7/1/14: FACTA will require any foreign-based bank that deals with American citizens to report to the IRS

Vince Miller, senior market strategist with the Birch Gold Group, puts it simply: “Over the years, the dollar has increasingly becoming an albatross around the neck of foreign financial institutions. They were already getting tired of having to play our games, and now FATCA may very well be the last straw that pushes them to throw up their hands in disgust and walk away from our imposed headaches.”

So if you look at what is going on from a thirty thousand foot level, you have a multitude of factors pressuring the reserve currency status of the USD. The Russians and the Chinese are leading the BRIC countries to dump the dollar as a trade settlement vehicle. FACTA will push countries all over the world to stop dealing with American clients and to stop using the dollar altogether.

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The Sovereign Debt Bubble Will Continue To Expand Until – BANG – The System Implodes

Why are so many politicians around the world declaring that the debt crisis is "over" when debt to GDP ratios all over the planet continue to skyrocket? The global economy has never seen anything like the sovereign debt bubble that we are experiencing today. The United States, Japan, and nearly every major nation in Europe are absolutely drowning in debt. We have heard a lot about "austerity" over in Europe in recent years, but debt to GDP ratios continue to rise in Greece, Spain, Italy, Ireland and Portugal. In general, most economists consider a debt to GDP ratio of 100% to be a "danger level", and most of the economies of the western world have either already surpassed that level or are rapidly approaching it. Of course the biggest debt offender of all in many ways is the United States. The U.S. debt to GDP ratio has risen from 66.6 percent to 103 percent since 2007, and the U.S. government accumulated more new debt during Barack Obama's first term than it did under the first 42 U.S. presidents combined. This insane sovereign debt bubble will continue to expand until a day of reckoning arrives and the system implodes. Nobody knows exactly when that moment will be reached, but without a doubt it is coming.

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Republicans are attempting to divert the nation — not from the “fiscal cliff” but from something much worse...

If government debt is not controlled by spending cuts (tax increases on the rich make scarcely a dent), the U.S. is headed for drastic economic decline. Interest rates will rise to attract wary international investors. Rising interest rates will in turn increase our debt service burden, while a diminished private sector will provide less and less tax revenue. The combination of spiraling debt service and entitlement spending will quickly leave no funds for any other purpose.

Think: Mad Max

5 Dirty Little Secrets About the Bush Tax Cuts

Investor's Businss Daily

...not to say that the Bush tax cuts weren't flawed. They were phased in over time — limiting their effectiveness — and they came with an expiration date.

As a result, taxes will automatically go up unless Congress votes to extend the Bush tax rates.

That alone is the reason for the fierce political debates today over which parts to extend and which to let expire.

Reagan's tax cuts, in contrast, were permanent, so the only way Congress could increase taxes on anyone was to actually vote for a tax hike.

The coming financial 'transformation'

Things you need to know now:

Breitbart: Seven-new-taxesObamacare: Seven New Taxes On Citizens Earning Less Than $250,000


Tax Foundation: The Fiscal Cliff: A Primer


Ann Barnhardt: The Economy Is Going To Implode...And You Deserve To Understand Why

Federal Reserve official: US Approaching Insolvency

Fix To Be 'Painful'

Who do you believe: Michael Moore and other leftists who say there's plenty of money for them to steal...or a Fed official?

When Deficits Become Dangerous

Welcome to our great fiscal Titanic! Here are a few highlights from this WSJ article today:

Mr. Obama and Congress added hundreds of billions of dollars a year of ineffective "stimulus" spending—more accurately characterized as social engineering and pork—when far more effective, less expensive options were available.

The Obama 10-year budget—unprecedented in its spending, taxes, deficits and accumulation of debt—is by a large margin the most risky fiscal strategy in American history. [emphasis mine] In his Feb. 1 budget message, Mr. Obama said, "We cannot continue to borrow against our children's future." But that is exactly what he proposes to do.

Former Senate Majority Leader Howard Baker famously called Reaganomics—with its defense buildup, tax cuts and budget deficits—a "riverboat gamble." (Which, by the way, worked out well.) Mr. Obama's fiscal strategy is more akin to the voyage of the Titanic. Let's hope he changes course soon enough to prevent disaster.

Behind Obama's Phony Deficit Numbers

President Obama was disingenuous when he said that the budget deficit he faced "when I walked in the door" of the White House was $1.3 trillion. He went on to say that he only increased it to $1.4 trillion in 2009 and was raising it to $1.6 trillion in 2010.

As Joe Wilson said, "You lie."

Here are the facts...

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