Are you a Sovereign Man? Simon Black is… very interesting

by Franco on June 14, 2010

Sovereign Man
Notes from the Field

Date: June 14, 2010
Reporting From: Rio de Janeiro, Brazil

(it’s Franco. I’ve been reading Simon Black’s commentaries as he trots around
the globe talking about planting “International Flags for Yourself” for all sorts
of interesting reasons… this guy IS INTERESTING and I wanted to share this email
he sent out this morning as a taste of what he provides on his email list and blog…)

Get his stuff direct at SOVEREIGN MAN.com

It’s nice to be back in Brazil again… if you haven’t been to this country, I highly recommend that you check it out.

Brazil is one of the largest countries on earth in terms of both land mass and population (over 200 million); consequently, there is tremendous diversity. The capital city of Brasilia is completely different than the tourism hub of Rio de Janeiro, which is completely different than the commercial center of Sao Paulo.

As a nation, though, it has an incredibly bright future, mostly due to its substantial economic prospects. This is what I want to talk to you about today because it’s one of the reasons that I think Brazil should be on your radar for planting multiple flags.

Remember, when you’re considering foreign jurisdictions, it always makes sense to plant flags in countries that have strong economies– they will be the least likely to change their policies and deteriorate.

Below I outline the reasons why I expect Brazil to maintain its economic power in the future, which is why it is should be on your radar for multiple flags, especially residency, citizenship, banking, property, or investment:

1) Industrial capacity. Long-term economic power is derived from the ability to turn savings and resources into productive goods and services. A nation’s industrial capacity is its means to accomplish this task, and includes things like the quality of its work force, magnitude of entrepreneurship, availability of factories and heavy equipment, etc.

Brazil has all of these elements in spades; it can manufacture the full range of products, from raw materials to finished goods, in a variety of sectors including agriculture, biotechnology, automotive, and even airplanes.

2) Technological capabilities. In the long-run, real economic growth requires two key ingredients– a substantial pool of savings which can be invested in production, and technology which boosts productivity.

In many ways, technology is the more important of the two because the right technology can obviate the need for capital.

In Brazil’s case, the country has been able to effectively develop and deploy alternative fuel technology that has eliminated its import need for retail gasoline. It’s amazing that the Brazilians have been able to do this, but other countries haven’t.

3) Resource independence. Being reliant on foreign countries for vital resources is a death blow to an economy. Real power is rooted in independence, creating a position of strength at the bargaining table.

In this respect, Brazil is one of the most fortunate countries on earth. It requires absolutely nothing from the outside world to sustain itself and is blessed with massive reserves of just about every resource a country could ever want, including the three most important: energy, food, and fresh water.

Given the vast amounts of oil that continue to be discovered off the coast of Brazil, the country will likely end up as #3 or #4 in the world in terms of proven oil reserves. Additionally, Brazil is home to more fresh water than just about every nation on earth, and its agricultural capacity could easily feed the entire hemisphere.

As such, Brazil is in a fortunate position in global trade– other nations are in desperate need of Brazil’s resources, and that directly translates into wealth and economic power.

4) Consumer market strength. The stronger a nation’s consumer market, the more powerful its economy becomes to the rest of the world. The US is in that position now– companies around the world want to sell their products to US consumers, and they’re willing to make necessary concessions to achieve that end.

If you’ve ever run a business, you know that your biggest customer frequently has more clout than your biggest shareholder. The customer is always right, and the same rule applies in macroeconomics.

By nature, Brazilians tend to be spenders, not savers. If you think that the average American is a shopaholic, hop a plane for the nearest Brazilian shopping mall and marvel at all the useless trinkets and knick-knacks that they waste their money on.

As the US consumer market runs out of steam, I’m convinced that the Brazilian market (numbering well over 200 million) will pick up the slack. They have the right consumer psychology, and they’re getting richer by the day from their immense resource wealth.

5) Balanced macroeconomic fundamentals. Economic power starts with a healthy balance sheet. Debt to GDP ratios and government spending must inspire confidence in global financial markets, not horror.

