THE INTERNATIONALIST PAGE - Douglas E Castle

World's Banks Fuming At Fed!

2013-04-30T11:04:00.001-04:00

GO AHEAD, CLICK IT. IT WILL EXPAND IN HIGH RESOLUTION.

The U.S. is doing more of what it has become obsessed with doing - alienating other nations by a lack of genuine diplomacy regarding their sovereignty, and insulting their ability to govern themselves, or to even have their own laws. Now, we are telling international banks which have subsidiaries or affiliates in the U.S. that the parents have to conform to U.S. standards [chuckling from the audience] in order to allow their satellites (some of which are admittedly sizable) to continue to conduct business in the United States.

This is totally undiplomatic and decidedly against the interests of open international trade. It is increasing anti-U.S. sentiment and indirectly insulting many of our international trading partners at a very vulnerable time for the U.S. recovery. It is also wildly ironic that it was the major U.S. financial institutions that were the first to precipitate the U.S and then the World banking crisis! My late Aunt Carmen (who has never been on time for anything) would say, in her irritating nasal voice "It's like the blind leading the blind!"

We have done this before, and are still doing this with military 'democratization' [our 'Iraqistan' military meddling], an all-too-far reaching Federal Bureau of Investigations, a ritual bird flipping at the World Court (claiming ourselves exempt during the second Bush Administration, instead of finding a better-crafted way of keeping our president from facing war crimes-related charges, regardless of how baseless), and now, telling the international banking community that if they have subsidiaries, affiliates or other extensions of their banks in the United States, that the parents of these little tikes (mostly large foreign bank holding companies) have to abide by increasingly-stringent U.S. standards for the holding companies (many of which have many properties in the non-banking sector, too) which own them.

In the U.S., we have become altogether too fond of issuing ultimatums which carry no weight except to irritate others. Our announcements toward the international community are sounding more and more like kidnappers' ransom notes -- and written in crayon, to boot.

The article excerpt which follows comes from the SmartBrief Newsletter on Global Financial Markets:

US faces mounting opposition to proposals for foreign banks
The Federal Reserve has proposed rules requiring major foreign bank holding companies to increase capital and liquidity at US subsidiaries. Germany's Bundesbank and BaFin, as well as German and UK banks, are adding their voices to opposition. The rules would have a "negative impact on international cooperation since it does not take appropriate account of consolidated supervision following comparable home country standards", according to German regulators. Bloomberg Businessweek (29 Apr.), The Washington Post/The Associated Press (29 Apr.), Financial Times (tiered subscription model) (29 Apr.)

Let's be honest and clear. This is not remotely related to preventing another financial meltdown. This is strictly another case of the United States tactlessly overreaching its regulatory authority with an utter disregard to the feelings of other sovereigns, and an act of further U.S. protectionism against the competition imposed by foreign trade.

Without being overly opinionated about it, The Internationalist Page Blog thinks (blogs can think) that this is utter foolishness and short-term reactive policymaking with a side order of saber rattling. It is making us look very, very foolish.

For those of you who like Tags, Labels, Keywords, Search Terms And Categories:
Iraqistan, global banks, world trade, diplomacy, sovereignty, economic policy, global economics, excessive interference with other nations, extending the U.S. regulatory reach, Federal Reserve, global financial meltdown, the example of hypocrisy, protectionism, bullying, tactlessness, Bernanke, The Global Futurist Blog, Tea Party, Humor, humour, negotiating...

As always, thank you for reading me, and for sharing my articles with your colleagues and connections through your social media networks and tools.

Douglas E. Castle

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U.S. and INDIA: A Tighter Alliance

2013-04-15T18:44:00.000-04:00

There is an ever-increasing warmth between these two countries, which is economically and politically beneficial to both parties. While those of us who are readers of The Internationalist Page Blog or just categorically Internationalists, this is a bit ironic because India has been a substantial outsourcing destination for U.S. companies and is occasionally maligned for "taking jobs away from Americans." While in a sense this might be true, the savings (arbitraging the cost of Indian labor against the much higher cost of American labor) to certain U.S. companies has helped to keep them in business in a time of extraordinarily low capital availability, and has saved some employees by keeping their employers in business.

India is also becoming more of a consumer market, and some United States companies are offsetting the outflow of dollars to India by selling U.S.-produced products to the growing middle-class in India's confusing but nonetheless fast-emerging economy.

In terms of politics, both countries have their concerns about the spread of radical Islam and terrorism from Pakistan, Afghanistan and other nations in the region.

While the cultures are quite different, both countries have some serious security and economic concerns in common, making them wonderful international trade partners.

The's a definite warming up of relations on all fronts between the two nations.

This warmth is signified (in a monetary marriage) in an excerpt below from Chairman Fred Hochberg's Quarterly Ex-Im Newsletter Report:
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Ex-Im Bank Signs $500 Million Agreement with ICICI Bank

Chairman Hochberg traveled to India in January on a business-development mission. While in India, the Chairman signed a $500 million Memorandum of Understanding (MoU) with ICICI Bank pledging cooperation on financing projects beneficial to both India and the United States. Up to $500 million in new transactions could be financed as a result of the initiative.

