their savings for unforeseen medical emergencies. Others only buy less expensive accident insurance in the hopes that they are more likely to have an accident than a dire medical emergency.” Sometimes it is possible to rely on travel insurance if you are returning back to your home country or traveling on a regular basis. “This is also a less expensive avenue to pursue if it fits your needs,” says LePoidevin.

Stretching Dollars
One of the best ways to make your retirement dollars last longer is to live like a local. “It is easy to find smaller inexpensive houses and apartments throughout the country,” says LePoidevin. “The quickest way to burn through retirement money is to spend it on alcohol and international foods. Both are very expensive in Thailand. Purchasing fresh local produce, eating out in ‘mom and pop’ local restaurants and cutting back on alcohol consumption will result in a much smaller monthly expense.”

The Bottom Line
If you are thinking about retiring abroad, Thailand is worth considering. A substantial expat community already enjoys the country’s natural beauty, exotic cuisine and beautiful climate, plus access to affordable healthcare and one of the lowest costs of living in the world. For more information about making this kind of move, see Plan Your Retirement Abroad and Retirement: U.S. Vs. Abroad.

Note: The U.S. Department of State has issued no specific travel warnings about Thailand. However, in early 2015 it updated its Worldwide Caution to provide information on the continuing threat of terrorist actions and violence against U.S. citizens who travel or live abroad.

The Caution – which pertains to travel in Europe, the Middle East, North Africa, Africa, South Asia, Central Asia, East Asia and the Pacific – states: “Recent terrorist attacks, whether by those affiliated with terrorist entities, copycats, or individual perpetrators, serve as a reminder that U.S. citizens need to maintain a high level of vigilance and take appropriate steps to increase their security awareness.” U.S. citizens traveling or residing abroad are encouraged to enroll in the Department of State’s Smart Traveler Enrollment Program (STEP), which provides security updates and makes it easier for the nearest U.S. embassy or consulate to contact you and/or your family in case of an emergency.

Get Out of Debt – Start Making Money
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Ron Paul Warns of Dollar Collapse 100%

Over the past few years, many experts have been warning of a crisis heading our way. More specifically, the concerns have centered on the inevitable collapse of the U.S. dollar. One of these individuals is former Congressman Ron Paul, who has stated that he believes the U.S. financial system is on the road to disaster. In this article, I’ll share some of his views and discuss what could happen if such a crisis materialized.

Currency Crisis

According to Congressman Paul, a U.S. currency crisis is inevitable. At one point in the 1980s, while riding on Marine One with President Reagan, the President said, “No great nation that has abandoned the gold standard has ever remained a great nation.” A few decades ago, former Fed Chairman, Alan Greenspan stated, “In the absence of the gold standard there is no way to protect savings from confiscation through inflation.” Without a gold standard, there is nothing to limit government spending. In short, as long as the government is able to overspend, the national debt will be the norm rather than the exception.

Since the gold standard was abandoned, what is backing our currency? Confidence! Without a hard asset backing up the dollar, it is supported only by the “full faith and credit of the federal government.” If the world lost confidence in the greenback, its value would plummet and life as we know it would be severely and forever altered. How will we know when the next crisis is about to emerge?

The first sign of a currency crisis, according to Paul, will be a precipitous decline in the value of the dollar. A collapse in our currency would result in a spike in inflation. It would also be accompanied by an increase in U.S. interest rates. Paul’s prediction, although rather dire, is for the collapse of the entire U.S. financial system. If this occurs, the systemic risk would be massive. If the U.S. financial system actually did collapse, it would take the entire global financial system with it. Why? Because there is over $18 trillion in U.S. debt outstanding, with China and Japan being the largest holders. A U.S. collapse would devastate the entire globe. Let’s turn our attention to the national debt, an issue which weighs heavily on the minds of millions of Americans.

U.S. National Debt

When the government spends more than it collects, the result is additional debt. From the signing of the Declaration of Independence in 1776 until 2008, the U.S. accumulated slightly over $10 trillion in federal debt. In the past seven years, the debt has nearly doubled to more than $18 trillion. By the year 2019, it is projected to exceed $20.3 trillion. When interest rates rise, the impact will be felt by the federal government as well as everyday Americans. First, it will increase the government’s cost of borrowing, which will cause the debt to rise even faster. It’s entirely possible that even a modest rise in interest rates could cause the debt to spiral out of control. This is because Washington is heavily dependent on borrowing to operate. Next, it will be much more difficult to expand or even maintain the welfare state. This fact alone will lead to mass riots as individuals who are dependent on a government check will take to the streets in protest. Also, the U.S. would have a more difficult time funding its presence (i.e. military bases) around the world. This would lead to a less stable socio-political environment and an uptick in radical behavior. Plus, a shortage in government revenue could result in a rather large tax increase and the eventual demise of the middle class. Finally, and as we’ve already seen, the federal government may decide to target 401ks and IRAs as a source of additional revenue. This could take the form of a tax or fee of some sort. Mr. Paul also mentioned the possibility of a tax on regular savings and other assets. If the government finds itself in a tight situation, as we’ve witnessed in the recent past, the potential intrusion could be severe.

Social Unrest

This discussion wouldn’t be complete without mentioning social unrest. As we’ve already seen, the match is lit and it wouldn’t take much for anarchy to manifest. In essence, there appears to be a significant amount of pent-up frustration among the electorate. For example, who expected the reaction in Ferguson, New York, or Baltimore? And this may only be the tip of the iceberg. A temporary government shutdown is also a distinct possibility. To this author, public protests seem to be on the rise and the bar of what’s reasonable appears to be quite low. Hence, I suspect this is only the beginning of more civil unrest in America.

The Clock is Ticking

Is the problem too advanced to solve? Can a crisis be avoided? These are valid questions. I believe we can still fix this, but as Paul stated, “Real monetary reform will only come after a major currency crisis hits.” Why? Is he just being pessimistic? No, I don’t believe so. What he is saying is that politics will get in the way and prevent a solution until it reaches a crisis point. This is a view I have held for quite a while. Until Congress is forced to find a solution, it’ll be business as usual. The former Congressman also said he believes the majority of those in government do not fully understand economics.

Is the U.S. Losing its Stature?

In the post WWII era, the U.S. dollar has been the global reserve currency. Prior to that, the British Pound filled this role. Recently, China has increased its trading with Germany, India, and others, excluding the dollar as the reserve currency. It seems the world is slowly transitioning away from the dollar. If this continues, the U.S. could lose its position as the world’s reserve currency. This would have numerous ramifications. A discussion on that is beyond the scope of this article. Mr. Paul also stated that 10 countries have already signed a document to begin phasing out the dollar as the basis of trade. Even the IMF has proposed a new world reserve currency system. The days of the U.S. dollar as the world’s reserve currency may well be numbered.

Some argue that the U.S. economy is on the mends and the stock market is near record highs. Therefore, things can’t be all that bad. While there is truth in this, according to Paul, stocks have risen due to Fed policy and political leaders. He also stated that printing money has never solved this type of problem….ever! He cited Germany, Russia, Argentina, Brazil, Chile, Japan, China, Ukraine, Italy, Ireland, Portugal, and Spain as examples of countries that had similar problems to the U.S. and yet none of them was able to use the printing press to escape their problem.

Will the U.S. follow the path suggested by former Congressman, Ron Paul?

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January 1, 1970ZONEZI No commentsNews