This page has been archived and commenting is disabled.

Here It Comes - More Leading Economists Call For Capital Controls

Tyler Durden's picture


Submitted by Simon Black via Sovereign Man blog,

As the saying goes, ‘desperate times call for desperate measures.’

The phrase is bandied about so frequently, it’s generally accepted truth. But I have to tell you that I fundamentally disagree with the premise.

Desperate times, in fact, call for a complete reset in the way people think. Desperate times call for the most intelligent, effective, least destructive measures. But these sayings aren’t as catchy.

This old adage has become a crutch– a way for policymakers to rationalize the idiotic measures they’ve put in place:

  • Inflation-adjusted interest rates that are… negative.
  • Trillion dollar deficits.
  • Endless wars and saber-rattling
  • Unprecedented expansion of central bank balance sheets.
  • DIRECT CONFISCATION of people’s bank accounts.

But hey… desperate times call for desperate measures. I guess we’re all just supposed to be OK with that.

One of those desperate measures that’s been coming up a lot lately is the re-re-re-introduction of capital controls.

It started in late 2012, when both the European Central Bank and the International Monetary Fund seperately endorsed the use of capital controls.

For the IMF, it was a staunch reversal of its previous position, and Paul Krugman lauded the agency’s “surprising intellectual flexibility” a few days later.

The IMF then followed up in 2013 with another little ditty proposing a global wealth tax. The good idea factory is clearly working ’round the clock over there.

Lately, two more leading economists– Harvard professors Carmen Reinhart and Ken Rogoff– have joined the debate.

In a speech to the American Economic Association earlier this month, the pair suggested that rich economies may need to resort to the tactics generally reserved for emerging markets.

This is code for financial repression and capital controls.

The idea behind capital controls is simple: create barriers to restrict the free flow of capital. And if you’re on the receiving end, capital controls can be enormously destructive.

But for politicians, capital controls are hugely beneficial; once they trap funds within their borders, the money can be easily taxed, confiscated, or inflated.

Historically, capital controls have been used in ‘desperate times’. Too much debt. Too much deficit spending. Wars. Huge trade deficit. Intentional currency devaluation. Etc.

Does any of this sound familiar? It’s no surprise that policymakers have once again turned to this ‘desperate measure’. They’re already here.

Iceland has capital controls, over five years after its spectacular meltdown. We can also see capital controls in Cyprus, India, Argentina, etc.

I’ve been writing for years that capital controls are a foregone conclusion. This is no longer theory or conjecture. It’s happening. And every bit of objective evidence suggests that the march towards capital controls will quicken.

This is a HUGE reason to consider holding a portion of your savings overseas in a strong, stable foreign bank where your home government won’t as easily be able to trap your savings.

Other options including storing physical gold (even anonymously) at an overseas depository. Or if you’re inclined and tech savvy, you can also own digital currency.

But perhaps the best way to move some capital abroad is to own foreign real estate, especially productive land.

Foreign real estate is not reportable. It’s a great store of value. It generates both financial profits and personal resilience. It’s a LOT harder to forcibly repatriate. And it ensures that you always have a place to go in case you need to get out of Dodge.

Even if nothing ‘bad’ ever happens, you won’t be worse off for owning productive land in a thriving economy.

Like I said– desperate times don’t call for desperate measures. More than ever, it’s time for a complete reset in the way we look at the most effective solutions. These options are certainly among them.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/23/2014 - 15:30 | 4359879 krispkritter
krispkritter's picture

The best place to be 'Leading Economists' is over a cliff...

Thu, 01/23/2014 - 15:32 | 4359891 Canadian Dirtlump
Canadian Dirtlump's picture

I was going to say to the bottom of a lake, but the assholes may find my silver so I'll go with your plan.

Thu, 01/23/2014 - 15:33 | 4359898 fonestar
fonestar's picture

The economedians can bring it!  My funds are with Satoshi now.

Thu, 01/23/2014 - 15:38 | 4359916 Doña K
Doña K's picture

Satoshi already cashed his stash. You are on your own at the mercy of .gov's when they find out they can not tax it or control it.

Thu, 01/23/2014 - 15:47 | 4359943 fonestar
fonestar's picture

It would be a pretty big deal if Satoshi tried to cash out.

Thu, 01/23/2014 - 15:52 | 4359963 Papasmurf
Papasmurf's picture

Satoshi is in bubble phase now.  I just received an email from Tiger direct, offering to exchange bitcon for computer stuff.

Thu, 01/23/2014 - 16:09 | 4360005 superflex
superflex's picture

I hear is also taking BTC


Thu, 01/23/2014 - 17:04 | 4360200 fonestar
fonestar's picture

Bitcoin has nothing to do with the .com bubble.  But Bitcoin will help enable some of the bold proclimations to come out from that era.

Thu, 01/23/2014 - 17:41 | 4360301 Son of Loki
Son of Loki's picture

It's no wonder the Chinese are sneaking Billions of dollars out of China.

Thu, 01/23/2014 - 19:49 | 4360734 boogerbently
boogerbently's picture

I'm in favor of higher taxes for everyone but me !

Fri, 01/24/2014 - 03:03 | 4361854 John_Coltrane
John_Coltrane's picture

An old campaign slogen:  "Dont' tax you, don't tax me, tax that fellow behind that tree"

Thu, 01/23/2014 - 15:55 | 4359968 0b1knob
0b1knob's picture

"This is a HUGE reason to consider holding a portion of your savings overseas in a strong, stable foreign bank where your home government won’t as easily be able to trap your savings."

There is a HUGE reason not to.   FATCA.  Its already so difficult that no overseas banks will take an account from the US.

