Editor’s note: the following is an extract from this weekend’s Q Bytes newsletter. If you would like a free, no-obligation, no-spam subscription to Q Bytes, please click here.

This morning I got up bright and early to write Q Bytes, only to be hit by computer problems and spend the next two hours trying in vain to fix a video driver issue. Of course I have my secure laptop – mainly used for e-mail – as backup, but when writing I like to use my big monitor, the one on which I cannot now fix the resolution.

This problem reinforced the extent to which we rely on technology in our day-to-day lives. The vulnerability. The world we live in is all interconnected, at many levels… We all know that technology is not foolproof. And even more ominously, we all know that technology includes an on-off switch that somebody controls.

For example: What if the networks used for ATM machines and credit/debit card payments went down, even for a day or two? Can you imagine the panic? I think the chances of this actually happening sometime in the not too distant future are pretty high, all things considered. It may be due to technical problems, or a cyber attack… or it may simply be a conscious decision by those with access to the on-off button.

I remember a few years ago when Northern Rock Bank collapsed in the UK, millions of pounds were transferred out via internet banking during the night by desperate account holders until the system ‘mysteriously collapsed.’ This was one bank, very small in the global scheme of things. I wonder how that would pan out on a bigger scale… like a run on the dollar, if China decided to stop supporting Bernanke’s printing press?

Financial markets are particularly at risk. After the events of September 11, 2001, financial markets were shut down for several days. If a catastrophe of similar proportions, natural or man made, were to hit the USA, it’s a safe bet that the same thing would happen again – a so-called ‘bank holiday.’  Even a purely electronic catastrophe could hit the financial markets. Brokerage accounts would of course be blocked. Where would that leave all those people who have bought gold through the stock markets as a ‘safe haven’?

And for those who worry about how to avoid gold confiscation, similar to what happened in the 1930s… if you were the government, would it be easier to go round door-to-door hunting down physical gold for confiscation… or would you just switch off the stock exchange and seize something like the SPDR GLD ETF? There’s $58 billion dollars right there in just one company…

A seizure of financial assets would be politically unpopular. An “emergency equities sales tax,” however, presented as a windfall tax on evil speculators who have brought the country to its knees, might be more palatable for the masses. Forcing people to put their retirement funds into government bonds or state pension plans (empty promises) for ‘security reasons’ would be seen as protection for the masses. We’ve already seen this exact technique used in France, Hungary and Argentina.

Going back to the technology, our systems are so delicate these days because they rely on the internet. Even a decade ago this was not the case. Now, everything from your TV and home heating system, to the checkout at your local store could stop functioning if there was no internet. I consider all this interconnection a huge risk. The world is getting more fragile all the time. We are living in strange times where anything could happen.

You might think I am very pessimistic. But that’s not the case. I just like to analyze risks, do my best to minimize them, then carry on with enjoying the good things in life. That is where we at Q Wealth differ from conspiracy theorists, survivalists or ‘preppers.’

Preppers might want to build a backup internet system using ham radio data transmissions. They might fill up their basements with canned and dried foods. That’s a perfectly valid option, but I would be more inclined to make sure if there was a major catastrophe, I could be sure of getting quickly to a second home in another country with a well-stocked wine cellar, from where I could safely manage my investments in farmland and physical precious metals that don’t depend on stock markets or internet.

Knowing that I have my family taken care of, enough assets protected in the best offshore banks, the right residencies and second citizenships in place, rather than leaving any of this to chance or conventional wisdom, allows me to sleep soundly at night.

Beyond that, and more excitingly, we are investors and speculators at heart – we know how to manage risk. That is what we do best. And all this uncertainty going on in the world is actually a  fantastic opportunity – probably a once-in-lifetime chance to generate real, long term wealth. As long as you understand the risks, you can not only prepare for them, but turn things around to your financial benefit.

This is our philosophy at Q Wealth. Security – with an investing and financial focus. If you’d like to hear more, the first thing to do is become a full member. The second thing you should do, once you are a member, is interact with our office. We have some great people who have access to little-known practical solutions to protect and grow your wealth in a secure offshore environment. A lot of it’s written up, but even more is in our heads, and everyone at Q Wealth can point you in the right directions.

