Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
How Much CHIA Coins Profit from 100 Plot 10tb Farm? Hard Drive Space Mining - 13th May 21
Stock Market Bulls Getting Caught in the Whirlwind - 13th May 21
Legoland Windsor Mini land and Sky Train Virtual Tour in VR 360 - UK London Holidays 2021 - 13th May 21
Peak Growth and Inflation - 13th May 21
Where’s The Fed? Watch Precious Metals For Signs Of Inflation Panic - 13th May 21
Coronavius Covid-19 in Italy in August 2019! - 13th May 21
India Covid Apocalypse Heralds Catastrophe for Pakistan and Bangladesh - 13th May 21
TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
Gold Price During Hyperinflation - 12th May 21
Stock Market Extending Phase Two? - 12th May 21
Crypto 101 for new traders – ETH or BTC? - 12th May 21
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Misguided Case for Capital Controls

Politics / Credit Crisis 2013 Apr 25, 2013 - 01:29 PM GMT

By: Casey_Research

Politics

By International Man, Network

New York Times columnist Paul Krugman recently penned an article in which he comes out in favor of capital controls.

Not surprisingly, his argument follows the near cookie-cutter justification used by governments throughout history to seize more control over their citizens.


  1. Spuriously shift the blame for the crisis onto foreigners.
  1. Claim the increase in government control is for "your own good."

Krugman doesn't see irresponsible government spending and the resulting debt as the core cause of recent crises in Europe and around the world. Instead, he blames inflows of money by undefined foreigners.

He even says that the US is victimized by inflows of foreign money when he claims, "It's not just Europe. In the last decade America, too, experienced a huge housing bubble fed by foreign money."

According to Krugman, it's not the fault of the Federal Reserve's artificially low interest rates for blowing up the housing bubble, nor the profligate spending habits of European welfare states for causing the debt crisis, but rather those vague, evil "foreigners" who are to blame. And we need government actions (i.e., capital controls) to protect us.

Nixon followed this pattern, too, when he infamously severed the last link of the dollar to gold on August 15, 1971, thereby removing any limit on the government's ability to finance itself by debasing the currency and stealthily confiscating the wealth of savers through inflation.

In the years preceding this announcement, the US government financed its out-of-control spending – which stemmed from the Vietnam War and new welfare programs – by printing more dollars than it had gold backing for.

Nixon claimed he was removing the last links of the gold standard because it was "in everybody's best interest" and that he was protecting us from foreigners, i.e., "international speculators." He also claimed that he was taking further action to "increase jobs for Americans." Watch his two-minute sales pitch below.

It is not a stretch of the imagination to think that another president could take similar measures and then sell it to the American people the same way Nixon did.

I view it as a near certainty that the US government will impose some form of capital controls and wealth confiscation when the US dollar loses its spot as the world's premier reserve currency. It will be the next "August 15, 1971" moment.

Selling such measures to the majority of the American people will probably be an easy task. Paul Krugman is already on board, and the rest of the mainstream media functions more like a bunch of government stenographers than an independent press.

It would be wise not to underestimate their ability to take something that is abjectly false and convince the American people that it's true.

Take, for example, the role the media played in helping to convince a whopping 70% of Americans of the falsehood that Saddam Hussein was personally responsible for the 9/11 attacks.

There should be no doubt that when the US government decides to implement capital controls or other restrictive measures, it will likely have the near-total support of the media and by extension the majority of the people (AKA "the mob").

The moment there is another August 15, 1971-style event is the moment the window closes for Americans. Nobody knows exactly when that will happen, but it appears to get closer each week. You want to be internationalized before that happens. Capital controls is not the only thing you need to worry about if all your assets are within your home country's borders. There are rising taxes to consider… government asset seizures… creeping inflation… the list of threats is long and getting longer. To help you diversify your assets, Casey Research has produced a critically important investors' web event, Internationalizing Your Assets, which premiers Tuesday, April 30 at 2 p.m. Eastern. Tune in to this free video and discover a multitude of legal ways to move your wealth abroad from Doug Casey, Peter Schiff, and other acclaimed experts on international diversification. Click here for details and to register.

© 2013 Copyright Casey Research - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Casey Research Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in