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Guest Post: US Citizens Pay Attention To This
Submitted by Simon Black from Sovereign Man
US Citizens Pay Attention To This
I was sitting across from an impossibly blonde account executive this afternoon when I heard three words I never thought I’d hear at a foreign bank.
“Are you Greek,” she asked me with a bit of a smile…
me: “Uh, no. I have a US passport, among others…”
she: “OK good, as long as you’re not Greek.”
I couldn’t believe what I was hearing. Let me explain.
As you may know, US citizens have long been the world’s banking pariah thanks to a piece of remarkably stupid legislation called the Foreign Account Tax Compliance Act (FATCA).
FATCA was passed a few years ago as part of a greater US government effort to create jobs. And boy was it successful– thousands of new jobs were created as a result of the legislation. Unfortunately, most of the new jobs are for tax collectors.
In short, FATCA requires EVERY BANK IN THE WORLD to sign an information-sharing agreement with the IRS. No matter what. Even the tiniest bank in Bhutan that has never seen a foreigner walk through its doors has to jump in bed with the IRS.
What’s more, if banks don’t comply (or even know about the law), the US government will severely penalize them with a 30% withholding tax on most funds routed through the US.
This stunning arrogance is a key reason why US citizens have been turned away from so many foreign banks over the past few years; banks simply didn’t want to deal with Uncle Sam. From Panama to Singapore to Switzerland, US citizens have been shut out of many banks.
But after years of this trend building, I’m starting to see signs of it breaking. FATCA initially sent shockwaves through the worldwide banking industry, and after years of lobbying their own governments, a compromise appears to have been reached.
The new model is that governments are inking information-sharing agreements directly with each other. In other words, foreign banks will send information to their governments, and the governments will share information with other governments.
This approach gets banks off the hook from having to deal with Uncle Sam, yet it still fulfills the original spirit of FATCA: destroy financial privacy. Mission Accomplished.
The good news is that a lot more foreign banks are receptive to having US customers. Which brings me back to my experience today in Norway.
The banker didn’t care that I have a US passport. US customers are OK once again, it’s now Greek customers who are the banking pariah du jour.
You may recall from our previous discussions that the Greek government has taken the liberty of confiscating funds directly from people’s bank accounts at will. If they decide (in their sole discretion) that you might be a tax cheat, they take your money. No questions asked.
Naturally, many Greeks are now desperately trying to move their funds abroad. Unfortunately for them, some banks just don’t want to be caught in the middle of this feud.
The result? Many banks are starting to turn away Greek customers or mandate large initial deposit requirements in excess of 500,000 euros.
It’s a classic example of what happens when people wait too long. Some folks took action early and are sleeping well. Others saw the writing on the wall and did nothing. They waited until the tax authorities were en route to even begin thinking about ways to protect their savings.
History shows that bankrupt governments routinely resort to plundering their citizens’ wealth to keep the party going.
Bottom line, if your government is insolvent, your savings are at risk. And opening a foreign bank account is one of the most important things you can do for your savings. Greeks are starting to figure this out the hard way.
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You can deposit farts in a safety deposit box. Have yet to hear about people storing their farts, but hey man, whatever floats your boat, right?
akak said:
The grandchildren of the txtng n twtr generation will communicate using a series of grunts combined with farting noises made using their armpits.
The blonde acct exec was asking if the guy would do her greek?
Whatever you think of this guy's ego, he has a valid point: the State is the enemy regardless of what State you happen to reside/do business in.
But he has an invalid solution: embrace the best state for Option X, while ignoring the unintended consequences of that set of actions.
He did say one thing worthwhile. Bankrupt countries do and always will steal from citizens to keep the party going. Problem is, so do non-bankrupt countries.
Run Eliza Run... Run from Simon!
Simon, I am close to buying a farm in Ecuador, but I need an additional $15,000 US Dollars. Send some my way and I'll let you come done and claim it as one of your exploits...hec it's better then depositing it in a European bank!
For the love of Baal... FATCA was passed into law in 2010 and is not yet fully implemented. How on earth could US citizens "have long been the world's banking pariah" for something less than two years old?
Jeebus Simon, you are a fucking idiot.
If you wanted to cite laws that have actually been around for a while like the Bank Secrecy Act, and the nasty FBAR (90-22.1) for your proposition, OK, but your lead-in is fucking retarded.
Well, if you had been subsisting on dried termites like Simon was on his backpack tour of equatorial Guinea, it would have seemed like a long time to you, too.
Now that one really made me laugh!
Thanks!
More like an economic Bear Grylls
"I was sitting in the third booth at Chili's, and due to economic uncertainty in the Balkans, was unsure if my waitress would bring my beer - I thought to myself, 'must avoid deflation, er dehydration - better drink my pee'"
spx @ 1399 = TOP !!!
ADDED to my spx shorts today @ 1398 and to EUR shorts @ 1.242
FROM Friday's spx 1392 and EUR 1.237...
EUR is NOW @ 1.2409 = tanking and IF you want to wait for spx to tank...ok wait..I've already shorted more !!!
With that kind of call you probably see the Euro trading at 15 cents.
what KIND of call?
shorted eur on Fri @ 1.2373 and today @ 1.2425
its NOW @ 1.2398...that's why u stupid daytraders loose $$ or make only crumbs $.
just wait for sub 1.20 and sub 1.10
Gold @ 250 was meant for your other comment
when GOLD @ $250 in 2016 =
me convert all my funny monopoly $$$$ to physical...=
1) they can't freeze it
2) they can't tax it
3) they can't touch it...like MC hammer says: U can't touch this !!!
will hold from $250 to $8k+ on SUPER-HYPERINFLATION !!
