FATCA info vital for helping US

Simplified economics around two scenarios can make a picture of what affects the scripts and the deals ahead. Tax concessions may not be enough to bring new investments, just so, since at this time they would be, inter-alia, buying into a strong US dollar, costly labour market, rotten US domestic and international fiscal and monetary positions, and exporting on a high dollar into a possible trade war (over protectionism projected by Trump).

New Eurobond issues with better interest rates from the US companies and hedgers would further devalue existing US debt, raise interest rates and possibly take pressure off the US dollar though not the US bubble.

A later devaluation of the US dollar would help new US exports but significantly alter the capital already invested. It could be that the move to build back up the military and at the same time supply a remilitarising Europe would be the engine and fuel to help alter the overall situation, beforehand.

This would mean that the world in general would trip into a cycle of militarisation and we can expect the US to be blaming certain parties while still pushing pseudo-societal agendas (same old). What other concessions are to be on offer might be things kept strictly private, eg, secret currency/trade pairing and related hedging and kickbacks/swaps etc that help the US dollar stabilise and the US to reorganise its indebtedness.

All this is not to suggest that the US necessarily is on the verge of bankruptcy. If the US were to devalue first or along the way, it most certainly could reorganise debt on the cheap and avoid bankruptcy.

Whatever the “script” and “deals”, it is clear that information gathered through FATCA (Foreign Account Tax Compliance Act) is crucial for the US to plan its angles on both the vast offshore pools of funds and the timing associated with using them, and leverage them.

E GALY via email