Cross posted from RenounceUScitizenship
Form Nation is “One Nation Under Debt With Endless Debt Slavery For All” endoftheamericandream.com/archives/one-n… Will #FATCA and Mr. #FBAR solvedebt problem?
— U.S. Citizen Abroad (@USCitizenAbroad) May 17, 2012
As you know the FATCA hearings on taking place in “Form Nation”. The U.S. is trying to impose FATCA on the world. Can the world’s biggest debtor tell the rest of the world what to do? A comment on an earlier post, about the U.S. seeking to impose FATCA on the world, had the following thoughts on debt:
The US is trying to make use of the old adage “you owe the bank $1000 dollars it’s your problem, if you owe the bank $100M its the bank’s problem”
However this is a short term strategy because the “bank” will eventually get itself out of that situation by crisis or planned divestiture. No country has ever solved its debt problems without giving up influence or power by not paying.
The Americans actually believe they owe so much to China that they won’t flinch. The creditor always has the upper hand eventually whether the debtor wants to believe that or not.
The day will come when they will decide the US is too much of a liability to support perhaps like the EU and Greece today. Debtors very rarely get the upper hand on creditors without paying a big price. The US should concentrate on improving its hand by domestic means and not rely upon China to flinch – they may not.
John Templeton, one of the world’s greatest investors once commented that:
Those who spend too much will eventually be owned by those who are thrifty. Continue reading