FATCA > USD, HKD, Property?

FATCA implications for USD, HKD, and HK Property


FATCA is like FATWA: Imperial Arrogance


"The US's dollar domination is coming to an end"



June 18, 2014 / Bangkok, Thailand


The Society for Worldwide Interbank Financial Telecommunication (SWIFT), which helps manage the global banking system, tells us that US dollar settlement accounts for the vast majority of global trade.



....many people take it for granted that just because the dollar is in the lead today, it will be that way forever.


They couldn't be more wrong. ....


......Reserve currencies come and go. So will the dollar. This is nothing new.


It's bad enough that US debt is greater than any other nation's in the history of the world. Or that the dollar is being rapidly debased by a tiny banking elite.


But what's really driving the nail in the dollar coffin is the US government's continued appalling arrogance, particularly in bullying around foreign banks.


Just one tiny example is the US government's $10 billion threat against French bank BNP Paribas, which may even include criminal charges.


BNP's bank in Geneva stands accused of financing deals with Iran. Never mind that it's perfectly legal for a bank in Switzerland to do business with Iran. Iran, after all, is one of Switzerland's largest trading partners in the Middle East.


The issue is that BNP violated a 2012 -executive order- from Barack Obama (#13622) that requires non-US companies to enforce US sanctions.


The arrogance is really overwhelming. This isn't even an actual law. It's just an executive order-- a royal decree from King POTUS, first of his name.


And even if it were an actual law, on what possible grounds could the US government claim jurisdiction to regulate foreign banks? None. But this doesn't stop them from doing so.


FATCA is another great example-- a seismically destructive law passed in 2010 that mandates all sorts of US compliance requirements on foreign banks.


The only reason the US is able to get away with this is because the dollar (and hence the US banking system) is so important to their global business.


Their patience has run out, and things are starting to change.


The Chinese government has been rapidly loosening controls over the renminbi to increase its reserve status and compete with the dollar. And the rest of the world has quickly adapted to the opportunity.


The proof is clear. According to SWIFT, China's renminbi is now the second most used currency in the world for global trade settlement, putting it ahead of even the euro.


In London, renminbi trade last year surged 50% to $25.3 billion per day. And there's every indication that this growth will continue.


Singapore's central bank is now offering overnight renminbi liquidity. Russian companies are preparing to pay for trade in renminbi. Even the World Bank's IFC just issued its first renminbi-denominated bond.


It's happening. And based on the data, it's completely obvious... to just about everyone but the US government.

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> more: ( email message from Simon Black )


>What is FaCTA: http://americansabroad.org/issues/fatca/

"Simon Black" is absolutely right.


The world is getting increasingly sick of America's dictatorial impositions - it is hardly surprising that people (including many who have historically aligned themselves with America) are looking for alternatives.

Please do not forget, how it once was: American truly did carry a Torch of Liberty,

when it had leaders of sincerity and courage.


Probably the last one was JFK.

If you want to consider what was lost, spare a few minutes to listen to his Inaugural Address:


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


Can anyone truly believe that President Kennedy's assassination was the work of a lone gunman, who was a poor shot? Especially now, when there is photpgraphic evidence that shows that Oswald was almost certainly on a different floor (with no gun) when the assassination occurred.


Increasingly, the detailed evidence shows that Two future presidents were directly involved in the conspiracy: LBJ to insure the cover-up was successful, and G. Bush from within the CIA to insure the murder plot was executed efficiently.


I support the plan of digging up LBJ bones, and hanging them in effigy, and turning the LBJ library into a public toilet. I leave it to others to think of a suitable punishment for GB-1, if indeed his involvement can be proven. Certainly a new and thorough investigation is needed - as a first step in reversing the downwards acceleration of America's prestige. Jim Fetzer would be a good guy to lead it, and his views can be found here:

http://hongkong.asiaxpat.com/forums/truths-and-controversies/threads/152865/who-killed-jfk?/


======================


HK versus Singapore : I don't get your argument. (??)


I just spoke to an agent based in TKT earlier to day, and she was telling me how almost everything in "her patch" is now at/near record prices, if not at a record. She specializes on older buildings where flats cost something below $4 Million. It is now very hard to find anything in an elevated building at under $10,000 psf, Net.


If it is about the currency... Do you think the HKD will be linked to the USD for much longer?