HONG KONG EVENT EARLY BIRD SIGN-UP

This leads me right in to our next point, the Q Wealth Symposium, taking place in Hong Kong this October. We had a couple of very successful conference calls on this topic this past week, and many astute readers have already signed up, taking advantage of our early bird bonus.

However, if you missed the calls for any reason, don’t worry, you still have a chance…

You should plan to be in Hong Kong for three days: October 21 and 22 will be ‘classroom’ style presentations and discussions, whereas on the 23rd the presenters and others will be available for informal meetings. For example, we will have bank representatives from our best offshore banks on the spot, so if you bring the right documents with you you’ll be able to get your offshore bank account number then and there. This will be your opportunity to open a multi currency account or a non-dollar-denominated private bank account. You will be able to meet international private bankers at the event.

We’ll be covering topics like banking and secure investing, gold and silver purchase and storage (including gold storage in the Singapore free zone), and second residencies and passports, in a lot of detail. You’ll have a chance to meet the presenters as well as other like-minded individuals to exchange ideas. You can expect to leave this event having joined the dots… in other words, with a detailed road-map of where you want to get to and the specific practical steps you need to take to get there.

If you’re looking for information on how to protect assets in your retirement nest-egg, pass on value using trusts and foundations to the next generation, start a new international business, or take advantage of offshore investment opportunities in the new economy, this event is for you.

There’s a good reason why we have chosen to hold this event in Hong Kong, the obvious platform for investing in China. You’ll learn about how to buy or invest in Chinese currency, yuan renminbi, for example. But it’s not a Hong Kong centric event. We’ll also be talking about practical banking, investing and residence opportunities in places like Switzerland and Singapore, Panama and Latin America.

Until the end of May we are offering a substantial early bird discount, and I would encourage you to sign up now as places are limited. If you have any specific questions, please email Fredrick on events@qwealthreport.com – or to sign up go to our Events Page.

Are we on the verge of another global food crisis? asks Peter Macfarlane. And if so, how can we protect ourselves and profit from this crisis? This could have a huge impact on your offshore investments and assets, and – more importantly still – your safety and security. How to protect your assets and yourself? Read on for more…

Editor’s note: If you are not yet a subscriber to our free asst protection and offshore investing newsletter, Q Bytes, we thought you might be interested in the following article by Peter Macfarlane from last weekend’s edition. Sign up now to Q Bytes to receive Peter’s insight in your e-mail each weekend.

Are we on the verge of another global food crisis? Some people think so. This could have a huge impact on your investments, and – more importantly still – your safety and security.  There are even ways to combine secure investments in this area with second passport opportunities. That’s why we’ve decided to focus this weekend’s Q Bytes on this important theme.

Last month was marked by large-scale anti-government protests in Tunisia and Egypt. It’s fair to say that the Tunisian revolt inspired the Egyptian one. The Tunisian riots were sparked by a simple dispute about the right to sell food. Last year we also saw food riots in other African countries, such as Algeria, Mauritania and Mozambique.

Wheat prices have surged 50% since early June, the biggest jump in 30 years, according to HSBC. Droughts in Russia, Ukraine and Kazakhstan, which together account for 26% of world wheat exports, are leading to fears of tight supply and super-charging prices.

Today’s scares are just the latest sign of what could be one of the biggest challenges facing the global economy over the next 20 years – the fight to feed the world. Investors and speculators should definitely be paying close attention.

Food, of course, isn’t like other commodities traded on world markets. No country wants to run out of food or watch sky-high prices dump people into poverty and malnourishment. So both exporting and importing countries often take extreme, knee-jerk populist measures if they think a shortage is coming or prices will keep rising. These measures include things like hoarding and export restrictions. For example, Russia slapped a ban on wheat exports from mid-August last year, while Argentina has severely restricted beef and soybean exports.

