Are “Currency Controls” Coming To America On July 1?

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expensive FATCA compliance will be for FFIs around the globe. While not saying so directly, the latest IRS postponement of FATCA lets FFIs know that they will be hammered if they fail to comply – unless they simply choose to kick-out their American customers – which is already happening.

Conclusions – Just Another Washington “Money Grab”

Proponents of FATCA argue that it is a good thing and will force Americans with offshore accounts to pay their taxes. Yet the reality is that some foreign financial institutions will simply choose to kick-out their American customers rather than comply with the onerous and expensive reporting to the IRS.

Some countries have strict laws that prohibit their FFIs from sharing private customer information with anyone, especially in the so-called “tax haven” countries. In such countries, compliance with FATCA is not even a consideration.

At the end of the day, FATCA is just another “money grab” by the politicians in Washington. They know that the law will, in effect, prohibit investing in offshore accounts. They may as well call it“currency controls.” What they apparently don’t know is that FATCA will be bearish for the US dollar and may eventually threaten its status as the world’s reserve currency. Or maybe they do know…

Finally and for the record, I do not currently have any personal money invested outside the US.

Economy Slows to a Crawl in 1Q

The government reported last week that GDP grew only a measly 0.1% in the 1Q, far below expectations. You can read my analysis on this and the latest Fed policy meeting on my blog from last Thursday. The blog is free, it comes out on Thursdays and you should subscribe if you haven’t already done so.

Very best regards,

 

Gary D. Halbert

SPECIAL ARTICLES

Americans Renouncing Citizenship Up 221% (read this)

FATCA’s good, bad, ugly choices

Swiss banks (and others) force Americans to close their accounts

 

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