There is always a lot going on across the global economy. But the last couple of weeks have seen more than usual, and I’d like to take this opportunity to examine recent developments and what they mean for your money. Two stock markets are in turmoil this week. In China, government regulators continue to intervene in the market in an ongoing attempt to halt a sharp decrease in prices. On August 3, they suspended 30 trading accounts, an action that included the brokerage department of Citadel, an American hedge fund. Other actions including buying stock shares directly and preventing large company shareholders from selling their stocks. Yet the market continues to stumble (down a third in less than two months), and in my opinion, the more regulators try to do to stop it, the more they’ll compound the problem. The bottomline with China is this: a period of tremendous growth, which lasted many years and was undoubtedly good for the country, is coming to an end. There is nothing to make up the difference. Consumer spending is weak, and there is no room for the exports sector to expand. A period of adjustment is in store for the Chinese economy. What remains to be seen is how greatly it affects the rest of the world.
More news in from Greece, as its stock market opened for the first time in weeks on August 3. No surprise, the news is bad. The exchange fell twenty percent after it opened, and while prices are so low at this point that they might flatline for the foreseeable future, that initial plunge is indication that even after all the bailouts and negotiations and last-minute compromises, investors are not willing to trust Greece with their money. The reopening follows a series of other moves attempting to get Greece back on track. Greek banks reopened on July 20. Yet this is hardly cause for celebration. Restrictions on money transfers and withdrawals remain in the banking sector – this is like putting a Band-Aid on somebody with a degenerative disease. Manufacturing activity remains paralyzed by government-imposed controls, and there is truly no end in site. Stay tuned for more of the same.
The European Union? I recently caught this quote by Roger Cohen: “Europe is caught between those who want to get in, those who want to get out, and those who want to destroy it. The incomers are desperate, the outbound are angry and the destroyers are brandishing flags.” Perhaps the situation is not quite as dire as that doomsday scenario; my friends in Spain certainly seem to enjoy themselves. Yet unemployment runs rampant (not only in Spain, but in Portugal, Italy, and other EU nations as well) and growth is low in most places and contracting in others. Rather than tie Europe closer together, the euro common currency is helping tear it apart.
And the migrant crisis in Europe also has the potential to contribute to the unraveling of Europe. For all intents and puposes, immigration policy is uniform throughout the European Union. As the crisis grows and grows, European nations will increasingly clamor for national control over this policy. From England’s possible deparrture from the EU to anti-immigrant movements in France, Denmark, and elswhere, the dynamic is already on the rise. Europe is dealing (poorly) with multiple stressors that are fracturing its short-term and long-term prospects of unity.
Which leads to a question we’ve been fielding often in our office: where is my money safe? Belize! Our country has a history of stability and peace. We have true democratic governance. Belize keeps arms wide open to international investment no matter your priorities. If you want to open an international business company in Belize, or a limited liability company in Belize, or another type of tax-exempt corporation in Belize, you’re in the right place. The offshore business sector in Belize is tax-free, confidential, and lacks foreign exchange controls. But if you’re an individual investor (such as those from Spain who are flocking to our office recently), your money is also welcome here. Belize offshore banking is one of the friendliest environments for individuals in the world. Want to join your money here? Belize real estate and land is inexpensive and easily acquired by non-citizens. All of which explains why Belize is renowned for being one of the best countries for offshore investment. Learn more today from a Belize attorney at Wrobel and Co. by contacting us today.
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