Editor's Note: Heidi Scholz is an attorney-at-law with valuable insights on how your wealth protection our plan needs to address the control over your assets that may arise in an era of a devalued U.S. dollar. For more info on her firm and services, visit www.hscholzlaw.com.
Since 1944, the U.S. dollar has been denominated the world’s foremost reserve currency for global transactions. However, the BRICS nations (Brazil, Russia, India, China, and South Africa) are leading the charge to ramp up the de-dollarization of the U.S. dollar. Now, more and more countries are poised to ditch the U.S. dollar as a currency for global transactions as BRICS’ countries and other nations increase the use of local currencies in international trade and cross border transactions.
Internationally these nations and countries are decreasing their dependence on the U.S. dollar resulting in its devaluation.
According to Ambassador Anil Sooklal, the Deputy Director-General for Asia and Middle East under the Department of International Relations and Cooperations, an additional 19 countries are showing interest in becoming BRICS’ members.
To make matters even more serious, countries which are not BRICS’ members are exploring and implementing currency diversification.
• For example, Indonesia, not currently a member of BRICS, has already implemented a currency diversification method to use local currencies in trade with several nations, including Thailand, Malaysia, China, and Japan. The Bank of Indonesia is also planning to introduce its own domestic payment system. Additionally, the Indonesian government plans to sign an agreement with South Korea regarding local currency transactions in early May.
• Argentina, also not currently a member of BRICS, expanded its currency swap with China by 5 billion and now pays for Chinese imports in yuan instead of United States Dollars according to Argentinian Economy Minister Sergio Massa.
• France’s TotalEnergies completed its first renminbi/yuan-settled trade for liquid natural gas with China’s National Offshore Oil Corporation.
• United Arab Emirates recently settled 65,000 tons of LNG from China in renminbi/yuan according to Reuters.
• Brazil recently signed a memorandum of understanding with The People's Bank of China as a first step in creating a yuan-based clearing system with Brazil.
Simultaneously, the renminbi/yuan has been Russia's defacto reserve currency for the past year since the Ukrainian military operation.
The underlying issue is why the renminbi/yuan has become a defacto reserve currency for a growing number of international transactions.
In short, the answer appears to be gold!
Globally, China's central bank has become one of the leaders in the gold market, purchasing more than 100 tons of gold in the last four months! A group of economically aligned nations has also purchased massive amounts of gold to reduce their reliance on the U.S. dollar.
Gold appears to be the key to a multipolar economic future and it is likely to back the creation of a new currency that does not include the U.S. dollar.
Alexander Babakov, the Russian Duna’s Deputy Chairman, stated the U.S. dollar could be on the way out if there is unity among the BRICS nations at the next summit in August 2023 to create a new currency for trade that is backed by gold and/or other rare-earth metals.
What does this mean for you?
If there are alternative gold and rare earth precious metal backed currencies then the likelihood of the fiat U.S. dollar or U.S. Centralized Bank Digital Currency (CBDC) remaining a globally dominant reserve currency are substantially reduced. Gold and rare-earth precious metal currencies will likely take a front seat in international trade transactions. This may force the Federal Reserve to try and retain its premiere status with the issuance of a gold backed currency which will likely result in the demise or significant restructuring of the Federal Reserve Bank itself!
Because the United States Government is actively pursuing the Centralized Bank Digital Currency (CBDC) program, and BRICS nations and other countries are pursuing their own version of a transactional currency that is avoiding the use of the U.S. dollar, the time is now to position yourself for the possible implementation of CBDC in the United States of America, the devaluation of the U.S. dollar, and the implementation of a new multipolar economic currency backed by gold or other rare earth precious metals.
We generally recommend you consider diversifying your assets, in conjunction with your financial advisor’s advice. The purchase of assets such as precious metals, Perth Mint Certificates, and other assets before the implementation of CBDC, devaluation of the U.S. dollar, and the implementation of a new multipolar economic currency will likely provide you with assets to use in the event of banking and ATM restrictions, and will enhance your ability to maintain your financial freedom and financial stability while ameliorating your exposure to CBDC tracking, U.S. dollar devaluation, and the multipolar economic currency that is implemented as a replacement in many countries globally.
