[We now have a NEW POST taking us up to February 1, 2015. This post will be retired from service.]
THE AUTUMN 2014 UPDATE
Dear Donors,
Together, we reached our goal of $100,000 to pay the November 1 legal bill 11 days ahead of schedule!
Thank you Canadian donors from coast to coast and our friends from around the world for your generosity, support and determination — and especially for not being afraid.
The name of our non-profit corporation is the “Alliance for the Defence of Canadian Sovereignty.”
We were very deliberate in including in our name the word “sovereignty”, which forms a cornerstone of our Claims against the Government of Canada.
Canada and dozens of other countries throughout the world gave into a bully because their “leaders” were afraid of harm caused by a trading “partner” — and they gave their sovereignties away.
Help us convince by example the Leaders and Governments of all countries worldwide that they should return their sovereignties back to their Peoples.
Please continue to support our lawsuit.
“Alone we can do so little. Together we can do so much.” (Helen Keller)
— Plaintiffs Ginny and Gwen, and the ADCS-ADSC team
Chers donateurs,
Ensemble, nous avons atteint notre but d’amasser 100 000 $ pour payer notre facture légale du 1er novembre 11 jours d’avance !
Un gros merci à vous, donateurs canadiens, et à nos amis de tous les coins du monde pour votre grande générosité, soutien et détermination. Et surtout pour votre courage.
Le nom de notre organisme sans but lucratif est « l’Alliance pour la défense de la souveraineté canadienne ».
Nous avons choisi délibérément le mot « souveraineté » puisqu’il constitue la base fondamentale de nos revendications envers le gouvernement du Canada.
Le Canada et des dizaines d’autres pays se sont pliés devant l’intimidation des États-Unis parce que leurs « leaders » ont eu peur des menaces de notre « partenaire » commercial. Ils ont donc vendu leur souveraineté à rabais.
Aidez-nous à convaincre les dirigeants et les gouvernements de tous ces pays qu’ils se doivent de remettre leur souveraineté à leurs peuples.
S’il vous plaît, continuez à soutenir notre cause.
« Seuls, nous pouvons faire si peu. Ensemble, nous pouvons faire beaucoup. » (Helen Keller)
— Ginny, Gwen et toute l’équipe de l’ADCS-ADSC
DONATE to www.adcs-adsc.ca (ADSC en français).
@NorthernShrike
I am afraid your reading of the tea leaves is probably correct. Once the US gets a look at the data from FATCA they will inevitably make their next move which will be to cry victimhood and make all kinds of demands for reparations while simultaneously threatening all banks with branches in the US with Bank of Nova Scotia subpoenas or some other devious ploy.
When it comes to financial warfare the US is playing chess while everyone else is playing checkers. Just ask the Swiss.
@Domino
Thanks for the comments that were tweeted. They were very well thought out and a wonderful contribution to the discussion – please keep the comments coming.
That said, what I find most interesting is that you have been elevated to “superstar” status with your daughter. I have been trying to achieve this with my own daughter for some years. You have shown me the way!
Thank you for that as well.
@Domino – thank you for expressing these thoughts as clearly as you have.
BTW I hear that there is big news with Burger King and Tim Hortens …. I am looking for better particulars … but the Globe & Mail web site seems to be pay walling me. Could this be the straw that causes the US to overhaul their tax code? Wishful thinking ?
Had to take some time off from IBS but thought I would peek in. It’s great to see so much progress! I’ve donated a little bit and will encourage others in my circle to donate, as well.
Thanks for the update, Stephen. Looks like it’s still roughly $1K per day that’s needed. I am honoured to have a “European counterpart”. Sort of like the twin cities concept. I’d bet other Canadians would appreciate having European, Japanese, Samoan, etc. counterparts too. Who wants to be the first to tag team with our generous George?
With a little help from Paul McCartney …
“Hands across the water,
Heads across the sky.”
Make the fund grow larger.
Make sure the bad laws die.
It seems to me that the gross page views have now climbed to nearly 11.75 million including the old site. It seems to me that this is an accelerating statistic.
@Domino
Thank you for these very interesting comments. It took me some time to digest them. Clearly you have given these matters considerable exploration and thought.
CANADA is now setting the stage for the whole world to stand up to the US bully! The world is watching… please join us and help stop the bullying and threats and ultimatums from the USA!
No taxation without representation. If we are required to pay taxes to the US government than we should also be able to collect social security, prescription medication..
