The TreeceCo Report
By Tony Treece
With the scope our firm has developed over the years, people often ask us about legislation or new investing techniques. This is exactly why we began assisting our clients with investing or saving through physical precious metals.
The most recent legislation to come into question is H.R. 2847. It was signed into law in 2010 and will go into effect on July 1, 2014. It is commonly known as FATCA or HIRE (the Hiring Incentives to Restore Employment Act).
It requires foreign banks, insurance companies, hedge funds, mutual funds, or any foreign entity that holds the money of U.S. citizens to report it to the IRS each year. This includes details such as the account’s highest value and the transactions. If the foreign bank or financial institution does not report it, there will be a 30% hold on the account imposed by the IRS.
The implications will be far-reaching for the economy and speculatively speaking this will drive foreign financial institutions away from doing business with U.S. citizens. And while I’m certainly not advocating avoiding taxes, I am saying that excessive regulations are hurting America’s economic development.
What does this say about the state of the U.S. economy?
Clearly, the government is looking for any way it can find to squeeze money out of you. Indicators likes these should warn us that having our financial house in order is of utmost importance during times like these. The fundamentals of our economy are not sound.
Yes, the stock market is surging… It is surging because of the monthly QE Unlimited money printing. Remember the stock market was storming higher in 1928 prior to the Great Depression. The underlying indicators fundamentally do not make sense. Whether you have foreign-held accounts or not, the impact of this legislation will have a ripple effect on the entire U.S. economy. A stock market correction is coming, and H.R. 2847 may be what ushers it in.