ICICI Bank is India's largest private sector Bank and this MoU will support the financing of U.S. goods and services by ICICI Bank's customers. Ex-Im and ICICI Bank see specific opportunities in air traffic control and infrastructure; railway; urban metro and port development projects; power generation, including renewable energy; oil and gas projects; and water treatment projects.

"India is an emerging market that provides enormous opportunities for U.S. companies," said Chairman Hochberg. "This $500 million MoU represents a partnership between our two countries and will help ensure that American companies and workers help India meet its growing infrastructure needs, while creating jobs here at home."

Speaking on the occasion, Chanda Kochhar, MD & CEO, ICICI Bank said, "ICICI Bank is pleased to be working with the U.S. Ex-Im Bank towards the growth of India-US trade. This MoU combines the strengths and expertise of both our institutions, helping U.S. Ex-Im to leverage ICICI Bank's strong corporate relationships and project finance capabilities, and ICICI Bank to offer diverse funding options to its clients."

Ex-Im Bank's authorizations in India continue to increase dramatically, bringing the Bank's total exposure to India to $8.5 billion as of the end of the first quarter in FY 2013. India is currently the Bank's second largest market in terms of overall exposure. Last year, US Ex-Im Bank financed 17 percent of all U.S. exports to India.

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As a trend-spotter and the Author of The Global Futurist Blog, I would expect this warming trend to continue over the next several years. Personally, I am hoping it will. Both countries can help each other, and the U.S. needs to cultivate some genuine allies in the region.

As always, thank you for reading me, and thank you for sharing my articles with your colleagues through your vast, expansive social media networks.

Douglas E. Castle

Sponsored By:
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Global Edge Technologies Group LLC

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The FBI And China - USA Techno-Trade

2013-04-02T16:50:00.000-04:00

For those familiar with the FBI, it is likely one of the fastest-growing and most powerful investigative and enforcement-driven government agencies in the entire world. The Federal Bureau Of Investigation works side-by-side with the United States Justice Department (the "DOJ") to help uphold the laws and regulations of the United States (at least in charter and theory) by investigating offenders, gathering evidence, and turning it over to the appropriate Government authority for either immediate prosecution or relating to ongoing surveillance of any purported criminal activity or potentially criminal enterprises posing a threat to the American people or to the Government's many branches, departments and agencies.

The FBI makes virtually dwarfs any other US agency (such as the police, the CIA, the NSA as well Interpol and the military) in terms of its assumed jurisdiction. Since the advent of the RICO (Racketeer And Influenced Corrupt Organizations) Act, and the questionable broadening of its many powers, the FBI claims de facto unfettered international jurisdiction if it has any reason to believe that either a US regulation has been violated (by anyone, and a citizen of virtually anywhere on the globe), it has virtual carte blanche to do whatever it deems necessary, wherever it deems necessary and to whomever it deems responsible in any way (knowingly or unknowingly).

The FBI has, in essence, kidnapped persons (American and foreign) from sovereign nation states and brought them to the United States to face federal charges. Its reach, regardless of any treaties between countries is global, and the theory of "criminal conspiracy" can be expanded to accommodate the FBI's targeting purposes in pursuing any selected target.

The US' Founding Fathers (may they all rest in peace) never envisioned an agency so powerful that their would be no system of government checks and balances to keep it in line, or that it could be so powerful that it could find virtually anyone guilty of anything it chose to, using the ever-expanding use of RICO.

The FBI, through a passed US budget resolution, now has ultimate oversight (i.e., control) over all Chinese-made technology purchases (this could be interpreted quite generally) made by the US or through the US. Their powers in the latest outbreak of Sinophobia (a fear of things Chinese) usurp those of U.S. Customs and even the Department Of Homeland Security.

While the relationship between China and the US is a tension-filled peace, and given that many items of Chinese manufacture not been up to commercial or precise military specifications, why is the FBI assuming this vetting authority instead of Customs in conjunction with Homeland Security?

The US, in essence, if giving the nation's most brutal, prosecutorially-obsessed agency power not only over these other two possibly better-qualified agencies, but it is also indirectly putting a great deal of what might become a large portion of US- China relations in the hands of an uncontrollable, hamfisted agency. What has the US Department Of State to say of this?

The following article excerpt appears here courtesy of Smartbrief, from one of its many topically-specific newsletters, all of which contain links to excellent articles offering important insights:

Budget resolution gives FBI oversight of Chinese-made tech purchases
U.S. government agencies looking to purchase IT equipment from some Chinese vendors will need to get the approval of the FBI under new budget guidelines designed to protect American infrastructure from state-sponsored cyberespionage. The proposal, which could affect acquisitions from well-known firms including Lenovo, Huawei and ZTE, as well as smaller firms, maintains that any purchases with ties to the Chinese government or subsidized by the state must be deemed "in the national interest of the United States" before they will receive approval. InformationWeek/InformationWeek Government (3/26)

My greatest fear as an Internationalist is that we are effectively putting the FBI in charge of potentially all trade (if history proves me correct) and ultimately the diplomatic relationship between the U.S. and China. The intention to protect Americans is important indeed, but there must be a better, more diplomatic and precise way to maintain control over certain types of trade.