Severe structural problems in the world of agriculture have made the balance between supply and demand very precarious. On the production side, there is a severe lack of investment in the rural infrastructure and agricultural research that we need to keep yields increasing. On the consumption side, all those newly wealthy Chinese, Indians and Brazilians are now buying more food than previously… more meat, for example, which means more grain gets turned into livestock feed instead of people-feed. Also don’t forget to add the new diamond for bio-fuels into the equation.

According to the OECD and the UN’s Food and Agricultural Organization (FAO), world population is expected to grow by 2.3 billion people between 2009 and 2050 with nearly all this growth from developing countries. They estimate that feeding a population of 9 billion will require a 70% increase in global food production by 2050.

World Bank Chief Robert Zoellick writing in the Financial Times, in an article that already caused controversy by suggesting that major economies look at a partial return to the gold standard, warned that “with food accounting for a large and volatile share of tight family budgets in the poorest countries, rising prices are re-emerging as a threat to global growth and social stability.”

Another problem many people have not taken into consideration is the falling value of the dollar.  Ben Bernanke’s quantitative easing will continue to cause a greater demand for dollar-denominated commodities, from people like us who are seeking to exchange fiat money for tangible assets.

Where are we going with all this? It’s well known that the Chinese are buying up large swathes of Africa, mainly for natural resources, while Latin America is seen as the new breadbasket – or perhaps the meat producer. Argentina’s government is certified nuts as far as we are concerned, so even wealthy Argentines are investing their capital in production in neighboring countries, particularly Uruguay and Paraguay. Brazil, meanwhile, is speeding ahead in agricultural production.

As some of you may know I recently attended a closed doors briefing in Paraguay with a small group of Q Wealth readers, during which we heard presentations from agricultural and forestry experts (Paraguay’s former consul in Hamburg to be precise, who has now returned to his home country and is heavily involved in forestry.)

I’ve invested quite a substantial part of the assets of my personal investment vehicle in Latin America’s southern cone area recently (including Paraguay and Uruguay) as I believe this area definitely represents future growth opportunities. Another very positive thing about this region is that it’s eminently liveable. That is, you can easily enjoy a safe, clean and reasonably priced first world lifestyle in the area. Africa has lots of potential too for the more adventurous amongst us, but I’m not about to move my family there. However, my family have spent time in Uruguay and got on great.

Last but not least, both Uruguay and Paraguay are quite liberal when it comes to naturalizations – that is, second passports.

At Q Wealth we are not a share-tipping newsletter, but there are certain plays on agriculture in the southern cone region you can buy on international markets. Do your research and due diligence. More generally, you can also expect further significant gains on stock market investments in the ag sector.

Most important, however, is that you understand the big picture, that governments with their short term mentalities are not telling you. This is a region you should watch. With the largest fresh water reserves in the world, plenty of land that is ideal for food production, and relatively hands-off governments, it is probably the world’s best hope to solve the future food problems, and your best hope if you are looking for a safe place to hide out where you’ll never want for food or water.

More to follow in Q Wealth Report.

Issue 54 of The Q Wealth Report, the leading privately-published newsletter on freedom, wealth, asset protection and privacy is now available online. Members may download their copies here: Current Issue 54 of Q Wealth Report You will need to be logged in as a member to access this file. If you are not yet a member, check out our list of membership benefits.

Here’s a sneak preview of some of the highlights in issue 54:

• Opportunities Abound: introduction by Dr Richard Cawte
• Private Placement Insurance Policies – a review of this rather boring but extremely functional offshore tax planning and asset protection tool. Discover how you can use PPLIs to your advantage.
• Credible evidence that chipping people increases Cancer Risk
• Mediterranean Mix’n'Match: Detailed article on the use of Cyprus offshore companies and offshore banks – an onshore/offshore combination that makes a very attractive privacy and tax planning tool for Americans and Europeans alike. Includes practical examples. Cyprus banks offer multi currency accounts.
• Interconnectedness: Richard Cawte explores the feeling world we live in… and how to act on intuition and inspiration to achieve  balance, poise and achievement in your personal and business lives.
• Green Technology: Investing in the Future – with an offshore element of course
• Peter Macfarlane’s detailed review of the dire implications of the HIRE Act. Peter predicts economic isolation of the United States and presents detailed advice to protect yourself, your loved ones and your assets from the devaluation of the dollar.
• Full details of the June Q Advantage Seminar and a preview of our September Strategies for Success event.