Thu, 01/23/2014 - 15:58 | 4359981 fonestar
fonestar's picture

There's no reason to use traditional banks anymore (besides transfering to someone who has BTC, LTC, etc...).

Thu, 01/23/2014 - 16:25 | 4360059 NidStyles
NidStyles's picture

Fuck man, you're stupid.

Thu, 01/23/2014 - 17:01 | 4360186 fonestar
fonestar's picture

Banks love dipshits like you.  Brand loyalists, cradle-to-grave linear thinkers.

Thu, 01/23/2014 - 19:50 | 4360738 boogerbently
boogerbently's picture

Spoken like a true "progressive".

ALL change is good.!?

Fri, 01/24/2014 - 00:40 | 4361660 NidStyles
NidStyles's picture

Get over it, I haven't stepped foot in a bank for almost 10 years. You don't seem to understand much do you? It is amazingly easy to work around the banks in the US and do so with a rather comfortable standard of living.

Fri, 01/24/2014 - 00:35 | 4361653 Blano
Blano's picture

Kroger doesn't take BTC, kid.

Now back to the basement with you.

Thu, 01/23/2014 - 16:29 | 4360065 kchrisc
kchrisc's picture

In some extraction zones one can get around FACTA by setting up a shell corp.

Check into it.

While in the US, the way around it involves calibers and guillotines.


" is your right, it is your duty..."

Thu, 01/23/2014 - 22:48 | 4361321 RaceToTheBottom
RaceToTheBottom's picture

That is the reason for dual citizenship.  At least for the ultra wealthy. 

Sat, 01/25/2014 - 09:44 | 4366359 Oracle of Kypseli
Oracle of Kypseli's picture

<<<<< FATCA.  Its already so difficult that no overseas banks will take an account from the US. >>>>

FATCA has been delayed until July 2014. By then it may be repealed at least the one about reporting up to $10k. the one that you submit with your taxes must be more than $50k and $75k for couples. And it's not against the law. It also does not get taxed as long as there is no interest earned.

If you want to hide, you need to have another passport and proof of residence outside the states. Proof of residence you can buy for a few dollars in several countries with the water and electricity bill in your name.

Come on guys, you read zerohedge. You should know these by now.


Thu, 01/23/2014 - 15:57 | 4359977 css1971
css1971's picture

Major Seniorage.

Thu, 01/23/2014 - 15:44 | 4359917 Canadian Dirtlump
Canadian Dirtlump's picture

dwaynestar my good man, if you're ever in calgary I have a white cowboy hat for you ( as I do for all other zerohedgers ). If you ARE in calgary drinks are on me tonight. Your bitcoins are no good here.

Thu, 01/23/2014 - 15:45 | 4359940 fonestar
fonestar's picture

My brother lives in Calgary.

Thu, 01/23/2014 - 15:47 | 4359942 Canadian Dirtlump
Canadian Dirtlump's picture

drinks on me if you visit. srsly.

Thu, 01/23/2014 - 15:49 | 4359956 fonestar
fonestar's picture

I'm retired now, but I will try making it to the stampede this year.

Thu, 01/23/2014 - 16:19 | 4360038 FrankDrakman
FrankDrakman's picture

what benighted fools down arrow you for this? If native Canadians celebrate their culture by killing a seal with clubs, it's a glorious reminder of their ancient past. White people celebrate their culture and it's a sin. Feh.

Thu, 01/23/2014 - 17:01 | 4360192 fonestar
fonestar's picture

I'd love to go baby seal bashing but that's further north.  They only have coyotes in my neck of the woods and my .22mag does a number on them.

Thu, 01/23/2014 - 22:52 | 4361339 RaceToTheBottom
RaceToTheBottom's picture

I would bet that the group has a high correlation to the Putin Man-Crush group here at ZH.....

Thu, 01/23/2014 - 16:12 | 4360013 RafterManFMJ
RafterManFMJ's picture

I've never been down to Canada but if so I'll look you up.

Thu, 01/23/2014 - 17:14 | 4360223 fonestar
fonestar's picture

"down" to Canada?  Where do you live?  The North Pole?

Thu, 01/23/2014 - 22:37 | 4361257 Canadian Dirtlump
Canadian Dirtlump's picture

dear friend i would be honored.

Thu, 01/23/2014 - 15:54 | 4359970 Mercuryquicksilver
Mercuryquicksilver's picture

Your "funds" are 2 bitcoin. At least walk the talk.

Thu, 01/23/2014 - 17:03 | 4360196 fonestar
fonestar's picture

How many BTC do I have?  How many LTC?

Thu, 01/23/2014 - 19:36 | 4360697 BigJim
BigJim's picture

We have been wondering. You must be up to a couple of each by now.

Thu, 01/23/2014 - 20:06 | 4360781 fonestar
fonestar's picture

How many wallets do I manage?  On how many machines?   It should be easy for you to determine, since according to you this is a totally trackable system?

Here's a tip... stick to the 20th century, it's a simpler place.

Thu, 01/23/2014 - 22:56 | 4361358 joego1
joego1's picture

What if you go blind and your dog eats your bitcoin charger?

Thu, 01/23/2014 - 23:34 | 4361498 fonestar
fonestar's picture

I would continue seeing the white light and my dog would become extremely rich and blessed of Satoshi.

Fri, 01/24/2014 - 00:41 | 4361666 NidStyles
NidStyles's picture

You sound like a NAZI dude, no shit. You should learn to relax a bit, before you start going loony.

Thu, 01/23/2014 - 22:40 | 4361281 Spanky
Spanky's picture



How many BTC do I have?  How many LTC? -- fonestar

Frankly my dear, I don't give a damn.

