When Will The U.S. Profligacy Come To And END?

Must Read: Fed Employees Rollout A Bold Idea To Trap The Entire Country’s Wealth

06.02.2014    BY KELLY BROWN - Wealth Reporter

Free market economists are not going to be happy about this...

A major financial news source just published shocking details about a research report by two employees at the Federal Reserve Bank. The 36-page report applauds the use of “capital controls” in global markets.

If you’re unfamiliar with the term “capital controls,” it’s probably because we tend to avoid them in the United States in favor of a free market economy.

Capital controls are simply laws that regulate and restrict what you are allowed to do with your money by regulating the flow of cash in and out of a national economy. The laws define such things as where you can invest your cash and how you can allocate your assets.

If you take a look around the globe, you’ll see several recent examples—almost always from countries experiencing a currency crisis:

• In Cyprus...some citizens cannot withdraw or write checks for more than €300 per day from their own accounts. These controls were put in place after the Greek debt crisis of 2012 and are set to continue until year-end.
• In Iceland...capital controls imposed in 2008 have blockaded offshore investors from selling $7.2 billion in assets.
• In Argentina...citizens must pay an extra tax on vacations abroad.
• In the Ukraine...recent tensions sparked a series of capital controls. Ukrainians must wait six working days before making any type of foreign currency purchases. In addition, they cannot exchange more than the equivalent of $5,800 USD within a given time period.

You might be wondering… how are these draconian laws “a useful tool for managing financial stability” as the recent Fed paper says?

Well, the Fed research claims that capital controls would protect the U.S. dollar from the effects of rapid cash movements...

Of course, the only countries that are worried about capital controls are those deeply worried about a currency crisis.

According to Steve Hanke, a professor of applied economics at Johns Hopkins University in Baltimore, “Capital controls signal that a country is very worried about preserving its foreign exchange....That means bad things are in the wind.”

SEE ALSO: Is your state as broke as these places?

For more than 50 years, Americans have never really thought twice about the value of our currency.

But times are rapidly changing. And most Americans don’t realize that the greatest weapon in our nation’s arsenal is not our military might or our education system, but the simple fact that the U.S. dollar is the world’s “reserve currency.” As such, our money forms the basis of the global financial system. And banks around the world hold our dollars in reserve against their loans.

That’s why, for the past few decades, we have been able to print and borrow trillions of dollars, with no real negative impact.

We are the only country in the world that does not have to pay for imports in a foreign currency. We can rack up enormous debts and then print more money.

But this exorbitant privilege could soon expire, because many of the most powerful countries around the world (including China and Russia) are looking for a new world reserve currency.

And when the U.S. dollar is no longer the world’s reserve currency… when we can no longer print money and borrow absurd sums without consequence– we are in trouble.

One financial guru, Porter Stansberry, believes this currency collapse in America is actually going to happen much sooner than most people think. He says that’s how currency collapses happen… gradually… slowly… then all of a sudden. And Mr. Stansberry has an uncanny track record of predicting some of the biggest moves in the economy over the past decade. In 2006 he announced GM would go bankrupt and in 2007 he predicted Fannie Mae and Freddie Mac would also soon go bankrupt. Both of his predictions came to fruition.

WATCH: Learn more from Porter Stansberry, here.

Now Stansberry says the next big collapse could be America’s currency. And even though most Americans think this could never happen… not here…Stansberry believes new laws set to go in place on July 1st 2014 will dramatically accelerate this process.

A currency crisis will be bad for all Americans. But it will be especially devastating to seniors, most of whom are no longer working, rely on the government for income and healthcare, and have not diversified any money out of the U.S. dollar.

What is this law that was secretly passed by the Obama Administration… and how will it affect you, your money, and the U.S. dollar?

Stansberry and his Baltimore-based research team have put together a free slide presentation that explains everything you need to know. Get the facts and protect yourself here.

SEE ALSO: The catastrophic events planned for July 1, 2014

My comments: Common sense tell you that the U.S. cannot continue to print worthless dollars forever. Just as it cannot continue to spend more than it takes in forever or pay the interest on the ever expanding National Debt forever. There will be a day of reckoning. The U.S. printing of worthless money steals from everyone who holds U.S. dollars, it is an dishonest scale that God Almighty hates [Proverbs 11:1]. The U.S. is therefore a robber.  How America's profligacy will end is not known, but it will be a catastrophe for every American when it does. This reality is an indictment of Obama and all who lead America.