FREE: JOIN 100,000+ READERS   

≡ Menu
SOVEREIGN MAN

It starts: the government’s plan to steal your money.

Piggy Bank Cash

June 12, 2012
New York City

There are consequences to being flat broke.

There are consequences to investing any level of confidence in a financial system underpinned by debt and the creation of paper currency.

There are consequences for ignoring reality and pretending that everything is normal.

This is one of them: European officials yesterday flat out admitted that they were discussing rolling out a series of harsh capital controls across the continent, including bank withdrawal limits and closing down Europe’s borderless Schengen area.

Some of these measures have already been implemented sporadically; customers of Italian bank BNI, for example, were all frozen out of their accounts starting May 31st upon the recommendation and approval of Italy’s bank regulator. No ATM withdrawls, no bill payments, nothing. Just locked out overnight.

In Greece, the government has taken to simply pulling funds directly out of its citizens’ bank accounts; anyone suspected of being a tax cheat (with a very loose interpretation in the sole discretion of the government) is being releived of their funds without so much as administrative notification.

It’s no wonder why, according to the Greek daily paper Kathimerini, over $125 million per day is fleeing the Greek banking system.

European political leaders aim to put a tourniquet on this wound in the worst possible way.

So what are capital controls?

Simply, capital controls are policies which restrict the free flow of capital into, out of, through, and within a nation’s borders. They can take a variety of forms, including:

- Setting a fixed amount for bank withdrawals, or suspending them altogether
- Forcing citizens or banks to hold government debt
- Curtailing or suspending international bank transfers
- Curtailing or suspending foreign exchange transactions
- Criminalizing the purchase and ownership of precious metals
- Fixing an official exchange rate and criminalizing market-based transactions

Establishing capital controls is one of the worst forms of theft that a government can impose. It traps people’s hard earned savings and their future income within a nation’s borders.

This trapped pool of capital allows the government to transfer wealth from the people to their own coffers through excessive taxation or rampant inflation… both of which soon follow.

The thing about capital controls is that they’re like airine baggage fees; ultimately, all governments want to do it, they’re just waiting on the first guy to impose them so that they can shrug their shoulders, stick it to the people, and blame ‘industry standards’.

Moreover, capital controls were a normal part of the global economic landscape for most of the 20th century, right up to the 1970s. It’s been a long time coming for governments to return to that model.

Since the inception of this letter, it has been a constant theme for us to talk about the increasing threat of capital controls. Your money, your savings, your livelihood are all under attack by insolvent governments, and it’s critical to take steps to reduce your exposure.

When European financial leaders all openly admit that they’re making plans to establish continent-wide capital controls, it really begs the question– what additional warning sign does one need?

The dominos have already started falling. Iceland. Ireland. Greece. Spain. Portugal. Italy. Cyprus. Soon even France and the rest of Europe. And it will come to the United States as well. There are over 15 trillion reasons why.

So what are the most critical steps to take now?

1) Buy precious metals and store in a secure jurisdiction.

Holding gold and silver overseas is a great way to (a) ensure your savings is protected against inflation, and (b) ensure that your precious metals cannot be confiscated in the event that gold ownership is criminalized in your home country.

I strongly recommend Singapore, Hong Kong, and Abu Dhabi as three potential safe jurisdictions for your gold and silver.

2) Open a foreign bank account.

For funds that need to be maintained within the financial system (as opposed to precious metals), make sure you have a safe home for your money abroad in a safe, well-capitalized bank.

3) Have a place to go overseas

Economic turmoil brought on by governments stealing people’s savings generally goes not bode well for social stability. If things get hairy, you’ll want to have a place to wait it out. And you don’t want to be deciding on the location while you’re packing your bags.

As an example, I’ve picked up an 1100-acre farm in central Chile that won’t skip a beat when the financial system implodes. The sovereign debt bubble does not affect whether or not my trees will bear fruit or my vegetables will grow.

About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

Want more stuff like this?

Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens. Click below to join our community of 100,000+ sovereign individuals.

Click here to receive our free intelligence

Comments on this entry are closed.

  • Pbdavidson2

    What makes you or anyone else encouraging off-shore precious metal storage think these countries are going to maintain their clients’ privacy any more than Switzerland did when pressured by the US to give up the names of bank acct. holders.   Seems like when threatened with any form of penalty, inconvenience or hassle, most governments around the world just cave……and will force the private vault companies in their countries to give up depositors names……if only to get the US off their backs.  Same goes for land and bank accounts…..I don’t think my money is any safer in a bank in Chile or Mongolia

    • Shamus

       Dig a hole next north 10 paces of the apple tree, in your vacant parcel, in another state from which you reside…. oh yeah, and don’t die without telling someone! :)

      • http://www.facebook.com/people/Gary-Nolan/100001971002331 Gary Nolan

        Why do you need to tell anyone BEFORE you die? The buried assets won’t do you any good AFTER you die. After you die you have no worries… in this life. At least you are then beyond the reach of all the 2-bit coercive clowns in THIS life … like Obummer and Romoney.