Thu, 01/23/2014 - 21:58 | 4361136 wallstreetapost...
wallstreetaposteriori's picture

Mt Gox bitcoins charts looking pretty weak..... what happens to Satoshi when it all crashes?  

Thu, 01/23/2014 - 15:36 | 4359907 Rider
Rider's picture

If one of those punks takes my money, I will take his a$$ in exchange.

Are you feeling lucky... punk?

Thu, 01/23/2014 - 15:48 | 4359953 CPL
CPL's picture

Dude, they've been taking it for years and you didn't even notice them doing it. 

It's called inflation.

Thu, 01/23/2014 - 16:15 | 4360021 pods
pods's picture

I drink your milkshake.


Thu, 01/23/2014 - 16:15 | 4360024 Kirk2NCC1701
Kirk2NCC1701's picture

Why so "final"?  Allow them a chance at redemption.  Instead, lead them to...

A labor camp.  Motto:  Arbeit Macht Frei (Work is Liberating)

Thu, 01/23/2014 - 19:48 | 4360731 johngaltfla
johngaltfla's picture

"Leading Economists" need blindfolds, cigarettes and a .30-06 head shot.

Thu, 01/23/2014 - 23:23 | 4361461 jerry_theking_lawler
jerry_theking_lawler's picture

why waste the lead/copper on such a large bullet... a .22 will do the job handily.

Fri, 01/24/2014 - 04:37 | 4361914 OldPhart
OldPhart's picture

A fuck wasting a good smoke on shit like that...

Thu, 01/23/2014 - 15:30 | 4359881 imbtween
imbtween's picture

I'm shocked. SHOCKED.

Thu, 01/23/2014 - 15:48 | 4359951 Ignatius
Ignatius's picture

Long duct tape and bailing wire.

What a fucked up financial system.

Thu, 01/23/2014 - 15:31 | 4359887 madtechnician
madtechnician's picture

Bitcoin , Bit-chez

Thu, 01/23/2014 - 15:32 | 4359894 CrashisOptimistic
CrashisOptimistic's picture

Absolutely.  All the other silliness about bitcoin is just that, silly, but when it comes to capital controls NOTHING else provides any portability.

Thu, 01/23/2014 - 15:42 | 4359924 slightlyskeptical
slightlyskeptical's picture

When it comes to that they will just freeze bitcoin balances until all parties can be identified. If they have to shut off the pipes that is what they will do.

Thu, 01/23/2014 - 15:47 | 4359950 DontGive
DontGive's picture

They would have to try really hard... tunneling through to bypas their packet inspection is not too difficult. Shutting off everything would be a losing proposition, even for them.

Thu, 01/23/2014 - 17:25 | 4360261 fonestar
fonestar's picture

It's funny that the morons here can't seem to grasp the enirety of some statement like, "oh, they'll just turn off the internet" like it is some trivial thing.  It would be like a country willingly shutting down all of its airports, shipping ports, railroads, highways, mines, power plants, etc.


Dumb.  Dumb.  Dumb.

Thu, 01/23/2014 - 19:43 | 4360692 TheReplacement
TheReplacement's picture

They can certainly shutdown the commercial internet and still keep .gov, .mil, and .bank running.  If they are desperate enough they can shut you down, period.  Besides, with the NSA's ability so see things, like your screen, they can probably just collect bitcoins straight from your wallet if you keep it on a connected device.  If they do not have that capability you can be sure they are looking into it.


NSA Traitor, "Look fonestar went to the store.  Let's rape him!"

Clicks and clacks.

NSA Oberfuhrer, "Take them all, I'm buying a new TV/car/hookers-and-blow tomorrow."


Rule #1:  Never underestimate your enemy. 

You guys are breaking that rule.  I don't know how wrong you are but they have more capability than you understand.  I hope that it doesn't end up hurting you.  Just be wary, very, very wary.


Thu, 01/23/2014 - 19:56 | 4360760 ArmyofOne
ArmyofOne's picture

"Besides, with the NSA's ability so see things, like your screen"


I got a picture of my Johnson throwing the white paint as my screen saver.  Fuck You NSA...wait a tick, there a knock at my door, be right back. 

Fri, 01/24/2014 - 03:41 | 4361877 madtechnician
madtechnician's picture

"They can certainly shutdown the commercial internet and still keep .gov, .mil, and .bank running." - This is absolute rubbish. Every internet gateway and router in the US would need to be replaced with new hardware. Even then people would find ways to circumvent this. You clearly have absolutely no idea what the fuck you are talking about. Do you realise what now runs over the internet ? - think about power districbution , reatail sales , Air Traffic Control , the phone network & radio , shipping , navigation , the list is endless shutting sections of that down without blocking the essentials would quite simply be technically impossible.

Thu, 01/23/2014 - 16:04 | 4359992 tmosley
tmosley's picture

Shut off the circus machine?

Are you NUTS!?

Thu, 01/23/2014 - 16:30 | 4360067 Matt
Matt's picture

America is probably one of (if not the only) the only nations with the power to really squash or control bitcoin. Any other country, you're probably safe.

Fri, 01/24/2014 - 03:42 | 4361881 madtechnician
madtechnician's picture

If bitcoin is still operates outside of the US , then bitcoin is still operating. It does not acknowledge borders.

Fri, 01/24/2014 - 14:22 | 4363453 Matt
Matt's picture

The NSA can access the major internet routers throughout Europe, Australia, Canada and more, and from there, they could just send TCP reset packets to all bitcoin clients, thus disrupting the network to the point of non-function.

