(Kitco News) – The American dream is “dead,” said Andrew Henderson, founder of Nomad Capitalist, who is the go-to expert on where to find economic freedom with global citizenship and whose founding principle is “go where you are treated best.”
“There are people who are so angry now because the American dream for them is dead,” Henderson told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. “They can’t graduate high school, get married, have three kids, live in a five-bedroom house, and drive three cars. It’s not possible anymore. People realize that an elite class is gorging off of their hard work.”
The U.S. trajectory is moving in the wrong direction, according to Henderson, who sees a number of obstacles for investors looking to prosper.
“Western countries are going down. They’re going down in economic freedom rankings. They’re going down in personal freedom rankings,” he said. “You’re going to see more taxation. You’re going to see more surveillance. You’re going to see more restrictions on freedoms, including for citizens who go overseas.”
Nomad Capitalist publishes its Passport Index, with the U.S. passport dropping to 44th globally. This is why a “global citizen” philosophy is gaining traction, with investors getting access to the safest banks and some of the most powerful passports, Henderson pointed out.
“I don’t know what’s going to happen, but something bad is going to happen,” he said. “We’re moving in the wrong direction. And I don’t want to necessarily prognosticate about what that is. Again, it comes down to culture and intent.”
On how risky the U.S. banking sector is now, Henderson refers to an index of the world’s safest banks. Watch the video above for insights.
For Henderson, there is also an ever-growing risk of private bank accounts getting canceled due to unpopular opinions of account holders.
One of the well-known cases happened to Nigel Farage, a former British politician and broadcaster known for his strong advocacy of the United Kingdom leaving the European Union. The big controversy was Farage’s bank account closure, which involved Coutts, a prestigious private bank owned by NatWest Group.
Henderson discusses how high this risk is in the West versus the rest of the world. Watch the video above for insights.
Why you need a passport portfolio
The main principle of the Nomad Capitalist is having a passport portfolio, which opens the door to economic freedom. “In a world with a lot of competition, somehow countries are the only thing we don’t shop for. So, go where you’re treated best,” Henderson said.
The most recent high-profile billionaire investors who embraced the idea of second citizenship included PayPal founder Peter Thiel, who applied for New Zealand citizenship, and former Google CEO Eric Schmidt, who applied for Cyprus citizenship.
Henderson added that some top passports include Switzerland, Ireland, Luxembourg, and Switzerland. “The criteria is 50 percent visa-free travel, and then the rest being perception, taxation, and personal freedom,” he said. “You’re also seeing the Caribbean passports – you could live in 14 or 15 different countries, some of which are very tax-friendly.”
As an American investor, options can be limited, Henderson pointed out. “Having multiple passports gives you the ability to travel to more countries, have more opportunities like opening bank accounts and buying different funds,” he said. “More countries in the West are going to put in some kind of system that makes you their perpetual slave. And you want to be able to say, ‘I don’t agree with this, I’m out.’ I’m a big believer in following the law. If I don’t agree with the law, I go where the law agrees with me.”
He also shares the maximum legal amount of citizenships one person can hold simultaneously. Watch the video above for details.
Henderson noted that more people flock to multiple citizenships for three goals – finance, freedom, and lifestyle.
“For me, leaving the U.S. as a young person, lifestyle was more of an issue, but taxes also bothered me. I did feel somewhat un-free in the U.S., but I think it’s gotten worse since then,” Henderson said. “We had multi-millionaires who wanted to move to Mexico and Nicaragua back during COVID because that was where they felt the most free. We have people who are much more focused on taxes.”
Dollar as a weapon
The de-dollarization trend has also gained momentum as economic strategies evolve amid renewed geopolitical tensions. The concept involves reducing the dominance of the U.S. dollar in international trade and reserves, with several countries exploring alternatives to lessen their reliance on the greenback.
According to the latest IMF data, the U.S. dollar accounted for 59% of global allocated foreign exchange reserves in the third quarter of 2023. The data shows that the share of the greenback has fallen by around 6% since early 2016.
Henderson views it as financially problematic for U.S. citizens. “You think they’re going to treat you, the citizen, any better than they treat everybody else around the world? They use the dollar as a weapon. The less dollar hegemony they have, the more they’re going to be backed into a corner, the more they’re going to have to come out and look to raise taxes,” he explained.
Accelerated de-dollarization could also mean more conflicts, Henderson added. “[The U.S.] is going to probably start more trade wars. They’re going to increasingly get debt. They’re the tiger backed into the corner. That’s what I see de-dollarization as,” he described.
For Henderson’s insights on the historic gold and Bitcoin’s new record highs and the role the two assets play in a global citizen’s portfolio, watch the video above.
Henderson also analyzes countries that are the safest from the risks posed by central bank digital currencies (CBDC) and shares the top geopolitical threats he is watching in 2024. Watch the video above to get the info.
Nomad Capitalist Live event
Henderson is hosting the annual Nomad Capitalist Live event in Malaysia on September 25-28. This year’s MC will be Kitco’s Lead Anchor and Editor-in-Chief, Michelle Makori.
The event teaches investors how to get multiple passports and the benefits of becoming a global citizen, from lowering taxes to ensuring their bank accounts are safe and their wealth protected.
This year’s high-caliber speakers include Air Asia CEO Tony Fernandes, Nigel Farage, ‘The Bitcoin Standard’ author Saifedean Ammous, Former President of Estonia Toomas Hendrik Ilves, former Prime Minister of Malta Joseph Muscat, and more.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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