The blow-back associated with any mishandling of the FBI's supervision over something with any diplomatic consequences is quite frightening. If you remember some of the doestic incidents like the FBI and ATF in Waco, Texas or in Ruby Ridge, their potential for miscalculation on an international level could be incredibly harmful.

China indirectly controls many other countries which are US trading partners, as well as a powerful yet delicate balance between the yuan and the United States Dollar. This is a relationship that must be handled with great judgment and masterful diplomacy. China is, at least at present, very important to the United States economy.

For me, I think that the wrong agency was selected for a necessary job, and that productive discussions toward a better relationship between the US and China (oftimes made of corporate political partnerships and organizational "marriages") might be in a great deal of danger.

Regulation and safety are crucially important -- but so are intelligent negotiations and delicate political communications in order for both sides to protect their respective interests, and, in time, to see the synergy in working closely together.

Think about this: Would rather have your cardiac surgery performed by a cardiologist or by an eager carpenter?

As always, thank you for reading The Internationalist Page and for sharing my articles with your friends, associates and colleagues through your social media channels.

Douglas E. Castle

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How Countries Rank In Education - OECD Report And Commentary

2013-03-30T17:50:00.005-04:00

Education was once believed to be the raw fuel needed to feed genius and success. Over the past decade, it has become an expendable line item on too many of the world's greatest countries' budgets. This says volumes about our priorities, and worse, about the future of our planet if this trend is not addressed.

This article excerpt follows from the Huffington Post regarding a report from the Organization For Economic Development And Cooperation (the OEDC):

The Organization for Economic Cooperation and Development's "2012 Education at a Glance" report released today is a trove of education indicators.

By analyzing the education systems of the 34 OECD member countries and eight others, the report makes a number of global education comparisons. The United States, for example, is the fifth most educated country in the world, with 42 percent of those aged 25 to 64 having attained some level of higher education. American students, however, were also found to struggle more than their foreign peers to top their parents. The odds of a young person reaching a level of education higher than that of their parents is a mere 29 percent, one of the lowest levels among OECD countries.

The findings bring to mind previous OECD findings based on its Program for International Student Assessment, an international exam for 15-year-olds. In 2009, students in Shanghai who took the PISA for the first time outscored every other school system in the world.

On the same exam, American students ranked 25th in math, 17th in science and 14th in reading -- often behind countries like Finland, China, Singapore, South Korea and Hong Kong.

"The brutal fact here is there are many countries that are far ahead of us and improving more rapidly than we are," U.S. Secretary of Education Arne Duncan told Bloomberg at the time. "This should be a massive wake-up call to the entire country."

Could you pass the test? Test your skills with some sample questions asked of 15-year-olds on the PISA, courtesy of the American Enterprise Institute.

Are you smarter than a 10th grader? [read this entire article]
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What troubles me most about this publicly-available report is that the quality of education and expenditure on education in some of the great (and formerly great) industrial nations is declining, while their corresponding military expenditures are increasing as a total proportion of GDP. This does not speak well of our priorities.

It seems that too many of these big, but fiscally troubled, governments have made some correlative studies and have just neglected to share their results with us:

1) Education is not as important as a strong military;
2) Advancement in careers is no longer related to academic performance;
3) That militarization (and not entrepreneurship and education) is still a major way by which to bolster a flagging economy;
4) There is a growing "brain drain" in the most militarily powerful countries;
5) That the greatest minds of the future will be domiciled outside of the established industrial powers, and innovation, entrepreneurship and incentives will grow in the emerging nations while they all but evaporate in the older, floundering industrial behemoths.

I believe, speaking as the author of The Internationalist Page Blog, that we are heading toward a world which will be dependent upon less-educated persons and more aggressive military policies.

Better said, and speaking just for myself as Douglas E. Castle, "We had better win the war against ignorance before we start waging wars due to stupidity."

Thank you, as always for reading me, and for sharing my articles with your associates and colleagues using the clarion trumpet of social media.

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Chemical Weapons, The UN, Impotence And Irrelevance - Syria

2013-03-22T08:00:00.000-04:00

THE SAGA OF SYRIA'S HIGHLY TOXIC GASEOUS EMISSIONS

Every civil, reasonable Human Being with a modicum of compassion and a sensitive conscience abhors the use of chemical weapons. Similarly. the countries comprised of these civil Human Beings generally raise a hue and cry over news about chemical weapons. When they were used under the Hussein administration by Iraq troops on innocent civilians, there was a outcry by 'less barbaric' nations. When they were first used during WWII in Europe, reasonable, sentient, peace-loving people's throughout the world were appalled. Chlorine, Mustard Gas, Phosgene, Ricin, and other gaseous or particulate toxins have a high rate of fatalities, are impossible to contain (with an unpredictable range of effect depending upon wind and other natural factors), and will invariably produce terrible, long-lasting effects.

Now we'll explain the justification for the clever title of this article: Chemical Weapons, The UN, Impotence And Irrelevance - Syria.