Thu, 01/23/2014 - 16:30 | 4360071 DoChenRollingBearing
DoChenRollingBearing's picture


I doubt it.  Too much for even TPTB to lose.

Fri, 01/24/2014 - 03:25 | 4361868 madtechnician
madtechnician's picture

freeze bitcoin balances ? how the fuck can anybody do that ?

Thu, 01/23/2014 - 15:32 | 4359889 maskone909
maskone909's picture

give me your cocktail, fruit!

Thu, 01/23/2014 - 15:57 | 4359978 maskone909
maskone909's picture

Does the author of this article work with Casey Research?  Doug Casey says alot of the same stuff. 

Thu, 01/23/2014 - 15:33 | 4359896 Stoploss
Stoploss's picture

"This is a HUGE reason to consider holding a portion of your savings overseas in a strong, stable foreign bank"

So, you just told me that foreign banks have capital controls...

Now you want me to move my paper to a foreign bank...


Are you out of your fucking mind Simon??

Thu, 01/23/2014 - 15:37 | 4359912 maskone909
maskone909's picture

the only deposits i will be making are in my lady friends.  right after i withdraw of course.

Thu, 01/23/2014 - 16:00 | 4359984 CPL
CPL's picture

Yar!!  A string of pearls in yer booty!

Thu, 01/23/2014 - 16:14 | 4360017 maskone909
maskone909's picture

Aye! plunderin booty with me trusty LongDongCopper.  These be treacherous waters so best a-wear ur rubber coat for the one-eyed willy


Thu, 01/23/2014 - 17:30 | 4360279 CPL
CPL's picture

Many a good sailor has been caught with barnicles on his boat's rope while fishing for the bearded clam.  It's a sad story indeed....yarrr!

Thu, 01/23/2014 - 15:46 | 4359944 eclectic syncretist
eclectic syncretist's picture

He's suggesting you move to or open an account in a historically safe-haven type country like switzerland, for instance

Thu, 01/23/2014 - 15:54 | 4359965 redpill
redpill's picture

A couple years ago he suggested people open an account in Panama, right before their government completely rolled over and gave up all the personal information of depositors to the U.S. Treasury Department.  So even if it is a stable bank today, it is no guarantee they won't give you up tomorrow.

Thu, 01/23/2014 - 15:57 | 4359979 ParkAveFlasher
ParkAveFlasher's picture

Simon keeps his wealth in gold watches and portable time-travel devices stashed in shoe boxes underneath the beds of his numerous teenage Bolivian novice-consorts.  His strategy is not for the beginner or nouveau-riche, mind you!

Thu, 01/23/2014 - 16:17 | 4360034 pods
pods's picture

He doesn't usually consort with Bolivian girls, but when he does...............

Stay thirsty my friends.

Thu, 01/23/2014 - 16:15 | 4360025 SilverRhino
SilverRhino's picture

I'll stick with oddball PGM metals .... iridium, osmium ... cannot ever be counterfeited. 


Thu, 01/23/2014 - 16:39 | 4360107 DoChenRollingBearing
DoChenRollingBearing's picture

An interesting observation for sure.  There is NOTHING as heavy (dense) as Ir and Os.  Very true they can't be counterfeited, or at least fakes not be exposed by careful observation.

From an investment standpoint Ir might be a better case, as it is slightly more used.

Osmium has very few uses (very hard, high melting point, toxic oxides), but it is very rare.

But, the buy/sell spreads of Os and Ir are probably very steep.

(I own 1 oz of Os)


Consider owning platinum.  It is also more than marginally heavier than gold and much more liquid.

Thu, 01/23/2014 - 17:01 | 4360189 SilverRhino
SilverRhino's picture

7% spread on Iridium where I can buy it ... 12% over spot for purchase.   

Osmium on the other hand has about 100% markup for some weird reason.


Thu, 01/23/2014 - 15:39 | 4359897 Dr. Engali
Dr. Engali's picture

WTF !? There are no strong stable foreign banks. Every one of them are wrapped up in this ponzi. The only way to reduce the odds of not getting caught up in the madness is not to participate. Even then chances are you will be sucked into this global mess.

Thu, 01/23/2014 - 15:48 | 4359946 SmallerGovNow2
SmallerGovNow2's picture

Beat me to it Doc.  You don't hold it you don't own it...  period.

Thu, 01/23/2014 - 15:53 | 4359966 Dr. Engali
Dr. Engali's picture

Great Hoosier minds.

Thu, 01/23/2014 - 17:03 | 4360194 HoofHearted
HoofHearted's picture

Count a third (new) Hoosier that would agree with you completely. People don't understand how great this state is...right up there with Texas.

Thu, 01/23/2014 - 22:20 | 4361187 Spanky
Spanky's picture

Lived in Texas before the great yankee migration began in the mid 70s. Good place to live back then. Sucks now. Yankee go home.

[Edit] Miss you Molly. Bless you, wherever you may be.

Thu, 01/23/2014 - 15:58 | 4359982 Gief Gold Plox
Gief Gold Plox's picture

Good point Dr.

I've stopped paying attention to Simon's posts. They're all pretty much full of shit. I only wish it would say "posted by simon black" instead of "Tyler" so I wouldn't be tricked into clicking the link to begin with.

Thu, 01/23/2014 - 17:56 | 4360356 TuPhat
TuPhat's picture

Agree with you about Simon.  Why would I put my PM coins in a foriegn country where I can't count them when I want to?  Might just as well have bitcoin, can't stack that either.

Thu, 01/23/2014 - 16:04 | 4359990 AmericasCicero
AmericasCicero's picture

The only way to win is not to play.