2016 odummer will repeal 22nd ammendment...
gold at $250 in 2016? missed the train did ya?
keep dreamin doc
bought PHYSICAL gold @ $300
in 2001 and dumped it @ $850
did you have that kind of returns?? = almost 3X?? that's what i thought.
sept. 2011 = shorted GLD when gold @ 1900..its now @ 1600. i made some of that money, that i missed from 850 to 1900.
its not gonna go straight down to sub $300...BUT IT WILL.
Dream on.
He's dreaming all right. Gold didn't hit $850 until 2007 or 2008.
i bought physical @ $300 in 2001
and HELD UNTIL it was @ $850 (that was before QEorganizer QE bs).
QE bs = temporary...= drop in casino stocks and gold.
It looks like doc in the house doesn't know that we already have Robo.
you seem to have the words 'money' and 'gold' grossly convoluted.
It will NOT stay down there that long.
These comments have been far more interesting than the article.
I think there are a few people here who just need a good wank.
Are you offering?
Not my scene dude, but there's a dumb bitch on here who would no doubt blow you for a few FRNs
Here is my interview on fox Business today about Bernanke and Obama:
http://video.foxbusiness.com/v/1773770011001/?intcmp=obinsite
Yes, I have to lose weight!
Excellent post, Tyler.
Regarding Simon Black:
I paid for the Sovereign Man information service approximately 1 year ago.
In that time I have received far far more highly useful, ACCURATE, information than those dollars could purchase anywhere else.
Shit, I spend more in one night out entertaining a couple friends that the cost of the service.
If you travel abroad frequently, if you are an expat or are considering it or if you are a high net worth individual, this is money that is very well spent.
This is feedback based on personal experience.
No, I am not part of his organization in any way. Just a customer.
Hi Simon! HOw are ya? I see you read your own articles! Nice to see you here!
"Shit, I spend more in one night out entertaining a couple friends that the cost of the service."
I'm sure Simon would love to share some caviar and truffles with you in Business Class.
Your old US currency is now worth $1 new dollar on the hundred old dollars. Any old dollars not converted within three days will be worthless, and their possession will constitute terrorism and be dealt with accordingly. Your gold is now officially pegged at $32/oz, and silver at $2/oz, and must be turned in at these exchange rates within three days or they will be confiscated you will be sent to a work camp for life. Firearms of any kind are worth 1000 new dollars each if turned in within the three day limit - after that it will be an automatic death penalty to own a firearm, the penalty will be automatic and any law enforcement officer will be authorized to carry it out on the spot. ( Fine print - that $1000 new dollar bonus will be taxable at the rate of 100%, tax to be colllected at the time the firearm is turned in.)
There - fixed the problem. USA! USA!
You forgot the part about living standards reduced to 1960s levels.
Optimist.
1910's level.
Nothing inside the banking system is safe.
Bottom line, if your government is insolvent, your savings are at risk.
ouch
I'm not sure if such anecdotal evidence really can spot a trend, but if so it would be nice!
Thanks Simon.
Simon Black is in Norway because he just came back from Svalbard,also known as Spitsbergen which is recommends to his readers as a good place to enjoy gun rights among other things.
Apparently US citizens and citizens of 40 other countries can go there without any visas. Citizens from countries who are signatories to the treaty can travel to Svalbard and reside there. No visa or residence permit is required.
http://lewrockwell.com/black-s/black-s132.html
https://en.wikipedia.org/wiki/Svalbard_Treaty
Svalbard treaty
Actually, the real safe heaven is Moon. According to reliable Russian sources, supervolcano under Yellowstone National Park is about to erupt, covering the Earth with a thick layer of ash and making Earth uninhabitable. Since nobody knows exactly when it is going to happen, it is recommended to blast off immediately and stay over there until further information will be provided in Sovereignman Confidential. In this way, you save 75000 on Dominica passport (oops already 100000 ) and Dollar term deposit in one of Tbilisi banks with 10 percent interest rates (currently negotiated by Simon) becomes redundant. It is, however, still advisable to keep some cash in Mongolia cause certain high altitude areas of Gobi may survive supervolcano eruption. Stay tuned for further details...
Props to pods.
So those that kept their gold, and passed it down through their family are wishing it had been handed in!!!
Fuckin loser.
Obviously you don't understand the long game.
I believe the IRS won a case and managed confisication of the few coins found in the dead man's desk which apparently sat there since the days of FDR.
9 million and change it was.
i assume that simon black was opening a new bank account...?...why isnt he buying gold....?
this story is posted over at business insider which is the absolute worst bs internet news site bar none.
still trying to figure out who is behind zh and why...? they have great stories on hft and such yet we have dozens of idiot contributing writers....?
Show me the money.
FA(scis)TCAca. Sieg Heil, Amerika!
Cause Uncle Sam is a Scam!
my lawyer in santiago mentioned the guy with this simon black website ttied to get him to join in some sort of investment scam. he wanted nothing to do with the guy. until then i had always assumed simon black was a fictional character
"destroy financial privacy.." Well, am sure Mitt would have something to say about being able to launder taxable $ thru the Caribbean...
Next up: Simon Black discusses the gritty details of smuggling oneself in a Yak's ass to avoid customs agents.
like i said (and you prove), gold dealers are a scam to overcharge and fleece the all knowing....and gold bugs cant seem to prove the rest of the world is wrong....just keep repeating 'buy gold' and wish that it actually goes up.
USD at parity with CAD.
Soon, $1 CAD = $1.4 USD