The Shocking Reason For FATCA... And What Comes Next

Tyler Durden's picture

Submitted by Nick Giambruno via InterntionalMan.com,

If you’ve never heard of the Foreign Account Tax Compliance Act (FATCA), you’re not alone.

Few people have, and even fewer fully grasp the terrible things it foreshadows.

FATCA is a U.S. law that forces every financial institution in the world to give the IRS information about its American clients. Complying with it is a huge financial and administrative burden, measured in hundreds of billions of dollars. It’s a paper shuffler’s dream come true.

FATCA is the reason the vast majority of banks, brokerages, and other financial institutions outside of the U.S. shun American clients.

I was just in Singapore, which has one of the soundest banking systems in the world. I can personally attest that banks there treat potential American clients as radioactive liabilities to be avoided.

This is how FATCA makes it much more difficult to move money outside of the U.S. Combined with other costly, extraterritorial U.S. regulations, the law amounts to de facto capital controls.

It’s no surprise so few people understand FATCA. Governments and institutions often give their most dangerous laws and schemes dull and opaque names to cloud their true purposes.

The Federal Reserve is an excellent example of this. After two central banking experiments failed to take root in the 1800s, anything associated with a central bank became deeply unpopular with the public. So, central bank advocates tried a fresh branding strategy.

Rather than call their new central bank the Third Bank of the United States (the previous two were named the First and Second Bank of the United States, respectively), they gave it a vague and boring name to hide it in plain sight from the average person. They named it the Federal Reserve.

Unfortunately, these smoke and mirrors worked pretty well. Nearly 100 years later, most Americans don’t have the slightest clue what the Federal Reserve is, what it does, or how it affects them.

I think the same dynamic is at work with FATCA.

Ostensibly, FATCA is about cracking down on offshore tax evasion. But I think the U.S. government has another, more sinister motive.

Let’s peel back the layers of this onion…

FATCA should bring in around $900 million per year, on average, and that’s an optimistic estimate. However, $900 million would only be a drop in the bucket (around 0.2%) next to the federal government’s $438 billion deficit.

Even if the U.S. moderately reduces the federal deficit, FATCA revenue would still be a small pittance in comparison.

This begs the question: Why would the U.S. government go to the enormous cost and trouble of implementing FATCA for such a relatively meager amount of money?

FATCA on Steroids

FATCA’s real purpose is not to collect money. It’s to pave the way for a global FATCA, informally known as GATCA.

You see, complying with FATCA often breaks privacy laws in other countries. To get around this, the U.S. government has negotiated bilateral agreements with pretty much every country in the world. But it’s not practical for each and every country to create its own version of FATCA and accompanying web of bilateral agreements. That would be slow and tedious.

So, the central economic planners at the G20 and OECD have devised a new “global standard” for the automatic exchange of financial information between governments. It’s called GATCA, and it’s modeled on FATCA.

In other words, bureaucrats from these supranational institutions are foisting a “FATCA on steroids” on the world.

This would have been impossible if the U.S. hadn’t cleared the path with FATCA. The G20 and OECD needed the U.S.—the sole financial superpower (for now at least)—to cram its privacy-killing measures down the throats of the rest of the world. No other country could have done it.

FATCA is only possible because the U.S. carries a big stick: the ability to refuse access to its financial system and the world’s premier reserve currency. Don’t sign up for FATCA, and your country can forget about the vast majority of international trade.

It didn’t take long for most of the world to fall in line.

When Russia and China signed on to FATCA, it became a fait accompli. There are no other meaningful countries left to resist it.

This set the stage for GATCA.

Unfortunately, GATCA will likely be an irreversible reality in the not-so-distant future. It’s also highly probably that the OECD, the G20, and other organizations will sanction or otherwise blackmail countries that don’t comply. That pressure would likely be too enormous for the vast majority of countries to bear.

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 instantly available for analysis and scrutiny by countless government agencies, regardless of any actual or suspected wrongdoing.

But wait, there’s more!

If FATCA wasn’t the end game, don’t expect GATCA to be either.

Let’s peel back the next layer of the onion.

