This can't happen in the United States when everybody else's money is flooding into the United States. Thus there’s no reason for capital controls here.
The only capital controls we could have here is what China tried to do in the beginning – to prevent OPMs (Other People's Money) from coming in.
But that's not possible in this day and age of electronic transfer and electronically traded currency. There's no country that can prevent the flow of money from coming in.
An online newsletter pitchman writes – "Why Governments Impose Capital Controls. It's simple: imposing capital controls is similar to penning sheep that are about to be sheared so that they cannot escape."
But is this hyperbole or fear mongering?
It's just over-simplistic to say that. Capital controls are not simply confiscation. It limits the money that a citizen can withdraw from the bank and convert to another currency or move out of the country.
This idea, however, of out-and-out confiscation is something that gets pushed on the internet by conspiracy types that don't know anything about economics. No country has yet out-and-out confiscated money from account holders -- not even the former Soviet Union, Cuba or North Korea ever did that.
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* AL MARTIN, author of "The Conspirators: Secrets of an Iran Contra Insider," is an Independent Political-Economic Analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. He is also currently trading the commodity futures market day and night and has a teleconferencing service to facilitate transactions in the markets. This is a service for independent experienced traders.
For more details on commodity futures trading recommendations and more FREE Sample Columns, take a look at Al Martin's website "Insider Intelligence" Insider Intelligence for weekly exclusive commodity futures trading recommendations.