Planting Multiple Flags
Simon Black (of SovereignMan.com) coined the phrase "planting multiple flags" in describing the practice of diversifying different aspects of one's identity across multiple "flags" or geographic jurisdictions . . . as a strategy to reduce the negative impact of sovereign risk.
According to Black, "Sovereign risk is the greatest risk we face today as investors, entrepreneurs, professionals, and free individuals. Governments have absolute authority to seize, commandeer, or otherwise control any asset of their choosing, including ourselves, and they can back it up at the point of a gun. If you have all of your eggs in one basket . . . i.e. you live, work, invest, own property, run a business, bank, etc. in the country of your citizenship, then you're risking everything."
The idea of planting multiple flags was originally conceived by international finance guru Harry Schultz, who in the 1960's suggested that an individual should plant "three-flags". . . citizenship in one country, residency in another and business structured in another. More recent authors have expanded on this idea by adding other "flags", including places to bank, places to "play", places to house electronic assets, etc.
While many writers today talk about four, five or six flags, Black suggests there really is no limit to the number of things we can diversify geographically . . . with other flag possibilites including website hosting, email service, postal mail, phone/fax, financial instruments, brokerage accounts, gold/silver storage, business registration, e-commerce, customer base etc..
So then . . . in a nutshell . . . planting multiple flags is a strategy in which you use the system to your advantage . . . playing governments against each other by diversifying your life internationally . . . thus increasing your freedom, your privacy, your sovereignty and potentially reducing your tax burden. If done judiciously, planting multiple flags will protect you against currency devaluations, bank failures, market crashes, crime, litigation and divorce . . . as well as from the greatest threat of all . . .
opprressive governments, who restrict the freedom of their citizens and subject them to excessive tax burdens.
It is important to understand that when we speak of reducing one's tax burden, a distinction needs to be made between tax avoidance and tax evasion. Tax avoidance is the art of minimizing taxes through legal means, while tax evasion is the crime of escaping taxes through illegal means, such as failing to declare income and financial accounts or failing to file tax returns. Planting multiple flags can help you avoid taxes, by working within the legal loopholes of curent tax codes. Doing so is not just perfectly legal . . . it is also darn right savvy. Tax evasion, on the other hand is not at all savvy, but is rather . . . a very serious crime with very serious ramifications. Can planting multiple flags help one to evade taxes ? probably so . . . but we do not (in any way, shape or form) recommend committing tax evasion.
Having said that . . . the time to start diversifying internationally and planting multiple flags is now . . .
before its too late . . . before currency controls are imposed . . . before tax codes change . . .
before the last remaining foreign banks close their doors to foreigners.
Technology makes it incredibly easy to diversify. It takes only moments to set up an offshore email account, a few minutes to lease a private vault, and just a couple of hours to set up a company in Singapore. The possibilities are truly endless, you just need to find the right tools and the right flags that work for you. Yes, even if you are a US citizen, who is taxed on worldwide income, there are still several options available to live a multiple flags lifestyle.
Simon Black, Doug Casey and others have written extensively about planting multiple flags. The purpose of this site is to expand upon what has already been written and to discuss the various options and provide the details of how one goes about planting multiple flags.
All of this may sound very complicated, but in reality is actually very simple . . .
This website will show you how to protect your freedom and assets with a step by step guide to planting multiple flags.