Reposted from http://www.telegraph.co.uk/finance/personalfinance/tax/11050777/British-families-billed-500-to-prevent-Americans-dodging-tax.html#comment-1562607406
Scott to nervousinvestor • 8 hours ago
If you think this is bad it is only the start. Every country will have similar legislation soon via the UN called GATCA see here…
http://fatca.thomsonreuters.co…
privacy will be completely dead. Welcome to the brave new world. Anyone for a Chinese bank account here…
http://www.boc.cn/en/
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@nervousinvestor. That is ‘old news’. 1st of all, this so called GATCA I believe is an OECD idea not UN is about Residence Based Taxation (RBT) information exchange, not the US style Citizenship Based Taxation (CBT). All these FATCA apologists keep pointing to GATCA as the son of FATCA. It is one of the greatest of false equivalencies. The difference between information exchanges for RBT as opposed to CBT as about the same as the differences between a mouse and an elephant.
I am quite sure if FATCA was based on RBT and not US style CBT, there would be much less opposition. Indeed there likely would be no IGA, no Charter Challenge, perhaps not even an Isaac Brock Society.
Basically, I don’t think Scott, who responded to you understands the issue very well.
@Only a Canadian
I generally agree …. the Chinese banking site was my real interest in the particular post. Not sure how credible that is yet.
I disagree however that RBT v CBT is the root of the issue. Whilst I think that CBT is fundamentally wrong and an act of financial enslavement … I view the privacy side even more seriously as I have seen what tyrannical and greedy Governments can do to their people when they acquire knowledge that you have a nest egg elsewhere as a hedge against their bad behavior. This is why I keep referring to how much Hitler might have loved FATCA / GATCA to know the details of the accounts of Germans (and especially the German Jews) around the world … which of course is usually a prelude to the order to bring all such assets within the national boundaries (and thus make them easy to confiscate / devalue). I have seen the effect of Capital Controls and Exchange Controls. In Jamaica the process is colloquially referred to as “tying ‘dem foot” … meaning tying the feet people like those of goats and cattle so that they are unable to move and thus are helpless. It is frequently sensible to put down a nest egg in a safe place even earning NO income (and thus no income tax complications) and to keep quiet about it as a “just in case” escape route … such rational provisions will become impossible for middle class people if FATCA / GATCA discloses their financial accounts to all and sundry Governments.
Not to mention of course the endangerment of persons categorized as “US Persons” when this information is gathered and thus made “leakable” to Jihadists and others criminal types.
Yes, the CBT v RBT thing is very important but it is far from the whole or even the main event in my opinion.
@nervousinvestor
I agree with your comments and this is one of the reasons why, prior to last Christmas, I wasn’t nearly as opposed to CBT as others on here. I’ve since come to see that CBT is a pretty serious evil in itself–especially when applied to ‘accidentals’ and/or without constitutional protections.
However I do think that FATCA would be a very serious problem even with only RBT. I am a dual citizen resident in the USA. Since I do–unlike most people on here–live in the USA I do take my obligations to pay US taxes seriously. But once my taxes are paid and I have after tax assets, I should be able to deposit that in a Canadian bank account without any constraints or disclosures.
I wasn’t required to give up Canadian citizenship when I became a US citizen and I’m not required to be a Canadian resident to enjoy the rights of the Canadian Charter. I’ve contributed to another Charter challenge that attacks my constitutional rights as a Canadian citizen outside Canada. That is–the Charter challenge is to an attack on my rights–the Charter challenge itself isn’t attacking my rights but rather is defending them:
http://www.cavalluzzo.com/canadiansvotingabroad
Moreover even had I remained a green card holder or in the USA on a temporary visa, I would still have been a ‘US person’ and affected by FATCA/C-31–so this is about more than just CBT. This is an assault on the rights of Canadians with any kind of significant ties to the USA–whether dual citizens or not.
@Dash1729 & nervousinvestor
I share your concerns, particularly about capital controls. The dollar’s status as global reserve currency wouldn’t survive de jure capital controls, but FATCA, combined with the US Tax code when applied to foreign US persons, is tantamount to de facto capital controls. As many Brockers have learned, and as many accidentals are about to learn, investments outside the US are untenable. Moving your savings to the US is a sensible move for those labouring under the PFIC rules. US capital markets are extremely efficient and costs are extremely low. I’m sure there are some ‘meta-thinkers’ in Washington who foresaw this, which might explain why Congress shows no sympathy for our situation which we presume to be the collateral damage of FATCA. It’s not collateral damage, it’s the undisclosed purpose.
