Where should one keep their wealth to avoid future potential sanctions?

[troubled soul]

 

[Golden Fleece]

Visa and Mastercard announced Saturday they will stop all credit card transactions in Russia:

Visa and Mastercard announced Saturday they will stop all credit card transactions connected with Russian clients and financial institutions in the upcoming days over the deadly invasion of Ukraine.
* * *
The credit card giant said this means that effective immediately, Visa will be working with clients and partners inside of Russia to stop all Visa transactions, including through merchants and ATMs.

Once complete, all transactions that are initiated with Visa cards that were issued in Russia will no longer work outside the country, and cards that were issued by financial institutions outside of Russia will not work within the Russian Federation, the company said.
* * *
Mastercard, in a separate statement Saturday, said they are also ceasing all operations in Russia over the invasion.

https://www.newsmax.com/newsfront/visa-mastercard-russia-sanctions/2022/03/05/id/1059821/

 

[Martin Everson]

Ok just an update. I offloaded most of my European government bonds already. I've taken my chips off the table with a decision I did not take lightly and hopefully will not regret. Will move forward with a new strategy outside Europe .

P.S Decision had nothing to do with ECB non-action....lol. Decision was taken a few days ago to exit investing in European debt financial markets.

https://finance.yahoo.com/news/european-central-bank-leaves-interest-rates-unchanged-133013167.html

 

[369]

can you give hints what kind of strategy ?

 

[Martin Everson]

can you give hints what kind of strategy ?

It's an income producing non-bank, non-financial asset strategy outside the west . Basically a direct hard assets strategy going forward from now on.

 

[EuroKiss]

It's an income producing non-bank, non-financial asset strategy outside the west . Basically a direct hard assets strategy going forward from now on.

Fishing boats?

 

[kkein]

I may start investigating putting some of my wealth into RMB with banks connected to CIPS system and offering UnionPay cards after reading the below. The big stumbling block is the bank account has to be in country that in end will not respect US or EU arbitrary sanctions. So maybe a Chinese bank in HK.

https://www.russia-briefing.com/new...s-key-banks-portfolios-and-implications.html/
P.S So Gazprombank and Sberbank were spared sanctions. I wonder why?

They are maybe spared, but no western bank let at least private persons to wire to them. I wonder why..

As for CIPS, i've been digging a bit deeper, found here that some banks that support it are Standard Chartered, Deutsche Bank, HSBC, Citi Bank, DBS Bank, Bank of East Asia, BNP Paribas and ANZ.

I wonder if there's any bank/EMI supporting it that offer worldwide online accounts? I tried BEA and they let only HK residents create accounts... :/

 

[Martin Everson]

They are maybe spared, but no western bank let at least private persons to wire to them. I wonder why..

Bad PR for the bank when anti-Russian sentiment is running high.

I wonder if there's any bank/ EMI supporting it that offer worldwide online accounts? I tried BEA and they let only HK residents create accounts... :/

Maybe we should ask the Russian Oligarchs how its done .

P.S I am still investigating this all.

 

[369]

abramovich moved yacht into a trust ?
Rest of yachts seems are moving towords indian ocean

 

[Martin Everson]

abramovich moved yacht into a trust ?

I think he was talking about his Chelsea football club holdings.

A trust cannot help once there is pending legal actions against you. The trust becomes invalid if setup in this way in a lot of trust jurisdictions .

But interesting how he was allowed to sail his yacht away. This is all bad news for superyacht industry. Quite a few owners are politically connected persons. We may even see cancelled orders for new yachts amongst the cautious.

Anyway back to topic.

 

[backpacker]

It's an income producing non-bank, non-financial asset strategy outside the west . Basically a direct hard assets strategy going forward from now on.

From bonds to direct hard assets - that is a major shift.
You did not reveal what this hard asset strategy looks like. However, it does seem to bear a lot more work than investing in bonds, doesn't it?

 

[Martin Everson]

You did not reveal what this hard asset strategy looks like.

Yes as it will take time. It's not as liquid as bonds.

However, it does seem to bear a lot more work than investing in bonds, doesn't it?

Yes its not a mouse click away type investment. It will require work. But no pain no gain.

 

[EuroKiss]

Yes its not a mouse click away type investment. It will require work. But no pain no gain.

I wouldn’t say that Finance-based economy is collapsing (even if I think will be resized), but I guess old fashion “brick and mortar economy” will re-gain importance.

 

[Martin Everson]

I wouldn’t say that Finance-based economy is collapsing (even if I think will be resized), but I guess old fashion “brick and mortar economy” will re-gain importance.

The debt based system will be fine. But I am just moving away from holding European sovereign debt also because of ideological reasons not just financial.

 

[JackAlabama]

The debt based system will be fine. But I am just moving away from holding European sovereign debt also because of ideological reasons not just financial.

better usa or even china bonds than from eudssr. However the euro looks somewhat oversold right now.

 

[EuroKiss]

The debt based system will be fine. But I am just moving away from holding European sovereign debt also because of ideological reasons not just financial.

Do you see the global debt system fine?
Pd: kudos to your ideological reasons!

better usa or even china bonds than from eudssr. However the euro looks somewhat oversold right now.

I guess many countries based part of their reserve currency in EUR to balance USD in case of problems with US, but right now they see EUSSR mimics what US does, so no point to have reserve in such currency.

 

[Martin Everson]

better usa or even china bonds than from eudssr. However the euro looks somewhat oversold right now.

I am totally out of bond market. Will definitely not ever buy US bonds and fund that war machine. Imagine lending someone money to kill you .

Do you see the global debt system fine?

Yes 100% it will be fine at least in US. The Fed can promise to bail out the corporate bond market like it did in 2020 during covid hit.

USD to infinity can be printed after the usual political theater of voting to lift the debt ceiling to support it.

 

[369]

EURRS politican sees your money as theirs .Its diffrent in US and China.

Debt is in general not an issue.Once wealth is sucked out UN will meet and just rescind the debt.

It's an income producing non-bank, non-financial asset strategy outside the west . Basically a direct hard assets strategy going forward from now on.

Is it possible to replicate it ?
I'm now moving outside of EU and loosing majority of my save income which would be soon destroyed anyways.
So am currently looking for solutions for income outside the EU which are safe in deep recessions.

 

[EuroKiss]

I am totally out of bond market. Will definitely not ever buy US bonds and fund that war machine. Imagine lending someone money to kill you .

Again, kudos to you.

Yes 100% it will be fine at least in US. The Fed can promise to bail out the corporate bond market like it did in 2020 during covid hit.

USD to infinity can be printed after the usual political theater of voting to life the debt ceiling to support it.

What if, due to the Triffin dilema, domestic inflation and trade deficit skyrocket so much that they must disconnect the printer to avoid serious internal problems (I mean, they already had a 6 January, and it was a mere peaceful protest)?
China is also setting up a sort of SDR to by-pass USD.

 

[Martin Everson]

What if, due to the Triffin dilema, domestic inflation and trade deficit skyrocket so much that they must disconnect the printer to avoid serious internal problems (I mean, they already had a 6 January, and it was a mere peaceful protest)?
China is also setting up a sort of SDR to by-pass USD.

I don't think the Triffin Dilemma will happen for USD. China has plans with its own currency which will likely dominate in developing countries due to currency swap lines with RMB. It will be a brave man to bet against China's rise. But then again having seen the way sanctions have been weaponized China would need to plan for this factor.

https://iems.ust.hk/publications/th...ts-of-chinas-yuan-as-the-next-global-currency