Capital flight occurs concurrent with social destabilization and executive protection opportunities / needs
People and capital – if you threaten them, they will leave!
Around the world many countries continue to concern their middle and commercial class through unstable governments, high taxes, burdensome regulations, or wealth redistribution through litigation. The prime candidates for capital flight in 1999 are (drum roll please)…
A) Canada- With the renewed succession calls fromQuebec. This French speaking province of Canada consumes more in tax dollars than it generates and will have no trade treaties with anyone, including Canada and theUnited States. While Quebec is a mineral-rich province, the minerals will stay in the ground due to the cost of environmental regulation and the taxes on employees and labor.
B) Ireland, Italy, Spain and Greece- Because of high taxes and a GNP disparity between other EU nations that will drive prices up and job growth down. This will be as a result of the new EU currency that will begin to circulateJanuary 01, 1999.
C) Argentina – Chavez, who lead an unsuccessful coup several years ago, is now a democratically elected president with big social program ideas. Enough said.
D) Australia- because of a rapid rise in crime brought about by the seizure of legally-registered guns from gun owners. The criminals now know that nobody is armed. The middle class and upper class are looking to hide assets abroad to protect against the growing civil unrest.
E) South Africa- For 15 years money has been leaving South Africa illegally in bags, cars, stuffed animals, etc. Now, since currency controls have been relaxed, many of the Bourse-listed companies are seeking listing elsewhere: London, New York, Toronto– anyplace but South Africa. This nation leads the world in murder per capita, burglaries per capita, and carjackings per capita, and has designed an anti-carjacking devise that will immolate any would-be (now medium rare) carjacker with flame throwers from underneath the car.
F) The United States – will also see its share of capital flight primarily due to increasing regulations, socialization of medicine, tort litigation that is out of control, and a government perceived by many with money as trying to exercise restrictive powers over its citizens.
These countries will experience increased political and social instability because of capital flight and thus provide opportunities / needs for executive protection.
