The US Government Tells The Whole World To Go FATCA Themselves

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man blog,

If you want to gather honey, don’t kick over the beehive.

This was how Dale Carnegie titled the first chapter of his 1936 personal development masterpiece—How to Win Friends and Influence People.

Carnegie had sensible advice: if you want to keep people on your team, first and foremost don’t piss them off. Duh. Seems pretty obvious.

I think the US government could use a little Dale Carnegie right about now (I actually just ordered a copy and had it sent to the President. You’re welcome, BO.)

Obama gift 17.02.08 The US government tells the whole world to go FATCA themselves

Because based on the way they’re acting, you’d think they were test-driving an entirely different manuscript—How to Lose Friends and Alienate People.

Exhibit A: FATCA.

Four years ago, the US government passed this absurd law requiring every bank in the world to enter into an information-sharing agreement with the IRS.

Those who don’t will be subject to a 30% withholding tax on certain funds that get routed through the United States banking system.

What’s more, every bank on the planet is somehow supposed to simultaneously keep track of every other bank in the world and know precisely who is / is not in compliance with the law.

Banks that are in compliance are supposed to withhold the 30% tax on any funds transferred with banks that are not in compliance… otherwise they risk the withholding tax penalty themselves.

The whole thing is enough to make your head spin. Needless to say, the mere thought of complying with this law is enough to drive banks crazy.

This isn’t a way to treat friends. And today’s the day it comes into force.

Exhibit B: BNP Paribas.

Uncle Sam just slammed this French bank with a massive fee and threats of criminal penalties for doing business with a country they don’t like.

In doing so, the US has given BNP… and France… nine billion reasons to abandon America.  Again, this isn’t the way you treat friends.

I think politicians fail to realize how important the US banking system is to holding together the US economy.

Right now, the entire world uses the US banking system.

If a merchant in Angola wants to do business with a merchant in India, for example, that transaction is cleared through banks in New York.

This, by default, creates demand for people to hold dollars, giving the US billions of people to splay their inflation onto.

It’s the only reason why the Federal Reserve has been able to print $3.5 trillion over the last five years; nearly any other country does that and you get hyperinflation.

You’d think they would guard this dearly. You’d think the US government would treat their friends… their customers… respectfully.

But no. Instead they’ve dropped a steaming hunk of dung on the entire system, and everyone in it.

With law and behavior this dumb, they’ve gone and kicked over the beehive. No bankers want the hassle of dealing with America anymore, and everyone is looking for a better option.

It’s happening.

Chinese renminbi trade settlement is growing like a weed, constantly posting record levels. Everywhere you look there are countries and big companies looking to hold and conduct trade in renminbi.

Even Canada and the UK are now angling to become major centers of renminbi settlement. Everyone else seems to get it… everyone but the US.

With all of its debt and all of its money printing, the US banking system was one of America’s last economic competitive advantages.

But now we are going to see more and more foreigners curtailing their use of the US banking system… and by extension… the dollar.

Without that mass of people to export dollars to, inflation will really kick in back home.

It’s not going to happen overnight. But as yet another insane law comes into force today, it represents one of the final nails in the coffin for the US, and the end to one of its last remaining advantages.

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666's picture

Are US politicians really this stoopid or do they have a "plan"?

knukles's picture

Who cares?  No furriners help the USA out with any debt stuff, anyhow.  We're exceptional and can just make all the Chinese crap ourselves.  After all, we're energy independent now and can even start shipping all that extra gas to them Europeens.  And them arses in the middle East can all just go do sumptin' else with themselves because we don't need none of their sand neither.  We got all we need for beer bottles.  What we need is more jobs crated by the gubamint.   

Pladizow's picture

I thought FATCA compliance was delayed?

And to 666: Both - they are even more stupid than you would think and they have a plan to line their pockets.

chubbar's picture

Nope, got a call 2 days ago from a Swiss bank I did business with until last year when I closed that account. I needed to give them all the FBAR's I filed with US Treasury during the years I had an account with them otherwise my name ends up on the "bad" list that they are required to hand to the US gov't. This was all handled with a registered letter/return stamped letter with a "rush" order from the bank. Looks like they waited until the last second to worry about compliance.

BaBaBouy's picture

NotWithstanding ALL The Bullshit Happening, We Are Surely Headed BACK TO THE GOLD STANDARD...

DoChenRollingBearing's picture

Gold, Bitcoin and investments quietly held overseas.

Save_America1st's picture

To Simon Black:  Gee, I thought you knew everything there was to know...

You can get this stuff for free.  You can even just email the link to people for free.  Amazing thing, the interwebs...

But then again, I usually doubt everything you write about in your bragging ways, so I highly doubt you bought anything and didn't send anything to B.O.

