Sunday, May 04 2014
But if you want to understand why US Government making it harder and harder to open Foreign Accounts - read section below
Here's what's happening...
In 2010, the U.S. Congress passed House of Representatives bill H.R. 2847.
Hidden within this bill is a provision known as "FATCA," which stands for the Foreign Account Tax Compliance Act.
This bill does several important things, as of July 1st, 2014:
1. It forces all worldwide banks to comply with the IRS if they have any transactions in U.S. dollars.
2. Because the U.S. dollar is still the world's reserve currency, it essentially means ALL WORLDWIDE BANKS, except for the smallest community institutions, must comply.
3. To comply, banks can either spend a fortune segmenting, tracking, and potentially "taxing" their U.S. dollar transactions by as much as 30%... or they can simply get rid of all of their U.S. customers.
In other words, the U.S. government is saying to all banks around the world: If you deal in U.S. dollars in any way, you have to give us full, unfettered access to all of these transactions... or you have to get rid of all of your U.S. customers.
The repercussions here are enormous:
For one, it means more and more institutions will move AWAY from the U.S. dollar, accelerating the already rapid worldwide move away from the dollar as reserve currency.
For another, it essentially makes it extremely difficult, if not impossible, for the average American to get some of his money out of U.S. dollars, and into more stable currencies via foreign banks.
Already, we've seen two of the largest banks in the world, JP Morgan Chase and HSBC, basically eliminate international wire transfers. Many small banks have reportedly followed suit.
And we expect many, many more banks to basically outlaw international wire transfers, the run up to this new July 1st law.
This is a clear example of Capital Controls. This is what a broke and desperate government does when they know the value of their currency is about to collapse.
We've seen governments around the globe pull these stunts over and over again... right before a currency devaluation or collapse.
And now it's happenings right here, in the United States of America.
So, what can you do?
Well, I've done a lot of research on this development, and despite the July 1st, 2014 law change, there are still a surprising number of simple things you can do to not only protect what you've currently got, but to also potentially make quite a bit of money as this currency crisis unfolds.
So here are the specific steps you should take...
I know you probably don't believe me when I tell you that the U.S. government is going to implement policies to save itself, which are unimaginable right now.
|STEP #1. GET SOME OF YOUR MONEY BEYOND THE REACH OF THE U.S. GOVERNMENT (it's perfectly legal, and a lot easier than you think).
But remember, desperate governments will do very desperate things. That's why they outlawed the ownership of gold 80 years ago.
That's why they are already talking about "nationalizing" automatic 401(k)s and retirement plans. That's why the government is making it harder and harder to open foreign bank accounts (more on this in a minute), or to move your money overseas without paying outrageous taxes. That is why the International Monetary Fund (IMF) published a report in October 2013, examining all of the options for broke and indebted governments. One of their recommendations is a wealth tax on anyone with "positive net wealth." In other words, anyone with ANY savings.
The IMF says the government could simply put a 10% tax on EVERYTHING of significant value that you own, including bank accounts.
The study concludes: "The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). There have been illustrious supporters... [and] The conditions for success are strong."
As I've repeatedly said: Desperate governments do desperate things... and all of these desperate moves are coming very soon, right here in America. In fact, they are already underway.
The good news is, I recently met with a man who is considered one of the top "asset protection" attorneys in America.
In short, I learned that there are four simple investments you can make right now, which you DO NOT have to report to the U.S. government.
Don't get me wrong...
When and if you ever sell these things, years down the road, you are still required to pay taxes on your gains. But the great thing is, while you are holding these investments, so long as you play by the rules, neither you nor anyone else is required to report them to the government.
And this benefit should be obvious...
The less the government knows about where you have your money, the better. They will simply have a very hard time taking what they don't know you have.