12-1-12 Okie Oil Man: You need to stop and consider that some of these rates that you guys are talking about according to the G7 informed me that they are strictly placement holder rates. And this is also connected to these philanthropic and humanitarian programs (Prosperity Packages) with this because they are symbiotically related and they were sent out today (Friday) to be concluded being delivered by tomorrow (Saturday) night. So it is all tied together. It doesn’t come from the same kitty but it starts from the same source and that source is China.
The Indian Rupee is going to be an optimum investment in the future and, believe this or not, the Iranian currency has dropped by ¾ this year. It is worth ¼ of what it was so after they get the Iranian situation straightened out that probably will be our next opportunity because Iran is floating in oil.
When you are going to exchange our money go to a bank that has a international foreign exchange currency department and you trade for one of three things: Australian dollar, Hong Kong dollar, or Canadian dollar. If you designate it in those denominations it is not a taxable event. That is an honest currency exchange (a 1031 exchange).
However, when you change it back to the U.S. dollar then it becomes a taxable event. I think that is an issue that most people need to consider because of the fiscal cliff going off the 31st of December that will take our capital gains from 15% to 20% so we need to not put everything we’ve got into USD.
And the way to get your money out of there (a multi-currency account on the private banking side of Wells Fargo, for example) is just have them issue a debit card. Your debit card will be debited in USD and I will let you read between the lines of what I am telling you. There are two things in this world you can do – you can work the system or you can let the system work you.
Here is something else to evaluate relative to the taxation question. The Kuwaiti RV was not a taxable event. That is a legal historical precedent of it not being a taxable situation. Unless the IRS retroactively writes a statute encompassing this we can use the Kuwaiti RV as a precedent setting measure to avoid (not evade) taxes.