The Bone Crushing Yoke Of American Foreign Policy — FATCA
FATCA, in a nutshell, is an agreement for multi-jurisdictional banks (globally) to share information about US account holders to prevent tax evasion. If these banks do not comply with American demands. The banks will lose access to the US capital markets.
To the typical shortsighted — nihilistic — executive within the banking industry, it seems honorable.
Why help US citizens avoid taxes?
After all, their US client base is small, and losing access to the United States markets is far worse than losing a small number of wealthy American clients. The first warning sign concerning this United States law — the request is not logical from its inception.
Given the costs for the FATCA rollout and its illogical expectation for revenue collection, what is FATCA good for? Obviously, it must have a different purpose.
The only function FATCA really ensures is that multi-jurisdictional banks agree to an American administrative process. A process of discrimination based on national origin. Objectively, FATCA is a very complex law that multi-jurisdictional banks must comply with. The details of which are excruciating to read.
Therefore banking executive logic would follow as such, ” We will simply comply with US demands regarding discrimination of their citizens and they will leave us alone.”
This logic — IS DEAD WRONG.
The law isn’t meant for multi-jurisdictional banks to comply with and FATCA is not meant to help prevent tax evasion. It is designed to discriminate against– national origin. Discriminate against national origin to meet US Foreign Policy objectives.
Swiss banking is a perfect example. The Swiss, with great care, and meticulous attention to detail. Is working with the United States Government to implement FATCA.
Taking the path of least resistance, the banks have banned most American clients and have closed their accounts. Turning away hundreds of billions of dollars of US business in the process. The damage to the Swiss economy has been immeasurable. Of course, this news of Swiss economic disintegration is to the unfettered joy of sycophants in Washington.
The only problem is, that this is just the beginning of the end for Swiss banking.
Let’s keep in mind Switzerland is China’s fifth-largest investment target in Europe, investing a total of 571 million dollars into the Swiss economy in 2019.
Now let’s move forward in time to 2025.
Now that Swiss banks have been sheep-dipped in American bureaucracy, and have bent over backward to comply with American law; the United States has a new request:
United States: “We would like to thank you for your cooperation regarding the FATCA rollout. Your compliance is a model for all multi-jurisdictional banking, globally. Your cooperation is now required for a small modification regarding reporting requirements. In addition to information on American clients– the United States is kindly asking for information regarding all Sino account holders as well. Kindly, deliver all the information no later than 10.00 am, June 15, 2025.“
If you are Swiss banking management, leaning back in your chair shaking your head in disbelief. Thinking this is the thin edge of the wedge. I am here to tell you it can get far worse. Just imagine 30 days later your bank receives a new request from the United States:
United States: “In addition to information regarding all Sino account holders. Please deliver all Russian and Ukrainian information regardless of significance to the United States Treasury Department.“
To help motivate the situation. One week earlier, 4 top Swiss banking executives, were pulled off a plane in Tokyo at the request of the United States. Awaiting extradition, for FATCA violations, unsurprisingly. On information that the Swiss themselves had given the United States, ironically.
Of course, the guilt of these men and women has already been determined. Adding to this, the humiliation of a Swiss banking executive, being escorted off the plane by police, and thinking about life in a US Federal prison is too much for the average Swiss. They will buckle under the immense pressure and give the Americans everything they need.
Next, the Chinese ambassador to Switzerland has requested to meet his counterpart. Then, following closely behind is the Russian ambassador to Switzerland. The meetings don’t go well, to say the least. it’s made clear to Switzerland that both China and Russia feel that their neutrality has been compromised by the United States.
Now the circumstances are far worse, 6 months later, the American president calls the Swiss president. The American president makes it clear that information was given to them showing links to top Swiss officials in regards to terrorist financing. Of course, if asked to see this evidence the document will be classified and inaccessible.
— The Swiss President sits in silence —
The US president replies, “This is what America wants, a secret agreement with Switzerland. The agreement specifically, we will be accessing your airspace in the event of war with Russia.” At that moment, the Swiss president, a 62-year-old, casually looks down from his chair and vomits on the Swiss Federal Palace floor.
What most people do not understand. The United States does not care about money, positive relations, the balance of power, or fostering relations for mutual advantage. The United States is only concerned with the application of military force — that is the objective of FATCA.
The Wolfowitz Doctrine establishes the U.S.’s leadership role as uni power. Here is a sample of that doctrine:
Wolfowitz Doctrine First Draft
United States: “The U.S. must show the leadership necessary to establish and protect a new order that holds the promise of convincing potential competitors that they need not aspire to a greater role or pursue a more aggressive posture to protect their legitimate interests. In non-defense areas, we must account sufficiently for the interests of the advanced industrial nations to discourage them from challenging our leadership or seeking to overturn the established political and economic order. We must maintain the mechanism for deterring potential competitors from even aspiring to a larger regional or global role“
Even though this was written 30 years ago the Wolfowitz doctrine establishes American policy today. What “Wolfowitz” means, when he says:
“In non-defense areas, we must account sufficiently for the interests of the advanced industrial nations to discourage them from challenging our leadership or seeking to overturn the established political and economic order”
What Wolfowitz really means, any country with an independent Foreign Policy other than that of the United States is viewed as the enemy. Switzerland has an independent foreign policy and FATCA is meant to destroy it.
Slowly and methodically.
When the United States puts pressure on Swiss institutions it’s never-ending. FATCA is a part of a strategy of constant tension. It forces Swiss Banks to comply with foreign tax laws. Indoctrinating Swiss institutions into United States philosophies of social division.
This pressure will be never-ending until Switzerland says (yes) to all American demands. Airspace use for US military aircraft and a defense treaty are the objectives.
What can Switzerland do to stop this?
First, being a Swiss-American, the Swiss need to reach deep inside and find courage! Think about the future. The first objective is to get out from under the yoke of the United States Foreign Policy. FATCA is just an instrument of that Foreign Policy,
In reality, FATCA can be blown over with a feather. There are many constitutional problems with FATCA. However, this is the most important argument against FATCA right now:
FATCA discriminates against national origin. When you discriminate against national origin you don’t get to choose what kind of discrimination it is. You automatically discriminate against (all) Americans. You discriminate against black Americans, you discriminate against gender, you discriminate against the elderly, and you discriminate against people with disabilities.
By simply ignoring the United States and its demands the Swiss people would be far better off. The United States is politically exhausted, the elections are stolen, the courts never deliver justice, and social collapse seems more likely than not. The United States is a moral wasteland. In many ways, America is in a state of collapse.
Move forward with partnerships with Russia and China. Any diplomatic relations with the United States work against Switzerland.
Don’t get me wrong, the United States is the best place to forward big ideas! I do want the United States to succeed. However, the US Courts are draining the life out of the American spirit. Driving our people to despair, making American society untenable.
---Roman
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