Cash is being restricted to maintain control over the citizenry. Long lines, withdraw limits, capital controls, will all define the next crises in America.
Hot on the heels of China gold import restrictions, and India’s demonetization and gold confiscations, The European Commission proposed tightening controls on cash and precious metals transfers from outside the EU.
Authorities will also be able to seize cash or precious metals carried by suspect individuals entering the EU.
But it gets better…
Yesterday the US Mint runs out of silver eagles.
Then today the news hits that all trading on the NYSE is “suspended” due to a “technical glitch.”
The fuse has been lit. This is the start of capital controls.
It’s no different from what China is doing. Just wait till they start lowering the gate on mutual funds…then banks….
Like most locals, I’ve been steadily hitting the ATM for the past weeks to amass some emergency cash.
I ventured out today for the first time since the capital controls were installed yesterday to have a look around…
If governments have proven anything to us over the last seven years, it is that they will do anything to keep the banks from going down. If just 10% of people hit their breaking points and withdrew their money in cash – there wouldn’t be enough cash in the system to support this demand. And the banks would subsequently collapse. When a government is bankrupt, the central bank is nearly insolvent, the banking system is illiquid, and an entire population suffers from interest rates that are either negative or below the rate of inflation, capital controls are a foregone conclusion.
In fact, we expect the next round of capital controls will be designed to protect the banks… from you.
Gold is an anti-currency. It’s a kind of asset that you own because you don’t have confidence in the paper currency issued by governments and central bankers.
So with that in mind, the idea of trading in your paper currency for gold, hoping to trade it back for more paper currency at a later date misses the point entirely.
I do think that everybody should consider owning precious metals.
Again, not as an investment or speculation, but as a form of savings that exists outside of the conventional system.
Today’s big story: Greece orders local governments (municipalities) to turn over their cash which is obviously the beginning of capital controls…
Greek citizens riot on this news.
French paper Le Parisien didn’t mince words in the headline: “La chasse au cash est lancee”.
Basically ‘hunting season on cash is launched’:
Has the Justice Department just quietly instituted an early form of Capital Controls in the US?
In October, we warned SD readers that JPMorgan had initiated capital controls, limiting cash withdrawals, and banning outgoing international bank wires.
The Morgue is at it again, reportedly at the request of the gov’t, as the bank has just informed customers of new capital controls on cash deposits, banning counter credit deposits, forcing customers to provide a photo ID before depositing their own cash into an account, and only allowing customers to deposit cash into accounts in which their name is listed.
James Turk’s GoldMoney group has launched a new digital currency company (Netagio) in the UK which will offer free secure and encrypted storage for digital currencies such as Bitcoin.
Netagio will store customer’s Bitcoins securely offline to prevent unauthorized access.
If successful, the concept could be a game-changer for ex-patriates looking to relocate with their wealth as well as those attempting to escape capital controls as the Western financial system continues its slow-motion collapse.
A new form of banking is here! The term “Weaponized Banking” was coined to explain the new tactics of cyber attacks, capital controls, derivative markets, and more.
Is weaponized banking coming soon to a bank near you?
It appears that any small American business not already shut down by Obamacare regulations will be helped along by the banksters.
In an apparent effort to front-run official government capital controls, JP Morgan Chase has issued letters to ALL Business account holders notifying them that as of Nov 17th, the bank will limit all cash transactions (including deposits, withdrawals, and ATM usage) to $50,000/month, and will ban all outgoing international bank wires!
Bank officials confirmed Wednesday that the new capital controls apply to all business account holders, the bank will stop processing any outgoing international bank wire, and that any monthly cash transactions in excess of the new $50,000 limit will be subject to penalties and fees for each dollar over the $50k cap.
As the western financial collapse nears, the banksters are furiously working to shut down every financial exit available to the public to preserve their wealth from bankster confiscation.
France has just taken capital controls to a new level, banning the shipment of physical gold, silver, and cash through the mail, effectively shutting down the precious metals trade in France!
*Update: According to a reader who has attempted to mail a piece of jewelry to France, gold & jewelry are included in the capital controls ban.
In the wake of Monday’s news that Cyprus depositors have official been scalped by the ECB and IMF, Jim Sinclair has sent an email alert to subscribers warning that If you do not exit the system now, you will not be able to exit the system, and that Capital controls and bail-ins will grow and reach your home.
Sinclair warns that DIESELBOOM’S depositor haircut precedent for bank failures is coming to the entire Western banking system, a fact that we have repeatedly driven home here at SD upon uncovering bail-in legislation in Italy, Canada, Switzerland, the UK, and the US.
Sinclair’s full alert on the Cyprus bail-in and on exiting the Western banking system NOW is below:
Throughout the colorful history of organized crime in the United States, periodic eruptions of inter-gang Mafia violence have dotted the criminal landscape. When turf wars broke out between competing crime families in major cities such as New York and Chicago, the combatants would conduct their warfare from unsavory redoubts such as abandoned warehouses or low-rent hotels and apartments. In such locations, the soldiers would spend their off hours sleeping on rented mattresses until the internecine conflicts had run their course; hence the expression “going to the mattresses.”
Well, there is another turf war going on, a worldwide one, one that threatens the entire economic and political landscape of the planet. It is between all the hard working savers on the planet and the ever greedy criminal bankers and their cohorts in government. The real big canary singing out an extreme danger warning to all traditional savers who wish to entrust their wealth to banks and other paper vehicles – stocks, bonds, etc., is the incredible emergency banking shutdown in the tiny island nation of Cyprus.
As one astute financial journalist said to me “ ‘cash in the bank’ doesn’t have quite the same ring to it anymore.”
In most European countries, except for Germany, Austria and Switzerland, cash has been ‘king’ for some time, but that has now changed. This is especially the case as the expropriation was not the doings of the Cypriot government rather it was that of the Troika – the EU, the ECB and the IMF.
Gold is financial insurance which protects against inflation and expropriation of financial assets – such as pensions and now deposits.
Germany’s Handelsblatt reports early Friday that the ECB has informed Cypriot authorities that due to a guaranteed epic bank run of their own making that will undoubtedly begin the moment Cyprus’ banks re-open, the ECB intends to enact capital controls when (if) the Cypriot banking system re-opens next week, and that the ECB intends to enforce the capital controls unilaterally!
Handelsblatt claims Cypriot Central Bank sources have stated that the ECB intends to freeze all Cypriot savings accounts indefinitely, greatly reduce the maximum amounts of ATM withdrawals, and will require Central Bank approval for all bank transfers!
ViaMat, one of the world’s leading precious metals storage firms (used by BullionVault & GoldMoney as primary storage provider) has just notified US customers that effective April 30th 2013, it will discontinue private storage of precious metals for all clients with a US tax liability. Clients have until April 30th to notify Via Mat International where they would like their physical bullion dispatched to.
All signs point to an imminent escalation in capital controls in the US, just as we predicted last year as the controls were issued by Southern Euro-zone members such as Italy.