Austrian Economics & Asset Protection Planning–Richard Duke (Video)

 

See:

http://www.assetlaw.com

A message from Richard Duke regarding Keynesian economics

 

Malinvestments and the Economy – Guest J. Richard Duke – Liberty Talk Radio 05-03-2014

 

Richard Duke named Ambassador to the Mises Institute

 

Book: Asset Protection Strategies: Planning with Domestic and Offshore Entities, Volume I, Second Edition, American Bar Association

Duke Law Firm. P.C.:  http://www.assetlaw.com

Mises Institutehttp://www.mises.org  [Austrian economics]

Richard Duke named Ambassador to the Mises Institute

 

A general, but serious, reason to read this book— The Skyscraper Curse: And How Austrian Economics Predicted Every Major Economic Crisis of The Last Century is to avoid being one of the millions who will be duped when the next crash (bust) occurs. Millions were and continue to be duped as to the reason for the boom leading up to 2007 and 2008 and why the bust occurred in 2008 relating to real estate.

Thornton begins with an important discussion of money creation and Richard Cantillon, writing: “… Richard Cantillon (1680s-1734?) [was] the first economic theorist and proto-Austrian economist …[he] showed how the interest rate and the money supply can create changes and distortions in the economy, a phenomenon now referred to as “Cantillon effects.”

Monetary inflation is affected by who gets the money and credit first and who gets it last. As fiat money is created by central banks, private banks are in a position to expand the amount of loans they make. The wealthy have established relationships with the banks, and they have the real estate and assets to provide collateral for the loans. Large, established companies and wealthy individuals are in favorable positions relative to small businesses and people with low or average incomes. The loans allow big companies and wealthy individuals to invest in capital goods during the boom phase of the business cycle. Central banks thereby create artificial inequality and poverty. This is the primary Cantillon effect of redistributing wealth.”  Richard Duke

Review by Richard Duke on the Mises Institute website of the book: The Skyscraper Curse: And How Austrian Economists Predicted Every Major Economic Crisis of the Last Century by Dr. Mark Thornton

 

The Essence of Keynesianism Is Not Understanding the Role of Saving and Capital Accumulation

 

ASSET PROTECTION PLANNING—ITS NEW MEANING; AND THE CAUSES OF THE 2008 INTERNATIONAL CREDIT CRISIS–by Richard Duke

The Florida Bar provided written permission to me to send the following handout material to anyone.  SEE TABLE OF CONTENTS BELOW. IF you want to receive a copy of this handout material, please let me know.

Avoiding Loss of What You are Saving; Due Diligence on Domestic and Foreign Investment Advisors and Systems.  How an Asset Protection Lawyer Protects Clients from Theft and Insolvency”

  1. Richard Duke, J.D., LL.M. in Taxation, University of Miami School of Law, was named “Top 100 Attorneys” in the U.S., Worth magazine, 2005-2008. He represented the Ludwig von Mises Institute for Austrian Economics (1983-1989). Adjunct Professor of Law, International Tax and Financial Services, Thomas Jefferson School of Law. Contributing author to eight-volume set of books titled International Trust Laws and Analysis, Kluwer Law International; author of U.S. chapter for Global E-Business Law and Taxation (Oxford University Press); co-author of Controlled Foreign Corporation Guide (2007); and co-author of U.S. Tax Reporting Guide for Foreign Trusts, published by Research Press, Inc. (2009).

 

TABLE OF CONTENTS

 

  1. THE BEAR MARKET OF TRUST SINCE 2008. 1
  2. Trust entered a bear market 1
  3. Hubris of banks. 1
  4. KPMG warned HSBC about Madoff—twice. Audit firm cautioned bank about entrusting $8B in client funds to money manager. 2
  5. Books on the financial system.. 2
  6. Trust and competency. 2
  7. PERFORMING PROFESSIONAL DUE DILIGENCE ON ADVISORS. 2
  8. Due diligence with respect to licenses and professional organizations. 3
  9. Performing background checks. 3
  10. Due diligence on the advisor’s investment return history. 3

