People are still skeptical that banks in the U.S. will try to confiscate their accounts. They are wrong. Chase Bank is now limiting cash withdrawals for its business customers, and suspending their ability to send wire transfers both internationally and domestically. Interesting that they aren’t allowing wire transfers out of the country. This is another step along the road to capital controls (from Wikipedia):
Capital controls are residency-based measures such as transaction taxes, other limits, or outright prohibitions that a nation’s government can use to regulate flows from capital markets into and out of the country’s capital account.
Types of capital control include exchange controls that prevent or limit the buying and selling of a national currency at the market rate, caps on the allowed volume for the international sale or purchase of various financial assets, transaction taxes such as the proposed Tobin tax, minimum stay requirements, requirements for mandatory approval, or even limits on the amount of money a private citizen is allowed to remove from the country.
Capital controls are essential if you plan to kill the dollar.
And while $50,000 might seem like a lot of money, it is small change for a successful small business. And you have to understand that the limit includes the total of cash deposits and withdrawals in a one-month time span. Two payroll cycles alone will get most small businesses to the limit.
Today it’s businesses. Next week it will be everyone else…