If there’s another financial crisis, I expect it will destroy the petrodollar, and a financial Berlin Wall will trap our savings within. I’m not the first to mention it here, but I think IBS should devote a section to investment opportunities for US persons outside the US. ACA has such a section, but it’s little more than US based firms with offshore offices, meaning your funds will still be in the US but they’re familiar with advising foreigners.
In the meantime, I recommend Brockers with investment portfolios to research the difference between financial and real assets. Bank accounts, bonds and (for the most part) equities are all financial assets. Real estate, precious metals and collectibles are real assets. Collectibles include art, wine, old books and most things sold by Sotheby’s or Christies. Bitcoin is also a real asset by most definitions. This is not investment advice at all. I have no reason to recommend between real and financial assets in terms of investment return. There are, however, some advantages to real assets from the perspective of those subject to CBT, PFIC, FBAR and FATCA. Real assets are not subject to FATCA and FBAR reporting. Foreign (non US) real estate is subject to the same tax treatment as US real estate. Collectibles (including precious metals) held outside the US are also subject to the same tax treatment as in the US, however long term capital gains are subject to 28% tax rather than the regular 20%.
@Domino, Dash and Only a Canadian
Was mainly “off the air” traveling across Jamaica yesterday to Kingston for personal events. Rushing this morning but will write more later if I can.
As for real assets … I have seen middle class people buy old jewellery from personal estates, stamp collections, antique furniture and all sorts just to be able to sell these in a foreign country (usually the US, Canada or the UK) when they get there to scrape together a few dollars or pounds to finance the first months in a new environment trying to start life over. This is an ugly sight … to see the number of family savings pools (often gathered through hard work over generations) and proceeds from family homes destroyed / traded away on black markets at severe discounts to save a handful of dollars to begin a new life. I have known of professionals like lawyers leave behind their careers and assets and migrate … and to be able to put food on the table become bus drivers and similar occupations. Being a refugee with no intention to depend on the welfare of your new host country is not easy and most people who have never been close to such situations have difficulty comprehending the physical and psychological toll such experiences gouge out of families. The effect varies with the age and the honesty of the migrant … the more law abiding the person has been throughout life the harder the transition is to breaking the law to save a small part of their life’s accumulated savings and to start life over again. FATCA and GATCA seek to make this process even harder on the middle class …. the ultra wealthy / ultra connected have no material problems in this regard. The United States really should stand true to its Founding Documents and reject all such efforts to impose Tyrannical laws on the people of the world … yet it is FATCA created by the same USA that has emboldened the G20 to try to impose GATCA. What a travesty.
BTW – gross page views continue to rise ….. 0.6 Million on old site and nearly 11.2 Million on this site …. seems that 12 Million aggregate views will soon be reached. The word continues to spread I hope.
@nervousinvestor
I have a Canadian friend who lives in the US who told me a story about how she was once questioned by a US border agent about the value of her wedding ring when re entering the US. I guess she didn’t look married.
@BubbleBustin
There are many who have settled in or established families in Canada and the US who fled persecution elsewhere and who learned to always have something of value close at hand to be able to run with should the agents of oppression approach your door. These habits transform over time and in my humble opinion … expensive rings are a part of that legacy … kind of like the old Vikings that would collect armbands and rings of various metals … the old buried treasures and so on … and secret bank accounts … all are important things in a dangerous world. Good Lord, imagine that you were one of the minorities in Syria or Iraq now ….. you need to be able to flee yet know that there will be at least some sustenance going with you or waiting for you when (and if) you reach your safe destination. More recently I have heard stories of Cubans stripped of everything of value as they exited Cuba following the Castro Revolution there in the 1950s. Central Americans up though the 1960s and maybe even the 1970s who would have faced a firing squad if officials found out that they had a nest egg elsewhere ….. The World is NOT safe enough nor certain enough to have full disclosure of everything to every official.
Makes you wonder if wedding rings came about as solely a symbol of love and unity, doesn’t it?