Thu, 01/23/2014 - 16:24 | 4360054 Greenskeeper_Carl
Greenskeeper_Carl's picture

any bank the appears strong and stable will be sucked into this global mess, no doubt about it. And the usgov bullys them all into disclosing everything anyway. And if there really is some kind of lockdown, how are you going to get your gold in one of these countries. Who says that country doesnt just confiscate anything owned by foreigners. Physical possession is the most important thing

Thu, 01/23/2014 - 15:36 | 4359903 Gene Parmesan
Gene Parmesan's picture

Why would I want to keep physical gold holdings in a foreign country? Oh, right - it fits with your blog's theme.

Thu, 01/23/2014 - 15:37 | 4359910 LawsofPhysics
LawsofPhysics's picture

Let me clear; "When fraud is the status quo, possession is the law.

Thu, 01/23/2014 - 15:54 | 4359969 Papasmurf
Papasmurf's picture

When fraud is status quo, possession is prudent.

Thu, 01/23/2014 - 15:36 | 4359904 LawsofPhysics
LawsofPhysics's picture

Well them, let these fuckers implement these suggestions amongst themselves first.

Thu, 01/23/2014 - 15:35 | 4359905 delivered
delivered's picture

A while back I read an article presented by so called leading economists that four strategies would be needed to control/contain/correct the massive debt problems associated with the world's largest economies - Debt restructuring, capital controls, wealth taxes (one time, right!), and inflation. So let's go down the list. Debt restructuring - Check (Greece and others soon to follow). Capital controls - Check (India with gold and so to follow in imploding emerging markets). Wealth taxes - Check (Cyprus is just the start). Inflation - Check (Japan's latest experiment). 

We are in the grand beta/pilot program stage of these four strategies across the globe with the elite watching each one closely to then "roll out" on a grand scale. The emerging markets are the canaries in the coal mine now as what's happening in Venezula, Argentina, Turkey, Ukraine, Thailand, and now China are the first "triggers" which are going to lead to a full scale conflict. Nobody ever seems to remember the triggers but they sure do remember the wars.

Thu, 01/23/2014 - 15:39 | 4359919 Grande Tetons
Grande Tetons's picture

In Canada and Mexico they have recently instituted tougher Money Laundering policies. Bla bla all comes down to capital controls. Anyone with business contacts in Mexico can find out how much businesses are freaking out right now. 

Thu, 01/23/2014 - 15:39 | 4359920 FrankDrakman
FrankDrakman's picture

Bullish for unfortunate boating accidents.

Thu, 01/23/2014 - 15:43 | 4359935 SmallerGovNow2
SmallerGovNow2's picture

This is a HUGE reason to consider holding a portion of your savings overseas in a strong, stable foreign bank ...

Uhhhh... please name one.  If you don't hold it you don't own it...

Thu, 01/23/2014 - 15:47 | 4359941 Saucy-Jack
Saucy-Jack's picture

Yeah, I'm going to buy fucking productive real estate in a foreign country or hold gold fucking coins in a foreign country. Yeah. Just brilliant. I live in America so I'll have easy access to my wealth overseas, right?

STFU Simon.

Thu, 01/23/2014 - 23:01 | 4361379 RaceToTheBottom
RaceToTheBottom's picture

"or hold gold fucking coins in a foreign country. Yeah. Just brilliant."

Gold coins that fuck are worth more than the ones that just lie there, ask any guy....

Thu, 01/23/2014 - 15:48 | 4359948 J Pancreas
J Pancreas's picture

Simon Black is a dildo. This is his first article, however, that I can stomach reading since he didn't regal me of his traveling in Nepal hiding cash and diamonds in an alpacas rectum.

Thu, 01/23/2014 - 15:51 | 4359959 maskone909
maskone909's picture


Thu, 01/23/2014 - 15:50 | 4359949 J Pancreas
J Pancreas's picture

dup. I down arrowed myself for it.

Thu, 01/23/2014 - 15:49 | 4359952 BeerMe
BeerMe's picture

these economists can join all the lawyers

Thu, 01/23/2014 - 15:49 | 4359955 Cannon Fodder
Cannon Fodder's picture

"Foreign real estate".... um what happens when that foreign government declares that all land owned by foreignors is now state property???

Thu, 01/23/2014 - 19:23 | 4360644 Meat Hammer
Meat Hammer's picture

It's in my exclusive report.  Send $49.99 to my PayPal account and I'll tell you.

Thu, 01/23/2014 - 15:55 | 4359971 Tinky
Tinky's picture

"Foreign real estate is not reportable."

Is that true? I somehow very much doubt it...

Thu, 01/23/2014 - 15:56 | 4359973 DIgnified
DIgnified's picture

"Things you own end up owning you."


-Tyler Durden

Fight Club (1999)

Thu, 01/23/2014 - 15:58 | 4359974 DIgnified
DIgnified's picture

If you cant carry it with you expect to have to have to abandon it.  


Best assets:

-Sturdy backpack


-Dry ammo

-Sheltering ability

-A method to procure food and water

Thu, 01/23/2014 - 16:20 | 4360043 SilverRhino
SilverRhino's picture

For one ounce of silver .... get 100,000 potential clean gallons of water.    

And you can make a damn sure GOOD bet that these will only get more valuable (aka TRADE GOOD)





Thu, 01/23/2014 - 16:30 | 4360069 DIgnified
DIgnified's picture

Those are indespensible.  Much lighter than gallons of bleach and filter cloth. 