III.       WHO CONTROLS THE INVESTMENT ADVISOR.. 3

  1. Determine the first loyalty of the advisor. 3
  2. False claims and sales pitches. 3
  3. Is the advisor pressured by his firm?. 3
  4. Employer; holder of licenses. 3
  5. Who owns the employer?. 4
  6. Proprietary products. 4
  7. Written disclosures for recommendations. 4
  8. Additional compensation. 4
  9. Choosing financial products. 4
  10. Pressure to sell proprietary products. As Jack Waymire states. 4
  11. Who owns the advisory firm?. 4
  12. 17 Paladin Principles. 4
  13. PROTECTION AGAINST FINANCIAL FRAUD.. 5
  14. Know the rules and look for red flags, as discussed below.. 5
  15. Skewed risk/return ratios. 6
  16. Too good to be true. 6
  17. Secrecy. 6
  18. Overly consistent 6
  19. Use of complexity to explain investment 6
  20. Vanishing paperwork. 6
  21. Unregistered investments. 6
  22. Delayed payments. 6
  23. Lack of oversight 6
  24. Unregistered advisors. 6
  25. IN SEARCH OF THE NEXT MADOFF.. 6
  26. Reliance upon industry regulators. 7
  27. Avoiding the bad advisors in the first place. 7
  28. Identify the potential poor advisors. 7
  29. Weeding out criminals and incompetents. 7
  30. Subjective processes to select advisors. 7
  31. Due Diligence to avoid crooks and incompetents. 7
  32. Avoid subjective process. 7
  33. Use a third party to conduct due diligence. 7
  34. Private investigative firm.. 7
  35. Focus of the research. 7
  36. Ascertaining competence is difficult 7
  37. Experience and education. 8
  38. Use of social media for background checks. 8
  39. LACK OF CREDIBILITY OF GOVERNMENT OVERSIGHT.. 8

A         SEC Chair admits agency’s credibility took a hit 8

  1. SEC focused on rebound in trading volumes in the mid-1970s. 9
  2. SEC and Bernard Madoff. 9
  3. Federal Reserve completely out of touch. 9
  4. Befuddled Alan Greenspan, former Chairman of the Federal Reserve. 10
  5. Cause of price rises. 10
  6. Debauching the currency. 11

VII.     IMPORTANCE OF UNDERSTANDING ECONOMICS. 11

  1. Lack of Understanding of Economics. 11
  2. Ignorance of economics. 11
  3. Vigorous intellectual battle. 11
  4. Having a worldview of economics/money/inflation. 11
  5. Determine the meaning of Inflation. 12
  6. Rational Expectations Theory. 12
  7. Efficient Market Hypothesis. 12

VIII.    THE THREE SCHOOLS OF ECONOMICS. 13

  1. Keynesian School 13
  2. Chicago Monetarist School 15
  3. Austrian School 16
  4. QUESTIONNING MAINSTREAM ADVICE AND RESEARCH.. 18
  5. Quant turned $100,000 into $220 million fund. 18
  6. Attacks on the Rational Expectations Theory: Efficient Market Hypothesis. 19
  7. Example of direct attack on Efficient Market Hypothesis. 19
  8. How accurate are the predictions of securities analysts?. 19
  9. Prediction of the meltdown of derivatives. 22
  10. Jim Grant predicts the market—June 3, 2005. 23
  11. The quants—math whizzes. 26
  12. The Myth of the Rational Market 27
  13. The Austrians. 27
  14. Can the market be right?. 28
  15. A false assumption—“they must know what they are doing.”. 29
  16. DUE DILIGENCE ON FOREIGN ADVISORS. 29
  17. Switzerland—as an example. 29
  18. Personal meeting. 29
  19. Determining background. 29
  20. Personal visit 29
  21. Determine regulatory body of advisor’s firm.. 29
  22. CV and personal references. 29
  23. Information about strategy. 30
  24. Ask to speak with existing clients. 30
  25. Good standing. 30
  26. Professional credentials. 30
  27. Determine professional organizations. 30
  28. Hong Kong and Singapore—as examples. 30
  29. Personal meeting. 30
  30. Determining background. 30
  31. Brand conscious. 30
  32. Word-of-mouth dictates. 30
  33. The “tea party” chat 30

 

 

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