What Comes Next

Did you really think all these governments would go through all the trouble of creating the architecture to gather all this financial data… and then just sit on it?

Of course not.

They’re going to leverage the data as much as possible. This will have terrifying consequences for the individual.

It’s no secret that advocates of big government have long fantasized about creating a global tax. Whether it’s the global carbon tax, a worldwide tax on financial transactions, or a UN tax on air and sea travel, all prior attempts haven’t really worked. The infrastructure wasn’t in place.

However, that could all change with GATCA, which could ultimately make the disturbing dream of a global tax a reality.

Bankrupt governments, like France and the UK, are also on board with GATCA. It would allow them to fleece and control their citizens more efficiently.

Strangely, you never hear financially sound countries, like Switzerland, Singapore, or Hong Kong, advocating for FATCA, GATCA, or a global tax. It’s only the failed welfare states drowning in debt. And that’s no coincidence.

Old Wine in New Bottles

The government is selling FATCA the same way it originally sold the income tax to Americans: as a measure targeted only at the “rich.”

Of course, once you give politicians an inch, they take a mile.

When the federal income tax was introduced in 1913, individuals making up to $20,000 (around $475,000 today) were only taxed at 1%. The top bracket kicked in at $500,000 (around $12 million today) with a tax rate of only 7%.

Of course, once the infrastructure was in place for the federal income tax, politicians naturally couldn’t resist ramping it up. Eventually, it snowballed into the monster we have today, which thoughtless Americans passively accept as “normal.”

Expect a similar dynamic and gradualism with FATCA, GATCA, and a global tax.

What You Can Do

The government used obscure and boring wording to conceal the true purpose of the Federal Reserve from the average American. It’s done the same thing with FATCA.

In reality, FATCA is all about setting up the architecture for a global tax.

Politicians around the world see citizens as milk cows… They merely exist to be squeezed to the last drop.

That’s why they’re so eager to kill financial privacy with FATCA and GATCA. They’re building a giant tax farm and erecting electric fences to keep the cows—and their milk—from escaping.

Welcome to the new feudalism.

Unfortunately, there’s little any individual can do to change the trajectory of this trend. You can only try to save yourself from the consequences of this stupidity.

Politicians around the world are working hard to build this emerging prison planet. But it’s still possible to escape.

We recently released a video to show you how. Click here to watch it now.

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Ivanka2032's picture
Ivanka2032 (not verified) Apr 20, 2016 7:25 PM

Moo!

Billy the Poet's picture

What part of "Fuck Off" do these assholes not understand?

Paul John Smith's picture

... the "whole part" ...

(pretty much the whole part - they don't understand)

Billy the Poet's picture

I'm rapidly losing my patience with taxes and trannies and all this crap.

logicalman's picture

Taxes are way more damaging than all the trannies on the planet.

I find the whole tranny thing a bit strange, but then I've never been there.

Likewise, I don't understand women or homosexuality.

I've completely lost patience with people who try imply they are superior by demonizing people who are different from themselves.

I think what people do, concensually, with their genitals is about the least important way to judge a person.

A bit like melanin concentration in the skin.

 

Billy the Poet's picture

How can you characterize the movement to allow any man who claims to feel like a woman the right to share a public locker room with your mother, sister, wife and daughter as being a private matter?

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Billy the Poet Apr 20, 2016 8:53 PM

It is a some type of mass psychosis. I will never accept a tranny as "normal." Ever.

old naughty's picture

It's that year (1913) again !?

Seeing and planning it/them then, and carrying out/through now, is clear/simple/normal for them...

coz we're all useful idiots.

Billy the Poet's picture

Here's a guy who's a bit wild but he lays it on the line.

 

Brother Nathanael -- Are You A Boy Or Are You A Girl?

https://www.youtube.com/watch?v=RgAdqwfC7DY

 

 

RAT005's picture

Did anyone click the video in the original article? 

MayIMommaDogFace2theBananaPatch's picture

Yeah I clicked it.  Spoiler: Doug Casey makes a mean infomercial / powerpoint and isn't too modest (but he can get away that).  Also the special offer ends at midnight but it seems as if the infomercial may go on FOREVER (but it is nicely structured and performed).

