H.R. 2847 to Collapse the Dollar?
End of America?
The Most Important Day in Fifty Years?
This stuff is starting to go viral. So I thought I’d address it. These outrageous warnings are what’s known among circus barkers as a “hook”. Once they get their hook into you, they just reel you in and shake all the money out of your pockets. Then they throw you into the alley.
Not that I’m so smart. Just to be clear, I can’t read the future, so I don’t give investment advice. But there are two things I am pretty darned sure of … the people hyping this stuff are claiming to know what the future holds, and they do give investment advice. Stay away from people like that. That’s a recipe for disaster … not an economic disaster … your personal disaster. As far as I’m concerned, all they want is your money. And once they get it, they don’t care if you’re lying in the gutter bleeding to death.
H.R. 2847 addresses foreign asset reporting and makes foreign banks subject to this U.S. law. The foreign governments have already signed off on it. I don’t think this is a good law. I’m not in favor of it. But I don’t think it’s going to destroy the dollar or the U.S. economy. And it will not be a good idea to throw money at it. It may not be a good thing, but it’s going to take more than that to kill our dollar or the economy.
Here’s a newsletter from a client who was kind enough to forward to me. It originally came from www.worldaffairsbrief.com. Their tag line is Commentary and insights on a Troubled World. Check it out. This takes a more balanced look at situation and points out several possibilities.
Here it is …
FATCA BECOMING GATCA
While I’ve long been opposed to the myriad of false conspiracy theories suggesting that the new FATCA law (Foreign Account Tax Compliance Act) which goes into effect on July 1 is going to somehow bring upon us the collapse of the US dollar and the economy, there is a larger long-term control agenda. For now, FATCA forces foreign banks everywhere to report to the US government on accounts and transactions of all US citizens, supposedly to catch tax cheats. But it is a huge violation of privacy and an accounting and compliance nightmare for foreign banks. Many affected banks are forcing Americans to close their accounts rather than comply, which is part of what I thinks the government intends with these laws.
Only a small percentage of US citizens have foreign bank accounts, so this is not a broad enough threat to cause the dollar to crash or force a banking collapse, as some financial alarmist have declared—especially since the IRS has postponed enforcement for a while to defuse the backlash that is building. However, it is indicative of and perhaps a forerunner of global banking control as addressed by an expat newsletter called “International Man.”
Now that FATCA has become a fait accompli, the foundation has been laid for GATCA. [G standing for Global, which will bring internal US bank accounts into a global financial database.] In the end, this means a permanent record of every penny you have ever earned, saved, borrowed, or spent anywhere in the world will be available in an instant to be analyzed and scrutinized, and shared with any number of local and global government agencies, all regardless of any actual or suspected wrongdoing.
What he is saying is that FATCA’s real purpose is not only to stop tax evaders but to make it much more difficult for citizens to get money offshore for any reason. A lot of people of wealth are doing this because they somehow think that after a US monetary collapse or major crisis, they will be able to access their money overseas—which I think is a pipe dream. If there is a major monetary crisis worldwide, either through war or cyber war, the last thing you want is your money someplace foreign, across an ocean, where you don’t have means to physically collect it. And how then do you repatriate those funds where you can use it, with draconian border controls?
International Man also believes, as do I, that the purpose of FATCA is to get banks used to a Global version informally being called “GATCA.” Complying with FATCA requires all these offshore banking havens, mostly smaller island nations, to choose between their banking privacy laws and complying with US demands. The US can blackmail them into compliance by refusing to grant these banks financial privileges in the US, which all require to service their clients. Over the years the US government has been negotiating bilateral agreements with most countries in the world, but as the Daily Bell Staff points out,
It’s not practical for each and every country to create their own version of FATCA and accompanying web of bilateral agreements. It would be a very slow and tedious process. So to address this issue, the central planners at the G20 and OECD devised what they call a new “global standard” of automatic financial information exchange between governments (i.e., GATCA) modeled on the US’s FATCA. In other words, unaccountable bureaucrats from these supranational institutions are foisting upon the world a FATCA on steroids.
However, GATCA would have never been possible in the first place had the US not cleared the path with FATCA. The G20 and OECD needed the US—the sole financial superpower to strong-arm and cram down the throats of the rest of the world this privacy-killing measure.
But wait, there’s more!
If FATCA wasn’t the end game, don’t expect GATCA to be either … GATCA … could provide a platform to make the disturbing dream of a global tax a reality. [But only after a global government is established, and it will take another world war to do that.]
Professor William Byrne’s International Tax and Financial Services blog writes that, “47 countries and major financial centers on May 6, 2014 committed to automatic exchange of information between their jurisdictions, announced the OECD. All 34 OECD member countries, as well as Argentina, Brazil, China, Colombia, Costa Rica, India, Indonesia, Latvia, Lithuania, Malaysia, Saudi Arabia, Singapore and South Africa endorsed the Declaration on Automatic Exchange of Information in Tax Matters that was released at the May 6-7, 2014 Meeting of the OECD at a Ministerial Level.”
You’ll notice that all of the BRICS countries are going along with this too, so forget about the conspiracy theories about how China and Russia are going to gang up with India and Brazil to break the US economy. It won’t happen without war.