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 handle 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 simply get rid of all of their U.S. customers.
In other words, the U.S. government has said 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:
1. 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.
2. 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 elimination of international wire transfers:
- 2 of the largest banks in the world, JP Morgan Chase and HSBC, did it;
- many small banks have reportedly followed suit;
- we expect many, many more banks to basically outlaw international wire transfers, the run up to this new July 1st law.
We've heard several reports already of banks now refusing to accept American citizens' deposits!
And this trend is going to accelerate rapidly in the months to come.
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.