Posted on 12/20/2015 8:17:34 AM PST by amorphous
The Financial Repression Authority has consistently shown that Regulatory changes which "Ring Fence" US investors choices is a cornerstone of the Macro-Prudential Policy of "Financial Repression". Through stealth programs like FATCA and PFIC the US government has steadily and quietly limited Americans ability to take cash out of the country and to invest abroad, other than through profitable public exchange traded products sold by the financial industry. However, it is one thing to shut the doors to American investing abroad but it is quite another to fully open the doors to foreigners! It begs the question why, why now and why the change needed to happen so urgently?
This week, as the BOJ, ECB and PBOC all continued to aggressively expand credit the Federal Reserve was "full ahead" in the process of withdrawing approximately $1 Trillion of liquidity to achieve its December FOMC decision to increase the Fed Funds rate by 0.25%. To counteract this policy initiative and the alarming collapse in the HY & IG bond market, the US government immediately opened the floodgates to easy foreign credit in a major policy reversal. A policy decision which was rushed through congress with almost no time for congressional debate. Obviously what was not lost on the White House was the fact that the now troubled $2.2 Trillion of High Yield bonds peddled to yield starved investors since the financial crisis matches 2/3’s of the $3.5 Trillion increase in the Federal Reserves balance sheet during the same period.
FIRPTA was implemented during a better era for Americans in response to international investors in the late 1980s and early 1990s buying U.S. farmland, as well as the more publicly visible buying of trophy U.S. property by the Japanese. The US government has now expediently waived FIRPTA.
(Excerpt) Read more at financialrepressionauthority.com ...
"Saudi Prince Alwaleed bin Talal, a senior member of the Saudi monarchy, announced he will pledge his $32 billion fortune to charity. ... work will help " foster cultural understanding" of Islam in America and the West."
Arab Bill Gates Could Turn 'Shariah Creep' Into Full Trot - Investors ...
One wonders if the author has even a passing acquaintance with FIRPTA.
By a purchaser for use as a residence for a price $300,000 or less, OR
Where the purchaser receives a statement from the seller that the seller is a not a foreign person.
Upon acquisition of an interest in a nonpublicly traded domestic corporation where the corporation provides the required affidavit.
Upon acquisition of shares of a publicly traded corporation.
A little money here and there opens a lot of doors with the administration.
Actually, it’s now 15%. That was in the bill (which I did read).
And the gains from USRPI are treated as effectively connected income, which means they are taxed on a net income basis using the normal tax rates. This can be a heck of a lot better than paying the 30% withholding tax that applies to FDAP income.
“... work will help “foster cultural understanding” of Islam in America ...”
Translation follows from the difficult language of our Masters and cuts through the curly quotes of the taqyyia ...
“... work will help persecutions of all other religions in the name of Islam in America...”
Duh. However, in the absence of FIRPTA most gains from USRPI become FDAP (particularly if held through a corporation).
And - since you obviously missed it - the withholding rate is now 15%, not 10%.
Don’t try (mis)quoting FIRPTA at me; I work with it all the time.
If you doubt that this is the peak of the real estate market, try playing around with an online mortgage calculator. Calculate how expensive a house you can afford with your income. Then calculate again after raising the mortgage interest rates by a few percent. Try rates from the Clinton administration, which at the time people thought was low: 9%. In order to fit your budget, you will have to buy a much cheaper house.
We are at the end of a historic thirty year long decline in interest rates, which fed a thirty year bull market in real estate. But that can't last forever, and Janet Yellen has begun the next trend of raising rates. This trend will sap the equity gains back out of real estate.
Sounds like Obama’s giving the country away. Obama was America’s greatest mistake.
Muslim creep...
I can’t wait until President Trump starts waiving laws that he doesn’t like.
A little money here and there opens a lot of doors with the administration.
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Obunghole is just helping out his bankster buddies sell their multi-million dollar condo’s in Manhattan... They’re turbocharging the sales to Chinese and Middle Easterners. It’s all going to crash sooner or later and the Wall Streeters will buy back in then. A huge number of Manhattan condo’s are unoccupied/never occupied parking places for foreign cash.
I guess in response to the things that happened in the late 1980s and early 1990s the feds traveled in a time machine back to the year 1980 to pass the legislation.
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