Hi,
i subscirbe to a news letter or two that deal with global issues. I got one today and they published their second installment on getting ready for exchange controls. If that happens every one of us is in economic trouble. I am not going to print what I received because I do not want to get into copyright issues.
Basically they said it could come in stages.
First they stop the capital going out of the country. Second they call in gold and or currency and other foreign investments. Now that does not sound too bad but in reality it is immoral.
Roosevelt made all the public sell gold to the treasury and paid the public something like $20/oz. Once he had it all collected he unilaterally decreed the value to be $35/oz. which immediately devalued the dollar by 60%. If the government makes you bring in all foreign investments they will do it through the treasury and they will determine the exchange rate which will basicall screw the investor because you will not get anythng near the true market value for whatever you have to convert back to dollars.
If you are moving money offshore better get with it because the impression I get is this is coming. Also, do not be fooled into thinking if you have cold coins you are OK. The government has ruled that the value of the coin must be more than 50% higher than the value of the metal or it is considered bullion. If you have some $20 gold pieces your grandma gave you, if they do call in the gold there is a good chance you will have to sell it to the government for worthless dollars.
If you do not know what gold certificates are, check this website.
http://www.perthmint.com.au/investment_certificate.aspxYou can actually have them store gold, silver, platinum and I believe palladium.
If one wants to leave the country it would be virtually impossible to take metals with you for a variety of reasons. Certificates are not cash, and donot have to be reported when going through customs.
Bottom line is the government is unlikely going to find any takers on a trillion dollars worth of bonds. Tonight on one of the shows they said the state of CA is in trouble and they are selling bonds and the city of San Francisco bought $5 billion or something. The analogy they used was you are in financial trouble it is like borrowing money from your wife.
The countries that normally would buy our bonds, Japan, China etc are selling their own bonds in the marketplace. The suspicion is the government will then have to print money to cover the money in the stimulus bill. If so, it will make the inflation of Jimmie Carter look small......and all the money your parents and grandparents have in CD's will likely drop down to 1/4 of the current buying power or even less. It will really hurt the seniors.
If I see any more on the subject I will pass it along.
regards,
5412
