SGM Metals: Spain Launched Currency Controls to Forcibly Keep Money in the Country!

June 28, 2012 - PRLog -- globaleconomicanalysis.blogspot.com reports {Capital Controls Hit Spain: Government Laws Prohibit Cash Transactions Over €2,500; Minimum Fine of €10,000 for Failure to Report Foreign Accounts

If Spain is seeking further instability, a new law on financial transactions is sure to do just that. Via Google Translate, Spain passes a law limiting cash payments to 2,500 euros.
Key Provisions

   Minimum fine of  €10,000 for taxpayers who do not report their foreign accounts.
   Fine of  €5,000 for each additional account
   Cash transactions greater than €2,500 prohibited
   Cash transaction restrictions apply to individuals and businesses


The US requires reporting of foreign accounts as well, supposedly for the same reason, preventing tax fraud.

In Spain however, consumers and businesses are already very nervous (and rightfully so), of a Spain exit from the euro with a return to the Spanish peseta accompanied by an immediate devaluation.

In that context, these controls are only going to make consumers and businesses even more nervous, if not outright suspicious about what is going on. ]

When the govt. who couldn’t keep their financial house in order begins to lose control the people of the land take notice (or should anyway) and begin to make arrangements to avoid the collateral damage zone. Some of those arrangements include transferring assets into foreign accounts outside the country in question to offer an added layer of protection from radical solutions the govt. will eventually be forced to implement. Others include simply transferring the funds in question into sound hard monetary assets such as gold & silver bullion. The precious metals are a logical choice based on the fact that they are the true global reserve currency used by the banks at the top to back the leveraged fiat money system that brought about this crisis to begin with. Others still think it wise to leave their country of origin and cross into another neighboring European country and leave cash with trusted family or friends in nearby countries within the European Union. It is important to remember that passing through borders of countries within the EU is as common and simple as crossing state lines within the US. That being said, the act of moving money isn’t quite like clearing out your bank accounts and sneaking through the border into Mexico like some bad 1980s movie plot line, until now.

Now that fears of the Spanish govt. making a surprise move to leave the European Union and reinstitute the Peseta as the Spanish currency have made the rounds through the population of Spain’s citizens as well as the govt. are starting to make arrangements to protect their financial interests. Unfortunately this struggle to protect financial interests comes at the expense of one of the parties in question as they are not complimentary to one another. Stated differently, the move by the govt. to protect their taxable base and inflatable currency system can not and will not be beneficial to the tax payer as anything done for the benefit of the government inherently is done at the expense of the tax payer. For example, the simple act of funding the government is done literally at the expense of the tax payer. The taxpayer is forced to hand over a portion of their income that would have gone to feeding their family or buying consumer goods like a fishing pole or a four wheeler they wanted (which would help the economy by increased consumer spending which is a main driver of the US economy to begin with) and instead is forcible taken through policy and redirected to fund the govt. On the contrary, if an investor doesn’t buy into the 401k retirement model for retirement and instead directs their capital to the purchase of gold & silver bullion as a retirement asset that money is no longer within the capital gains target zone provided by Wall Street and facilitated through your 401k or IRA platform. Instead the bullion sits in your safe at home collecting dust and climbing in value over the years as the government spending continuously devalues the currency as they are forced to endlessly expand the money supply to cover this spending addiction.

Remember that when you reach a point where the leaders of the ‘free world’ begin to turn on one another with very public statements of frustration you better take a step back and re-evaluate the scenario we are really in. When the willful participants in this confidence based fiat fractional reserve paper monetary system begin to panic and turn on one another you better realize they will soon be stepping on one another to advance their national goals of survival and you will be stepped over in the rush to the exit. Where will this leave you and your struggle to protect your financial well being? Taking note of the eroding global confidence game now would be a great time to establish your “Plan B” in physical gold & silver bullion. By doing so you can begin to participate in the sound money debate that is being waged world wide as we speak whether you realize that it is happening or not. The greatest point of confusion that is used to keep investors frozen in their tracks which causes them to leave their money where it currently is, is the fact that ‘the DOW is at pre-crash highs so it must be a recovery?’. This is overlooking the fact that Bernanke admitted in press conferences while Bush was still in office that the FED has the PPT (Plunge Protection Team) who’s single job is to watch for soft patches in stocks and stand at the ready to take newly printed dollars and buy shares of stocks in bulk to fill the void where investors began to sell off thus avoiding a stock market crash. Knowing this how can you effectively believe: 1. your portfolio is safe as a good majority of stock appreciation since the housing crash has been orchestrated by the FED? 2. that stock values are higher when they are simply being bought with devalued dollars and therefor the ‘higher price’ is nothing more than the proof of the true inflation in the country? 3. that we are in a recovery if the banks, bond market, corporations and stock values have all been propped up by the FED behind the scenes and the dollar has been devalued to accomplish all of these supposed signs of recovery? 4. that inflation will not grow when they are admittedly standing by with QE3 on the ready? Stop playing games with your future and accept the current financial crisis for what it is, a global currency war that threatens the financial stability of the world and will bring with it inflation that could turn our recession into a global hyperinflationary depression if we are not careful. Tick, tock.