in European Economy, Financial Markets, The Americas, The Bonner Diaries /
“Poor America…” writes a French friend. “It’s not the land of the free anymore. Now, it’s the land of slaves.”
The FATCA law (Foreign Account Tax Compliance Act) will force banks across the globe to collaborate with the IRS. Here’s an explanation of the huge repercussions this legal precedent will have on banks and banking clients…
Once FATCA — Foreign Accounts Tax Compliance Act — is enacted on January 1, 2013, banks worldwide will find themselves subject to the American tax administration bureau known as the IRS (Internal Revenue Service). Adopted in March, 2010, FATCA is a facet of the broader Hiring Incentives to Restore Employment (HIRE) Act which is designed to promote employment opportunities in the United States. In order to finance the HIRE Act, fighting tax evasion is even more in the spotlight than it has been in the past and Washington wants to use its political clout to get its message across this time. What this really means is that foreign banks — or FFIs (Foreign Financial Institutions) — will be obliged to conform to a long series of procedures designed to identify US Persons (US citizens & Green Card holders) subject to American taxes. This naturally concerns American citizens but likewise extends to American nationals’ foreign spouses. However, the long arm of the US administration will even be going so far as to include foreigners residing outside American borders, some of whom may have never even set foot on US soil. This is due to the fact that non-American banks will be obligated to report portfolios which include American assets even if they belong to foreigners with no ties to the US.
“We used to be so happy when we got to the US,” said another European. “We felt we could breathe more freely. The country was so big…so prosperous…and so open.
“That was what I remember from about 20 years ago. But now it is quite different. I dread coming to the US. We came through US customs in Atlanta a few weeks ago. My wife had a half-eaten sandwich in her bag…which she had forgotten about. They put us in a special room and treated us like we were criminals. It was ridiculous…and humiliating.
“But there’s always something. Someone is always yelling at you. Everything is illegal or forbidden. It just doesn’t seem like the same country it was a few years ago. So, we only come here when we have to for business reasons.”
*** “There goes the republic,” says an article at Truthdig, by Robert Scheer.
The defense authorization bill that Congress passed and President Obama had threatened to veto will soon become law, a fact that should be met with public outrage. Human Rights Watch Executive Director Kenneth Roth, responding to Obama’s craven collapse on the bill’s most controversial provision, said, “By signing this defense spending bill, President Obama will go down in history as the president who enshrined indefinite detention without trial in US law.” On Wednesday, White House press secretary Jay Carney claimed “the most recent changes give the president additional discretion in determining how the law will be implemented, consistent with our values and the rule of law, which are at the heart of our country’s strength.”
What rubbish, coming from a president who taught constitutional law… Sadly, this flagrant subversion of the constitutionally guaranteed right to due process of law was opposed in the Senate by only seven senators, including libertarian Republican Rand Paul and progressive Independent Bernie Sanders.
for The Daily Reckoning Australia
The Denning Report ‘Three Trends’
‘These three trends are mostly likely to impact your investments in 2014.’
Dan Denning here. In this new report I do three things for you. I recount some of the market predictions I made for the year just gone, 2013. Then I announce three new predictions I’m making for 2014. And I'll give you some ideas on how to rearrange your investments in the event that these three forecasts
become reality. Click here to read.
Sound Money. Sound Investments. ‘bullish prediction’
Greg Canavan's first bullish prediction in four years
doesn't make forecasts like this often.
When he does, it's because he’s found something that could make you money for years to come.
Best Investment Ideas 2014
Rick Rule (Featured Video)
Resource Investment Guru Rick Rule, Reveals His Top 3 Commodities
Australian Small-Cap Investigator ‘ASX 15000′
If you thought last year was a great time to get rich from stocks, get ready for…
And your chance to buy six 'bull market beauties' that could shoot up to 921% higher as the ASX triples over the next 2 to 4 years
Diggers and Drillers
3 Stocks that Could Create a 'New Class of Millionaires'
What if you could buy just three stocks and be done with investing for the rest of the decade?
Which three stocks?
You can find out here in this controversial new report by Jason Stevenson.
In it Jason shares evidence that a new and different kind of boom is already underway here in Australia. And a new breed of ASX mining stock is about to lead the whole sector out of the wilderness.
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Remembering the Future
Would You Be Happy Renting for another 14 Years?
Perhaps you've been waiting for real estate prices to fall before buying…
But what if they don't fall?
Prices are actually on the up. And one economist says they'll keep going up…and up…for another FOURTEEN YEARS.
To find out more, go here.