In “Planet U.S.A”, the U.S.A. isn’t everything – it’s the only thing! The U.S. is of course also the world’s number one debtor. As was argued in a post yesterday, the U.S. is, through its attempts to increase the money supply, inflicting a vicious inflationary tax on the rest of the world. But, then again, they are the U.S. Therefore they can do what they want (or can they). How much longer is the rest of the world going to tolerate this? As one commentator noted, when it comes to other countries, the U.S. is kicking them in the banks. Of course, FATCA, the new Berlin wall of the financial system is a big part of this.
An act of particular U.S. good graciousness occurred on May 15, 2012. The U.S. invited its, subjects (the rest of the world’s sovereign countries) to a hearing on the implementation of FATCA. Fascinating, the world’s biggest debtor, telling the rest of the world how it must behave. I for one, don’t believe that King U.S.A. is going to get away with this. Peaceful resistance to FATCA is likely. Peaceful resistance to FATCA will result in a new financial world order. FATCA will certainly hasten the (inevitable) demise of the U.S. dollar as the world’s reserve currency.
Funny, when it comes to debt, I didn’t realize that the debtor set the rules with the creditors.