(International Man)—Weekends and holidays are the perfect time to catch people off guard…
Like a street thug committing a mugging, capital controls blindside most people—otherwise, they wouldn’t be effective. The government declares a surprise bank holiday and shuts all the banks—mere hours after they denied they were even thinking about such actions.
They impose capital controls to stop citizens from taking their money out of the country. Cash-sniffing dogs, which make drug-sniffing dogs look friendly, show up at airports and border crossings. At this point, your savings are like a lobster in a trap. It’s not hard to see what comes next…
Once a desperate government has your money within its reach, it’ll find a way to take as much of it as possible. Don’t be surprised if your local currency suffers a massive devaluation, bank deposits are suddenly worth a fraction of what they were just yesterday, or the government imposes an emergency tax.
Whatever the method or pretext, the outcome is always the same: a wealth transfer from you to the government. This familiar story has played out in many countries in recent years. The pattern is clear and should surprise no one the next time it happens.
It’s all but certain governments in financial trouble will turn to capital controls as a desperate, misguided solution—with devastating consequences for ordinary people.
Argentina, Lebanon, Venezuela, Iceland, Greece, Cyprus, Turkey, Russia, Ukraine, China, India, South Korea, and governments in countless other countries have recently imposed capital. The lesson from these examples is capital controls can happen anywhere and anytime.
Although it seems unthinkable to most, there is an excellent chance capital controls are coming to the US—they’ve happened before and could happen again soon.
Remember, in 1933, through Executive Order 6102, President Roosevelt forced Americans to exchange their gold for US dollars under penalty of 10 years in prison and a $10,000 fine (or more than $242,000 in today’s debased confetti). Of course, the official government gold exchange rate was unfavorable. It amounted to around a 41% confiscation of purchasing power.
The US government continued prohibiting private ownership of gold bullion for 41 years until they reluctantly allowed the plebs to own it again in 1974. So, there is a clear historical precedent for implementing capital controls in the US, especially during a crisis.
Today, it’s self-evident the fiat currency system centered on the US dollar is self-destructing at an alarming rate. After more than 52 years, it’s long past the end of its shelf-life, like a carton of spoiled milk. Even the global elites running the system can see that and openly talk about what they want to come next.
That’s why there’s all this talk about a Great Reset… and without a doubt, capital controls will be part of it. All it would take is a crisis—real or contrived—or some other pretext and the stroke of the president’s pen on a new executive order. Expect it to happen.
Why and How Governments Impose Capital Controls
Capital controls are government restrictions on how people can use their money—something that should be abhorrent to anyone who believes in property rights and a free society.
Here’s how capital controls work…
Governments might allow people to buy foreign currency (or gold) only at an “official” rate that they set, which is always less favorable than the free-market rate. The difference between the fake official rate and the real free-market rate amounts to a wealth transfer to the government.
Another form of capital controls is steep taxes on international money transfers or purchasing foreign assets. Governments could also flat-out prohibit ownership of foreign assets or moving any form of wealth outside the country.
No matter what flavor they come in, capital controls always help a government trap money within its borders so it’s easier for them to take.
A propaganda campaign is also necessary to gaslight people into believing such actions are required to protect the average person. Expect politicians to make disingenuous claims to make them appear as saviors instead of aggressors. The mainstream media will amplify this false narrative and demonize those opposed to capital controls as disloyal citizens or worse.
What Happens After Capital Controls
Capital controls are always a prelude to something worse. That’s because once governments trap money inside a country, it’s probably only a matter of hours before there is wealth confiscation. Anything they don’t steal immediately, they box in for future thefts. That’s why you must act before they impose capital controls.
How much time do you have? While it’s impossible to know, acting well in advance is advisable. It’s better to be a year early than even a minute late. However, there is one common feature I’ve noticed when countries impose capital controls that indicates the situation is imminent. It’s like someone waving a big fat red flag. That warning sign is a government official denying that they are considering imposing capital controls.
Whenever you hear a central banker or politician say something won’t happen, you can almost be sure it will happen. And probably soon. Coming from a bureaucrat, the real meaning of “no, of course not” is “it could happen tomorrow.” It’s like the old saying: “Believe nothing until it has been officially denied.”
These deceptions have a purpose: Politicians and central bankers must surprise the public to get the desired results. When you hear the official denial, you probably have only a matter of hours before they impose capital controls. Urgent action is required.
Coffee the Christian way: Promised Grounds
Four Ways To Beat Capital Controls
The solution is simple. Place some of your savings outside your home country so it’s not trapped when the government imposes capital controls. It will be waiting for you safely on the other side. Below are four ways you can do that.
- First, obtain a foreign bank account. Capital controls imposed in your home country are unlikely to affect a bank account in another country.
- Second, real estate in a foreign country is an excellent way to store significant capital abroad. Your home government won’t be able to seize it without a literal act of war.
- Third, another solution is physical gold bullion coins held in a non-bank vault in a friendly foreign jurisdiction.
- Last, there is Bitcoin, which is like kryptonite to capital controls.
Bitcoin is the most portable asset in the world. It’s a digital bearer asset that can achieve final international settlement in 10 minutes for pennies.
Anyone with a smartphone can use Bitcoin to send and receive value anywhere in the world—capital controls be damned. Going through airports and crossing borders with Bitcoin is much more practical than other forms of wealth.
If you hold Bitcoin on your phone, laptop, or flash drive, it can be accessible to border agents if they search you and you reveal your password. However, those things are much less conspicuous than gold or stacks of cash.
Further, many popular Bitcoin wallets use a 12-word phrase to recover your funds. If you memorize the 12-word phrase, you can potentially store billions of dollars worth of value just in your head with nothing else. That’s why Bitcoin skyrockets in popularity in countries with capital controls.
Conclusion
The current dollar-based monetary system is on its way out. Even the central bankers running the system can see that.
They are preparing for what comes next as they attempt to “reset” the system. It’s a virtual certainty they will impose capital controls.
I suspect it could all go down soon… and it won’t be pretty for most people. We are likely on the cusp of a historic financial earthquake…
One that could alter the direction of the US forever and mark the biggest economic event of our lifetimes. Yet few people are aware of what is happening. And even fewer know how to prepare.
That’s exactly why I just released an urgent new report with all the details, including what you must do to prepare.
It’s called, The Most Dangerous Economic Crisis in 100 Years… the Top 3 Strategies You Need Right Now.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
