Currency Controls: “I’ll give you one green one for three purple ones.”
[courtesy Google Images]
Casey Research recently published an article entitled, “Capital Controls Are Coming”—but are they really?
In fact, some capital controls already exist as restrictions on how much cash you can take out of the country. These capital controls exist at our physical and financial borders and concern international movement of dollars.
Other capital controls exist domestically. I.e., you can’t deposit more than $10,000 into bank accounts in the U.S. without causing your bank to send notice to the national government.
Until A.D. 1934, we had $500, $1,000, $5,000, and $10,000 bills in circulation. Now, the biggest bill we can use is $100. That’s evidence that currency controls have been with us since A.D. 1934.
Article 1.10.1 of the Constitution of the United States (A.D. 1788) declares that “No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debts”. That’s a form of “money control” that amounts to “currency control/prohibition”. Currencies other than gold or silver are prohibited or at least restricted within the States of the Union.
My point is that some form of “currency controls” have been with us for over 200 years. I doubt that you can find a nation anywhere on earth that hasn’t engaged in some form of “currency controls” over the past century.
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