Currency Controls Coming to the U.S.? By Mark Walters At Isnare.com Ezine Articles

The Federal Reserve has been operating like a sovereign power and dumping billions of dollars into U.S. and world markets.

Please remember that those billions aren't even paper dollars. They are nothing more than computer generated digital blips racing around the globe via the Internet.

Exactly what is a digital blip worth? For that matter consider that the paper dollars in your pocket are backed by nothing more than digital blips.

Washington backs those dollars and blips with nothing more than the promise of "I owe you nothing". If you walked into the U.S. treasury and asked to exchange your dollars you would be met by blank stares. After all, it's been a few decades since anyone even pretended that a U.S. dollar had any real value.

That brings us to the problem. With the world's supply of U.S. dollars greatly enlarged we will soon see more dollars chasing the same amount of goods and services. Actually, in a recession/depression there will be a diminished supply of goods and services. That means the increased supply of dollars will be vying for fewer goods and service.

You don't need to be a Stanford economist to know that your government is lighting the fuse to an inflationary explosion. The result will be that every one of your dollars will be worth less… and less… and less. It's the time honored way governments rob from their citizens to pay for politicians misguided financial policies.

When all of this financial craziness begins to spin out of control governments resort to currency controls. Remember, the only thing your elected politicians know about money is taxing and spending. They will promote currency controls as a way to punish "speculators" and "un-American investors".

Here's what Wikipedia says: "Currency control is a system whereby a country tries to regulate the value of money (currency) within its borders. From simple to complex policy changes, it can be characterized as a government initiated system to control currency fluctuations through interest rates, bonds, laws, money printing, and many more."

The Internal Revenue Service has been practicing a unique form of currency control for some time. Under the pretext of stopping the movement of drug and crime money they have intimidated many foreign banks to the point where a U.S. citizen won't even be considered as an account holder.

In other words, it is becoming very difficult to protect what little wealth you have by moving it out of the grasp of the tax and spend politicians. Their goal is the "Plumber Joe" tactic of "spreading the wealth". That simply means taking money from you and giving it to someone else. Is that the same as buying votes?

As this is written you can still find a few solid, offshore banks that will accept your money if you do some research. Try banks in Panama, Belize, Austria and Switzerland. Some will open accounts if you deposit as little as $5,000.

A quick look at history should remind you that when FDR kicked off the New Deal in the 1930s, restrictive SEC rules cut off most U.S. investors from direct foreign investments.

That's exactly what's happening as IRS "qualified intermediary" rules claim U.S. jurisdiction over foreign banks' operations and demand they follow Washington's rules. Your government and the IRS are working full out to keep you and your money at home. May I remind you that under the PATRIOT Act, government guys with guns can confiscate your cash at will and they can do it in secret.

What are the alternatives? Buy Latin American real estate as many North Americans and Europeans are now doing. Or use your dollars to buy gold.

Gold is the only real money with silver a close second. So many people in the U.S. have turned to gold and silver billion recently that it's now hard to find a supply of physical coins and bars. Call your local coin shop and see what's available. You may be surprised to find they are sold out. The same is true with the big dealers you can find on the Internet.

When citizens don't have the freedom to manage their money as they wish they flee the government's manipulated system and seek to preserve their wealth anyway the can. That's happening right now!

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