COMMENT: You talked about that the EU would impose capital controls on the WEC. I used to be within the banking trade in Sweden. The capital controls that have been imposed in 1939 weren’t lifted till 1989. Not everybody appreciates your depth of information.
SW
REPLY: You might be completely right. Sweden launched wartime alternate controls in 1939. Maintained a strict regime for many years. As soon as imposed, they claimed that they then prevented cash from fleeing in the course of the Seventies inflation disaster. They have been fully eliminated in 1989.
United Kingdom – Change Controls (1939–1979) Imposed on the outbreak of WWII beneath the Emergency Powers (Defence) Act 1939. They remained in place for 40 years. They restricted international forex purchases, abroad investments, and transferring capital overseas. They have been NOT lastly abolished by Thatcher in October 1979.
• Structural debt disaster stress
-
Europe faces sovereign-debt fragmentation danger (Italy, France, and even Germany now dealing with fiscal stress).
-
When Europe appears weak, capital tends to depart the EU and stream into the U.S., which strengthens the greenback.
• Capital flight from Europe
-
From our pc perspective, the EU is dropping confidence quicker than the U.S.
-
This outflow helps the greenback, not the euro long-term, whereas short-term the ECB is attempting to assist the Euro.
