A man I know works in a major British bank in the risk assessment department. He writes reports for the board of directors and attends board meetings. He told me that the heads of all the banks meet once a month to collude on strategies.
One of the reports he saw was a pdf of the new exchange control regulations drafted by the European Central Bank.
The central banks are terrified of capital flight as Europeans flee the collapsing euro. The new laws will prohibit holders of euros changing them into Swiss francs, or US dollars, or any other currency.
And the document he saw said that cross-border flows of the euro will be disallowed.
So a Frenchman sending euros to Germany escaping the bankrupt French banks, will not be allowed to move his money, or withdraw it in any large sums. People will only be allowed to use their money in the European country in which they live.
In the Mexican crash (1994) they imposed exchange controls while the peso lost over 90% of its value, people were wiped out of their life’s savings. The same happened in Argentina (1999-2002).
The idea is to imprison people financially as their money becomes ever more worthless.
Get cash out, buy gold and keep the receipt. In Singapore the banks won’t buy your gold unless you can prove where you got it from.
My contact says he does not know when the new controls will be activated but all the banks know about it, and the exact timing will do with the extent of capital flight.
If money starts to leave the eurozone in very large sums then the controls will come in overnight. The banks all know Greece is leaving the euro, they call it Grexit.
© 2012 — Stuart Wilde.
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