SoberOne's picture

Short for FATCAT! Intentional destruction of the dollar continues...

gh0atrider's picture

As an interesting asides, July 20th begins the pagan celebration of abduction in preparation for the "grand climax" seven days later.  Will people have their accounts abducted on July 20, 2014?

SamAdams's picture

Gov flippin' stones to find cash.  Going to have effect of scaring liquidity away.  Dumb, or deliberate?

Boris Alatovkrap's picture

You are not to worry! There is soon come day when Federal Reserve Note is more cheap than is Charmin double ply cushion quilting and many people is once again switch back to US Petro Dollar!

Harbanger's picture

Interesting, Legarde mentions July 20, 2014 in the occult message she gave in January of this year.


gh0atrider's picture



20 + 07 + 2014 

2 + 7 + 2 + 1 + 4 


1 + 6



Monty Burns's picture

And, how spooky is this?

7 + 14 + 20  =  41


barre-de-rire's picture

remove the /sarc monty.... u just made exemple of reality & way ppl  look at it. another point of view.

today many ppl are good to find number they want from any serie.

feel free anyone to interpret reality the best way u can accept it.


Tabarnaque's picture

Maybe you should have a look at this 7 minutes video of Christine Lagarde Speach recorded in January of this year. You'll be surprised what you find in it. It does look like the 20th of July is a choosen date by the power that be for something. It does seem like the power that be has a fascination for numbers.

Occult Message in Speech by Christine Lagarde of IMF

Stalkedbyhackers01's picture

That was meant for me right because I tend to read the zerohedge comments and you people love leaving messages? Are you one of those who like to watch or an active participant?

Buck Johnson's picture

They are doing everything they can to destroy the dollar.  I guess if they can't pay their debts and the economy is to hot, best to try to blame someone in the world for the dollar implosion and start over again.

max2205's picture

Steaming hunk of dung....


I got the visual. ...thanks

maskone909's picture




what is so interesting about the video i had posted is not the video itself, but the comments.  its a perfect exaplmle of how misinformed and devided poeple are in this country. 

TruthHunter's picture

Just tell the troglodytes their rep voted for this "Big Brother Law"

Just might clear out congress. 

HellFish's picture

They are stupider than you can imagine.  We don't select for intelligence, the US selects for psycopathy in their leaders.

Radical Marijuana's picture

The rulers and those they rule over are inside systems of lies backed by violence. The American muppets select for psychopathic political puppets because there has been a long history of organized crime dominating the political processes.

It is sad to watch a society tricked by lies be led to destroy itself. However, there was never any point in time when anything could actually be done to prevent the triumph of the best organized criminals from taking control over the government, and then driving vicious spirals of legalized lies, backed by legalized violence.

For more than a Century, the government of the USA has been a downward spiral into a black hole of the runaway systems of legalized lies, inside of which people were rewarded for agreeing with that bullshit, while they were punished for not agreeing with that bullshit. Rational evidence and logical arguments were defeated by the deceits. Carrots and sticks controlled people, more and more, as they were brainwashed to believe in absurd State Religions, first as the monetary system, and then as military system, both of which State Religions were fundamentally the processes of the privatization of public powers, with the government becoming the muscle to enforce frauds.

The American people have become the victims of the best brainwashing that money could buy. They were subjected to the most scientific and technologically advanced conditioning that there has ever been. For many of them, the accumulating consequences of all the evils has resulted in irreversible brain damage, which makes them unable to learn. For many others, they have been conditioned to not want to learn.

It appears that there is only a small minority left that are both able and willing to learn more of the radical truth. However, so what? They are still facing the entrenched systems of lies backed by violence. They are still inside of runaway enforced frauds, where they continue to be subjected to the same schedule of reinforcements of rewards for agreeing with absurd bullshit, while receiving punishment if they do not agree with that kind of absurd bullshit.

America is now almost totally dominated by deceitful State Religions. Americans were gradually forced, more and more, to agree with frauds. Inside of that context, being "stupid" was more "successful," while not being stupid created problems. More and more, the American politicians became puppets performing for muppets, whose strings were being pulled by the increasingly scientific applications of the methods of organized crime. For a while, at the beginning of that process, America could dominate the world in those ways. However, those ways have their own seeds of madness and self-destruction, due to ways that backing up lies with violence finally fails, because those lies never thereby become true, but rather, on drive the whole situation to become runaway social insanities.

Monty Burns's picture

"the US selects for psycopathy in their leaders"

The "US" doesn't select for anything. The electorate are presented with Tweedledum and Tweedledee from which they can democratically make their choice, their votes being helpfully counted by the Diebold Corporation.

armageddon addahere's picture

The plan is to screw the rest of the world out of money. If the rest of the world doesn't want to get screwed, and does something about it, that will come as a surprise because they never thought it through that far.

When their own greed and arrogance bites them on the ass, no doubt they will look around for some foreigners to blame and drop bombs on.

junction's picture

Obama is too big to jail.

barre-de-rire's picture

obama 's ears too big to fall

NOTaREALmerican's picture

The US is the largest Mafia in the world.  You want to deal with "da mob" you play by "da mobs" rules.  