Recently the United Nations Foundation Newsbrief came out with this bit of news regarding the alleged (and probable) use of poison gas in Syria:

Ban decries alleged use of chemical weapons in Syria

The Syrian government and rebels are accusing each other of using chemical weapons. In response, United Nations Secretary-General Ban Ki-moon said that he "remains convinced that the use of chemical weapons by any party (in Syria) under any circumstances would constitute an outrageous crime." GlobalPost.com/Agence France-Presse (3/19)

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Here's a probable scenario, and I hope that I am wrong:

1) The UN has meetings and issues repeated pronouncements against the Assad Regime, re-stating the theme that a solution should be peacefully negotiated between the rebels faction (now recognized by much of the world as a viable alternative government);

2) Syria continues to do exactly what it's doing, and the world community becomes increasing with the UN, as the UN is an articulate mouth with very limited resources or abilities to make any threat which is truly effective. The UN drops yet another notch in the world's perception;

3) Israel, perceiving a direct threat and realizing that the UN will not do anything to assist them from the outflow or Syrian refugees, or from the overflow of Syrian violence, will surgically strike at poison gas manufacturing and storage facilities, as well as at other military targets in Syria. The UN will probably issue some statements to Israel about its "meddling" while quietly praying to a number of deities that the Syrian crisis will end with Israel still to be cursed for what it does to protect itself, and a number of its Arab neighboring nations;

4) Israeli - Palestinian peace and territory negotiations will waver under this pressure, and there will be increased violence in Gaza;

5) The U.S., believing that some of of the supplies and support for the current Syrian Regime are being facilitated by Moscow, will commence a re-visitation of a limited, superficial cold war (comprised mostly of rhetoric, while there is still money to be made through some cooperation between the two powers) will commence.

6) The U.S. will ultimately end up (for reasons of its long-known 'evangelism of Democracy' by carrot and stick ["silver or lead"] methods, and due to its need to prop up employment statistics and use the outdated theoretical premise that war will stimulate the domestic economy and unite the country -- just ask Dick Cheney, possibly America's first true cyborg...) deploying ground troops in Syria.

7) The international but rhetorical backlash against the United States by the Islamic nations and by the United Nations will result in an angry exchange of soundbites, pontifications and condemnations. Despite this, the United States and its increasingly insecure and economically burdened "allies" will continue to try to impose democracy in Syria. Iran will condemn the Western aggressors, and Israel (of course - its a tradition) as enemies waging a war against all of Islam.

As for The Internationalist Page Blog, we'll just watch this and see how it plays out.

Don't make bets or engage in illegal gambling :-)

Douglas E. Castle

Sponsors:
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EU - ECB: Toward One Consolidated Central Bank

2013-03-20T11:10:00.000-04:00

The nations comprising the EU are giving the European's Union's Central Banking Authority (the "ECB") true governing powers over each of their respective central banking systems. This promises to be an experiment in multi-culturalism; diplomatic relations and conflict resolution; divided loyalties and the surrender of many powers formerly taken for granted; the often vilified (with or without reason) New World Order, at least amongst the member nations; the core traditions of sovereignty; and, financial stability, orderliness and transparency over an enormous "Financial Nation State." This is not a mere engagement -- it is a multi-partnered marriage united by its overall monetary policies, controls and new institution.

It is, by analogy, a consolidation of cultures, powers and economies not bound by mere agreements to discuss differences between nations and arrive at pronouncements and sometimes unenforceable sanctions, pronouncements and meaningless calls to action, all of the aforementioned being cited often as major failings of The United Nations.

By way of example, the UN has been called such things, in turn, as "a bully pulpit," "a permanently unresolved conversation," a "paper tiger" and a "forum controlled by the members who possess the greatest military and monetary power" - former US President Dwight D. Eisenhower might have said that the UN was a puppet in the hands of the world's largest military-industrial complexes.

Before we go further into this, you might want to read a wonderful article excerpt from a Global Newsletter published by SmartBrief publications (always an excellent source of information):

ECB's transition into bank supervisor moves forward
EU lawmakers have struck a deal with national governments on legislation to give the European Central Bank authority as a banking supervisor. "This is the largest step toward integration since the euro," said Sven Giegold, a member of the European Parliament involved in the negotiations. "It will break with the culture of soft-touch regulation." The deal also bolsters the European Banking Authority's power to ask national regulators for information. Bloomberg (19 Mar.), The Washington Post/The Associated Press (19 Mar.), Reuters (19 Mar.), The Wall Street Journal/Dow Jones Newswires (19 Mar.)
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This is a move toward internationalism, and readers of The Internationalist Page Blog might see it as a trend-setting compromise which puts other political differences in the back seat, and puts economics at its core. Still, as the author of The Global Futurist Blog, I see a tremendous concentration of power and a potentially dangerous dependency.

Centralization of power, any power, might be a good thing from the standpoint of command, control and communications logistics, but it also leads to 1) an isolation of the centralized institution from the vast geopolitical complex it is supposed to fairly govern and preserve (the analogy might be "Wall Street versus Main Street" or US Legislators out of touch with their constituents and involved in internal battles atop Mount Olympus whilst the common citizens suffer for the lack of any attention), and 2) an unchecked power unto itself -- and these invariably become like meta-statically growing juggernauts forgetting about their missions and focusing only on their own growth and expansion of their powers and wealth.

