A Kindle that has this issue quickly becomes a lemon. It's just alarming to be 'detected out of country' by Amazon and blocked from purchasing books on your new Kindle. There were laments from a couple of highly distressed Kindle users confronted with this particular issue.
Well that, coupled with the sneak-factor of the entire operation, I didn't know what to do. AND it was confusing as I never had that problem. Ah...there in lies the solution.
Apparently Amazon has has a way to detect that you do not have a US credit card linked to the account. Sometimes it's detected right away and other times it takes a few months.
All you gotta do is link the US Kindle account to a USD credit card. I'm not sure if this problem is universal but it has happened to 2 Kindle Users. I managed to resolve the problem for both of them, but this does not bode well for those who do not have willing relatives in the USA.