The Shocking Reason for FATCA… and What Comes Next

FATCA is a U.S. law that forces every financial institution in the world to give the IRS information about its American clients. Complying with it is a huge financial and administrative burden, measured in hundreds of billions of dollars. It’s a paper shuffler’s dream come true. 

FATCA is the reason the vast majority of banks, brokerages, and other financial institutions outside of the U.S. shun American clients. 

I was just in Singapore, which has one of the soundest banking systems in the world. I can personally attest that banks there treat potential American clients as radioactive liabilities to be avoided. 

This is how FATCA makes it much more difficult to move money outside of the U.S. Combined with other costly, extraterritorial U.S. regulations, the law amounts to de facto capital controls.

DYI Comments:  Unfunded liabilities especially for Medicare and Social Security will have deficits beginning most likely next year and then continue to grow in size as the Boomer generation retires. The Fed's will be ravenous for tax dollars to fund the insatiable beasts Medicare and Social Security. Capital controls is just one measure along with tax increases of all types and the remaining will be reduced by the tax of inflation.  Currently today and the next 4 to 7 years deflation will reign but once the liabilities become over whelming the inflation genie will be let out of the bottle.
 
The 2020's will be known as the roaring 20's marked by high taxes, high inflation, and a labor shortage as Boomer's exit the work force but are still alive and consuming(at a lesser rate).

DYI