At any rate, this is a multiparty joint venture. And joint ventures amongst more than two parties always have their biases, conflicts and polarities.

Here's hoping that the newly-empowered ECB will serve its constituents before it may develop too strong an appetite to simply serve itself.

Thank you, as always, for reading me and for sharing my articles with your social media contacts.

Douglas E. Castle

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ICS - International Connection Services - Your Virtual International Division.

2013-03-16T18:40:00.001-04:00

There are a great number of readers of The Internationalist Page Blog [which covers a broad spectrum of topics relating to citizen ambassadorship, telecommuting, efforts toward creating the legendary (but sometimes problematic) "Global Village," The United Nations, The World Trade Organization, the operations of numerous NGOs as well as many other geopolitical, demographic and cultural issues], who are not aware that we are affiliated with ICS - International Connection Services, a pragmatic business-dedicated website.

ICS is our pragmatic and commercial counterpart which serves to facilitate virtually every aspect of global trade and international commerce for the benefit of small to medium-sized businesses (from start-ups to well-established, but insular companies) which want to explore the potential of international suppliers, transnational joint ventures, the global marketplace, but which want to do it on a tightly-controlled, inexpensive and scalable platform.

Because of a vast number of technological breakthroughs, ICS is able to custom create and help to manage virtual import and export divisions for companies which want to get started without major outlays of capital, any additional staffing, and without the time-consuming travel aspect traditionally associated with international business.

Today, we'll unveil the official ICS button link... a small square which, if clicked upon, will take you to the ICS website straight away; if you just timidly run your cursor over it, it will describe some of the objectives, focus and services offered by ICS. Here's the brand-new button. You can run your cursor over it, and then give it a solid, committed click.

Thank you, as always for visiting, and for forwarding our articles to your colleagues, friends and acquaintances through your social media connections and channels.

Douglas E. Castle

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FATCHA Alert: Foreign Account Tax Compliance Act

2013-02-14T13:41:00.000-05:00

If you are a U.S. citizen conducting business overseas, even if you are not physically domiciled in the United States, You had best be aware and keep current on news about legislation, regulation and enforcement of FATCHA - the Foreign Account Tax Compliance Act.

Practically speaking,the U.S. is not in the best fiscal shape financially, and through the operations of the IRS, The Treasury Department, and other investigative and enforcement agencies, we can anticipate redoubled efforts on the government's part to collect any and all income generated by any U.S. Citizen, either directly or indirectly -- especially if the amounts of offshore or foreign earnings are believed to be substantial. The common threat to foster compliance is criminal prosecution.

While government rhetoric is very positive concerning export, international joint ventures and "building bridges with the rest of the world," the fact remains that the U.S. Government does not want any U.S. currency, earnings or wealth leaving the country.

In reviewing the latest news (02.12.2013) on the Act, you might even want to consider changing your citizenship, depending upon your circumstances.

For further information regarding this, you might want to read a recent article which appeared in Yahoo! News, titled "SHOULD YOU RENOUNCE YOUR US CITIZENSHIP?"

Read more about the particulars of FATCHA (which coincidentally rhymes with "Catch Ya") in the report which follows:



	On January 17, 2013, the United States Treasury Department and the Internal Revenue Service (IRS) issued comprehensive final regulations implementing the information reporting and withholding tax provisions for foreign financial institutions (FFIs) under the Foreign Account Tax Compliance Act (FATCA). FATCA was enacted by Congress in March 2010 and is intended to ensure that the US tax authorities obtain information on financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest, with FFIs. Failure by an FFI to disclose information would result in a requirement to withhold 30% tax on US-source income. In order to avoid the withholding tax under FATCA, a participating FFI will have to enter into an agreement with the IRS to identify US accounts, report certain information to the IRS regarding US accounts, and withhold the 30% tax on certain US-connected payments to non-participating FFIs and account holders who are unwilling to provide the required information. FFI registration will take place through an online system. The issuance of the final regulations is intended to "mark a key step in establishing a common intergovernmental approach to combating tax evasion," and to provide additional certainty for FFIs and foreign government counterparts by finalizing the step-by-step process for US account identification, information reporting and withholding requirements for FFIs, other foreign entities and US withholding agents. "These regulations give the Administration a powerful set of tools to combat offshore tax evasion effectively and efficiently," said Deputy Treasury Secretary Neal Wolin. "The final rules mark a critical milestone in international cooperation on these issues, and they provide important clarity for foreign and US financial institutions." The Treasury confirmed that the final regulations build on intergovernmental agreements. It has collaborated with foreign governments to develop and sign intergovernmental agreements that facilitate the effective and efficient implementation of FATCA by eliminating legal barriers to participation, reducing administrative burdens and ensuring the participation of all non-exempt financial institutions in a partner jurisdiction. While the start date of January 1, 2014, has not been extended, the final regulations also phase in over an extended transition period to provide sufficient time for financial institutions to develop necessary systems. In addition, to avoid confusion and unnecessary duplicative procedures, the final regulations align the regulatory timelines with the timelines prescribed in the intergovernmental agreements. In addition, the scope of payments not subject to withholding is also extended and clarified. To limit market disruption and reduce administrative burdens, the final regulations provide relief from withholding with respect to certain grandfathered obligations and certain payments made by non-financial entities. For example, to align better the obligations under FATCA with the risks posed by certain entities, the final regulations expand and clarify the treatment of certain categories of low-risk institutions, such as governmental entities and retirement funds; provide that certain investment entities may be subject to being reported on by the FFIs with which they hold accounts rather than being required to register as FFIs and report to the IRS; and clarify the types of passive investment entities that must be identified and reported by financial institutions. More streamlined registration and compliance procedures are also provided for groups of financial institutions, including commonly managed investment funds, and additional detail is given regarding FFIs' obligations to verify their compliance under FATCA. Since the proposed regulations were published on February 15, 2012, the US Treasury has collaborated with foreign governments to develop two alternative model intergovernmental agreements that facilitate the effective and efficient implementation of FATCA. The models should serve as the basis for concluding bilateral agreements for the exchange of tax information with interested jurisdictions and help implement the law in a manner that removes domestic legal impediments to compliance, secures wide-spread participation by every non-exempt financial institution in the partner jurisdiction, fulfills FATCA's policy objectives and further reduces burdens on FFIs located in partner jurisdictions. Seven countries have already signed or initialed these agreements, and the Treasury announced that Norway has now joined the United Kingdom, Mexico, Denmark, Ireland, Switzerland, and Spain as countries that have done so. It was further disclosed that Treasury is engaged with more than 50 countries and jurisdictions, and more signed agreements are expected to follow in the near future.

