I’ve been saying for the past few years that capital controls will become inevitable fact of daily life in America and indeed Europe.
Well chaps this has finally become a horrid reality and has finally hit the mainstream banking system, I can’t say that I am really surprised after all it was only earlier this year that the tiny island nation of Cyprus was used as a litmus test to gauge and measure the public’s reaction to the introduction capital controls.
The document below is an actual letter received from a US bank, Chase customer: .
Ask yourself what rational company large or small will invest in factories, offices, or staff in the USA if it becomes home to capital controls, and out of control government spending, and the highest corporate tax rate on the planet? I suspect this will lead to decline in foreign direct investment and brain drain out of America to Asia, after all why would any maverick entrepreneur want to do business in a country that slaps capital control and then stings your firm with a massive corporate tax rate?