BRICS heads of state at the signing of the agreement on new world bank in Rio, this summer.
Hi J,
Surely, you have seen the below piece from Russia Today.
In general my view is that FATCA is one of the early foundations of Cold War 2.0, which is a currency and banking war in its essence.
On the ground Cold War 2.0 has flared more recently in Ukraine, in mutual accusation regarding responsibility for downing MH17, in tests of nuclear systems in both US and Russia, etc. (Chomsky issued a statement that the current nuclear confrontation is endangering the world).
The opposing foundation is in the formation of the BRICS group. With it came the establishing of a new world bank last summer in Rio, to rival the one dominated by the US, objection to the IMF in principle, denomination of major gas deals in non-USD currencies, issuance of new bank cards by China and Russia, tours by both Putin and the Chinese president last summer in Latin American nations (US back yard... Monroe...) and promises of assistance, particularly to Argentina - victim of US banking/court fraud of medieval style and proportions, and to Cuba - regarding the development of an under sea oil field, which the US had blocked...
The BRICS nations also plan to dispose of USD as a reserve currency.
What is at stake is the survival of the USD. Absent its position as an international reserve and energy currency, it is doubted that it can maintain its value, or even close to it...
The position of Europe is critical in Cold War 2.0. And it does not look like the US would be able to dominate it as in the past, except for the UK, a routine lackey... For example, the US is pressuring EU to sanction and isolate Russia, but a couple of weeks ago 50 heads of state, including Putin appeared in Milano for the "Eurasian Summit". US and Israel were of course not there... The event was hardly covered in Israeli media, not clear to me to what degree it was covered by US media at all... (I copied the closest that I could find from the Washington Post below).
FATCA established the nations that yielded to the US in this currency/banking war. In return, the banks of these nations were offered a status that is above the law of the land...
Israel is a perfect example:
A recent article (could not find in English) reviewed the situation in detail, and explains that Bank of Israel issued no regulations. Banks were given by Bank of Israel a free hand to implement FATCA whichever way they see fit...
In parallel there are more on more reports of corruption of the banking system in Israel - US-style: starting from fraud on consumers in the courts, and ending with massive banking fraud cases (the latest - Bank Leumi), where no executive is held accountable...
Stanley Fischer was of course a key figure in this respect, in submitting Israel to FATCA. He also established a policy of high volume USD purchase, basically betting the Israeli reserve on the USD... (and in his tax statements for the Fed appointment, it turned out that he had substantial holding in the financial firm that he delegated the management of the Israeli UDS purchases and reserves...)
Would be interested in hearing your view of the above perspective,
Joseph
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http://rt.com/usa/203399-
US Treasury pressures overseas banks with ‘financial imperialism’ over tax evaders
Overseas banks are being ordered to collaborate with the US Treasury to help identity which of their customers might owe the government taxes - a move that some equate to a form of "financial imperialism."
If banks fail to comply, the Treasury Department charges them with a 30 percent withholding tax on American bank earnings.
The department, keen to close the US budget deficit, is targeting American citizens and residents who have unreported taxable income in bank accounts around the world. Wealthy Americans have always hidden money overseas to avoid taxes, but new tax laws have been created because the global economy gives far more people the opportunity to make and keep money overseas.
American citizens with bank accounts overseas, and foreigners working inside the United States, are being told by their banks in Paris, Tokyo and/or Beijing that their account information is being handed over to the US agency for review.
"That's shocking, how can they do that?" said Helene, a French woman working in Washington after receiving a letter like that from her bank back home, toldAgence France-Press. She did not want her family name used.
Under the new Foreign Account Tax Compliance Act (FATCA), some 100,000 foreign financial institutions in more than 100 countries are required to report to the Treasury about any “US persons” accounts. The act passed in 2010 was an attempt to crack down on tax dodgers and the banks that facilitate money laundering.
"I know that foreign nationals who live in the US, some of them have had their bank accounts back in Europe shut down," Dan Mitchell, a tax reform expert at the Cato Institute, said to AFP. "You are not talking only about Swiss banks or Cayman banks... you are talking banks in the UK, in Japan. Nobody likes this law."
The US is one of the few countries that taxes its citizens regardless of where they live. Previously, “US persons” were personally required to report any possible US taxable income regarding their bank accounts to the IRS. But FATCAplaces the burden on foreign banking groups.
Ironically, the reverse doesn’t exist in the US, where banks are not permitted to supply information to foreign governments on their nationals’ US accounts.
"There is no reciprocity, it's a one-way street. It really is financial imperialism on the part of the USA," Mitchell said.
Officials and Congress estimated that FACTA will generate $8 billion in additional tax payments to the government over 10 years.
In September, it was revealed that thousands of Americans living overseas were giving up their citizenship as foreign banks were turning them away over the burden of completing the tax returns required by the US treasury under FACTA.
READ MORE: Overseas Americans continue to give up citizenship as banks refuse to deal with US tax returns
More than 1,500 Americans have renounced their citizenship so far 2014, the Guardian reported. This year’s total may not top last year’s record-setting statistic – nearly 3,000 Americans gave up their citizenship in 2013 – but the high numbers show the new tax law implemented by the US continues to force those living abroad to make difficult decisions
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2014-10-21 RUSSIA: Unique inside view of the Russian perspective on Cold War 2.0, US sanctions, Ukraine, US Dollar, US banking...
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