Taylor's picture

Trump Got It Right Again. This Is the Undeniable Proof...

However the mainstream media isn't saying a word about it!

What are they really trying to cover up?

http://tinyurl.com/j3vbnas

Hong Kong Phooey's picture

No doubt that FATCA is a train-wreck, and just a downright evil piece of legislation.  But these guys are selling fear, pure and simple.  I have a US passport and have been able to open bank accounts at two different Singapore banks in the past 3 years. The banks do comply with FATCA but it's not as if they won't work with you.

MayIMommaDogFace2theBananaPatch's picture

That guy is a trip -- as in odd to the point of inducing confusion.

But he can actually put across a crisp, clear three minute message rather well.  He still weirds me out.

Billy the Poet's picture

He's got an interesting history. Born Jewish he is now an anti-Zionist Greek Orthodox brother. He got kicked out of a monastery or two for punching out some other monks. He seems a little under the weather in this video, he's usually more animated.

Mr. Ed's picture

FATCA and GATCA only have meaning and significance in a world where governments fund themselves thru  INCOME TAXES.

The taxation of income feeds many evils... in the US: go FAIRTAX!

To protect privacy and liberty: stop taxing income and tax CONSUMPTION!

Citxmech's picture

I think they should find a way to add a "T" at the end so they can call it FATCAT.  Much better that way.

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) old naughty Apr 20, 2016 10:31 PM

Typo. Asshole.

Bemused Observer's picture

Let me ask you something Billy...How do you propose we go about enforcing that law?

You see Billy, it isn't about how you feel, morally or otherwise. It's about knowing what can be legislated, and what cannot.

The Dems think they can legislate these things, which is why they keep passing dumb-ass laws. Someone made an issue about it somewhere, and a bunch of do-gooders jumped in to 'right the wrong'...the Repubs should have simply asked the law's proponents how they intended to enforce the law, and left it at that. But they also think they can legislate these things, so they come back with even stupider laws that can't be enforced...and the clown-show goes on.

Unless you propose doing genital-checks at the doors of public restrooms, this is a NON-ISSUE. The fact is that people who look like and dress like women use the women's room. They are doing that NOW. If your wife and daughters have ever used a public restroom, they have likely been "exposed" to transgenders. You simply do not know if the person going in there is genitally male or female unless you CHECK. Which you CAN'T, so leave it alone. What are you gonna do, start confronting ugly women trying to enter Ladies Rooms? Who gets to decide who should be stopped and challenged, and who gets through? Maybe it's better if we go back to the old way, where we stay away from the bathrooms, and let the ladies complain about anyone creating a disturbance....let them explain how they did the genital-check. There might be an assault charge in there, but in general this isn't something the law should be concerning itself with, period.

I can think of about a thousand things off the top of my head that are of more pressing importance than this.

Billy the Poet's picture

Unless you propose doing genital-checks at the doors of public restrooms, this is a NON-ISSUE.

During my entire lifetime men and boys have showered in the men's locker room and women and girls have showered in the women's locker room. No genital checks were required. It is only because some men have suddenly decided that they want the right to use the women's locker room that there is a problem.

 

The fact is that people who look like and dress like women use the women's room. You simply do not know if the person going in there is genitally male or female unless you CHECK. Which you CAN'T, so leave it alone

What makes you think that this has to do with men who look and act like women? The standard is one of "gender identity." If you feel like the opposite sex then you are the opposite sex. No surgery, hormones or even a dress are required.

Here's a picture of "Lila" Perry, an eighteen year old man who demanded access to the girl's rest rooms at his high school. The girls walked out en masse because they could easily see that he's not a woman. Can you?

https://gendertrender.files.wordpress.com/2015/09/lila-perry-photos-5.jp...

 You can leave this guy alone with your naked, frightened daughter if you like. I think it's a bad idea.

 

What are you gonna do, start confronting ugly women trying to enter Ladies Rooms? Who gets to decide who should be stopped and challenged, and who gets through?

 

Transgenders have been discovered and banned from bathrooms before. Real women see that the individual is a man, report the offense to the property owners and things proceed from there.