We use a variety of planning tools to:
• Counteract a possible forced conversion to CBDC; and
• To preserve your wealth; and
• To protect your assets from the devaluation of the U.S. dollar in a globally competitive marketplace that implements a gold backed multipolar economic currency.
In appropriate situations, the utilization of non-United States trusts and entities in the planning can significantly enhance the asset protection elements of the ownership structure. For example, if there are CBDC limitations, the assets should be diversified among multiple foreign trusts and limited liability companies in an advantageous strategic manner as the circumstances dictate. This minimizes CBDC exposure and protects your physical assets from U.S. dollar devaluation! It may further extricate the assets from the CBDC and permit you to operate outside the controlled US system.
Similarly, the assets of a foreign Limited Liability Company managed by a non-United States party minimizes the exposure of the assets to CBDC and the devaluation of the U.S. dollar.
In any event, your planning should be custom-tailored to your personal situation and should be consistent with your financial, estate planning, business planning, tax planning, and wealth protection objectives.
Planning tools we consider, among others, include the following:
• Domestic Revocable Living Trusts primarily for estate planning, probate avoidance, and asset protection for Trust Beneficiaries from their personal creditors, and other purposes.
• Foreign Revocable Living Trusts established in Nevis primarily for estate planning, probate avoidance, and asset protection for YOU and Trust Beneficiaries, and other purposes.
• Domestic Irrevocable Trusts which can be designed to be exempt from United States Estate Taxation as well as probate, and which can be drafted to contain asset protection features.
• International Wealth Protection Trusts primarily for probate avoidance, estate tax avoidance, asset protection, enhanced financial privacy except from certain taxation and anti-money laundering authorities, and access to foreign investments.
• Foreign Grantor Trusts established by a nonresident alien for the benefit of you and your family, which in addition to the advantages for International Wealth Protection Trusts can provide United States income tax advantages such as the receipt of trust distributions that are nontaxable to U.S. parties who must report the distributions to the Internal Revenue Service!
• Domestic Limited Liability Companies which can provide asset protection and permit you to manage the company personally.
• Foreign Limited Liability Companies which if drafted in an appropriate jurisdiction can provide enhanced asset protection features beyond what a Domestic Limited Liability Company can provide.
• Domestic Pension Limited Liability Companies which are owned by a Self-Directed Individual Retirement Account or Sole 401(k) Plan and are required to contain specific terms and provisions to avoid disqualifying your IRA from its tax features, and needs to avoid engaging in disqualifying transactions. They provide enhanced asset protection for your IRA and the assets owned by the Domestic Pension Limited Liability Company. They are especially well-suited to own precious metals, Perth Mint Certificates, real property interests, cryptocurrencies, and certain other asset classes that IRAs traditionally do not own.
• Foreign Pension Limited Liability Companies which in addition to the features of a Domestic Pension Limited Liability Company are well-suited for the ownership of assets by an IRA that wishes to minimize its exposure to CBDC!
Many plans incorporate a combination of techniques such as by using a trust to own a Membership Interest in a Limited Liability Company to use the estate planning benefits of the trust and the asset protection benefits of the limited liability company.
These tools are not only important but can be the difference between your financial freedom and control and self-sovereignty over your financial decisions, and the loss of financial freedom and control. This is not a mere hyperbolic conjecture. CBDC has been and is massively becoming enacted and forced upon the people in many nations, and is rapidly approaching us in the U.S. Many countries currently are currently exploring and implementing multipolar economic currencies, and transitioning away from a U.S. dollar backed system.
Remember you are the author of your personal plan, with your wealth protection attorney advising you on the suitability of your plan for your needs and objectives. Your plan needs to address the control over your assets that may arise in an era of a devalued U.S. dollar replaced by a CBDC that is uncompetitive in a gold or other rare earth precious metal backed multipolar economic system!
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