      • http://www.facebook.com/people/Gary-Nolan/100001971002331 Gary Nolan

        I truly sick and tired of the coercive basturds (of all stripes and colors) …. but even more sick of the oblivious slaves and prostitutes that look upon them with an ounce of respect.

      • Jme356

        NOW, Gary Nolan is “taking”….exactly…these politicians that run around giving each other accolades, honors, signs, plaques, buildings and highways named after themselves are doing nothing but perpetuating their own myths.  What a misguided notion, really this is a subliminal way to get “the people” to “respect” them.  However, in actuality they are only public EM-PLOY-EEES, (nothing more) and OVER PAID AT THAT (usually under qualified). 

         Before I proceed, let me state that I DO NOT wish to see anyone harmed and do not advocate that avenue for correcting the political ills the USA faces.  HOWEVER, when a politician is killed or harmed (IE: Giffords), my response is one of “live by the sword…die by the sword.”  Remember, these same people think nothing of sending our sons and daughters into battle to die (much less the people they kill)…SO, if the Giffords of the political elite class die in the course of duty…you won’t see my American flag at half mast, in fact it won’t even capture my particular attention, after all, these are working people (like all of us) who died or were injured “on the job”.  They knew the “risks” going in,  they took their chances, and they lost just like any one of us who looses their life “on the job” wether that be driving a truck on I-95, falling off a building under construction, flying a DELTA 747 etc.  Along that same line of thought, I wish any and all EMPLOYEES a speedy recovery via workman’s compensation and the same healthcare options available to all US citizens.  However, if lady luck is not with them on one day at work and they are injured or loose their life; Que, Sera, Sera. (thank you Doris Day).   

  • MnkyLv

    That’s after the banks did the same.

  • Caroly929

    Hmm sov I am wondering if this is not emotions in front of intellect? This would seem to be ego outsizing the god given conscience, that you are the one to open the escape hatch for everyone? This global crisis suggests there is no room for that!!! The rich man is a squirrel in your world to take your nuts…I love your wisdom and sensitivity groupings that create the variance… and if the world had 10 more of you it would be a better place Sincerely,Carol

  • http://justen.us Justen Robertson

    Forgive my ignorance but unless you’ve got your paychecks on direct deposit, can’t you take them to the bank of origin and get cash – even under capital controls? For that matter if you deposit them with a foreign bank account with no controls, it can’t bounce, can it?

    • Mises’ Ghost

       I wouldn’t count on it. My previous job was usually able to cash checks right in my place of business, but capital controls might force you to take your check to the bank.

      Also, they already have cash-sniffing dogs at airports to make sure you can’t take any significant amount with you, and you’ll probably be restricted to even less later on. (or be banned from leaving the country).

      This news is definitely disturbing, although in no way surprising. I knew politicos would throw schengen under the bus before they would allow their own ponzi to collapse, and they’ve already banned everything except direct sale of stock you own on their worthless markets. Corralón time!

      • http://pulse.yahoo.com/_U2H7S4MG6PLQUVOA2CFNMZ2QUQ Ric Desan

        Precious metals for fiat currency collapse is only partially the answer. Additional durable goods to aid in survival in addition to gold and silver is a must. The crasy to come is not only fiscal, it will be societal.

  • http://justen.us Justen Robertson

     Also – what if you’re a contractor rather than an employee?

  • http://www.facebook.com/people/Charles-Sansing/100003372832951 Charles Sansing

    Obama believes that citizens OWE the government 75% of all pay. HE is playing class warfare to make the rich pay “their fair share” which is actually wrong, they already pay 55% to 75% now, He actually wants to tax the middle class and redistribute the wealth among those poor who refuse to work and pay ZERO taxes. 51% of American’s pay ZERO in taxes. The higher income pay 75%. Get rid of the present tax system all together and lets have a flat tax fee for all workers. God only asks 10% tithe so the Gov. should not get more. TEN percent from all working people with NO deductions would be fair! What would be better than that, other than NO taxes and have to pay for government services along a list of fees. A tight BALANCED budget for the government to follow and NO free spending. IF a congressman has a project he wants funds for, he should submit the request as a bill. IF it passed it would be in the next years budget IF the money was available . NO pork funds. I get sick of the Give me you owe me ideas of people. Some blacks believe we owe them because the government 200 years ago allowed Slavery. They were never slaves, they make slaves of themselves when they refuse to go to school or get whatever job is offered to them. Illegal invaders believe they are owed because the stole their way into America and their government refused to take care of them we should. NO! GO BACK HOME! In many communities long ago, if you refused to work for your food you did without, most decided the hungrier they got the more they were willing to work!

