Capital Controls

“[W]hen you recall that one of the first moves by Lenin, Mussolini and Hitler was to outlaw individual ownership of gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty….” Howard Buffett [Warren Buffett’s father quoted by King World News, March 2017].


What are capital controls? Capital controls are measures to restrict the flow of capital. These restrictions can include taxes on financial transactions and regulations on the sale or purchase of equities, bonds, and monetary metals. Controls can prevent or severly restrict cash withdrawals from banks [banks can close for bank holidays].

Capital controls could prevent the liquidation of Exchange Traded Funds [ETFs], or mutual funds, or prevent you from selling U.S. Treasury Bonds and bond-related funds.* Capital controls could require mandatory approval from authorities before money is spent on gold and silver. Or -as in 1933- gold and silver purchases could be prohibited.

BANK HOLIDAY – DOLLAR DEVALUATION

The United States imposed capital controls in 1933. The President declared a national emergency, closed the banks, and took control over silver and gold.

On March 6, 1933, President Franklin Roosevelt used war powers [World War I Trading with the Enemy Act] to close all banks and put an embargo on gold. The “Emergency Banking Act” [March 9, 1933] devalued the currency from 1/20th to 1/35th of an ounce of gold. Overnight, the U.S. dollar was devalued by 69%.

WORLD DEBT CRISIS

On August 9, 2007, an unexpected “credit-event” triggered a chain reaction and global credit collapse. The entire financial system of the world FROZE. Since then, countries have imposed various forms of capital controls: 

Taiwan, Switzerland, Thailand, Portugal, Brazil, Iceland, Indonesia, Turkey, Peru, Greece, Russia, Ukraine, Italy, China, South Korea. In Cyprus, large percentages of people’s deposits were used to bail out banks; Cypriots’ remaining balances were paid back in forms of bank shares. Panama had an extended bank holiday. The State Bank of Vietnam banned gold bullion/ gold material from entering or leaving the country [effective May 15, 2014]. India imposed harsh restrictions on gold purchases plus a 10% gold tax which forced gold smuggling. Spain, Poland, Argentina, and Ireland raided people’s private pensions. 

Around the world, incremental implementation of capital controls is a sign of the times(It is now difficult for Americans to open foreign bank accounts.)

OCT. 2016: http://www.zerohedge.com/news/2016-10-14/Day-Has-Arrived-Today-Prime-Money-Markets-Can-Suspend-Withdrawals-Here-Are-Implications
VIDEO [new rules]: http://marketsanity.com/Axel Merk: US Dollar May Be Fading, but Not For the Reason You Think/

NOV. 8, 2016: WAR ON CASH INDIA. The Prime Minister is limiting ATM withdrawals and eliminated large bills [500 & 1,000 rupee denominations]; an ID card is required to return money to banks.

NOV. 16. 2016: CITIBANK is going cashless at some Australian branches.

Jan. 14, 2014: JPMorganChase changed cash deposit rules. Deposits may be made only into accounts that list your name/ ID is required.
Dec. 22, 2013: Spending caps were imposed on 10% of debit cards.
Oct. 16, 2013: Business Banking halted the use of international wire transfers and limited cash activity (branches, night drops, ATMs) in business accounts to only $50,000 per statement cycle. 

2014 SNAPSHOT

Jan. 24, 2014: HSBC restricted large cash withdrawals.
Feb.16, 2014: Italy imposed automatic 20% deductions on all inbound money transfers.
Jan.28, 2014: One of Russia’s biggest banks (Mohnbank) banned cash withdrawals.
March 3, 2014 Ukraine UniCredit Bank limited ATM cash withdrawals.
March 2, 2014: Ukraine’s largest bank, PrivatBank, limited cash withdrawals to about $100 per day.
Jan. 26, 2014: ATMs were stopped/debit cards declined at major U. K. banks- Halifax, TSB, Lloyds (Lloyd’s Banking Group).
April 2014: Bank Network Italy suspended all payments and announced a one-month bank holiday (authorized by the Bank of Italy).

SAVINGS WILL BE TAXED.

The Federal Reserve is ‘exploring’ negative interest rates for the U.S. [Mrs. Yellen, Feb. 2016]. The European Central Bank [ECB] already charges people in the Euro Zone a penalty on savings deposits [negative interest rates were first proposed in 2014].

The International Monetary Fund [IMF] has proposed a surprise, global wealth tax [10/18/2013] – a 10% tax on total household wealth, implemented around the globe before avoidance is possible. The ECB Commission on Enforced Redistribution is ‘considering’ expropriation of a portion of bank deposits to fund long-term investments and EU infrastructure projects [Feb. 12, 2014].

EXECUTIVE ORDER 12472, EXECUTIVE ORDER 13603, EXECUTIVE ORDER 11858 DODD-FRANK: Exchange control laws are already in place in the United States to implement controls on investments, gold-ownership restrictions, border controls, global wealth taxes, and expropriation via bail-outs and bail-ins. Harvard Professors Carmen Reinhart and Ken Rogoff have called for capital controls similar to those in emerging markets [Jan. 23, 2014]. 

YOUR DEPOSITS AND RETIREMENT FUNDS ARE NOT SAFE. Nothing has been fixed since the world debt-crisis began. The global economy is inter-dependent. Loss of confidence in one major currency could trigger a worldwide melt-down in financial markets. The next time a “credit-event” causes financial markets to freeze, banks/ ATMs could close. During a “crisis,” bank accounts can be frozen and bank assets can be seized.

PHYSICAL GOLD and SILVER COINS
DO NOT HAVE THIRD-PARTY RISK.

Decide early where you want to put your capital. Confidence can turn on a dime. It will be too late to move in or out of investments [401K, IRA, etc.] at the first sign of big trouble. When sellers need liquidity, it will vanish. Buyers for government bonds will disappear. Overnight, most investors will be locked out of positions or locked in positions.

MORE CAPITAL CONTROLS ARE COMING. We believe significant capital controls will be imposed in 2018. Now is the time to diversify into PHYSICAL gold and silver.

Exchange PAPER for PHYSICAL silver coins
while it is still easy to buy 1 oz silver dollars.

Submitted by Denise Rhyne

END NOTES

* CAPITAL CONTROLS UNDER FASCISM: Hitler and Mussolini outlawed individual ownership of gold. Both governments took total control of investments — including pensionsTo finance massive public works projects and the military, citizens were forced to buy government bonds.


Gold and silver are “monetary metals.”  During the coming economic upheaval, gold and silver will be the last currencies standing: GLOBAL DEFLATION WILL LEAD TO CREDIT COLLAPSE/ CURRENCY FAILURES.

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One Response to Capital Controls

  1. Wayne April 9, 2014 at 2:59 am #

    Simple solution: Don’t vote Democrat.

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