Brazil’s economy is fairly sound. It has experienced crisis in the past, and the trend is towards more stability, more discipline. The government and society seem determined to not repeat the fiscal mistakes of the past.

6) Political and military reputation. It’s no good having economic power if you can’t back it up with military power; how are other countries going to take you seriously if they know that they can just waltz in and steal your resources at gunpoint?

Brazil doesn’t exactly have the most active military forces on the planet– you don’t hear about the Brazilians deploying soldiers to 30 different countries at a time. Yet, its military remains strong enough that no one would be stupid enough to start a fight unnecessarily.

This stability generates investor comfort and helps promote growth in domestic financial markets.

Overall, each of these factors bodes very well for the Brazilian economy, which means that as a multiple flag jurisdiction, it will likely improve rather than deteriorate.

I would also suggest parking some of your long-term savings in the Brazilian currency (the real), which you can do through an Everbank foreign currency account, or the Wisdomtree Trust ETF (NYSE: BZF).

Over the next few days I’ll talk a bit more about Brazil, as well as what I think is the best part about the country– its passport.

More to follow.

Simon Black

Simon Black
Senior Editor, SovereignMan.com

Did you receive this email from a friend? Sign Up to receive Notes From The Field.

{ 29 comments… read them below or add one }

Norbert Vertiz June 30, 2022 at 9:43 am

Hi! I’ve been following your weblog for some time now and finally got the bravery to go ahead and give you a shout out from Porter Tx! Just wanted to mention keep up the great job!|

Brice Lousteau June 26, 2022 at 6:12 am

I’m not sure the place you are getting your information, but great topic. I needs to spend some time finding out much more or understanding more. Thank you for magnificent information I was on the lookout for this information for my mission.|

Wendell Kristy June 26, 2022 at 4:17 am

Hi to every one, it’s actually a nice for me to go to see this website, it contains important Information.|

Coletta Gravit June 25, 2022 at 11:10 am

Asking questions are genuinely nice thing if you are not understanding something completely, however this article presents pleasant understanding yet.|

Herman Troche June 20, 2022 at 10:50 am

I loved as much as you’ll receive carried out right here. The sketch is tasteful, your authored material stylish. nonetheless, you command get got an impatience over that you wish be delivering the following. unwell unquestionably come more formerly again as exactly the same nearly very often inside case you shield this hike.|

Marion Alvizo June 20, 2022 at 8:29 am

Thanks , I’ve recently been looking for information approximately this subject for a while and yours is the greatest I’ve discovered till now. But, what concerning the bottom line? Are you sure about the supply?|

Earl Netzel June 19, 2022 at 12:49 pm

Hey there! I understand this is somewhat off-topic however I had to ask. Does managing a well-established blog such as yours require a massive amount work? I’m completely new to blogging however I do write in my journal every day. I’d like to start a blog so I can share my experience and feelings online. Please let me know if you have any recommendations or tips for new aspiring bloggers. Thankyou!|

Greg Mcanulty June 17, 2022 at 10:18 am

Greetings from Florida! I’m bored to death at work so I decided to browse your website on my iphone during lunch break. I enjoy the knowledge you provide here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my cell phone .. I’m not even using WIFI, just 3G .. Anyhow, superb blog!|

http://tinyurl.com/ June 13, 2022 at 10:23 pm

I am actually grateful to the owner of this web site who has shared this great article at
at this time.

Wade Flenord June 12, 2022 at 7:28 am

Hiya! I know this is kinda off topic nevertheless I’d figured I’d ask. Would you be interested in trading links or maybe guest writing a blog post or vice-versa? My website goes over a lot of the same subjects as yours and I feel we could greatly benefit from each other. If you might be interested feel free to send me an e-mail. I look forward to hearing from you! Wonderful blog by the way!|

Jason Mith June 12, 2022 at 7:04 am

I am sure this post has touched all the internet users, its really really fastidious article on building up new web site.|

Shonda Bergo June 11, 2022 at 6:44 pm

Howdy very nice website!! Man .. Excellent .. Amazing .. I’ll bookmark your web site and take the feeds additionally? I am satisfied to search out so many helpful info here within the publish, we’d like work out more techniques in this regard, thanks for sharing. . . . . .|

tinyurl.com June 11, 2022 at 1:40 pm

I read this article fully about the comparison of most recent and previous technologies, it’s amazing article.