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A good resource to learn about some possible strategies to minimize your issues with respect to FATCHA and with respect to other laws and factors concerning the global marketplace, including, but not limited to international business re-domiciliation is at ICS - International Connection Services, which has some excellent resources for all of the readers of The Internationalist Page Blog who are interesting in worldwide business opportunities and international trade.

Labels, Tags, Keywords, Categories And Search Terms For This Article: Internal Revenue Service, United States Treasury Department, FATCHA, international business, offshore income, citizenship, FFI, The Internationalist Page Blog, Douglas E Castle, renouncing U.S. citizenship, global business, international trade, ICS - International Connection Services, CFI - CrowdFunding Incubator LLC, Global Edge Technologies Group LLC, OCRA, banking privacy, international cooperation treaties, foreign jurisdictions, financial planning, tax minimization, re-domiciliation,

As always, you are advised to seek the opinion of expert international legal and tax counsel prior to embarking on any type of business which takes you beyond the borders of your
country of citizenship.

Douglas E. Castle

for The Internationalist Page Blog, and sponsored by
CFI - CrowdFunding Incubator LLC

***

Palestine, Politics And The Symbols Of Statehood.

2013-02-02T11:40:00.000-05:00

For years, the Palestinian people have been like desert orphans. They have not had a geographical state with borders and boundaries (that has always been a severe problem), have had no recognition as a country or nation-state because governance has always been so inextricably interwoven with terrorism against Israel, the USA and the Jewish people in general.

Worse, the Palestinians were never duly absorbed into their surrounding Islamic brother nations, and they have been perceived as primitives, nomads and terror-mongers. They have been forsaken by their brothers, forcing them to be all the more aggressive, as a people united by culture and real humanitarian needs, to achieve or receive recognition as a UN-recognized Nation, with a seat at the world council body.

The Israelis, ironically the very same people that the late Yassir Arafat refused to accept as a nation with sovereignty, and wished to "push into the sea," provide most of the employment for Palestinians, many of whom work in Israel because that's were the industry and employment opportunities are. Life can be miserable when you are fed by a master whom you hate.

The UN, in an overwhelming vote, decided several weeks ago to recognize Palestine as anon-voting member state -- a precursor to acceptance as a voting state. Further this Palestinian victory, the UN has placed a placard for the Palestinian non-voting member state citing them as the "State Of Palestine."

Naturally, the USA and Israel have objected to this political and semantic victory because they believe that the Palestinians are really a "proxy country" for terrorist groups and their activities. This vision is not shared by the remainder of the voting membership. In fact, the USA and the UN have constantly been at odds since the first Bush administration.

Israel, understanding the UN process all too well (remember the vote in the UN where it was found that the term "Zionism" was actually racism against the Palestinians and other non-Jewish States"), is probably preparing for a political war with the United Nations, and a real war to keep its buffering border boundaries (hotly contested by many countries as being land stolen by the Israelis from Palestine, despite the fact that in most other historical cases where a nation (i.e., Palestine and several other Islamist combatants) attacked another nation (i.e., the State Of Israel), and the aggressor lost, it also lost treasures, territory and other things.

Israel, having been continually attacked from Palestinian locations, has kept its claim to its post-war borders, purportedly in the interest of self-defense of its citizenry and major strategic and industrial/military assets.

