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To: Joan Osland Graffius who wrote (248438)	7/3/2003 9:58:34 PM
From: orkrious	Read Replies (2) \| Respond to of 436258

question for the thread about americans owning securities accounts in other countries. in Puplava's new storm watch update financialsense.com he talks about the government seizing assets and imposing capital controls. is it possible for me to transfer my American brokerage accounts to a Canadian (or other country) brokerage account? Puplava: This shift out of the dollar will accelerate as a flood of dollars hits the financial system. These dollars entering the world's financial system is the result of our burgeoning trade and current account deficit. At the moment, the dollar's fall has been temporarily arrested through the process of intervention. However, as the amount of debt increases in our economy, as the trade deficit gets bigger setting new records, as the government's own budget deficit expands and grows even larger, confidence in the dollar will evaporate. There will be a rush for the exit gates. I fully expect that when this happens, the U.S. will impose capital controls in an effort to contain the crisis and keep it from spreading. The capital controls could come in the form of different color money—one inside the country and one for outside the U.S. There will be an effort by the Fed to restrict the free flow of dollars out of this country as there will be an effort to keep dollars from returning. Desperate Measures Are Coming The New York Times recently published an article about the U.S. government seizing money in foreign banks. The government’s justification was that it was ill-gotten money. This was done without warning or the due process of law. [13] There have been similar instances in our past where in a time of crisis, the government has seized assets. The most blatant example of this was the 1933 confiscation of gold by the Roosevelt Administration. [14] Many believe (just like they did back in 1932) that it could not happen here again. I believe that it will. Debtor nations always resort to policies of asset confiscation when they get desperate. They seize assets, put in capital controls and shut down banks. The recent example of Argentina should be fresh in everyone’s mind. When governments get desperate, they will do anything in their power to keep functioning. Capital controls never work. They only hasten the currency's collapse.