Failing and tyrannical countries often institute capital controls to trap their citizens’ funds. The US is doing this in an unusual way. Because the US economy is so powerful, and the dollar is a major international currency, the US Gov’t has used a two prong approach.
1) By making it so onerous to do business with US citizens, the gov’t has effectively trapped citizen funds within the US because few external banks/brokers will take US citizen accounts. This has all been done without mention of the phrase “capital controls.”
2) The other arm, in the name of suppressing tax cheats, is addressed in this article. The IRS has written regulations on out-of-country accounts which are incredibly complicated, intrusive, and confiscatory. Even if you can get someone to take your money overseas, the US gov’t can accuse you of some complex tax violation and seize a good portion of it through outrageous penalties.
The net effect of all this is that the only way out of the country is through dual citizenship, and then formal relinquishing of US citizenship. I love the US, and haven’t even thought of this for myself. But gaming the situation, and thinking about past history where people were trapped in a country that was cannabilizing itself (Germany, Russia at times), I’d like the option of legitimately keeping some money out of US control... and it’s being quietly and throroughly foreclosed.
This ought to alarm and anger just about anyone. Forget about the mythical 1% BS and think about what’s going on here.
I’ve been saying for a while now that the Mexican who cross the border into the U.S. illegally, has no papers and no Social Security number, and works for cash may be the last free man in the United States of America.