© www.freeenterprise.comIt's happening now to American citizens abroad.
In an attempt to generate more tax revenue, the Obama administration and the IRS have angered and encouraged all world banks to drop their U.S. dollar holding clients by October 1st, and systematically usher the collapse of the U.S. Dollar.It's no secret, China, Iran, Russia, India, Brazil, Japan, and other nations have started bilateral agreements to trade with one another, OUTSIDE the use of U.S. dollars.
The implementation of Foreign Account Tax Compliance Act (FATCA), will go down in history as the biggest blunder in Obama's presidency. FATCA will now force all world (foreign) banks to comply and follow IRS guidelines "IF" they transact in "the almighty" world reserve currency, the U.S. dollar; even if it means breaking their own nations' privacy laws.
As of July 1st. 2014, foreign financial institutions ("FFI") have agreed to file Quarterly Reports directly to the IRS-the first report is due October 1st. The reports include, ALL financial accounts assets, bank accounts, securities accounts, annuity contracts, rental properties, insurance contracts, pension plans, trusts and private investments in companies and partnerships.Guilty, until proven innocent: Foreign nations and financial institutions will need to prove they 're not concealing U.S. clients (including green card holders). They will have to provide the IRS access to ALL their clients, including their own citizens. Foreign nations and financial institutions are infuriated at the overreaching of the U.S. "Empire."
FATCA notices are being sent out. Foreign banks are notifying their clients to get ready to pay huge back taxes, or close/transfer their accounts, BEFORE the first quarterly report is due, October 1st 2014.
October 1st, could set off a new stock market crash- the New BLACK October! Food for thought: Every major stock market crash has started in October; hence the name: Black October
Much like the Roman Empire, the U.S. Empire's overreaching will have dire consequences. With tensions running high between Obama and Putin over the Ukraine, do you think Putin will comply with the IRS,.. OR!.. sell-off U.S. dollar reserves? The new rules leave some financial officials fuming in places such as Australia, Canada, Germany, Hong Kong and Singapore.
© isaacbrocksociety.caUncle Sam's new target.
The Japanese Bankers Association stated very clearly: "In the event that the implementation of FATCA is not practically feasible for the Japanese financial services industry, it would result in substantial confusion in the industry and could ultimately lead Japanese financial institutions to withdraw their investment from U.S. financial assets."
The European Banking Federation and the Institute of International Bankers, which in their own words represent most of the non-U.S. banks and securities firms around the world that are affected by the FATCA provisions, highlighted their concerns: "many Foreign Financial Institutions (FFI), particularly smaller ones or those with minimal U.S. investments or U.S. customers, will opt out of U.S. securities rather than enter into a direct contractual agreement with a foreign tax authority (the IRS) that imposes substantial new obligations and the significant reputational, regulatory, and financial risks of potentially failing those obligations, or may disinvest their U.S. customers in order to reduce their compliance burdens under an FFI Agreement."
This warning from Europe was reiterated. George Bock, a Luxembourg-based KPMG partner and head of tax at KPMG, told reporters at a funds event in London that: "FATCA could cause investors to sell out of U.S. stocks, bonds, and other investments, affecting the price of U.S. shares as well as those of other countries in ways that are not yet fully clear."
Foreign financial institutions have significant power through the allocation of their assets and this should be taken into account in a cost/benefit analysis of FATCA. The United States should not be playing with fire when it comes to keeping the country attractive for foreign investment.
ACA, noted: "The U.S. financial industry will find itself isolated from many international transactions. Foreign investors will avoid U.S.-based hedge funds. Foreign hedge funds will avoid investing in U.S. securities and will refuse U.S. clients."Key provisions of FATCA
FATCA requires foreign financial institutions of broad scope ("foreign")-banks, stock brokers, hedge funds, pension funds, insurance companies, and trusts - to report to the IRS all clients' accounts owned by U.S. Citizens and Green Card holders living in the U.S. and abroad.
Think about that... Chinese, Japanese, Iranian, Russian; etc., banks, stock brokers, hedge funds, pension funds, insurance companies, and trusts can either get themselves into a contractual agreement with the U.S. "IRS", or simply stop U.S. dollars customer transactions.
Put yourself in their shoes,...