 

I can think of about a thousand things off the top of my head that are of more pressing importance than this.

That's because you can't see the forest for the trees. This is not just another attempt to destroy the family or to feminize men. It's a matter of the government demanding that you believe what they say is true rather than what you can see with your own eyes. Once you're convinced that a man who thinks he is a women is actually a woman then it will be no trouble to convince you of anything and everything else.

 

'Do you remember,' he went on, 'writing in your diary, "Freedom is the freedom to say that two plus two make four"?'

'Yes,' said Winston.

O'Brien held up his left hand, its back towards Winston, with the thumb hidden and the four fingers extended.

'How many fingers am I holding up, Winston?'

'Four.'

'And if the party says that it is not four but five -- then how many?'

'Four.'

The word ended in a gasp of pain. The needle of the dial had shot up to fifty-five. The sweat had sprung out all over Winston's body. The air tore into his lungs and issued again in deep groans which even by clenching his teeth he could not stop. O'Brien watched him, the four fingers still extended. He drew back the lever. This time the pain was only slightly eased.

'How many fingers, Winston?'

'Four.'

The needle went up to sixty.

'How many fingers, Winston?'

'Four! Four! What else can I say? Four!'

The needle must have risen again, but he did not look at it. The heavy, stern face and the four fingers filled his vision. The fingers stood up before his eyes like pillars, enormous, blurry, and seeming to vibrate, but unmistakably four.

'How many fingers, Winston?'

'Four! Stop it, stop it! How can you go on? Four! Four!'

'How many fingers, Winston?'

'Five! Five! Five!'

'No, Winston, that is no use. You are lying. You still think there are four. How many fingers, please?'

'Four! five! Four! Anything you like. Only stop it, stop the pain!'

 

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) logicalman Apr 20, 2016 10:33 PM

Oh spare us that condescending bullshit. I could give a shit less what adults do behind closed doors. It is how they behave in public that concerns me. A man, dressed as a woman, is a fucking choice. Unlike melanin content asshole.

RAT005's picture

Did anyone click the video? 

Billy the Poet's picture

If you're that fired up about it then discuss it already.

Frankie Carbone's picture

Your moral relativism is showing. To counter, do you know how sick and tired I am of people parroting their public educational programming while attempting to pawn it off as original thought? 

Jack's Raging Bile Duct's picture

Oligarchs only understand the dialects of "Guillotine", "Noose", or "Bullet". Consequently, they haven't yet heard us.

We need to start speaking their language.

38BWD22's picture

 

 

We are all tax donkeys now.

Ivanka2032's picture
Ivanka2032 (not verified) 38BWD22 Apr 20, 2016 7:33 PM

more like "Golden Calves"

 

EXODUS 32

 "When the people saw that Moses was so long in coming down from the mountain, they gathered around Aaron and said, “Come, make us gods[a] who will go before us. As for this fellow Moses who brought us up out of Egypt, we don’t know what has happened to him.”

Aaron answered them, “Take off the gold earrings that your wives, your sons and your daughters are wearing, and bring them to me.” So all the people took off their earrings and brought them to Aaron. He took what they handed him and made it into an idol cast in the shape of a calf, fashioning it with a tool. Then they said, “These are your gods,[b] Israel, who brought you up out of Egypt.”

When Aaron saw this, he built an altar in front of the calf and announced, “Tomorrow there will be a festival to the Lord.” So the next day the people rose early and sacrificed burnt offerings and presented fellowship offerings. Afterward they sat down to eat and drink and got up to indulge in revelry."

Billy the Poet's picture

Aaron was supposed to tell Moses that he lost the golden calf in an accident while crossing the Red Sea but he flubbed it.

pFXTim's picture

nwo coming into view.

Aubiekong's picture

The average American welcomes GATCA they dont have 500 dollars to their name, they are dependent on government to eat, they have no job skills, no education, they feel that any succesful person has robbed them and wants to put them in chains, and any government program that hurts the rich is welcome by their thinking...