ABC News featured a fascinating article about this situation:

US Protests "State of Palestine" Placard in UN

By PETER JAMES

UNITED NATIONS

abcnews.go.com

US Ambassador objects to "State of Palestine" placard in Security Council's Mideast debate

The Associated Press

U.S. Ambassador Susan Rice objected Wednesday to the Palestinians' latest bid to capitalize on their upgraded U.N. status when their foreign minister spoke at the Security Council while seated behind a nameplate that read "State of Palestine."

It was the first Palestinian address to the Security Council since the U.N. General Assembly voted overwhelmingly on Nov. 29 to upgrade the Palestinians from U.N. observer to non-voting member state.

Rice said that the United States does not recognize the General Assembly vote in November "as bestowing Palestinian 'statehood' or recognition."

"Only direct negotiations to settle final status issues will lead to this outcome," Rice said.

"Therefore, in our view, any reference to the 'State of Palestine' in the United Nations, including the use of the term 'State of Palestine' on the placard in the Security Council or the use of the term 'State of Palestine' in the invitation to this meeting or other arrangements for participation in this meeting, do not reflect acquiescence that 'Palestine' is a state," she added.

Canadian Ambassador Guillermo E. Rishchynski also complained later that allowing the Palestinians to sit behind the "State of Palestine" nameplate "creates a misleading impression" and said Canada would oppose the Palestinians' attempts to upgrade their status in symbolic ways.

The U.N. General Assembly vote to upgrade the Palestinians' status was important because it gave sweeping international backing to their demands for sovereignty over lands Israel occupied in 1967, including east Jerusalem. But it did not actually grant independence to the 4.3 million Palestinians who live in the West Bank, east Jerusalem and the Gaza Strip.

In his speech to the Security Council, Palestinian Foreign Minister Riad Malki reiterated the Palestinian position that a two-state solution be based on the pre-1967 borders.

He also said that if Israel proceeds with plans to build settlements on a contentious tract of land east of Jerusalem, the Palestinians will file a case in the International Criminal Court.

Israel's envisaged construction of 3,500 apartments in the area known as E-1 would hinder Palestinian access to east Jerusalem from the West Bank. The Palestinians claim east Jerusalem as the capital of their future state.

"If Israel would like to go further by implementing the E-1 plan and the other related plans around Jerusalem, then yes, we would be going to the International Criminal Court," he said. "We would have no other choice. It depends on the Israeli decision. Israel knows very well our position."

Since winning recognition as a nonmember U.N. observer state, the Palestinians believe they now qualify for membership in the ICC, although that remains unclear.

In opposing the Palestinian bid for upgraded U.N. status, Israel cited Palestinian threats to turn to the ICC to prosecute Israeli officials for a variety of alleged crimes. Israel does not recognize the court's jurisdiction and believes its own actions do not violate international law, but officials are concerned legal action could embarrass the country.

Palestinian President Mahmoud Abbas took another symbolic step to capitalize on the U.N. status two weeks ago, proclaiming that letterhead and signs would bear the name "State of Palestine."
Robert Serry, the U.N. special coordinator for the Middle East Peace Process, told reporters that the nameplate read "state of Palestine" because the U.N. Secretariat "is guided by the membership, which has pronounced itself on this issue" in the November General Assembly vote.
"At the same time, member-states have their rights to reserve their opinion" on U.N. decisions, he said. "That resolution does not diminish the need for negotiations to actually arrive at a two-state solution."
Israeli U.N. Ambassador Ron Prosor told the council that "the major obstacle to the two-state solution is the Palestinian leadership's refusal to speak to their own people about the true parameters of a two-state solution."

---------------

This has been a victory of propaganda and symbolism over a factual situation. It is also a sad case of irrelevance of words and denial of history, as well as ingrained, hard-wired behavioral psychology.

If Palestine becomes a voting member (The Internationalist Page Blog believes that it will, and fairly soon), it will likely try to use the UN as its principal weapon in regaining disputed territory, and in getting all manner of sanctions imposed by the UN against Israel on many bases -- some valid, many just symbolic.

As The Global Futurist Blog has predicted, all of this flag-waving, propaganda and symbolism are indeed important, but not nearly so important as the reality of what Israel is prepared to do despite the UN's pronouncements on the matter. As certain as the State Of Palestine will be given full voting status with a barrage of anti-Israeli pronouncements to follow, the reality will be more like this:

1) Israel will not be bound or recognize the pronouncements or demands of the UN. Israel is incredibly industrious, self-sufficient (except for contributions from Jewish and Zionist groups throughout the world and the United States government), and independent;

2) Both Israel and the United States will continue to belong to the UN, although neither truly feels a moral or legal imperative to be bound by its sanctions, pronouncements, and other symbolism and propaganda.

3) As instability in the Middle East ("Arab Spring") and Africa grows, and as Iran continues to escalate its saber-rattling and chest-thumping so too shall the strength of alliances between western nations and industrialized nations (both east and west) and Israel.

4) Sadly, the military atrocities will continue and grow as Palestine feels the shine of its new badge of recognition and is increasingly vocal against Israel -- with the support of the UN-at-large.