Alena Blomme June 10, 2022 at 11:20 am

Just want to say your article is as amazing. The clarity in your post is just nice and i could assume you’re an expert on this subject. Well with your permission let me to grab your feed to keep updated with forthcoming post. Thanks a million and please keep up the enjoyable work.|

Gerald Lurye June 10, 2022 at 8:15 am

I really like what you guys tend to be up too. This kind of clever work and exposure! Keep up the excellent works guys I’ve incorporated you guys to blogroll.|

Iluminada Helger June 9, 2022 at 7:49 pm

Hello, yes this paragraph is genuinely nice and I have learned lot of things from it concerning blogging. thanks.|

tinyurl.com June 8, 2022 at 12:33 pm

What’s up, just wanted to tell you, I liked this post.
It was helpful. Keep on posting!

tinyurl.com June 7, 2022 at 6:49 pm

This page definitely has all the info I needed about this subject and didn’t know who to ask.

Best Proxy June 7, 2022 at 11:33 am

Thanks for the guidelines you have contributed here. Something important I would like to convey is that laptop memory requirements generally go up along with other advances in the engineering. For instance, if new generations of cpus are made in the market, there’s usually an equivalent increase in the shape demands of both computer memory along with hard drive room. This is because the application operated by means of these processors will inevitably surge in power to use the new technological know-how.

Jae Santorelli June 6, 2022 at 1:37 pm

Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.|

Emma Ladner June 6, 2022 at 1:32 pm

hey there and thank you for your info – I’ve definitely picked up something new from right here. I did however expertise some technical issues using this website, since I experienced to reload the web site lots of times previous to I could get it to load properly. I had been wondering if your web host is OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and can damage your high quality score if ads and marketing with Adwords. Well I am adding this RSS to my email and could look out for a lot more of your respective interesting content. Ensure that you update this again soon.|

tinyurl.com June 6, 2022 at 5:01 am

Howdy! Do you know if they make any plugins to safeguard against hackers?
I’m kinda paranoid about losing everything I’ve worked
hard on. Any tips?

Chanel Sill June 6, 2022 at 12:07 am

You really make it appear really easy together with your presentation however I find this topic to be really one thing which I believe I might never understand. It seems too complicated and extremely huge for me. I’m looking forward on your next publish, I will try to get the hang of it!|

http://tinyurl.com/ June 5, 2022 at 5:25 pm

Yes! Finally someone writes about a.

tinyurl.com June 5, 2022 at 3:48 pm

When some one searches for his necessary thing, thus he/she needs to be available that in detail, therefore
that thing is maintained over here.

http://tinyurl.com/2p94t9rh June 5, 2022 at 5:11 am

Having read this I thought it was extremely informative.
I appreciate you spending some time and energy to put this information together.

I once again find myself personally spending a lot of time both
reading and commenting. But so what, it was still worth it!

Rosa June 4, 2022 at 3:48 am

Thanks for your personal marvelous posting!

I really enjoyed reading it, you could be a great author.I will remember to bookmark your blog and will come back down the road.
I want to encourage one to continue your great writing,
have a nice holiday weekend!

Laureen Spegal June 3, 2022 at 2:09 am

Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you could do with a few pics to drive the message home a little bit, but other than that, this is excellent blog. A fantastic read. I’ll certainly be back.|

Miquel Titze June 3, 2022 at 1:11 am

Magnificent web site. Lots of useful info here. I’m sending it to a few buddies ans additionally sharing in delicious. And obviously, thank you on your effort!|

Leave a Comment

Previous post:

Next post: