Bill #$%$ of the Daily Reckoning just penned an excellent article entitled: "Why You Should Get Ready for Capital Controls in America". And in the article #$%$ points out the recent restrictions placed on exchange rates in Argentina as well as the limiting restrictions placed on the withdrawal of money now imposed in Cyprus. Great article. #$%$ suggests capital controls are coming to America.
But don't we already have capital controls in the U.S.? Just go to any airport in the U.S. servicing international travel and look for signs announcing the fines, forfeitures, and potential prison sentences for moving $10,000 in currency out of the country without declaring it. Did we have laws making it illegal to travel to Canada with $2000 in cash back in the 1970's when $2000 dollars had the value of today's $10,000?
And just try taking 5 ounces of gold across the border unannounced without "sweating bullets"! The U.S. government now controls the cross-border flow of cash or cash equivalents of the common citizens in this country. But if you happen to be a wealthy banker, go ahead. Move a couple $million to a Cayman Island investment account. Who cares!
Capital controls generate one result for PM's.....they drive prices higher! And now the entire Eurozone is considering capital controls. Good for EXK...in the long run!