I’ve been saying for about three years now that US citizens abroad and all foreign investors should liquidate their US assets and expatriate them. It now looks like it is too late for a few of Putin’s best friends:
Obama Issues Executive Order Freezing Assets Of Seven Putin Aides
I’m not sure about the legality of seizing private property without due process of law (cf. Fifth Amendment). But rule of law has never been Barack Obama’s strong point.
It looks like the constitution is only valid for US residents.
There was an interesting article in last September’s Harper’s Magazine about U.S. economic sanctions.
Turns out there’s an Office of Foreign Assets Control, staffed mostly by lawyers at Treasury. The article describes, in part, how the U.S. uses its economic might to impose its own agenda on other countries.
Sound familiar?
http://archive.harpers.org/2013/09/pdf/HarpersMagazine-2013-09-0084553.pdf?AWSAccessKeyId=AKIAJXATU3VRJAAA66RA&Expires=1395069155&Signature=uqh5Qd9H0yK9%2BAq1tldWmNocCVc%3D
Anyone else hear a sucking noise?
Ditto in EU:
http://www.cbc.ca/news/world/crimea-crisis-eu-freezes-assets-of-russian-officials-1.2575297
Wait until Putin decides to accept Yuan or Euros for his oil and gas.
We are witnessing a massive change in the balance of power in the world. It’s unwise to freeze/confiscate assets.
Reasons:
1. If this is effective, it can be done later, doesn’t need to be done now – after negotiations.
2. Not likely to be effective anyway. Crimea is an area of huge historical importance to Russia. The issues surrounding Crimea include huge non-monetary interests. Russia will not be intimidated by an asset freeze. This will underscore U.S. weakness.
3. As a previous commenter noted, Russia will accept payments in Chinese currency. This will have the effect of moving China (they haven’t signed FATCA) one step closer to displacing the U.S. as the leading economic power.
I wonder if Russia and China are either one step closer to signing a FATCA IGA two steps further away? 😆
I could not read the linked article Hazy. Chance of a better URL ?
If the named individuals do hold assets in the US, I’m gonna bet they are in Delaware or Wyoming corporations in multiple layers designed to obfuscate ownership. Very difficult to find without a snitch or unless they’ve been using unencrypted email.
@ nervousinvestor
Try this link and look for article by Andrew Cockburn:
http://harpers.org/archive/2013/09/
Thank you Hazy. Wow ! I have read the first page and a bit of the article and am amazed at the honesty expressed in it as to the vested interest of bureaucracies. I will read the remainder later. Thank you again.
Zerohedge is now saying that it is likely that the Russians concerned had already exited their US investments. They are not as dumb as Obama thinks, eh?
http://www.zerohedge.com/news/2014-03-17/russian-sanctioned-white-house-responds-twitter-comrade-obama
Is there a stronger case for owning gold? To those who imagine they will be destitute hare in Canada, please stop that kind of talk. Just do what you know is the right thing > out of all USA assets held in that horrible country > out of the Canadian banks > into credit unions, smaller the better > into actual cash in the mattress > average into physical precious metals > into distribution of assets. Accept that we will NEVER live as we did before. Be thankful that geo-political events are now causing the the USA to panic, make mistakes, make themselves look like fools and enraging the only power on Earth that can destroy the USA. Be sure that Putin hates the USA and will bring it down in my opinion. Enjoy the show, watch Obama and McCain run with their tail between their legs. I used to care, now I don’t. I disown my country of birth.
@Petros
I read that the largest movement of treasury bills (bonds?) a few days ago out of the US. They are not sure who but I think its the russian… Who are probably waving the bird at the US…
Considering that the US has threatened even their closest allies with crippling economic sanctions if they don’t participate in FATCA, the Russians would have to be really stupid not to have protected themselves ahead of their big move.
Obama thinks he has options, he does not have. It’s obvious he’s never served in the military, his pre planning totally sucks.
@US_Person_foreigner: http://www.bloomberg.com/news/2014-03-14/fed-custody-holdings-record-decline-fuels-russia-speculation.html
Russia also has a large amount of US cash. It has almost nowhere to go now, except perhaps gold, silver and other tangible portable assets. This could have a strong affect on the price of precious metals as well as the value of the dollar.
How about if the BRICs and China get together and demand another Bretton Woods re-negotiation of the world monetary system. It’s not going to be long in historical terms before China has both the military might and gold reserves to want a bigger seat at the table.
The fact Putin is ignoring the US in this land grab speaks volumes to the US’ diminishing power in the world. Would’ve done this in 1994? No or even 2004? Russia and China are fast becoming dominant regional powers while the US is unknowingly retreating from a super power to a large regional power as time passes.
I am quite sure that people who have saved responsibly towards their retirement have already gotten all of their money out of USA that they could. If someone realizes what is going on in USA, one gets their money out.
Good comments. Yes,smart to move assets out of America .
Gold and tangible assets more alluring now.
I hope and pray now Putin and China spread their buns to FATCA.
There has to be a way to
slow this beast to a crawl after all the usual US ally pussywhips grovel
down.
maybe I should just form a corp or trust in delaware or whatever… they won’t look there… we could all hide our crap in the states under their noses… Since I am already a tax evader… make them work for it… not that I would even know how to do that… lol…
it’s 415 Pacific time. Tune in to CKNW and they will have a live radio show about FATCA within the next hour or two. Click on listen live. CKNW 980
I believe John just said that FATCA will be discussed after 6:15 (pacific). Listen live:
http://player.cknw.com/#play
Signs of A Gold ‘Supercycle’: Chart This!
http://www.kitco.com/news/video/show/Chart-This/613/2014-03-17/Signs-of-A-Gold-Supercycle-Chart-This
@Beth
“I hope and pray now Putin and China spread their buns to FATCA.”
That’s way too funny!
Thanks BigEars/bubblebusting– I’m listening to the interview now. So far it’s an excellent interview with the FATCA IGA being taken apart piece by piece as a violation of multiple Charter Rights. Can someone put the link up later for the program? The program is well worth listening to!