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Aubiekong Apr 20, 2016 8:51 PM

Sad but true. I heard earlier today that 25% of US citizens have a negative net worth. Which makes them neofeudal debt slaves. I suppose that was the point all along.

elmerovingio's picture

You forgot the most important piece of info: the US is not involved in that "GACTA" agreement, hence allowing every rich pal in the world to transfer his fortune to the US financial system. And the US will not tell anything to his country of origin.

All that means that the US is now the biggest tax haven in the world.

http://www.bloomberg.com/news/articles/2016-01-27/the-world-s-favorite-n...

Buckaroo Banzai's picture

Yes. It's in everybody's best interests that all US dollars get repatriated. The chickens have to come home to roost one way or the other, at least this way it will happen in an orderly fashion. Russia and China were happy to go along because the sooner that all dollars get flushed out of international hands and back into the U.S. for orderly disposal, the sooner the dollar can be replaced as the world's reserve currency. The SDR is waiting in the wings to take over once the dollar repatriation problem is solved.

Oh wait. Did I say "everybody's best interests?" I meant to say, everyone's except your ordinary american's. The inflation will be epic of course. If the Fed had been tightening as they should have over the past two years, maybe it wouldn't eventually be so bad. But the plan is to make it as bad as possible once Trump takes over.

JohnG's picture

It's time to get all the gold you can get, right now.

pFXTim's picture

2030...what happened to agenda 21? are we behind schedule?

Billy the Poet's picture

21 was the century now they've narrowed down the year.

GRDguy's picture

FATCA and GATCA simply means the FAT CAts GATChA. (sorry, couldn't resist.)

conspicio's picture

Foreign Account Tax Compliance Act for Twats (FATCAT)

...there, fixed it for ya...

conspicio's picture

Foreign Account Tax Compliance Act for Twats (FATCAT)

...there, fixed it for ya...

fasTTcar's picture

Good catch:

 

Goal 17. Strengthen the means of implementation and revitalize the global partnership for sustainable development

Finance 17.1 Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection

 

Kirk2NCC1701's picture

As part of the annual Questionnaire, your CPA will ask you:

 

- Do you have Signature Authority over Foregn Accounts, Businesses or Trusts?

- Are you a Beneficiary of a Foreign Business or Trust?

- Do you have a Foreign Bank Account?  If so, what Interest did it earn?  If the Balance is <$10,000 you need not provide account details.

 

You should also know that if you have a foreign bank account, and you provide a US Passport or a non-US pasport with a US Address, they will rat you out.

Given all this... Plan accordingly.

Magnum's picture

FATCA is the worst Act ever and should be abolished.  It has caused untold misery to the lives of everyday Americans who happen to live overseas. 

There's a Facebok group called American Expatriates where people share horror stories of FATCA. Wrecking families, the main reason people are renoucing.  They're pretty much all leftwing douchebags screwed by Obama's FATCA, in the cold, no democrat leader will revise it.  They spout anti-Trump nonstop but he's the only one who would scrap it in my opinion. 

https://www.facebook.com/groups/AmericanExpatriates/

Ausonius's picture

I can imagine that the armed pick-up truck drivers of America will not be paying any "global" income tax or carbon tax or any other kind.

Nearly half of America is income tax-exempt right now: will they be happy or capable to start paying a global tax?

 

On the other hand, who knows?  Perhaps the inheritors of the country which fought against unfair taxation 240 years ago is too moribund, too obese, and/or too stupid to assert their rights against the oppressors.

 

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Apr 20, 2016 8:46 PM

I read this article earlier today. It pissed me off then and still pisses me off.

Hidden inside the article was this little gem: "de facto capital controls."

Which means, good luck trying to leave the USSA with any cash.

The other irony was that GATCA reminded me of an old movie, "Gattaca." The one with the ultimate creepy spy grid. Maybe I am getting old, but this seems to be very similar to the name of that old movie and the new acronym for the global financial grid. Let me guess, just some old predictive programming finally catching up to the present era. Fucking assholes.

MayIMommaDogFace2theBananaPatch's picture

+5 this possibility occurred to me as well

CHoward's picture

The only recourse us "cash cows" have to these degenerates is to just fucking kill them where we find them.  PERIOD!