Tags: Bank | HSBC | Chase | withdraw

Beware: Capital Controls Creeping In

By    |   Wednesday, 29 Jan 2014 07:13 AM

The war on our personal freedom and liberties rages on.

I have a fierce stream of capitalism ingrained in my psyche. I strongly believe in fair pay for hard work and adequate rewards for risks taken. I believe that these were the core foundations on which America was built. Being an immigrant, I had to strive for the "American Dream" and work hard as well as smart to make it a reality.

It infuriates me to see the system encroach upon our rights and make us pay for their mistakes. The arrogance of the government is astounding. While we elect them, they turn on us with our money and enslave us to their overreach.

The latest event that frustrates me is what happened in England a few days ago. HSBC Bank in the United Kingdom is technically bankrupt. While it is not the only one in that position, it is certainly one of the worst offenders. What is keeping it afloat is the eyewash that the U.K. government's stress test and how it lets most banks get away with.

On Jan. 24, the news broke that HSBC in the United Kingdom was restricting customers from withdrawing large amount of cash from their accounts. If you needed to withdraw 10,000 pounds or even 5,000 pounds, the bank wanted to know why you needed that cash and to write a letter explaining your needs for cash before they considered giving you your own cash.

What!

While this act is draconian by itself, the icing on the cake is when asked, the bank mentioned that this was a policy change they had implemented in November. They had sent a large (in fine print) copy of terms and conditions to their customers, buried it somewhere in there and therefore did not have to notify customers of their change. They were sticking to their claim that this change was for the good of the customer, as the bank was helping them fight scams and terrorism.

Obviously there was a huge outcry against this move and HSBC had to reverse their action within a few days. Today they have withdrawn their action, but will they withdraw their misdeed the next time? What about the time after that?

Before you say, this may have happened there but can never happen in the Land of the Free, let me just tell you that it already has happened here.

Back in October, Chase Bank sent letters to its small business customers restricting them from sending wire transfers overseas. Yep! The bank gave the customers one month's notice to say that after 30 days, the business would not be able to wire funds abroad. Period! The end! No reasons why, no cause of this action, nothing!

Of course, this was not received well by the customers and there was a major uproar, and yes the bank first denied and then withdrew this action, but once again, they had already made the changes in the terms and conditions and was now merely acting upon this change.

Going slightly back in time, the bank crisis in Cyprus was one where the banking system was successful in stealing 10 percent of the people's wealth. The bank crisis reached a crescendo there and on a Friday the banks closed, the government swung into action and before the banks opened on Monday, laws were passed that all accounts over 100,000 euros would be 'taxed' 10 percent and receive worthless bank shares in exchange. Rumor has it that the chairman of the FDIC and the U.K. chancellor wrote the Cyprus bailout plan.

So if I were you, I would not assume my cash is safe in the banks or I can take money out of the United States anytime I want. I would start diversifying now before the capital controls come in and stay this time.

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The war on our personal freedom and liberties rages on.
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2014-13-29
Wednesday, 29 Jan 2014 07:13 AM
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