Whether it take place suddenly, gradually, obviously or diabolically subtle, the implementation of capital controls by the U.S. government, following those of Greece, Iceland, Cyprus and Argentina, is not a matter of “if,” but “when,” according to Nick Giambruno of CaseyResearch.com.
The U.S. government has used capital controls before. In 1933, through Executive Order 6102, President Roosevelt forced Americans to exchange their gold for U.S. dollars. It’s no surprise that the official government exchange rate was unfavorable. The U.S. government continued to prohibit private ownership of gold bullion until 1974.
Today, with no conceivable end to the U.S. government’s runaway spending, sky-high debt, and careless money printing, I think it’s only a matter of time until the government decides capital controls are the “solution.” There’s no doubt statist economists like Paul Krugman would cheer it. All it would take is the stroke of the president’s pen on a new executive order.
Whatever the catalyst, it’s critical to prepare while there’s still time.