The Capital Bail-ifs Of Force Majeur

Essay. All sovereign nations resist or temper the ability of their citizens to export capital and, therefore, their wealth to foreign bank accounts and investments. It’s a matter of law, and where the rule of law prevails and may be amended to suit or favour the people in ways other than the enforceable (or forced) entitlements of the government, we might have our day in the legislature, or the Courts, as the case may be. But the latter – the Courts – is an uncertain process, time-consuming, expensive, academic, and not necessarily fair or just to a standard that is other than confiscation, or theft, in all but the law of the land that allows it, and insists upon it . Better that the legislation be plain before the fact and enforceable as written so that there can be no argument (Reuters, April 4, 2013, Ottawa clarifies Cyprus-style ‘bail-in’ language in federal budget)

For example, is it “fair” that the post-war citizens of the Weimar Republic (1923) should have their assets confiscated by a worthless paper currency? Is it fair that the citizens of Cyprus should be made to pay, effectively, each other’s debts – those who have for those who don’t? In those cases, and all such cases absent “theft”, the answer is yes, it is, and the licence to steal is given by the word “bankruptcy” or the vanishing of their equity and contract in the government and laws of the land which are theirs to amend before the fact, but they chose not to.

Everyone, therefore, needs to be able to vote with their feet, and we take that as a definition of a person who is other than a child, an infant, and utterly dependant on the care and justice of others of whom we know nothing about.

The world capital markets are available to anyone with a computer and a network, or even just a telephone, and within the laws of the land, which might be considered and amended before the fact, for everyone to see and know, it is easy to export capital to foreign investments that cannot, or will not, be confiscated, short of killing or imprisoning the owner. That’s better than cash in our banks and gold in our safes.

Postscript

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Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.