Singapore bank to Uncle Sam: 'Stick it where the sun don't shine...'

----- Forwarded Message -----
From: Simon Black <admin@sovereignman.com>
To: jorgeus_smd@yahoo.com
Sent: Tuesday, October 23, 2012 10:03 PM
Subject: Singapore bank to Uncle Sam: 'Stick it where the sun don't shine...'

Having trouble viewing this email? Read it on our website. Sovereign Man Notes from the Field Date: October 23, 2012 Reporting From: Singapore I never thought I'd see the day. Two years since the HIRE Act, FATCA, and Dodd-Frank became law and threw global finance into a tailspin, two foreign banks have finally stood up to Uncle Sam. Let's review briefly. The HIRE Act was originally drafted in the early days of the post-Lehman crisis. Official unemployment (before they just stopped counting people) was the highest in decades, and politicians had to 'do something' to get the economy moving. Of course, what better way to boost the economy than to pass more laws? It's genius! HIRE ended up being a bunch of bizarre tax rules and pet infrastructure projects... the usual stuff. Of course, they have to pretend to pay for all of this. So they invented FATCA, which stands for 'Foreign Account Tax Compliance Act'. In short, FATCA requires- (1) All US taxpayers must annually disclose foreign financial accounts to the IRS if the values exceed a particular threshold (starting at $50,000). This requirement began last year. (2) All foreign banks must enter into a blanket information sharing agreement with the IRS. If they don't, the banks are subject to a 30% withholding penalty on US-sourced funds. Then there's the Dodd-Frank legislation... over 2,000 pages of unmitigated economic destruction which makes it tremendously difficult for foreigners to do business in the United States, or with US citizens. The rules which were proposed in Dodd-Frank are so obtusely complicated, nobody can begin to understand them. Even the agencies which are responsible for implementing Dodd-Frank have continually missed their own deadlines because they don't understand the law. Bottom line, it's more reporting, more registration, more paperwork, more hassle. Understandably, foreign banks have been in turmoil over the last two years as a result of all this legislation. Nobody wants to crawl in bed with the US government, and some banks have taken action by shuttering US citizens' accounts. Americans are even being dumped from foreign corporate boards. Yet just yesterday, DBS Bank in Singapore stood up to the US government, indicating that they would not be registering with US authorities for at least for one Dodd-Frank provision pertaining to swaps. Nordea Bank in Sweden made a similar statement. This is an interesting turn of events which could evidence a bigger trend. We've already been seeing signs that US financial influence is waning. The dollar is being slowly displaced in international markets. Countries around the world are starting to increase their reserves of China's renminbi, as well as accept renminbi in international trade settlements. We've also seen foreign companies like McDonalds issuing debt denominated in renminbi, the launching of renminbi-denominated commodity futures contracts, and the trading of renminbi assets in foreign exchanges. All of that used to be dominated by the dollar. But now the dollar's share is gradually fading. If more banks follow DBS and Nordea in standing up to the US government, it will be the clearest sign yet that this trend is taking hold... perhaps accelerating the dollar's decline. What does this mean for us? 1) If you earn income in US dollars, make sure you're holding your savings in another currency, precious metals, or productive assets. 2) If the trend holds, it's about to get a lot easier for US citizens to diversify internationally and do business abroad. In fact, I'm already seeing encouraging signs of this in Singapore. More to follow on that. Until tomorrow, Simon Black Senior Editor, SovereignMan.com PS-- Quick reminder, the enrolment window to become a subscriber to the 4th Pillar investment alert service closes at 11:59pm TONIGHT. I've mentioned this a few times already, so no need to restate it here. I did ask Tim to put together a list of answers to the most Frequently Asked Questions we've received about the service.  You can read his no-nonsense FAQ by clicking here. If nothing else, it's a good idea to check out just to familiarize yourself with the strategy. A unique Swiss loophole In last month's edition of Sovereign Man: Confidential, Simon Black told subscribers how to take advantage of Hungary's generous nationality law and obtain a top-tier travel document, if they have grandparents from the territories of the former Austro-Hungarian Empire. This month Simon writes to subscribers about: How they can enjoy all the amenities and privileges of being a Swiss resident, without the cumbersome Swiss immigration regulations, by taking advantage of a back-door access through a relatively unknown enclave within its borders. A unique investment opportunity in the Philippines, tracked down by Sovereign Man's Chief Investment Strategist Tim Staermose. It's an outstanding play on the country that is poised to grow for years to come. How to safeguard your precious metals in Singapore and why. Along with what the recent abolishment of GST (Goods and Services Tax) for certain precious metals means for bullion investors. Which island nation is more than worthy of consideration to structure your business there, especially if you're dealing with India or Africa, or run an online business. Hint: It lies "just" off the coast of Madagascar... An update on Paraguayan residency. Things are changing and if you want to be up to speed, you won't want to miss this; along with a sneak preview into a very interesting option for EU citizenship that is opening up... A rundown of Mongolian CDs and what holding money in the tugrik means from an inflation and currency exchange rates perspective. Hint: the potential for huge gains is massive. The outlook for Georgia after recent elections and why the future for the country that offers some very interesting opportunities could be even brighter. This month's massive issue includes a citizenship 'cheat sheet' --> A breakdown of 9 countries by ways of obtaining residency and naturalization requirements. Along with invaluable contacts. To get immediate access to the knowledge contained within this months issue, and all the back issues, click here to get the full details on your invitation to join Sovereign Man: Confidential today.                                 Neither this email communication nor content posted to the website SovereignMan.com is intended to provide personal financial advice. Before undertaking any action described in this letter, financial or otherwise, you should discuss your options with a qualified advisor-- accountant, financial planner, attorney, priest, IRS auditor, Tim Geithner... Also, nothing published in this letter constitutes encouragement to avoid or evade tax obligations in your home country.  Furthermore, you should understand that SovereignMan.com may in some instances receive financial compensation for products and/or services which are mentioned in the letter, and in other cases, SovereignMan.com receives no compensation.  The needs of the community come first, and the presence or lack of financial compensation in no way affects the recommendations made in this letter.

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