Thu, 01/23/2014 - 16:01 | 4359985 Al Capowned
Al Capowned's picture

Bitcoin is going through all time high in the 60 days

Thu, 01/23/2014 - 16:08 | 4359987 falak pema
falak pema's picture

Given the propensity of ZH to produce ample evidence that the current system of QE printing is an Oligarchy ODE in favour of "rich is beautiful and filthy rich is excruciatingly beautiful"; aka the Virgin Islands, (run by the Maggie cabal), is the heart of China's new neofeudal Oligarchy private wealth;  we still hear in ZH, (after three years of participation in my humble case), the obvious contradiction of principle INHERENT in a two faced logic which foulmouths the reality of US private run economy, ---(the shut down the FED syndrome, house of Satanic evil)---, conjugated with the evil socialism manifested by Central planners of FED's CB in their desperate and unsustainable resuscitation of WS fantasy land.

Nay it is PURE communism, this overt protection of the FILTHY RICH, these Statist plays to neuter the Oligarchy market's casino stilt, now the Jack and the Beanstalk of the corrupt globalist Oligarchy ILK.  

Hmmm.... COmmusim rampant in Manhattan ??? Murders of Manhattan's Free Market, beacon of the free world,  by the likes of Woody Allen and Tribal Consorts of socialist bent from Hollywoodian, liberalist and international circles?

Aren't we mixing Cause and Effect, putting cart before horse, as ZH eloquently points out about the DEFLATIONARY bogey man scam blog posted this morning?

Its applies all too eloquently to ZH's OWN cabal against statist regulation to inhibit the cancerous Oligarchy market polluting the financial threads of the world real economy! 

Tyler Durdens have to know what they want : Its either the Oligarchy is the villain or its the STATE as exemplified by Elizabeth Warrren and her clique, Crusaders against TBTF bankster power.

You can't sit on the fence like Humpty Dumpty, ZH, between Heaven and Hell, and play at simpleton Humpty Dumpty, somewhere in LIMBO waiting for purgatory to play out.

CHoose your camp. I have said this often enough here. No FALSE NOSE of NWO Neo con America sleight of hand is ethically permitted by the so called LIBERTARIAN clique who pretend they still believe that the US is essentially a free market utopia, given the dire states of the world-- (Unless you be JAmie Dimon at Davos who sings Amerca has never had it so good as in emerging 2014, a new dawn of triumphant capitalism !).

And here is someone else who says the same thing in the name of the Democrat Cabal, as he has now understood its time to exploit the Tea PArty contradiction of Sarah Palin and ROn Paul. 

Are they really on the same team and WHAT TEAM IS THAT? .... :

Schumer, one of the Senate Democratic caucus' top political strategists, will discuss the plan in a speech at the left-leaning Center for American Progress on Thursday. He will argue that the Tea Party has a "fundamental flaw," and that Democrats can exploit it, according to a preview of his speech.

....Schumer will say that uber-wealthy conservative donors have used the grassroots anger born out of the 2008 financial collapse and the election of President Barack Obama to serve their interests. And he'll say that the interests of the average grassroots Tea Party member and the donors are fundamentally different.

"However there is a glaring weakness — one very weak link in the Tea Party’s armor — which is an inherent contradiction within the Tea Party that I believe can be exposed to greatly weaken their hold on the policy debate," Schumer will say, according to prepared excerpts of his speech provided to Business Insider by a Senate aide.

"The fundamental weakness in the Tea Party machine is the stark difference between what the leaders of the Tea Party elite, plutocrats like the Koch Brothers want and what the average grassroots Tea Party follower wants."

Read more:

Precision :  as a European I don't know Schumer from Adam !

Thu, 01/23/2014 - 16:14 | 4360022 esum
esum's picture

and what is it that the koch bros want that the "average" t party member doesn't want. THEY BOTH WANT SMALLER GOVERNMENT, LESS DEBT, AND LESS TAXES. period 

Libtards try to put words in the mouthes of the T party and libtards believe idiots like chuck u schummer, pelosi, reid, debbie waterbag schwantz and steve (anti) israel.... forget about obumbler.... no one bothers to listen to him anymore... he can stick his phone and his pen up his ass... 

Thu, 01/23/2014 - 16:47 | 4360116 falak pema
falak pema's picture

Yes, but that means cleaning out the Augean stables of the current WS economy; including Kochs wealth, as ZH has so eloquently demonstrated; the EQUITY icing, on top of the mega USD shit pile, will all go ploof!! 

AND THAT THEY DON'T want to lose; our way of life IS NOT NEGOTIABLE.

And, don't sing that stupid song of "we want small government"...COs the Oligarchy wealth has been built on the BIG STICK of MIC, aka big government par excellence.

The Libtards will be the first to sing we don't want to lose our pre-eminence, our accumulated wealth, to others like the CHINESE....They will sing Ron is a simpleton if EVER it means the US goes on a slimfast diet regime for ten years or more! Awesome and unacceptable for all of WS, libtards and neocons. They belong to the same house of cards, the financial cabal. 

Scratch a Papist or a Lutherian in the Renaissance and you found an Imperialist. Scratch a Libtard today and you'll find the same mindset; whatever they may SAY !

Humble pie is not their diet.

Thu, 01/23/2014 - 19:13 | 4360618 wisehiney
wisehiney's picture

Some people give Scumbag schumer more credit than he deserves. He is afraid and desperate for good reason. Don't let him impress you. 

Thu, 01/23/2014 - 16:08 | 4360003 esum
esum's picture

intellectual flexibility = weak mindedness

what cant libtards fuckup

Thu, 01/23/2014 - 16:17 | 4360027 juicemoney
juicemoney's picture

I see a lot of comments here calling this sensationalism.

