St. James International · Further Readings


That is what the almighty dollar bill claims. Is that trust reciprocated? There are reasons to doubt the omnipotence of the US dollar.

The US government is approaching 20 trillion dollars of debt. They are printing money every day to pay the interest on their debt. At some point the debt has to be repaid and the biggest creditor is CHINA. The Chinese know that the dollar will devalue under this debt burden so they are now buying gold as a hedge against this devaluation.

Governments can only reduce national debt by cutting government expenditure or increasing taxes. The US has plans for tax increases via the impending FATCA legislation. Foreign Account Tax Compliance Act. Quite simply the US government wants to know who holds US dollar balances and will bully the international banking system to get this information. They will then set about taxing those balances. They will also trade the information they collect on non-US nationals to other countries in exchange for whatever they can get, from trade advantages to espionage.

This snooping by Uncle Sam will not stop at bank accounts. Expect an attempt to identify holders of any US asset and a drive for additional taxation.

Now is the time for investors to move their assets into a tax efficient and confidential trust. Trust an offshore trust, not the US dollar.

Download a PDF version of this article

Other Articles