  • http://dailyhype.com/ Ron Fontaine

    Another possibility that many people are choosing is to put their money into BitCoin where government prying eyes (and hands) cannot go.

    • Klonowskikp

      Can you explain what is BitCoin, how it works, how to contact the organization that runs it?    And how is it that the Govt’ eyes and hands cannot get access to it?

      • Louis Narbozo

        Bitcoin – digital money that’s too easy for hackers to hack, too easy to “create” via stolen computing power, too easy to just disappear in a flash of digital blue smoke, too unreliable, and absolutely nothing like gold or silver. bzzzzt. please try again, insert bit coin to coin-tinue. 

  • Guest

    Uh we all can’t afford big farms in Chile.  How about how to protect the little guy?  Precious metals in the form of jewelery perhaps?  If the global system were to implode, would you trust anyone overseas to hold your gold?

  • http://RonPaulPromise.com Louis Nardozi

    Truer words were never spoken – but the overseas option is for those with serious wealth. For the rest of us, buy at Tulving – always less than $10k. Have them delivered to your house, and pick a safe location to store them. A small fortune in gold can be stored in the unlikeliest places – inside a ceramic giraffe, taped under the sink, under the insulation in the attic – places where they’ll be safe from any burglar – save the ones you told about it. DON’T tell ANYONE.  

    • Louis Narbozo

      Ok, so if anyone known Louis Nardozi, the places to look for gold in his house are in his ceramic giraffe (or other stuffed animals), under every sink in the house, under the insulation in the attic, in the walls, in the pillow, under the bed, under the floorboards, in the walls, in the couch cushions, taped under the living room table, hidden under the front door floor mat, surgically sewn into the cat, hidden inside the kettle, etc etc… maybe telling the whole planet your secret storage strategies wasn’t the smartest way of “not telling ANYONE” where the best (or presumably dumbest) places to “hide” your gold is… 

  • http://pulse.yahoo.com/_YN43DKIJSV33UJTUFV22OMQXZY agubum

    move where?? if it isn’t safe here were in the world will be? open a foreign bank account? that seems to be a little tough to do these days thanks to the us gov’t.

  • More Soma please

    Singapore and Hong Kong are too close to China.  Abu Dhabi is counting on the U.S. for protection just like a lot of its neighbors.  All are fearful or Iran.  Also, once the internet is taken over how will you transfer your funds?  SWIFT will also cancel your transactions.  If banks close in your home country where would you get funds from out of the country?  Once it does hit the fan, those with instant access to money or metals will get by.

    Get a good safe, guns and dogs.  Or bury it somewhere if your that concerned.  Get off of their systems.

    • Comitatus1

       Would you like some mayo on that 5.56 on wheat?

    • Mrdkt

       It seems like Australia is the place to be; to keep gold (and silver?); to become a resident. Questions are how do you get a place to live place to live and how do you pay for it (sale gold in Aussie dollars?).

  • Sfbker

    Many stupid ideas here. So you have gold and your neighbor bakes bread and you need a loaf to feed your family, are you gonna give him a gold coin worth hundresd of dollars for it? So you find a place to run to, can you get a job there -no. This is one of he few places you can still buy guns and ammo to defend your family- buy guns and ammo, trade ammo for bread or take it if he won’t trade.

    • Radbretz

      Take it from me without fair exchange and I’ll be back at a time most fortuitous for me to shoot your greedy ass.  I have ammo as well.

  • RUSS SMITH

    Hi!, Patrons Of The Soverign Man Et Al:

       Can you immagine in Italy’s past economic conditions, laborers were actually forced to pay  110% of their salaries.  Of coarse the excuse was that this would lead to economic progress; not economic retrogression.  This clearly illustrates though just how far governments can go, in order to attempt radical economic processes designed by governments to force their citizens to pay for government largress doesn’t it?  Translated this means that we shouldn’t be surprised at what lengths any government will go, in order to promote “their” interpretation of how their economy should be run for their purposes no matter how illogical or illicit their outline becomes concerning their own citizens economic impotence.  No greater inslavement & engagement to poverty has ever been assigned any nation’s citizens than that which bridles them with the illusions of prosperity falsely promised by the issues of irredeemable, fiat, I Owe You Nothing, paper money.  To this trickery used by governments Daniel Webster made this remark:  “Of all the contrivances designed to cheat the laboring classes of mankind none has been more successful than that which deludes them with issures of irredeemable, fiat, I Owe You Nothing, paper money!” 

    RUSS SMITH, CALIFORNIA
    resmith@wcisp.com

  • Loadsamoney

    I wish I’d thought of this; I’ll pop out to Chile and load up on a few thousand acres!

