The Humble Libertarian

Mind your business.

Thursday, April 26, 2012


Thanks to the steady barrage of US government regulation ranging from the obtusely insipid Dodd-Frank financial reform to the impossible-to-implement Foreign Account Tax Compliance Act (FATCA), banks everywhere have to make this decision. In short, Congress has arrogantly passed legislation to control foreign banks on foreign soil. FATCA, for example, requires that every single bank on the planet enter into an information-sharing agreement with the IRS. Banks that don’t comply will face severe penalties, including being subject to a steep withholding tax on funds sourced through the US. In the long-run, Congress will have put the final nail in the coffin of the US banking system as the market will simply establish an alternative destination to source, clear, and transfer funds. For now, though, many banks are simply walking away from US customers altogether… throwing their hands up and saying “we would rather not do business with this entire market rather than deal with Uncle Sam ever again…”
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Sovereign Man 

Judy Morris,
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