Capital Controls Coming On January 1st!

One of my predictions for 2012 was this:

We are heading for economic Tyranny and Capital Controls and Restricted exits and failed currency.

Now, Attorney-entrepreneur-investor Joel M. Nagel, who is a frequent writer and speaker on asset protection concepts, has written that January 1, 2013 may be the start of capital controls. A law was passed in 2010 that goes into effect on January 1st, that requires foreign banks withhold 30% of any deposit from the U.S. and send it to the IRS.

Under Section 1474 of the bill, the law makes banks, as a third party, responsible for the enforcement of government tax policy. The banks are liable for the customer’s tax obligation on transferred funds, if they don’t withhold the required 30 percent to cover any possible tax liability. The banks essentially become the tax police, working for the government as hammers to bring about individual compliance.

Nagal writes that if you were to purchase a home in Panama for $100,000, you would need to send $142,000. Less 30% would net you $100,000. That my friends is an effective way to limit capital from leaving the country. One more freedom gone!