The fact remains that the IMF has studied buil-ins and recommends them to member nations. Here is a study done by the IMF:

Bail-in's are being implemented across the EU and Canada, I would take this somewhat seriously.

Thankfully, I am not an American so FATCA is irrelevant to me (phew).

Thu, 01/23/2014 - 17:00 | 4360183 RebelDevil
RebelDevil's picture

Yup - It is the new template. Bailouts are over for the most part.
I've been telling people that "Your money is safer in your wallet than in your bank account when the next crisis comes up."
Most won't listen though, because they're too in love with debit cards, credit cards, and anuitities.

It will be very tragic for the poor if their accounts are seized, so spread the message ZH'ers!

Thu, 01/23/2014 - 16:17 | 4360028 esum
esum's picture

what is

100,000 lawyers, economists, liberals and politicians at the bottom of the atlantic


a good start

Thu, 01/23/2014 - 23:14 | 4361421 RaceToTheBottom
RaceToTheBottom's picture

Add Banksters to the mix and you are at least addressing the problems.

Thu, 01/23/2014 - 16:23 | 4360049 Battleaxe
Battleaxe's picture

They think that if they keep holding the needle on the speedometer @ 100 mph with their fat finger everyone will think the car is moving.

Thu, 01/23/2014 - 16:34 | 4360094 kchrisc
kchrisc's picture

Pols, crats and banksters have a one word motto: "Ours!"


"Unlike pols, crats and banksters, at least a street thug knows that he is a criminal."

Thu, 01/23/2014 - 16:35 | 4360099 bigrooster
bigrooster's picture

Ah economists.  Yet another group of worthless scum that I will be glad to see unemployed when the SHTF along with all government employees.

Thu, 01/23/2014 - 16:38 | 4360103 Road Hazard
Road Hazard's picture

Based on the title, I thought this was going to be an interesting article until I saw it was from simon black. Tyler, please stop linking to anything this dude writes.

Thu, 01/23/2014 - 17:34 | 4360134 LMAOLORI
LMAOLORI's picture




Money's safer in your mattress 

Thu, 01/23/2014 - 16:52 | 4360146 Kirk2NCC1701
Kirk2NCC1701's picture

The strongest bank I know of is the Bank of Certa & Sealy.  Affordable Private Banking.

Use them all the time:  Very discrete, no fees, 24/7 tellers. Reasonably secure: security limited by whom you allow into the bank.

Beyond that, to guard against the organized theft that Simon talks about, you have to realize that NO place on earth is 100% safe forever.  So what!  It is 99.99% irrational to think that all banks in all jurisdictions would betray that trust at the same time.  It is truly irrational if not insane to have all your fiat wealth in the same country that you live.  100% nuts.

Having your eggs in several baskets makes sense, as long as (a) you pick those baskets carefully, and (b) have ready access to said baskets.  This, however, may be easier said than done.

In practical terms, I'd keep some abroad... in 2 or 3 world regions.  This might mean having a nominal bank account plus a SD box, with some cash and Au in said SD box. 

You don't have to be rich to do this; even middle-income people can do it.  Although it's getting tougher for one particular world citizen, on account of their far-reaching shakedown org, i.e. US citizens and the global tentacles of the IRS.  It's a LOT easier for everyone else, than for those in the "Land of the Free, and Home of the Brave" -- ironically enough.  That is why having a second citizenship helps in opening and using said banks accounts. 

You're not doing anything immoral or illegal in all this, you're just taking your Constitutional Rights very seriously.  BTW, Dual Citizens (especially those in positions of great power & influence in the US) use this as a Normal way to bank.  Savvy?  Why would anything less be acceptable to you, unless you're a sheep that likes to get... 'shagged' and sheared?

Thu, 01/23/2014 - 16:55 | 4360163 I Write Code
I Write Code's picture

I don't know that this is a bad idea but as usual the devil is in the details.

I think the answer to many of the US's economic problems call for protectionism, because actual evidence from modern economies says it is necessary and Ricardo is outdated, wrong.  Protectionism for capital is another aspect.  At least, a moderate form, if there is such a thing.

Though I'm sure most of what they are worried about is capital flows TO the US, not FROM the US.

Thu, 01/23/2014 - 16:58 | 4360174 NuYawkFrankie
NuYawkFrankie's picture

And Desperate Times call for desperados...

Thu, 01/23/2014 - 17:04 | 4360199 Spungo
Spungo's picture

I'm investing in Dogecoins

Thu, 01/23/2014 - 17:07 | 4360204 withglee
withglee's picture

There's only one way to properly drive an economy. That is to "leave it to the traders ... they are the economy". Money is "a promise to complete a trade". It is created by traders making trading promises. It is extinguished by traders completing their trades as promised. DEFAULTs are mitigated by an equal amount of INTEREST collections guaranteeing INFLATION to be zero at all times everywhere. The relation is: INFLATION = DEFAULT - INTEREST.

It is in traders' interest to have a properly managed Medium of Exchange (MOE). This is not so for bankers and governments. Traders need to tell bankers and governments to shove it. They need to create and manage their own MOE, but do it properly. If done properly, no other MOE can compete.

Traders didn't go to bankers and governments to "insure" their trades (probability of those three masted schooners going to the bottom was not small). They created their own insurance companies. Managing the MOE is exactly like managing an insurance company.

Todd Marshall
Plantersville, TX

Thu, 01/23/2014 - 19:49 | 4360733 BigJim
BigJim's picture

How many times do you have to have your errors pointed out to you before it sinks in that you're talking horseshit?

