09.07.2013

  • Capital Controls: Ready Or Not!

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    Freedoms In US Continue To Erode Rapidly;
    Capital Controls Are Coming Next

    Author: Joseph R. Carducci
    Source: Downtrend.com - 10.17.2013

    As someone who truly loves America, it is very difficult for me to write this article. I remember what this country was like in my youth. I remember going to school and being able to play cops and robbers during recess and making my hand into the shape of the gun was not a ‘political’ statement or a ‘terrorist’ threat like many (if not most) school districts feel it is today. We used to have real freedom. Now, we cannot even send an email or make a phone call without our communications being tracked by the NSA and probably several dozen other government agencies.

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    There are reports that seem to occur at least weekly regarding some police force or over-zealous government employee abusing their power on ordinary citizens for no reason…and getting away with it because our new ‘interpretations’ of laws. We are about to give the government the authority to literally take over about one-fifth of the economy through ObamaCare, yet less than 40 percent of the public actually supports this law. Not to mention that we are drowning in debt and our elected officials engage in endless and useless political theater over whether or to give Congress the authority to borrow even more money that we have no intention or plan of ever repaying.

    Yes, our country is in trouble. And, yes, very often the road to tyranny is indeed paved with good intentions. Personally, whenever I hear about the formation of a new government agency, or am told that something is being done for my own ‘protection’ I tend to run away as fast as possible. Take the Consumer Financial Protection Bureau (CFPB) for example. This agency has decided that they want to help retail banks in the US ‘protect’ their customers regarding international wire transfers.

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    By ‘help’ I think they really mean prohibit, but you can be the judge of this. What is happening is this: under the facade of consumer safety and security, several banks are limiting their retail customers’ abilities to send international wire transfers. Chase will begin limiting cash withdrawals and even banning business customers outright from sending international wire transfers starting November 17th. Beginning on October 20th, HSBC USA Premier clients will have a five day waiting period before transferring funds to their OWN international accounts. And that five-day waiting period is a minimum, while the bank examines the transaction. Also, remember that this is for customers simply moving money between their own accounts!

    While this is amazing, it is essentially the beginning of capital controls in the United States. The free flow of capital across borders is starting. The authorities realize that with the economic problems the US is having, there is a strong possibility that it will lead to a decline in the value of the dollar, which could affect banks having enough money to lend and politicians being able to run up their debts as high as they want. Capital controls are a way to force you and I to keep our money locked up inside the US, denominated in dollars that are declining in value.

    Throughout history, we see this lesson repeated over and over. Desperate governments will do whatever it takes to hold on to ‘their’ assets. This includes capital controls, plunder, confiscation, and the destruction of liberty. Who among us can honestly say that they have not seen the destruction of liberty over the last 20 or even 10 years?

    These new regulations about moving money is just the first step of what is to come. Initially, the rules will just be a nuisance and besides most people might not ever think about moving money outside of the dollar. But they will become more and more stringent. And make no mistake, the US government is broke. We do not collect enough tax revenue to pay for mandatory entitlements (which neither party will have the guts to even consider cutting or eliminating) and interest on the debt.

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    I ask you, are these the signs of a wealthy nation? Are these the signs of a country whose economy is the envy of the world? The only thing that allows this farce to continue is the fact that the US dollar is considered to be the world’s reserve currency and that many internationally traded commodities are priced only in dollars. I strongly believe that eventually this system will come crashing down unless we get our financial house in order.

    Here’s an interesting video that talks a bit more about capital controls and even offers an interesting perspective on the government shut down, debt ceiling, and our overall situation:

    What do YOU think? Have you considered that capital controls may be coming? Do you see the general decline in the level of freedom and privacy in this country? What do you think about the government mortgaging our future and the future of our children in order to continue paying out entitlements?