04/10/2015 - Capital Controls in the form of “PFIC” Passive Foreign Investment Company
International Man’s Nick Giambruno explains the difficulty for Americans abroad to invest in non-U.S. based investments .. in this case it is called Passive Foreign Investment Company (PFIC) – the could be “foreign” mutual funds or “foreign” stocks
“the complexity of the paperwork for Americans to file when investing in PFIC makes it so onerous & legally prone to risk that it is effectively just not worth it & outright dangerous for Americans to do so – as such, the U.S. is effectively “forcing” Americans to keep their money at home & invested in U.S.-based investments”
Taking a step back and looking at the big picture, it’s clear the PFIC rules are part of the long-term trend of the U.S. government using burdensome regulations to effectively shrink the number of options available for those seeking to diversify internationally. These roadblocks are a clue as to how desperate and bankrupt it really is.
You shouldn’t be deterred, as that is exactly what the politicians want to happen. They prefer your savings remain within their immediate reach so that it’s easier to fleece.”
“Capital controls are used by many countries and come in all sorts of shapes, sizes, and labels. The purpose, however, is always the same: to restrict and control the free flow of money into and out of a country so that the politicians have more wealth at their disposal to plunder.“
