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Financial Privacy Today: The Last Loophole

Written by Gary North on February 29, 2012

You can get it. You just can’t get it at your bank.

How can you get it. At your ATM. It’s cheap. It’s fast. It’s untraceable once you make the withdrawal.

No other way.

Hide your money outside the country? Nonsense. That has not been possible for 35 years. I wrote about this in 1976, when I was on Ron Paul’s staff. Since then, it has gotten worse. FATCA is the nail in the coffin.

Banking privacy is dead. Completely, totally dead. Murdered, really. The US government is the assailant, and FATCA is the murder weapon.

What is FATCA?

In brief, FATCA has two key concepts. First, it requires an additional (and completely unnecessary) layer of reporting from all US taxpayers who have ‘foreign financial accounts’ at ‘foreign financial institutions.’ Though as we have discussed before, both of these critical terms are ridiculously and flagrantly ambiguous, putting the onus entirely on the taxpayer.

Without clarifying what constitutes foreign financial accounts and institutions, Congress has effectively created decades of debate in tax court… a move that will undoubtedly ruin the lives of the unfortunate folks who get dragged into the fight.

The second key issue is that FATCA puts a burden on ALL foreign financial institutions worldwide to enter into an information-sharing agreement with the IRS; this essentially obliges every bank on the planet to submit reports and customers’ private data to the IRS.

Banks who don’t enter into this information sharing agreement will have a 30% tax withheld on funds that originate from, or go through, the US banking system. Further, banks who enter into the information sharing agreement are obliged to withhold the 30% tax on transfers to other banks who do NOT enter into the agreement.

Foreign banks are entering into information-sharing agreements with their governments. Then the governments share this information with America’s IRS.

Currency is the way out. But you cannot withdraw much. It’s for small purchases. It’s for Craigslist deals.

The screws are tightening. They will never get loose until after the Great Default, when the U.S. government goes bankrupt.

Most Americans pay most of their taxes. They don’t have money except what remains after their employer withholds money to send to the IRS.

This new law is hurting Americans who have a lot of money and who want to send it outside the USA. Foreign banks are now refusing to open accounts for Americans.

We are moving toward tyranny. The good news is this: Washington will go bankrupt before we get to tyranny.

Continue Reading on www.sovereignman.com

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5 thoughts on “Financial Privacy Today: The Last Loophole

  1. How do you figure about ATM? That is monitored in one's checking account.

  2. Perhaps it means that no one will know what you purchase when you pay cash. Yes, they'll know that you withdrew money, but they won't know what you did with the money. Obviously, when you conduct your transactions by credit/debit cards, it's easy to know your purchases/preferences/physical location/etc…

  3. Not Impressed says:

    You are not being plain and clear, but I can understand your ironic comment. I interpret you to say this… People who want to retain a measure of financial privacy need to move toward a cash-based economy. In other words, draw some cash from the ATM and keep it handy for use for everyday transactions and transaction you want to keep secret. The problems with this are many and complicated because the banks don't want you dealing with large amounts of cash. They would probably prefer you NEVER deal with cash. That way they can track everything you buy or sell. The obvious first concern of many is what will happen to you if should show up and try to pay cash for an item that costs over $1000.00. You might alarm the checkout clerk and get yourself into a confrontation with the police. I hope you know what you are doing.

  4. AND why would you live the ONLY life you will ever have under a government like this? Carrying your Master's yoke (taxes) will seemingly grow heavier and those that do not "submit and comply," will taste the lash readily. (National Defense Authorization Act, 2012)
    _______
    I left the U.S. in 1979, recognizing the future signs currently ensconced and growing worse by the day. I renounced citizenship. Uncle Sam is not my master! Checking the Federal Register, 'Quarterly Publication of Individuals Who Have Chosen To Expatriate,' I see an ever-growing list of Americans becoming expats. So, wealth can still flee, as I write this. Again, to live the only life you will ever have in a Thugatarian's state is well beyond me. I VALUE my bona fide freedom, liberty, privacy both personal and financial way too much to live in subjection, as the mass of Americans do. Get out while you still can. C'est la guerre.

    Capt. A.
    Principauté de Monaco
    UTC +1:00 CET
    "Anyone who needs to be persuaded to be free, doesn't deserve to be." ~ L. Neil Smith