The use of the RMB is growing fast, and too many countries want to ditch the USD. So I think the peg will go before the end of thios year.

http://hongkong.asiaxpat.com/features/jfk-assassination.html

I use the analogy of the Titanic.... (USA) --- Everyone on board knows it is going down so do you sit on the deck drinking cocktails while the violins play --- and go to the bottom of the ocean....


Or do you grab onto any piece of floating debris and hope for a better outcome...


Obviously the second option makes the most sense --- china and russia are in a heap of trouble economically --- but they recognize the US 'empire' is over --- and they are grabbing onto whatever they think gives them a shot (I note that both countries have piled massively into gold... is that their floating debris?)

I see your point.

But many who bought that flat in Singapore, would have borrowed S$ to finance it,

so the gains are not as large as you suggest.


And it might have be tough to make money on a purchase in Singapore (from say Jan. 2013), but my girlfriend was able to make money in HK, by knowing the city here well, and cherry-picking something that was a genuine bargain. Try doing that in another country (ie beating the market), and you may find it is difficult.


The real issue is how will prices perform from WHERE WE ARE NOW, and I am fully expected the Peg to go within the next 2-3 years, and very possibly within this year. So I wouldn't want to buy on the premise you have offered.


Having said that I HAVE bought in the Philippines, where the aggregate purchase price represents something like a 15% downpayment on a similar HK property. So you can buy without debt.


The uncertainties concerning HK's future, and the fate of global currencies was one reason I bought there. Having a (small) investment elsewhere may give me some useful options if TSHTF.

"my girlfriend was able to make money in HK". Isn't it a little premature? What your gf have is a "paper gain", she can only realize it when she sells.

FATCA isn't a "compliance requirement" per se - it's a series of measures to enable the US Government to collect additional taxes from it's citizens who dodge global taxation by parking money abroad.


The reason the US "got away" with it is that most governments with a global taxation requirement (like China) are looking at the model and considering that in years forward they too will adopt the model. Yes, there is a requirement that if you deal with the US you need to report but this isn't the point - the EU & US went after the Swiss secrecy, the Cayman PM resigned due to corruption - this is about trying to stop tax avoidance period. (and presumably therefore have more money to spend on bombs and guns)


The point about borrowing in S$ is mute. Property in HK and SG since 1980 has risen twenty fold. The borrowing in S$ would be a minute fraction of the gain.


Singapore is now an offshore banking and processing centre. Shanghai is pushing a raft of new initiatives re the financial sector - tax breaks for private equity and hedge funds, big processing centres in Hang Zhou and Su Zhou. Begs the question where HK is going to end up.

Property - and FATCA : This is from 2012, but I believe it is still accurate


Foreign Real Estate


Foreign real estate is not a specified foreign financial asset required to be reported on Form 8938. For example, a personal residence or a rental property does not have to be reported.


However, if a taxpayer holds foreign real estate through a foreign entity, such as a corporation, partnership, trust or estate, then the interest in the entity is a specified foreign financial asset that is reported on Form 8938.

==

> http://www.mondaq.com/unitedstates/x/172234/IRS+HRMC/IRS+Issues+Guidance+On+FATCAForm+8938+Foreign+Asset+Reporting


Seems to be still okay in 2014:

> http://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements

Unfortunately, FATCA is not the only reporting requirement for Americans.

They also have FBAR


Current FBAR Guidance / FinCEN introduces new forms


On September 30, 2013, FinCEN posted, on their internet site, a notice announcing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (the current FBAR form). FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior years) and is only available online through the BSA E-Filing System website. The system allows the filer to enter the calendar year reported, including past years, on the online FinCEN Form 114.

==

> http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR


Guess what:

This report can ONLY BE FILED ELECTRONICALLY, and the deadline is June 30, 2014:


Separately, taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2013 must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). This form replaces TD F 90-22.1, the FBAR form used in the past. It is due to the Treasury Department by June 30, 2014, must be filed electronically and is only available online through the BSA E-Filing System website. For details regarding the FBAR requirements, see Report of Foreign Bank and Financial Accounts (FBAR).

==

> http://www.irs.gov/uac/Newsroom/IRS-Reminds-Those-with-Foreign-Assets-of-U.S.-Tax-Obligations-2014


Filing:

> http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html


Why in heavens name the IRS cannot get its act together enough to require this info to be filed only once is a mystery. It just opens the door to another way you can be well-intentioned and still fall into trouble with reporting requirements.


The time spent every year on this sort of govt burden is well... beyond belief

The USD will not die any time soon!


In fact, it will get much stronger before it collapses.