Fri, 01/24/2014 - 10:30 | 4362460 withglee
withglee's picture

Once. Point away.

Thu, 01/23/2014 - 18:19 | 4360263 Hongcha
Hongcha's picture

I am persuaded the last few years to remain in the U.S. and keep my assets here.

When (not if) alarming, roiling events start to happen, air travel, money wiring and the heavy hand of desperate governments are each in their own way going to make bringing to yourself or travelling to your foreign-held assets difficult.

For instance, never in a thread but from me have I heard anyone say, "what if xyz govt. shuts or severely curtails  the www?  No one seems to think that could happen.  I am beginning to think many iKidz have not travelled much.

Air travel may become very expensive and very dicey; likewise visas.  Then you need the foreign govt. to recognize your entitlement to xyz RE, cash, et cetera.

You have to have a personal vision of how it will go down - I think we see a sudden diminution in the dollar or a major event in the oil-producing M,E,, either of which are capable of driving gasoline prices beyond middle-class day-to-day tolerance; or capital controls.  It happens overnight say on a Sunday, you wake up and normal life is ovah.  That's all it would take.  National Guards at the pumps and the Safeways, mobs in the street.  Everything else mentioned follows, all the horsemen of the apocalypse  ride in on the wake of that event, since we are dependant on that oil.

I also know the language and the culture; and I can pass very well for a Laomei in the United States ...

Thu, 01/23/2014 - 22:35 | 4361249 joego1
joego1's picture

I think you have a point. Everything is rosy if your currency and government are on good terms but should the dollar start looking shaky things could become very different for a person living abroad.

Thu, 01/23/2014 - 17:36 | 4360286 Stuck on Zero
Stuck on Zero's picture

I like Capital controls.  Especially when you control everyone in the Capital by putting them in cuffs and turning them over to a tar and feathers mob.


Thu, 01/23/2014 - 18:33 | 4360479 22winmag
22winmag's picture

I have more respect for a thief in the night than these pen-wielding white collar criminals.

Thu, 01/23/2014 - 20:18 | 4360811 smacker
smacker's picture

Someone should ask the political slimeballs how it is that capital controls are slowly and discreetly being introduced when they are peddling the idea that recovery is slowly happening. They cannot both be true.

Is there a single financial journalist with the balls to ask?

Thu, 01/23/2014 - 22:34 | 4361247 the0ther
the0ther's picture

There is still capital? Learn something new everyday. Thought it was all sunk into international arms and drugs sales.

Well as someone with no capital all I can say is HA HA!

Thu, 01/23/2014 - 23:18 | 4361283 RaceToTheBottom
RaceToTheBottom's picture

In this case, Capital Controls are just a natural outgrown the removal of the free hand of the marketplace in order to subsidize WS Banksters.  What? they thought there would be a free lunch and a house in the Hamptons?


If you don't like it, blame a Bankster Fuckhead.

Thu, 01/23/2014 - 22:54 | 4361340 Son of Captain Nemo
Son of Captain Nemo's picture

What a banner day?!!!

  • Inflation-adjusted interest rates that are… negative.
  • Trillion dollar deficits.
  • Endless wars and saber-rattling
  • Unprecedented expansion of central bank balance sheets.
  • DIRECT CONFISCATION of people’s bank accounts.

Think I'll flip a coin for the next best vacation beach resort

Heads: Mosey on down to Baja and find some more of those conjoined baby Gray Whales to play with.

Tails: Bring my geiger counter to the Banzai pipeline and watch them surf the 20' footers in their radiation protected diving suits.  By this time next year they may be dead before the surf they first big wave of the day!

Decisions... Decisions...

Thu, 01/23/2014 - 22:59 | 4361365 joego1
joego1's picture

It's about time they start controlling those mangy dogs in the capital.

Thu, 01/23/2014 - 23:21 | 4361453 Constitutional ...
Constitutional Republic's picture

Power exists first and foremost to preserve itself. Exchange controls, capital controls, fascism is coming, as the international financiers, rootless cosmopolitans led by central banks and the Trilateral Commission shift their money power from West to East, their newest wage slave place, the neo feudalism under 'globalization'.

End the Fed. End the monarchy. That will end the globalized wars, under the mask of 'humanitarian intervention' too.

Fri, 01/24/2014 - 03:44 | 4361886 401K of Dooom
401K of Dooom's picture

But, but everybody this is for the poor, needy and the downtrodden.  Who will take care of the less fortunate?  Who will protect the defenseless?  You are just as bad as the <sarc>MEANSPIRITED</sarc> Right-Wing who takes food out of the mouths of children.  Just give up more of your money "for the children."


Btw, when I say this, I say it as an Ivy-league graduate with seven to nine figures of assets that are protected by a trust or some kind of strange tax shelter that is more complicated than Quantum Mechanics.

Fri, 01/24/2014 - 04:15 | 4361905 Zero Point
Zero Point's picture

I'd be pretty wary of owning land overseas as a safety mechanism. I'd say foreign landowners would be one of the first targets of a government with an emergency on it's hands.

Fri, 01/24/2014 - 05:10 | 4361934 madtechnician
madtechnician's picture

Yes there has been a very long history of land and property confiscations from foreigners. Even domestic owners can have their properties taken under nationalisation. Metals are extremely easy to confiscate they are easy to detect. Cash in accounts is prime target , cash value under the matress can be hyperinflated away. Bitcoin , Bit-chez ....

Fri, 01/24/2014 - 10:23 | 4362425 manich
manich's picture

A wealth tax sounds good to me. Just hit up the top 1% to get back some of the "free money" sent their way by Benny.

Do NOT follow this link or you will be banned from the site!