We hope you enjoy Q Wealth Report!

by Peter Macfarlane

There’s a lot of misconceptions out there about offshore banking and investing. Newer readers especially may believe a few of the myths exploded below! Even if you’re an old hand at offshore banking, I thought you might enjoy this brief list of some of the most common offshore banking myths…

1. Offshore banking is illegal. The Facts: Granted there are a few countries in the world that outright prohibit their citizens from holding accounts abroad. But very few – even those with strict controls like South Africa, Venezuela and Russia don’t ban their citizens outright from holding offshore bank accounts. Most countries do however have laws insisting that you report your offshore bank accounts to the tax authorities. You can easily verify these requirements with a local professional.  For sure there are some illicit funds deposited in offshore banking havens, but they constitute a small percentage of total criminal proceeds held in banks within high-tax jurisdictions. Bank secrecy laws these days definitely do not protect criminals. The idea of associating offshore banking with crime is all about trying to persuade people to leave their funds where their governments can get their hands on them!
2. Offshore banking is only for tax evasion. The facts: Recent campaigns by major governments and left-wing think tanks try to tar everybody with the same brush. Most people who bank offshore these days are not evading taxes. They are looking for legal tax planning and asset protection strategies – for example: currency diversification, and protection against political risk factors.
3. To have a bank account offshore you need lots of money. The facts: Yes, there are many obscure but very good private banks that won’t be interested in a relationship under a million or two. But there are also plenty of banks, large and small, that are still interested in the regular middle class customer.  At some of the best offshore banks in the best offshore banking countries, you can easily open a bank account with a deposit of $500 or less. There are plenty of options and you will find details in the Q Wealth Practical Offshore Banking Guide.
4. Offshore banks are situated in remote corners of the world or obscure islands, thereby making it difficult to manage the account. The facts: While many offshore jurisdictions are indeed small islands, they are all connected by fiber optic cables! Today, the physical location of the bank is not really important. You can deposit funds electronically and manage them over a secure internet connection. For withdrawals you can wire money out using the internet banking, or you can have an internationally recognised debit or credit card like Visa, Mastercard or American Express.
5. You have to travel to the bank personally to open an account. The facts: The best offshore banks do not require this. They have procedures in place to open accounts either entirely by mail, using copies of documents certified locally, or you can open accounts through other representatives or offices that may be closer to you. Often, if you pay the travel expenses or you are investing a larger amount, you can even have a bank officer travel to visit you.
6. Offshore banking is tax-free. The facts: In most cases you don’t have to pay taxes in the bank’s jurisdiction. The notable exception is Switzerland, which does charge Swiss withholding taxes on the income of foreign account holders. What you do have to remember is that many high tax countries tax the worldwide income of their residents, and one – the United States of America – taxes the worldwide income of their citizens even if they are not resident.
7. Offshore banks open anonymous numbered accounts. The facts: It is still possible in some banks to open numbered bank accounts. Most Swiss banks, for example, offer this facility for a small annual charge. A numbered account is where your name does not appear on the title of the account. However, they are not technically anonymous, since the bank will still need to know who you are. Normally your real identity will only be accessible to a few high-ranking bank officers, and your passport copy will be held in a paper file in the bank’s vault, rather than on a computer where a data or identity thief could potentially download it. So whatever account name or number you are assigned, you will not remain fully anonymous to the bank. It is also no longer permitted to send or receive wire transfers without fully identifying the legal account holder.

Further resources:

For further reading you might enjoy learning about the best offshore banks. If you would like to know more about offshore banking and more generally how to protect assets through international investing, check out our free five part ‘Secrets of the Super Rich’ course. We will be happy to send it to you free and with no obligation whatsoever. We also guarantee not to spam you – we hate spam as much as you do. To receive your free course, sign up here right now: Free Secrets of the Super Rich course