Why?


Simple, before the the death of the dollar, the US will orchestrate the destruction of the Euro which will result in a flight to the USD as a safe haven currency.


China?


Well, don't hold your breath on the RMB going global any time soon, if it does, the Chinese economy will collapse in the wink of an eye, any you can bet the government is fully aware of this.

Haha


I dont think so, Gee Whiz.


The US has been behaving badly, and it seems like the BRICS and maybe the whole world are now preparing to move into an alliance to fight "imperial over-reach."


Personally, I am very sad about this.


Russia and China are both moving at lightning speed to set up their own financial systems independent of the Dollar. And we may see a rather rapid loss in the value of the USD in the second half of the year.

Jeremy the point is about the borrowing not the FX gain which you rightly pointed out is significant.

Gee Whiz, exactly my thoughts. The bond market is telling us the same thing, at least in the interim. What doom and gloomers don't understand is the bankers, who orchestrated this would like their loans to be paid back, defaulting is not in their interest. Remember all the fear associated with Greece and the debt ceiling, what happened to that? where did that go? and ehst about the supposed default of California? what happened to that?


Point is, the bond market knows all, traders don't wait for it to be in the news, the smart money moves out at least 6 months in advance, by the time Ed post these articles on this forum, its ver very old news.

Good luck with that, LTSE (and others)


Maybe you should listen to Jim Willie (and others) -

who have called the markets better than those complacent bankers you refer to.

How many of them were prepared when the crisis of 2008 hit?


The next one, coming soon possibly could be far worse than 2008.


https://www.youtube.com/watch?v=OAzbxFQ30Ss


Jim Willie: Global War Has Begun, Russia/China Alliance Will DESTROY the US Dollar!





...Jim Willie discusses why the yuan is destined to replace the US dollar as reserve currency, and why the quickly growing Russian/Chinese alliance will DESTROY the US dollar.

Willie digs into the recent string of bankster deaths, his thoughts on the implications of the London silver fix ending in August, & the Fed money laundering funds through Belgium in order to prevent a collapse in T-bonds due to Russian liquidation.




Willie states that due Chinese & Russian liquidation, US Treasury bonds have gone NO-BID, and that a dollar-collapse looms!

Actually OTP, I agree with you completely, I never said the USA is in good shape, my view is that the USD will be much stronger in the next collapse as it did in 2008, my view has always been on the deflationary side which is dollar bullish, and certainly despite the fundamentals the USA still remains the largest economy in the world making up over 30% of worlds GDP and to write off the dollar is quite absurd, this will not happen until after the event of war, which will happen during major power shifts.


But in the interim, both the stock market and bond market is treading higher, which is a very unusal phenomenon, and normally the bond market is right.

(I am checking to see how TRUE this is - could be a big victory for The People):


Thanks to the brilliant warning of Stans berry research we saw the extreme danger to letting FATCA be carried out starting July 1, 2014 and we knew how to use law to change the direction of what Obama was up to that legal angle Stansberryresearch did not realize could be done to stop the FATCA law Obama was trying to ram down the throats of the American people. People congratulated us for our sizzling report on FATCA we posted with John at Nesara News on June 18, 2014 titled "Crimes Against Humanity" By Obama Law. This generated panic in federal legal circles and the following day it was announced that the I.R.S. would not enforce FATCA starting on July 1, 2014 as originally stated but rather start on January 1, 2016 which was just a face saving way of not admitting that they had broken a major genocide ruling of the Nuremberg War Trials and officials in Wash., D.C. including members of Congress who voted for this law and even Obama himself at the White House could all be executed under international law and by hanging from the gallows as the standard punishment for violations of this Nuremberg War Trial ruling binding on all governments on the earth.


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> http://www.quatloos.com/Q-Forum/viewtopic.php?f=6&t=9237&start=300

Foreign Account Tax Compliance Act (FATCA)


This is a very understated topic and I think it deserves to be discussed, it makes feel so blessed that I am NOT an American. They call it "land of the free" but its really home of the slaves, even EXPAT Americans would have to pay US tax when earning income overseas and now have to declare what they have in their foreign savings account to the IRS.


NO foreign banks wants to comply with this, but has no choice given the repercussions, it cost them time and labour doing all this unproductive bureaucracy and ultimately, it leads to the diminished use of the dollar.


https://www.youtube.com/watch?v=OgNb83Y0CoY


Michael Maloney discusses this very well. FATCA begins at 19:31