@nervousinvestor, you hit the nail on the head for me and my family. It was the privacy issues that really caused an uproar in our household. Every time a government justifies gathering that type of information on innocent citizens it always goes south in ways people seem to miss until it is too late. Quite honestly if this were done with every single account located in the U.S.A. people would very quickly see what is very wrong with this. Why not make them do it? I”m sure most of them are having unreported yard sales and such. So everyone now should turn over their banking information to treasury, IRS and to be shared with home land security at their will without anyone’s knowledge or approval. This will eliminate all tax cheating as well as protect the U.S. more completely.
There are so many ways to justify doing things that are wrong headed. Those right now who are happy for expats and our families to have their banking account information and privacy taken away won’t feel that way when it happens to them and it will. Go to a protest they’d rather not have happen? Well, guess what we have all your bank records! You supported SOS Children’s Villages in China! OMG!! Traitor! See how this stuff works? Going into someone’s banking information should only happen with clear evidence of wrong doing, criminal activity and a warrant. It should have never been done this way where it’s “Just give it all to us on everyone.”
Lastly, I have mentioned before my affection for and affiliation with Jamaica, it’s nice to have someone else around here who has some ties there. One of my concerns regarding FATCA and poorer countries is how on earth they will afford to implement this. The impact of having those costs passed on to Jamaica’s citizens is much more difficult than it will be in richer countries. It’s quite sad because Jamaica is already taken advantage of in so many ways including those entrapped debts to the IMF. This is a lose/lose all the way around. I agree with you fully that CBT is immoral but, the huge issue here is people not speaking out or recognizing the real danger in this sort of loss of privacy and how that can and will be used against average people going forward.
On the question of real assets.
I recall a story told by a speaker at a professional conference some years ago. Her family was Jewish, and in the years before the war some family were able to leave their European homes on condition of surrendering their financial assets. This motivated spending a great deal of money on a fabulous watch. They couldn’t take their money, but they could take the watch wherever they went, and if the chips were down, they could sell it.
Years later, the speaker, a woman living in Canada, inherited the watch. She also got divorced, and like many women in her situation was convinced she would soon be a bag lady. So, she had the watch evaluated. Turns out in the current market, it was worth $1200. Draw you own conclusions.
So when does the lawsuit actually start in court? Are the arguments going to be public, televised, shared for us to see what’s actually said?
I think you guys are misunderstanding the concept of ‘investing’ in real assets. By way of example, imagine Harold a wealthy Jewish person living in Warsaw in 1938. He sees the storm clouds gathering, so he sells some of his assets and takes a trip to Switzerland where he purchases a house in Zurich and some gold bars which he stores in a Swiss bank. Come 1939, he’s much better situated than his fellow Jewish citizens when all the Jewish financial assets are confiscated. Those who weren’t so prescient are reduced to scrambling for collectibles from within their community which might hold some residual value if they are fortunate enough to smuggle them across the border when they flee.
If you feel that the storm clouds are gathering presently, you might wish to consider Harold’s astuteness so that you don’t end up having to sell the family silver for a fraction of its worth. Among the categories of real assets, collectibles are the least useful as investments. You need to be an expert with industry connections if you’re going to make money from Rolex watches. The difference between the retail price and the resale value (spread) on collectibles is too large for most investment purposes. Having said that, the ‘spread’ on real estate can range between 5% and 30%, depending on the tax rates, attorney’s fees etc. of the particular jurisdiction. Still, property is considered a good investment; partly because it’s held for a long period, so the ‘spread’ tends to go unnoticed. Of all real assets, precious metals (and particularly gold) have the lowest spread of around 2% to 15%. Those who execute a strategy now should get the 2%; those who do so during a panic will pay 15%.
I’m not suggesting anyone rush out and spend money on fancy watches and gold bars. I’m saying that those with investment portfolios should consider starting or increasing an allocation to real assets. If your investments are within a government pension scheme, chances are your options are more limited. If you have the ability to direct your investments, you should look through the investment to see what real assets stand behind it. Government bonds and bank deposits are the purest of financial assets. REITs or natural resource stocks are closer to real assets. Such investments wouldn’t fall out of the FATCA net though.
This is by no means a recommendation to invest in REITs or mining companies; it’s an additional strategy you might wish to consider if you’re fortunate enough to have savings that you control.
Will write more on the real assets thing later. I find this typing on a phone a real burden.
After reading this morning’s musings about Super Sam the Compliance Condor Man I decided the only way for me to react would be to put Twig#4 in the mail early. It’s on its way! BTW, Super Sam … seriously? I don’t take him so.