Posted Sep 6, 2012 by Martin Armstrong
Government is always the single greatest threat to society & the economy. It was the greed of the Democrats that caused them to raise taxes when there was a real estate boom in the late 1980s.They reduced the amortization benefits in real estate and caused investors to bail out. That resulted in a one-way market – no bid! All sellers! They had regulated the S&Ls directing them to lend in primarily the real estate market. They caused that financial crisis, locked up some high profile owners of S&Ls and blamed their “greed” for the whole crisis they instigated.
Then they created the 1987 Crash by forming the G5 in 1985 and publicly stated they wanted the dollar down by 40%. Foreigners panicked and began to sell everything from stocks to bonds and real estate.
This time it is the Foreign Account Tax Compliance Act (FATCA). If a foreign entity (bank) had an account from an American in Switzerland, they had to report whatever that American was doing there or else all their assets would be confiscated in America. Even if an American is just a major beneficial owner.
This one act is destroying the world the economy in a single bound. Americans can no longer have an account in Switzerland or anywhere else. That even includes a safe deposit box. A rare collection of ancient coins was held by an American for decades in a safe deposit box in Switzerland. The bank gave the American 3 days to get out. The American had no choice but to call a coin dealer and auction it off.
FATCA presumes any American having an account overseas is for illegal tax purposes. American Express will not issue a credit card to an American working for a foreign company unless he can prove legal residency overseas. This witch hunt for money is causing the global economy to implode. It is crazy. All because the USA hates anyone with money and that is the bottom line. Obama made a speech saying anyone who is rich did not do it on their own, they owe the government because they made it possible. He mentions bridges & roads, but everyone pays taxes for that – it is called the gasoline tax. Just like the exit tax to leave the USA if you resign your citizenship. after paying all your taxes all your life, then they still want a new tax on the remainder just to leave. They are never satisfied – they want it all.Americans have no liberty. There is no paying your “fair share” for you are entitled to nothing. The Supreme Court has ruled that the Constitution is NEGATIVE not POSITIVE, Harris v McRae, 448 US 297 (1980). That means you have no right to demand anything from the government in any program. It is its prerogative to create social programs – not your right to have them. The constitution was suppose to restrain government, not create an affirmative obligation that government do anything for the people.
The Foreign Account Tax Compliance Act (FATCA) is a critical development in U.S. efforts to improve tax compliance involving foreign financial assets and offshore accounts. Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. This reporting will be made on Form 8938, which taxpayers attach to their federal income tax return, starting this tax filing season. This means, any asset, that you might have bought even 30 years ago. This is like William the Conquer’s Doomsday Book – a census of all assets owned by everyone in England after he conquered the country in 1066 looking for taxation. They recorded how many chickens you owned.
This is the today’s Doomsday provision. In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
The FATCA has already had a devastating impact on the U.S. economy, U.S. financial markets, American businesses operating abroad and American citizens who work and reside overseas. Foreign banks everywhere are refusing to deal with Americans under fear that if they do not report what they are doing, the penalty is the confiscation of their assets. This is causing a massive contraction in the economy and as always these brain-dead politicians screw everything up. They are hunting down even gold now everywhere. They have virtually destroyed the bullion business in France as the French now go to Belgium to buy or sell. So instead of revising the world monetary system, governments are getting Draconian to keep their power and the bankers happy.
Congress has created the single greatest danger with FATCA, in bringing about a World Depression. This is up there with the Protectionism of the Great Depression that destroyed world trade back then. A repeal of FATCA legislation is so vital yet it of course will not take place. Just listen to the hatred of capital coming from the Democrats. This is the most Marxist election in history, and the Republicans offer no better alternative. We need statesmen – not politicians before they destroy everything.
We are looking at irreparable harm hurled upon the economic interests of the United States and the rise of the world. The methods and means employed in FATCA implementation are so anti-LIBERTY, it is beyond comprehension.
This is perhaps the greatest deflationary force every devised. This will be a key factor with hindsight that historians will look back upon just as they did with Prohibition and Protectionism. The former created the Mafia and organized crime by handing them a market to make a fortune on – booze! The latter contributed to sending unemployment to 25% destroying jobs and firms that were also back then involved in international trade. All politicians claim is they will create jobs? How? Raising taxes and hunting down the people that create them? This is insane!