The Obama administration and the IRS will NOW be able to reach across the world to spy, track, tax, and potentially confiscate U.S. dollars from anyone, across the world. This is Not just another Tax, this has Real implications, take the time to read it, and warn your friends. In an attempt to generate more tax revenue, the Obama administration along with the IRS have angered and encouraged all world banks to drop their U.S. dollar holding clients, 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. On July 1st, 2014, with the implementation of Foreign Account Tax Compliance Act (FATCA), and H.R. 2847–The days of the U.S. dollar, as the world reserved currency are numbered! FATCA and H.R. 2847 will force all world (foreign) banks to comply and follow IRS guidelines “IF” they hold U.S. dollars; even if it means, breaking their own nations’ constitutional privacy laws. Much like the Roman Empire, the U.S. Empire’s overreaching will have dire consequences. With the exception of the smallest community institutions, ALL World Banks must comply “IF” they are to transact in the almighty “World Reserve Currency,” the U.S. dollar. With tensions running high between Putin and Obama over the Ukraine, do you think Putin will comply with the new IRS rules,.. OR!.. sell-off U.S. dollar reserves? Foreign financial institutions are outraged at the overreaching by the United States. The new rules leave some financial officials fuming in places such as Australia, Canada, Germany, Hong Kong and Singapore. Here is what some are saying: • 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.” • KPMG conducted a survey in 2011 of leading fund promoters in 12 countries. The majority of respondents had assets under management in excess of EUR 10 billion, and more than half of the respondents distributed their shares/units in more than 10 countries. The survey asked: Further to FATCA, could your fund intend to disinvest (directly/indirectly) from the US? For both the U.S. fixed income market and the U.S. equity market, 6% answered yes. Another 10% for the fixed income market and 7% for the equity market stated that it was thinkable to divest from the U.S. A whopping 29% for the fixed income market and 26% for the equity market replied that divestment depended on the detailed implementation rules for FATCA. In other words, for funds managers worldwide, DIVESTMENT from U.S. securities markets is a REAL option. These are big numbers. 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 (FFI) of broad scope (foreign)-banks, stock brokers, hedge funds, pension funds, insurance companies, and trusts – to report directly to the IRS all clients’ accounts owned by U.S. Citizens and U.S. persons (Green Card holders). 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 do? More FATCA facts: Starting July 1, 2014, FATCA will require FFIs to provide annual reports to the Internal Revenue Service (IRS) on 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 (FFI’s) will choose to have the IRS withhold 30% on all of their transaction on U.S. securities… OR!.. Simply, go to the European Union (Markets) for better treatment? Some Foreign banks are already rushing to comply with FATCA. U.S. Citizens are getting FATCA’ED! Foreign banks have started sending 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! With the current economic and political landscape; the DOW at all-time highs, do you feel a major correction coming on? Banks will have to choose to either spend a fortune segmenting, tracking, potentially charging tax on their U.S. dollar transaction by 30%…. or.. dump their U.S. Dollar holdings. Due to FATCA and HR 2847, 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 15%-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 wire transactions, and many more banks are set to follow. FATCA will strike the final nail in the U.S. dollar coffin. ACA reports: “FATCA will have serious negative ramifications on the entire U.S. Economy; more specifically on U.S. financial markets, financial institutions, and U.S. businesses operating in global markets.” 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. 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. Fortunately, Certain Gold categories have been Exempt from Previous Federal Recalls. Educate yourself before the “worst case” Scenario. Take the first step: Request the Gold, Silver & IRA Guide… Completely FREE
Posted on: Fri, 27 Jun 2014 22:22:22 +0000
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