"IF" you had a choice to "opt out" of IRS jurisdiction, would you do it? What do you think China, Iran, Russia and others will "encourage" their clients to do?
February 6, 2014, Forbes reported: "Americans Renouncing Citizenship up 221%, All Abroad The FACTA Express."
More FATCA facts:
FATCA will require FFIs to report to the IRS the name and address of each U.S. client, as well as the largest account balance in the year, and total debits and credits of any account owned by a U.S. person.If an institution does not comply, the U.S. will impose a 30% withholding tax on all its transactions concerning U.S. securities, including the proceeds on the sale of securities.
Ask yourself this: Do foreign financial institutions really need the U.S. bad enough to get into a contractual agreement with the I.R.S.? Remember, the International Commodity Exchange ("ICE"), a European trading exchange, bought out the New York Stock Exchange (NYSE) in late 2012.
Think about that... Do you think Foreign Financial Institution, and their clients will choose to have the IRS withhold 30% on all of their transactions on U.S. securities... OR!.. Simply, go to the European Union (Markets) for better treatment?
- Many foreign banks rushed to comply with FATCA.
- U.S. citizens are getting FATCA'ED!
- Foreign banks have sent out FATCA notices, not only to U.S. citizens, but also their own citizens.
Here is why..
Foreigners hold over $1 trillion ($2.7 trillion in foreign direct investments) on bank deposits in the United States because those deposits are tax free and the United States represents a safe haven for non-resident aliens. Congress has deliberately established this policy to attract foreign funds so necessary to the U.S. economy. But if a 30% withholding tax may potentially be applied upon transfer of those deposits to an overseas account, the attractiveness of United States banking services disappears. Meaning, the banking system is about to be depleted! More Bank Failures... 2008 all over again?
Is the following a coincidence?
Washington D.C., July 23, 2014- "SEC Adopts Money Market Fund Reform Rules: Rules Provide Structural and Operational Reform to Address Run Risks in Money Market Funds"
Is your money in Market Funds? Does the SEC expect a run on Market Funds?
The first quarterly FATCA reports, could be devastation to U.S. equity markets.With the current economic and political landscape; the DOW at all-time highs, do you feel a Major Correction coming on? You be the judge: From July's high of: 17,151 -to Friday's low of: 16,437... the Dow fell 714 points in a matter of days!
FATCA is problematic. Banks will have to choose to either spend a fortune segmenting, tracking; potentially charging tax on their U.S. dollar transactions by 30%.... or.. dump their U.S. Dollar holdings. Due to FATCA, the sell-off of U.S. dollars could be massive and devastating! Experts estimate that the U.S. dollar could drop by as much as 13%-20%... Making your wealth drop by up to 20%, overnight!The Obama administration and the IRS only care about collecting more tax revenue, PERIOD! Major financial institutions are already expressing their anger toward the U.S. and its overreaching policies. JP Morgan, Chase, and HSBC have basically eliminated international U.S. dollar bank wire transactions, and many more banks are set to follow.
© finops.coExpect more and more missing pieces as the dollar crumbles around the world.
Nobody can argue that since 9/11 and the Patriot Act, government has slowly and consistently robbed us of our privacy and through tax... our wealth! It's the old "Frog in a Boiling Pot of Water-scenario," they turn up the heat in stages.
Food for thought - When a country is neck-deep in debt, and has nobody to borrow from, recent history has shown us that indebted Governments steal their citizens' wealth!
Countries such as Belgium, Poland, Hungary, France, Argentina, Bolivia and Ireland have already seized private retirement accounts. After seizing private retirement accounts, Argentina has now defaulted on it's debt. Fortunately, there are still some assets that you can legally hold and own, that are completely confidential and not seen by the watchful eyes of BIG Government - Tangible Gold and Silver!
You have worked Long and Hard for your money. Taxes will take a portion, Federal Reserve created inflation will take a portion...Don't Allow Government to Take the Rest! Much like Eminent Domain, most assets can be "Taken-Over" by Government.
This is the amount held by Americans in tax free venues worldwide.
That is a lot of tax dollars not supporting the government.
The US has no choice, as people with substantial assets are moving them offshore in increasing amounts.
I think other countries will follow suit and their tax deadbeats will be outed as well.