Uncovering "The Great Taking": The Hidden Risks to Your Investments
Adrian C. Spitters FCSI?, CFP?, CEA? President, Author, Private Wealth Advisor
I Execute Tax-Efficient Investment Portfolio Solutions So That Your Business, Family, And Estate Assets Are De-Risked And Protected Against Financial Risk, Economic Threats, Inflation And Higher Taxes.
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Source Article: ALL YOUR STOCKS CAN BE TAKEN | The Great Taking | David Webb
It Starts with Gold
Gold is the foundation of a well-diversified investment portfolio, crucial for anyone looking to protect their wealth. Gold's stability and value make it a reliable hedge against inflation and market volatility, providing a solid base for wealth preservation. In an uncertain economic environment, Gold stands as a symbol of security and confidence. This stability is especially important when considering the significant risks posed by the current financial system, as uncovered in what is being termed "The Great Taking."
Uncovering "The Great Taking": A Financial Catastrophe in the Making
Imagine a global scheme where your stocks and bonds have been secretly used as collateral for financial contracts, not once, but ten times over. This has created a financial bubble, unlike anything the world has ever seen. Unbeknownst to you, your investments have been leveraged without your permission, putting your assets at great risk.
This story was uncovered by David Rogers Webb, a former investment banker and hedge fund manager. Webb's deep dive into the financial world revealed the mechanisms that enable banks to prioritize their claims over yours in a financial collapse. This practice, which he calls "The Great Taking," could lead to a catastrophic loss of securities for everyday investors.
The Legal Framework of the Great Taking
Since the 1980s, financial securities have been used as collateral in derivatives trades on an industrial scale. This encumbrance of assets was legalized in the United States by the 1994 revision of Article 8 of the Uniform Commercial Code (UCC) and later adopted by the EU. In Canada, similar practices were enabled by amendments to the Securities Transfer Act in 2006, aligning Canadian law with international standards.
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Detailed Analysis of the Securities Transfer Act Amendments
The 2006 amendments to the Securities Transfer Act fundamentally changed the way securities ownership is defined and managed in Canada. Previously, investors directly owned their stocks and bonds, but the new legislation introduced a concept known as "securities entitlements." This legal construct means that when you buy stocks or bonds, you do not actually hold the physical securities. Instead, you have a contractual right to the securities, and these are held by a financial intermediary, such as a bank or brokerage firm.
Under this system, your ownership is recorded as an entitlement in the intermediary's books. While this arrangement streamlines trading and settlement processes, it also introduces significant risks. In the event of a systemic financial collapse, the financial intermediary's secured creditors, primarily large banks, have a legal priority over your securities. This means that these creditors can claim the securities to satisfy their debts, leaving individual investors with only a residual claim on what remains.
The concept of securities entitlements aligns with international practices, particularly those adopted in the United States and the European Union. This alignment facilitates global trading and investment but also standardizes the legal risks associated with securities ownership. During a financial downturn, the prioritization of secured creditors can result in substantial losses for individual investors. They may only receive a fraction of their investments after secured creditors have been satisfied.
The precedence for this was set during the Lehman Brothers collapse in 2007. The Too Big To Fail banks were protected and classified as "secured creditors," while investors were left in the lurch. Webb's research has highlighted this ongoing risk, emphasizing the need for legal reforms to protect individual investors.
Steps to Protect Yourself from "The Great Taking"
In the event of a financial meltdown, as outlined in the Great Taking, there are proactive steps you can take to protect your assets. Investing in gold, income-producing hard assets like farmland, and private real estate can help shield your portfolio. These assets are less likely to be seized initially and can provide a solid foundation for wealth preservation. Additionally, having stocks and bonds held in trust through a custodial relationship with private portfolio managers, instead of being held directly by a bank or brokerage firm, can further protect your assets from seizure in the event of a bank or brokerage failure.
The goal is not to eliminate the risk of asset seizure entirely but to own those assets that are least likely to be seized and to be in a position to hold those assets that remain standing if we succeed in reversing "The Great Taking."
Watch the Full Interview with David Rogers Webb
Why Gold Should Be the Foundation of Your Portfolio
Gold's stability and reliability make it a strong foundation for a well-diversified portfolio. Its value remains steady even in times of economic turbulence, offering protection against inflation and financial uncertainty. Given the potential vulnerabilities in the financial system, as highlighted by the practices surrounding securities entitlements, having a secure and tangible asset like Gold is paramount.
Combining Gold with investments in private real estate, such as multifamily rental apartments, can further enhance portfolio diversification. This approach not only safeguards wealth but also taps into the growing demand for rental properties driven by immigration and demographic changes. By investing in both Gold and private real estate, investors can build a robust, resilient portfolio that mitigates risks associated with financial intermediaries and systemic financial collapse.
Complimentary Portfolio Evaluation
As a valued reader, I am offering a complimentary portfolio evaluation to discuss how investing in alternative assets such as private equity, private real estate, precious metals, commodities, government-sanctioned flow-through tax-efficient structures, and tax-minimizing corporate insurance solutions can help fortify and de-risk your portfolio against the risks posed by "The Great Taking."
To book your consultation, email me at [email protected] or use my Calendly Link. Alternatively, you can contact New World Precious Metals to discuss purchasing options for physical precious metals.
In these turbulent times, it's crucial to ensure that your portfolio is well-positioned to withstand potential economic challenges and market fluctuations. By considering the incorporation of Gold and income-producing hard assets, you can fortify your investments and better navigate the complexities of the current financial landscape.
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A Partnership for Holistic Wealth Management
As a dedicated advocate for de-risking business, family and multi-generational wealth, I am partnered with one of the leading independent private wealth management firms. My team serves high-net-worth clients nationwide. We provide professional investment management and comprehensive wealth planning solutions from a fiducially focused, client-first perspective, providing access to sophisticated tax-advantaged strategies and solutions traditionally reserved for the ultra-affluent.
We are driven by a "capital preservation first" philosophy. Our team generates consistent, tax-efficient returns uncorrelated to public markets. By leveraging our expertise, you are granted access to key industry professionals, gaining exclusive entrance into alternative investments such as private equity, private real estate, precious metals, commodities, government-sanctioned flow-through tax-efficient structures, and tax-minimizing corporate insurance solutions offered through mutual life companies. All are designed to fortify, secure and de-risk your family, business and estate assets against financial risk, economic threats, inflation and higher taxes.
To receive a complimentary digital copy of "Who's Investing Your Money?," email me at [email protected] or book a complementary portfolio evaluation with me through my Calendly Link.
The Custodial Model: An Additional Layer of Protection
In light of the revelations in David Rogers Webb's book The Great Taking, to further safeguard wealth, the firms I work with employ a custodial model, where client assets are held securely by an independent third-party custodian rather than commingled with the firm's assets. This crucial segregation of assets provides an additional layer of protection, reducing the risk of seizure or misappropriation in a financial crisis or institutional insolvency. The custodial model offers investors a safeguarded solution to help secure their wealth separately from the management firm.
Watch The Great Taking Documentary
Additional Resources:
Exploring the U.S. for Wealth Security
Amid economic uncertainty and high taxes in Canada, many affluent Canadians are considering relocating their wealth to the United States. The U.S. offers a more favourable tax environment and stronger asset protection laws. Peter J. Merrick, a renowned cross-border specialist, assists Canadians in navigating international wealth management complexities, facilitating seamless asset transfers to diversify holdings and safeguard their hard-earned assets from potential risks.
For Full Details, CLICK HERE
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Adrian C. Spitters FCSI?, CFP?, CEA? President, Author, Private Wealth Advisor
I Execute Tax-Efficient Investment Portfolio Solutions So That Your Business, Family, And Estate Assets Are De-Risked And Protected Against Financial Risk, Economic Threats, Inflation And Higher Taxes.
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