Uncle Remus's picture

So, to the mattresses then...

Harbanger's picture

According to your S&S theory they would be the worlds smartest and savviest.

Harbanger's picture

Oh OK.  At least your consistent.  I was afraid you'd change the theory to dumbest and fattest

Radical Marijuana's picture

I thought he meant that the organized criminals that control the American government are extremely good at being dishonest and backing that up with violence. In that sense, they are the "smartest."

However, my view continues to be that is ONLY within relatively short to medium term consequences. In the longer term what they are doing is criminally insane. Being the best at enforcing frauds overall destroys society, and the natural world, in ways which are not so "smart." But nevertheless, in the shorter term, "success" in warfare is based on deceit, while "success" in economics is based on fraud, despite that thereby the American economy, and its role in the world economy, is being deliberately destroyed, by carrying through a criminally insane agenda.

The paradoxical ways these things will very probably play through is that being "smarter" about operating the methods of organized crime requires all around attitudes of evil deliberate ignorance towards the bigger picture. The "success" of the people controlling the people that control the government of the USA being the biggest "Mafia," or organized criminal gang, in the world is actually destroying the longer term future for them, and pretty well everyone else, since controlling civilization in criminally insane ways drives it towards crazy self-destruction. ... unfortunately, I can not see any realistic ways to prevent that tragic trajectory from playing through ...

PresidentCamacho's picture

All acording to plan. Things are going perfectly.

maskone909's picture

it was all fun and games untill they required folks in california to have auto insurance.  then guess what happened, auto insurance companies were forced to report folks that dropped coverage.  the DMV would send you a notice of license suspension if you didnt have insurance.  i will bet a million dollars that health insurance will be the same.  once you dont have health insurance, the IRS will be notified and will levy your accounts and garnish your wages.  imho the auto insurance crap was just a test run for healthcare.  whats next? the door is wide open now, unfortunately.  the sheep continue to take it in the ass with no vaseline!

kchrisc's picture

I'm supposed to consider Al Qaeda, or whatever they are called today, my enemy, however:

Who threatens to rob and possibly kill me daily while driving on the streets? Who threatens to capriciously render me destitute overnight? Who threatens to put me on a kill-list? Who keep me from emigrating or being able to live overseas with financial controls? Who fondles or irradiates me at the airport? Who...

Who is my enemy?! Who is the greatest threat to me, myself and mine and you as well?!

Amish Hacker's picture

As someone said, if you want to know who your real enemy is, just ask who it is that you're not allowed to criticize.

Cthonic's picture

Well I met an old man dying on a train
No more destination no more pain
Well he said one thing, before I graduate
Never let your fear decide your fate...

tradewithdave's picture

I thought the plan was to destroy the dollar... Did I miss something?

maskone909's picture

the plan is to have totalitarian control of the citizens of the USA.  if that means destroying the constitution and the dollar, thats what they will do.  this is a nightmare unfolding in slow motion. like one of those dreams where you are being chased and cant seem to run fast enough no matter how hard you try.  only this time, there is no waking up to stop it!

BobTheSlob's picture

Don't chase it...just go long on Pb.

NOTaREALmerican's picture

Re:  fast enough no matter how hard you try

You need to take the longer view.    Was the Constitution destroyed when the Fed was created?  That was some time ago.    Or, perhaps it was destroyed when the Southern Pacific Railroad became a person.  A time before the Fed even.      Perhaps the slippery-slope you think you're one isn't really a slope at all but is just a very high wall built generations ago.    

Sudden Debt's picture

Tat was already pretty clear in 2008 when it became clear that most of our gdp's are fabricated through banks.
And if you count derivatives at full value in your gdp, it's not the banks but the mirrage they create that is important.

fzrkid's picture

I was an expat in Singapore back in 2009 and wanted to park a little cash in some Singapore banks. None of them were interested. They explained it was cost prohibitive to manage the documentation required to maintain compliance. Fortunately Maybank gives a middle finger to this and was happy to help...


Maybe I should start a business to help people park money in SG, for a small fee of course.. Contact me if interested..

DoChenRollingBearing's picture

We are considering selling bonds at 2% from our company in Peru...

Calmyourself's picture

They know it is going to crash, the politicians problem is whom the masses will blame this on, looks like an effort to simply divert and place blame..

TVP's picture

It's so crazy having known about all of this for years now, and having everyone tell you you're insane for understanding it.

Then all the sudden, you wake up one day, and Russia plans to abandon the dollar, China starts selling US Treasurys at record pace, and all the BRICS nations create a $100 billion USD bank to fund emerging markets.  

Now the people who called me crazy years ago are rushing out to cash out their 401k's and IRA's for silver bullion, lmfao