It's Official: America's Capital Controls can be overridden ...
It's Official: America's Capital Controls can be overridden ... by one simple idea.
Immigration or permanent residency.
So long as the USD holds some value (that is to say as long as hyperinflation has not totally destroyed the USD) most nations can create a non-enforcement clause of USD Capitol Controls in their own regulatory framework with the principals that
-- So long as the person is seeking permanent residency
-- So long as the person is seeking future citizenship
the Capitol Controls rule can be totally overlooked and completely ignored.
American resident and passport holding persons may have to fill out paperwork (with their non-US bank, or non-US bank regulator) stating that the money is for future immigration purposes, but that is it.
No nation will want to willingly punish Americans (or any other nationality for that matter) that move their USD into the local currency into local (non-US finance system) banks.
The US is in a long term total decline as a world power, so I don't see how the US itself is going to enforce these Capitol Control rules.
You can either hold Mesopotamia and Afghanistan, or you can enforce Capitol Controls -- but you cannot do both.
Like with Sir Roderick Spode (the 7th Earl of Sidcup) -- you can either be a fanatical right wing amateur dictator (and a member of the House of Lords) ... or you can design ladies undergarments. It must be one or the other. Not both. Before Spode inherited the title of Earl of Sidcup from his uncle, he made a living as the "founder and proprietor of the emporium in Bond Street known as Eulalie Soeurs", a famed designer of ladies' lingerie.
There is an old American habit -- perhaps dating back to Andrew Jackson's time (but it could even predate this) that the US economy has been [and always will be] designed from the ground up to allow people to make themselves rich and then get up and leave with all their [acquired] wealth without any questions ever being asked. This is a habit that has been in place since 1650, and I do not see it changing.
This is a classical 'money on the land' issue of a beyond totally corrupt and collapsing empire.
These Capitol Controls are not a real problem [in the short or long run] as there are always more and deeper loopholes that can always be found, even for common people. The US is a failed state that exists in a state of lawlessness -- and classically failed states obsess over enforcing exceptions as much as they obsess over not enforcing any real law.
The sum total of US finance sector regulation has always been designed to have loopholes that can be taken advantage of by those that can find them.
Last edited by billstew; 04-17-10 at 05:48 AM.
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