  • Melanie

     

    And how will you get to Chile
    in a hurry? The airports will be jammed and will shut down. The borders will be
    closed in a matter of minutes. You will not be able to buy fuel even if you
    could leave the country to drive to Chile. When this collapse occurs, there
    will be total chaos. Things will be bad worldwide, and your land in Chile might
    be overrun by other people who will not let you live on it. And open a foreign
    bank account? Governments everywhere will be confiscating the savings of their
    citizens. Our only hope is in God, because we are in the last days.

  • Hartzman

    Please Help.

    The regulatory infrastructure appears to be useless.

    This is a whistleblower filing .

    http://hartzman.blogspot.com/2012/06/north-carolina-securities-division.html

  • Cheryllangford

    I’m truly a very simple person that has now with the greatness of our Freedoms, been the entrepreneur of two very successful business’s.  I have followed in the footsteps, along with the majority of my family. We are a driven people.  I own land that was given to our family from ‘The King of Spain’ on a Spanish Land Grant and I am a direct descendant of one of the ‘Fifty-Nine Signers of the Texas Declaration of Independence’.  I  believe that you WORK for the things that you have and teach your children the same.  Also, keeping forefront, that ALL things come by God’s hand.  Nothing is by chance nor luck.  We create our circumstances.  As a business person, you realize that when doing a “deal”, everyone needs to “win”.  How is it that our elected “dumb as…………..es”, are clueless?  My opinion, for the fart that it is worth….we have to take care of ourselves!!!  Meaning, buy your metals, store your goods, and you should know that is comprehensive. I too, find it hard to believe that if the sh…t hit the fan, I could find myself and family easily leaving the country or relying on another country…sending me my money or metals????  I choose to development the skills which would benefit survival.  Fortunately, I have grown up hunting, fishing and had great grandmothers which gardened, fruits and veggies, not to mention all the wonderful and bountiful perennials, annuals and roses.  I am and always will stand my ground and protect it with all that is in me. Sometimes, the idea of buying outside of the US attract my attention, but when it comes down to it, I’ a TEXAN and will die that way!  
    God Bless!!  

    • Cheryllangford

      It’s me, Cheryl, I meant “living outside the US”

  • oldbanker

    That’s it? Advising to abandon ship? Why don’t you just do it now. We that stay for the battle, will do better without your desertion strategy!

    • Nader Admirer

      It’s obvious you are, or are retired from an entity of Corporate America. Any pragmatic person over the age of 40 has watched as our rights and freedoms were abolished by, our own government “representatives”. Representatives = Corporate Puppets. Those who were once respected and referred to as representatives have evolved into, to quote the corrupt media, “This country’s Leaders! Stay here OLd Banker and the Fed will get you too!

  • Saintnick

    They’ve already started Capitol controls in the USA…. The Dodd-Frank banking regulations specify that american citizens can only trade currencies as an income source by using a federally regulated and licensed trading broker. In other words, you can’t just place your money in any old foreign forex trading bank. Also, the US Government limits the amount of gold you can leave the country with without reporting your take, no more than 6oz, and also, limiting the amount of gold you can buy in any one transaction; no more than 6oz. They are stoping citizens from taking the value of their own money OUT of circulation and OUT of the country, this way, as more and more government regulation is applied, the RUN on US dollars and US banks, is slower.
    -Saintsnick

  • we-are-so-screwed

    WAKE UP….The slow-motion confiscation of your money has been going on for several years now.  Our big banks are insolvent, so how to save them?  The Fed (representing the banks, not the people) pushes interest rates to zero, so the banks can get deposits for near zero interest rate, make record profits, and mend their ruined balance sheets.  Savers (and pensioners and pension funds) get nothing for their savings, and the banks get free money to lend out and slowly build their way out of insolvency.   Don’t wait for the government to steal your money…it’s happening now.  The Fed buys the silence of Congress through quantitative easing…printing money to cover their debts.  Those of us who work for a living and are of modest means are basically screwed. 

  • guest
  • Brian

    Even in a stable country like Australia, the incumbent Labor Party recently announced that it wanted to “acquire” funds from its citizens inactive (bank) accounts to use for the country’s benefit!, apparently as reported by the local television media you would be able to get the money returned which of course would involve (i am betting) a lengthy and difficult process.
    As a citizen i was outraged by this, if you had an elderly relative that had not used their bank account for a period it could be seized by the government!, this is another clear example of what you are saying in your blog.
    I find it incredible that governments penalize their citizens instead of doing whats the right thing and that is cutting their public service and wild spending, all family’s have to manage their own budgets, its about time governments did it to.
    If the Greek government wants to take 10% of its citizens money under dubious
    and questionable circumstances, a run on their banks would be a serious price to pay..

Read previous post:
iStock_000018865198XSmall
Gold: volatile or risky?

June 11, 2012 London It's common in financial markets for investors to conflate what we call 'volatility' with what we...

Close