US FOREIGN TAX COMPLIANCE ACT

   

Early this year United State Government introduced a harsh Tax law (Foreign Account Tax Compliance Act) or Fatca, as it is known. This law has created chaos among business outside the US, the fear that they will have to spend billions of dollars a year to meet the greatly increased reporting burdens. The new filling demands are daunting and overblown.

Congress came in with a sledgehammer said H. David Rosenbloom, a lawyer in caplin $ Drysdale's Washington office and a former international tax policy adviser for the U.S Treasury department.The Fatca story is really kinda of insane!!

congress created Fatca after the U.S justice Department successful pursuit in 2009 of the Swiss bank UBS, in which UBS- which had encouraged U.S citizens to set up secret offshore accounts-paid $780 million and turned over client details to avoid criminal prosecution. but critics say that it amounts to gross legislative overreach and that the approximately $8billion the Treasury expects to reap in taxes owed over 10 years pales next to the cost it will impose on foreign institutions. This law demands that virtually every financial organization outside the U.S- there are several hundred thousand and any foreign company in which Americans are beneficial owners register with the U.S internal Revenue service,check existing accounts in  search of Americans, and annually declare their compliance. Non compliance is to be punished!
             Do you think that this law treats all Americans with overseas bank accounts as 'CRIMINAL'??

DOLLAR IN DISTRESS

Poor dollar standard! The united states can pay any debt it has because we can always print money to do that,' Alan Greenspan, a former chairman of the Federal Reserve, whenever this point is made, people usually respond by invoking Zimbabwe. As the helpless African republic demonstrated  there is a  limit to how much money a government can print before its economy plunges into HYPERINFLATION.

SNOWDEN GETS ASYLUM

FUGITIVE former U.S. spy agency contractor Edward Snowden slipped quietly out of Moscow's Sheremetyero airport on friday 02.08 after being granted a year's asylum in Russia, ending more than five weeks in limbo in the transit area.
                                              Russia's decision to help the American and ignore U.S. requests to send him home to face trial for leaking details of government surveillance programs, is sure to anger Washington and increase doubts that a summit between presidents Barack Obama and Vladimir Putin will go ahead in Moscow in September.
                                               However, after 39 days of avoiding hordes of international reporters desperate for a glimpse of him, Ed Snowden (his new name) managed to give them the slip again, leaving the airport in a car.'over the past eight weeks we have seen the Obama administration show now respect for international or domestic law but in the end the law is winning', Ed Snowden.
                                              How liberal is U.S???

EMBATTLED SOUTH CHINA SEA

                                                                                        DISCLAIMER

South china sea, its a 3 million sq km dotted by tiny islands, and many of its waters are thought to hold rich oil and natural gas deposits. Tensions have been rising between china, which claims almost all of the south china sea and some of the other Asian states that assert sovereignty over partgs of it. The Philippines, which says that chinese ships have harassed its survey ships and fishing boats a half-dozen times. the Philippines announced it would begin to refer to the area as the west Philippine sea and sent its navy's flagship, the world war 11-era frigate Rajah humabou, to patrol it. Vietnam accuses chinese vessels of deliberately cutting, the cables of survey ships belonging to PetroVietnam. Aircraft- carrier once known as the VARYAG generated much concern having relate all this allegations by chinese neighbours. This ship was one of the Soviet union's last naval commissions. chinese company, based in Macau and with ties to the Chinese navy, bought it from Ukraine, ostensibly to take the ship to the gambling enclave as a floating casino. Varyag lunch comes at a fraught time, when China's Armed Forces spending on annual average is up to 15%.          Military Spending in the US (2010) $698 billion, China $119. Percentage of GDP US 4.8%, China 2.1%, 

RIPPLES OF EURO CRISIS

Europe's crisis may seem to be their problem, but, if it culminate to the dissolution of this economic union or even a growth dampening series of costly BAILOUTS- it will reverberate from beijing to washington. Europe is both the U.S. and China's largest trading partner. A dramatic depreciation of the euro or a dissolution of the union would make nations from Asia to Latin America that hold the euro as a reserve currency much weaker. Even the mere effort to contain the crisis with looser monetary policy on either side of the Atlantic creates a risk of inflation and hot money that could punish emerging markets, economist lke Goldman Sachs's Jim O' Neill have warned.
                                                  Borrowing costs for Europe's weaker economies like Greece, Ireland, Portugal, Spain and Italy have skyrocketed as halfhearted measures to stabilize the markets have made investors suddenly wary that the European center is not going to hold and that richer countries like Gremany simply aren't committed to the monetary union. That's why bond spreads are widening, European stocks are tanking and the European central Bank (ECB) is desperately trying to calm markets by buying up waeker countries debt. unemployment rate in the US is over 9.1%  while in European Union is over 9.4%. Germany maintains a large export-driven manufacturing sector. That has made its economy among the most stable in the world during the downturn. France's citizens generally carry less debt than Americans do. The government has an aggressive plan to cut borrowing, but some say it will not meet its targets. Can U.S. economy kick-start Europe's and world slow growth???