US government’s Slippery Slope towards Capital Controls

Even as US stock market booms, the US government appears to be desperately corralling resources of their constituency by the escalating use of capital controls to prevent internal funds from flowing out of the country.

Sovereign Man’s Simon Black explains (Daily Paul.com)

The path to tyranny is almost always paved with good intentions.

And so, enter stage left, the innocuously named Consumer Financial Protection Bureau (CFPB).

These government agencies with the catchy, high-sounding names are always the most dangerous. After all, it was the 'Committee for Public Safety' that was responsible for wanton genocide during the post revolution Reign of Terror in France.

Recently, the CFPB 'encouraged' retail banks in the Land of the Free to 'help' their customers regarding international wire transfers. And by 'help', they mean prohibit.

Of course it's all for 'consumer protection'.. So under the guise of safety and security, several banks will curtail retail customers' abilities to send international wire transfers.

Chase, for example, will start to limit cash withdrawals and ban business customers from sending international wire transfers from November 17 onward.

And starting October 20th, HSBC USA's Premier clients will have to wait a minimum of five days before transferring funds to their OWN international accounts!

This is the very nature of capital controls-- restricting the free flow of capital across borders until it is trapped inside the country and forcibly denominated in a rapidly devaluing currency.

And this is exactly how it starts... making it more difficult to move money abroad.

We've been writing for years that this would happen. This isn't some tin-foil hat conspiracy. This is reality.

Throughout history, bankrupt governments have almost always resorted to these same desperate tactics.

As the US government is hours away from crossing the fiscal Rubicon, it only seems appropriate. They are bankrupt, and they are desperate.