5) Palestine holds no real cards -- it is too dependent upon Israel for most of its "GDP" or inbound income. Israel might toughen up its stance regarding Palestinian workers coming into Israel, and that would destroy Palestine's economy, such as it is.

The world, as it exists, is ruled by financial and military power -- not by flags, badges, scrolls, screeds and sanctions. In fact, sanctions have a fabulous record of either ineffectiveness or failure - they are just words if they cannot be enforced.

Palestine would have done far, far better to accede to Israel's right to Statehood, and to have conducted these discussions behind closed doors and face-to-face with Israel. The spectacle of what is unfolding at the UN and being reported in the media will merely serve to flag the proverbial bull. As an Internationalist, I must also be a pragmatist.

"I hope for peace, even as I prepare for war," is echoing through the minds of too many Israelis now. And the Palestinians cannot get true statehood with clear geographical borders until they sit down at the negotiating table with Israel and speak as pragmatists and not as haters or propagandists.

As always, thank you for reading me, and for sharing my articles with your social media groups.

Douglas E. Castle

***

China's Increasing Investment In Israel

2013-01-11T13:34:00.000-05:00


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China, following the lead of the United States (predominantly as the US was conducting itself during the period between 1990 and 2004), is increasing its investments in Israeli companies, technologies. China's increased presence in Israel is also acting to facilitate increased joint ventures and cooperative activities.

This economic and sociological phenomenon is also creating a curious demographic: More Chinese companies are being incorporated or re-domiciled in Israel, and Israeli companies are setting up shop in China as well. Not an increased number of Chinese are calling Israel home, and an increasing number of Israelis are re-locating to China.

A recent article in SmartPlanet written by Charlie Osborn (January 2, 2013) discusses the China-Israel connection and the reasons for the strengthening ties between the two powers, economies and peoples:

Chinese firms eye Israeli technology

Following the United States’ lead, major Chinese firms are looking for investment opportunities in Israel.

The U.S. has invested in businesses located in the region for years, and now the Chinese are taking advantage of Israel’s commercial technology and research, according to Reuters. Last month, a troupe of Chinese business officials visited the region — still affected by the battle in Gaza — in order to further explore potential ventures.

Led by chairman of investment holding firm Hang Lung Group, Ronnie Chan, and including delegates from Lenovo, COFCO and the Chinese branch of JP Morgan Chase, the group is considering the option of investing further in Israel, which has seen Chinese funding reaching approximately $3 billion to date.
Chan told the news agency:

“The sky is the limit. Some companies can set up research and development centers here, some can bring Israeli companies to China, some can open up the Chinese market for Israeli companies. I have no idea where this will lead.”

According to Israel’s Foreign Ministry, bilateral trade between the two countries reached $8 billion in 2011. The largest singular Chinese investment within an Israeli venture to date was the 60 percent acquisition of crop production chemical maker MA Industries by ChemChina for $1.4 billion.

Edouard Cukierman, organiser of the trip and managing partner of private equity funds Catalyst Investments, said that the visit could lead to more acquisitions and potential funding for projects in research. Cukierman noted:

“We are following up with each one of them, preparing specific action plans for each one of them. They believe they can benefit from innovation in Israel more than the Americans did.”

####

While these bits of information (some anecdotal and some factual and verified) regarding Israel are not generally well-known to most of the western industrialized nations, or even acknowledged, they may well explain some of the magnetism which attracts the Chinese to Israel:

1) Israel is one of the world's top 10 inventors and producers of multi-industry technologies;

2) Israel probably has more of its companies traded on public exchanges and bourses throughout the world (as well as within Israel) than any other nation;

3) Israeli companies tend to be capitalized with minimal debt (very much in philosophical alignment with the way Chinese and other Asian companies grew throughout the 1990s), and principally with equity capital from stock sales and internally-generated earnings;

4) Israeli companies tend to become self-sustaining much earlier in their developmental cycle, and at a much smaller launch capitalization than US and other companies due to a combination of a powerful work ethic, more loyalty between employees and their employers, and very strict financial management.

5) Israel may quite possibly be the creator of some of the most advanced technologies in the world, especially regarding information processing, communications and applications, as well as in biotech, nanotechnologies, AI (Artificial Intelligence), data mining, managing and leveraging big data and a host of technologies relating to military intelligence and operations -- hopefully, many of these will ultimately come out of the black and enter the commercial sector for productive peacetime use.

Expect to hear increasingly about Israel's rapidly-solidifying trade partnership and strategic alliance with China. In certain ways, since the US economy is suffering and a big concern about the Chinese propensity of late toward aggressiveness and acquisitiveness, Israel is an ally (in many senses of this term to both nations as well as a trading partner to each). This is more likely than not a very good state of affairs for the United States. In understanding some of the basic tenets of Internationalism and diplomacy, when two countries are either at odds with each other or are not as friendly as they might otherwise be with each other, a mutual ally is a wonderful means of keeping an open door with respect to discussions and negotiations.

Thank you as always for reading me, re-tweeting me and sharing my articles with your colleagues and associates through re posting and linking on social media.

Douglas E. Castle

The Internationalist Page Blog

CFI - CrowdFunding Incubator Blog

CFI - CrowdFunding incubator Website

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