Dear Presidential Candidate Romney:
I am writing this open letter to you because I believe that you will be the next President of the United States of America. I respect you for your commitment to public service. I respect your patriotism. I am aligned with you when you say that “you will never apologize for America”.
I want to alert you to an issue that may force you (for all practical purposes) to have to “apologize for America”. Of course, you can change this. Although I am certain that your commitment to public service will continue irrespective of whether you become our next president, I do believe that you are America’s best option to guide the country for the next eight years. I support you. You have repeatedly said that you would “never apologize for America”.
The world in general and the United States is suffering an economic crisis – of a magnitude not seen since the 1930s. Although there are many problems, the bottom line is that unemployment is high. There just aren’t jobs. I agree that our current president, (probably since he has neither had nor created a job) has no ability to guide our economy toward employment. I agree with you when you say:
The bottom line is that “Obama means not working”.
President Obama doesn’t understand that businesses and people create jobs. Governments do not create jobs. Nevertheless, in 2010 Obama signed into law the “HIRE Act” – (he would create some jobs by passing a law). This stands for “Hiring Incentives To Restore Employment”. Like most bills in Congress, the HIRE Act was subjected to very little debate. It does however, contain a Trojan Horse provision (of which I believe few Congressmen were even aware), called FATCA “Foreign Account Tax Compliance ACT”. Governor Romney FATCA will put you in a position where you WILL have to apologize for America. I urge you to read about FATCA. It is an act of breathtaking imperialism It does two things:
First, in relation to U.S. taxpayers – it imposes breath-taking, far-reaching information reporting requirements on U.S. expat citizens. While these people are U.S. citizens, they do vote. (However, many of these expats are considering renouncing their U.S. citizenship.) If you want to learn why, I invite you to listen to a FATCA radio interview given by American Citizens Abroad. That said, for all Americans, FATCA results in control of capital outflows outside the United States. It is in effect the new “Berlin Wall“.
Second, in relation to foreign countries – it turns non-U.S. banks and financial institutions into reporting agents for the IRS. Leaving aside the moral and legal issues. The compliance costs will be enormous. For more information about the effects of FATCA on foreign financial institutions see:
In order to understand this, one must look at the world through the eyes of a country outside the United States. Let’s imagine that we are in the U.K.
I love London (apologies to London, Ontario), England. It’s the greatest city in the world. When I disembark at Heathrow Airport, I feel like I am in the center of the world. At one time (before debt crippled England – is there a lesson for America?) it was the center of the world. You can reach anywhere from London in approximately ten hours. Trouble is that I can’t go there as often as I like. As a result, I watch the BBC.
Last night I watched the BBC business news. The commentary included issues dealing with China, Australia and Japan. Interestingly these are three countries that have said that they will NOT comply with FATCA. The news continued on to a discussion about the European debt crisis – noting that Europe is China’s biggest trading partner. If there was any BBC business commentary about the U.S. it came at the end and was basically irrelevant. The point is that the United States is not the center of the world. Yet, an “ignorant and arrogant Congress” has passed FATCA – the U.S. attempting to impose its will on the world. I predict that FATCA will be the end of the U.S. as a world power. At a bare minimum it will accelerate the trend of U.S. citizenship renunciations. It will give foreign financial institutions every reason to avoid the U.S. (Taiwan has already made it clear that it will buy fewer U.S treasury bills). FATCA will begin a chain of events that will almost certainly result in the U.S. dollar ceasing to be the reserve currency of the world. I am not saying that all of this will happen immediately. But, it will happen gradually and irrevocably. As it currently stands, the U.S. has few friends and it is developing (courtesy of FATCA and other intrusions into the sovereignty of other countries) many enemies. Once, the U.S. is sidelined, (and sidelined it will be) it will not return to its global dominance.
FATCA should never become law, but it will become law. As Winston Churchill said (to paraphrase): “You can always count on the Americans to do the right thing once they tried everything else”. Once FATCA becomes law, there will be no way to reverse the effects in the international community. I imagine a scenario where on January 1, 2015 (one year after the implementation of FATCA) a smug U.S. Treasury Department will proclaim FATCA a success. Remember that in March 2003 President Bush proclaimed the invasion of Iraq to be a success. There are still U.S. troops in Iraq. The decision to bring the troops home is not because of victory in Iraq. It is because:
– It will help Obama’s chances of being re-elected;
– The U.S. can no longer bear the financial burden.
FATCA will erode U.S. power and influence. The erosion will be slow at the beginning. But, the erosion will pick up speed like a locomotive. Why? Foreign nations will actively seek out reasons to not deal with U.S. dollars and to not deal with U.S. citizens. (This is a very dangerous situation given the levels of U.S. debt and the need to sell its Treasury bills.) Does the U.S. government really believe that the rest of the world must do business with the U.S.? After all, what does the U.S. even produce? Is the U.S. a particularly resource rich country? This is the simple logic of the situation.
Now let’s add some context. China, India, Brazil (to name just a few) are populous countries with high rates of economic growth. The U.S. has a low rate of economic growth. India is a country with a young demographic. In other words, there are enough young people in the system to pay the taxes to support the old. The U.S. is an older demographic. Social Security is bankrupt. As goes demographics, so goes the wealth of nations. China is a country with little or no debt. The U.S., like many of the democracies in the west, has massive unsustainable debt.
I am not suggesting that the U.S. is likely to become an “economic backwater” in the next decade. But, after that all bets are off. I once heard it said that:
“People overestimate what they can accomplish in one year and underestimate what they can accomplish in ten years.”
FATCA will give foreign countries strong incentives to avoid dealing with the U.S. These disincentives to dealing with the U.S. will provide strong incentives to develop business and political arrangements that will not include the U.S. Every school kid knows, that he can’t force somebody to socialize with him. The U.S. government and U.S. citizens will become pariahs around the world.
Governor Romney, I am writing to you for two reasons:
First, I believe that you are the most likely candidate to be the Republican nominee for President, and that you will likely be the next President of the United States of America.
Second, I strongly urge you to make FATCA an election issue. President Obama has been bad for America. I agree that “Obama means not working”. But, if FATCA is the legacy of the Obama Presidency, FATCA is the seed that will destroy the United States.
Governor Romney: I don’t want you to ever be in a position where you must “apologize for America!”
I am an expat American Patriot. But, America is no longer the country that you and I grew up in. I am not leaving the United States of America – The United States of America has left me!