Ready for Capital transfer controls?

Capital transfer control (restrictions) using a simple method of a Convertible and Financial currency will be seen again soon.. [ only € 10,000/$ 10,000 in fiat cash money or money instruments may be taken with you when you cross a political border]

Those who refuse to politically diversify their savings/assets and instead blindly keep chasing Fiat Money profits will soon be in for a nasty surprise.

The advantage for the Authorities is that capital controls are simple to instate and to apply and that it demoralizes ANY speculator as it takes away the financial advantage BEFORE any expected official devaluation. [the Germans who smelled RAT and tried to flee Germany before the worst, had to pay two year taxes in advance in order to get an EXIT VISUM]

During the 1970’s and 1980’s cross border capital transfers were controlled and regulated by the mechanism of the Convertible and Financial Franc. Payment for imports of GOODS was made using Convertible Francs while Capital transfers as a result of a sale of local francs for German Marks or any other foreign currency was executed at the exchange rate for Financial Francs which as a rule sold at a discount to the Convertible.

Because of the double exchange rate the Financial Francs were as a rule worth less than the Convertible and the spread between both rose each time the market expected currency devaluation. If the market anticipated a 15% devaluation the financial currency traded 15% below the rate of the Convertible currency.

Former mechanism is still used in South-Africa. The country has additional capital export rules where exports/sales of South African Rand by SA residents are limited to a maximum amount and permission to do so is ONLY granted after approval by the Tax authorities.

Such legislation could be re-instated at any time and will penalize anybody (also non residents) holding Euros (or Dollars in case you live and work in the USA) and would strongly limit the pressure on the Euro in case of a panic as the maximum amount of CASH Euros that may be exported is limited to €10,000 .

Now is the time to act. Better be one year early than one day late. If in doubt remember what Germans had to pay in order to get their savings out of Germany right before the dramatic Weimar hyperinflation. Remember what happened to many Belgians after WWII during operation Gutt and know many committed suicide after they lost it all. (ironically Gutt became the 1st president of the IMF).