Team America: World Taxation Police and the REAL Reasons Why
It was a day just like most other days… which included an email from some brokerage or bank sending me an email requesting more documentation to better “Know Your Client” (KYC). I've sent so much documentation over the last few years to banks and brokerages that I feel some of these banks should at least buy me dinner before they f**k me. I now call it IYC, Irritate Your Client.
In fairness to the banks, however, none of them want to do this. I can't imagine what the cost of the “compliance” departments of some banks must be to collect all this paperwork on behalf of governments. Any sensible bank or business wouldn't want to keep harassing their clients for more information about specific details of the lives on an ongoing and never-ending basis.
But this week I got an extra-special email from a brokerage in which I have an account in Luxembourg. The subject header was, “Urgent – information for customers holding United States (US) assets”.
Here was what was included. Remember, I am not American (and they know that) and this is from a brokerage in Luxembourg:
Dear Investor,
As part of our obligations to the US tax authorities, we are required to obtain evidence for all clients who are or have been the owners of US investment assets in our custody in order to confirm that they are not a US person.
The W8-BEN form that you provided in 2012 as such evidence will expire on 31st December 2015, so we are now writing to you to request a new one.
Action required
• Please download, complete and sign the Form W-8BEN ‘Certificate of Foreign Status of Beneficial Owner for US Tax Withholding’
• For joint accounts, each applicant must complete, sign and return a separate W-8BEN form.
• The form can be returned by post or replying to this emailWhat happens if I do not complete the form?
• If we do not receive a completed W-8BEN form by 31st December 2015, from 1st January 2016 you will be unable to purchase further US equities and any open limit orders will be cancelled.
• You will no longer be eligible for treaty benefits on US income received and dividends will be taxed at the default rate
“As part of our obligations to the US tax authorities”? How does a brokerage in Luxembourg HAVE “obligations” to “US tax authorities”?
To show how ridiculous this is… imagine if an American had a brokerage account in the US and he received a letter from them saying, “As part of our obligations to the Paraguayan tax authorities we need you to fill out some Paraguayan government tax forms to prove you are not Paraguayan.”
The only reason the US government can even imagine getting away with policing every bank and brokerage in the world is because the US is still considered an important place to conduct business and investment.
At this rate, however, that won't last very long!
I, personally, refuse to file anything with the IRS, who I consider to be a criminal organization responsible for extortion that goes into the trillions of dollars per year. And so, that means, at this particular brokerage I will stop investing in US stocks. That isn't too hard for me, anyway, since if I do dabble in US stocks it is always on the short side (resulting in a 4,500% gain shorting the market this summer which I shared with TDV subscribers). And the only US stocks I would consider buying are gold and silver mining stocks, which are just as easy to buy in places like Canada, Australia or London.
So, the US just lost another investor's capital. And I assure you I am not alone.
The US is quickly becoming a pariah for this reason. It's almost like the US government is doing this on purpose to collapse the economy… and don't put it past them that it is on purpose.
We've discussed this in the past. It is well known that a goal of the international elite is to create a global currency. However, the dollar is well established as the dominant reserve currency, the one that most nation-states hold.
The reason nations have to hold dollars in reserve, usually via fixed income instruments, is because the Middle East demands oil payments in dollars. Saudi Arabia, as the dominant producer, sets the tone here, doing the bidding of the US in demanding only dollars for oil.
However, this state of affairs is shifting as both Russia and China are selling energy for currencies other than the dollar. Additionally, it would seem that Saudi Arabia is being actively undermined by the West. This is ironic because the demands to sell oil for dollars is a Western one. But doing business with the Anglosphere over time is always a difficult proposition – as plans change.
And plans have changed. The world is to move to a single dominant currency and now the dollar and Saudi Arabia stand in the way. And suddenly the Saud family faces destabilization.
Suddenly fracking has undermined the Saud family's dominant energy position. Yemen threatens from below. Russia from above.
The US itself – and thus the dollar – is being undermined economically. The Bush regime started wars in Afghanistan and Iraq that stretched the budget and added trillions to the national debt. Additional social-welfare programs have further undermined US fiscal solvency.
And FACTA – the international tax-act that demands banks around the world act as IRS bookkeepers – has turned US citizens into personas-not-gratas. Over time, the ramifications are going to be significant.
Let's not forget the BRICs – Brazil, Russia, India and China. Even as the West and the US have slumped economically, these large countries have emerged into economic prominence. By coincidence or not, the West has subsided in terms of monetary influence while the “East” has risen up.
It seems clear the world is being evened out monetarily. And perhaps this is no coincidence either if one believes that sooner or later an international currency is being installed. For this to happen, currencies will have to trade nearer to parity, and this is evidently taking place.
Observing all this one has to ask what are the ways that an individual can retain some semblance of personal financial control. There are actually numerous answers. One can purchase physical metals and retain them in reasonable proximity. Foreign property, residencies and even citizenships are recommended. When it comes to transactions, bitcoin is one solution we've recommended for years.
We first recommended bitcoin when it was around US$3.00 and later it climbed to over US$1,000. We again recommended it two months ago when it was near $240 and it is currently at $330.
Bitcoin has been very good to us and our subscribers but the real reason to transact in bitcoins has to do with its relative security. It is designed as an anonymous transactional currency and within certain parameters it certainly is. One might wonder if governments will outlaw it, but to date that hasn't happened, mostly because outlawing bitcoin might end up creating a conflict with other such electronic currencies, including currencies that governments might wish to offer.
The use of bitcoin along with precious metals, secondary residences and passports can provide a modicum of privacy in an otherwise over-scrutinized world. One doesn't need to break “rules” and regulations to achieve a maximum level of confidentiality and tax privacy as well. It will never be perfect but as government becomes more intrusive and income-hungry, private solutions are being developed to counteract the trend.
Here at TDV we specialize in providing offshore solutions that offer confidentiality and privacy to thousands of subscribers. Each month we provide a variety of solutions that can legally counteract government intrusions and help safeguard your family's safety and prosperity. Please see our latest video here as well as links to our special subscription offer that will soon be ending.
When I get letters from banks and brokerages that they want more info or even freeze my accounts while they wait for me to supply more information I mostly laugh now as I am almost entirely outside of the financial and banking system and into the things I mentioned above.
It's a great feeling to know that no one can control nor confiscate your assets. If you have the majority of your assets in the traditional financial system and you receive letters like that it can nearly make your heart stop.
Take control of your assets before the government and banks take control of them for you.
