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They’re rioting in Lebanon, because their foreign currency is illegal in Lebanon’s hyperinflation

Posted by John T. Reed on

Interesting situation in Lebanon: they are currently going through a economic crisis that involves hyperinflation. Though they have pegged their currency to the dollar and many citizens held their bank accounts in dollars, the banks forced them to withdraw their deposits in Lebanese Pounds at of course, non-market exchange rates.

Comments
  • John T. Reed That is one of the five bad laws. Capital controls. Those ban you from possession of foreign currency (The USD is foreign currency in Lebanon.) and gold. The law they passed is quite similar to FDR’s Executive Order 6102. This is why MY foreign currency is outside the US. This is why I laughed when Everbank said I could have foreign currency accounts including IRAs and SEPs in their US bank. Their boilerplate said that if so ordered by the US government, they would do exactly what the Lebanese banks are doing.
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    If those rioters had read my book and heeded it, their USD would be in the US and they would have ATM cards from their US bank that would let them buy groceries and such in Lebanon with that debit card.
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    The Lebanese RIOTERS were HALF smart: they owned USD. Good move. Americans are too dumb to even own foreign currency. But the rioters were half dumb leaving those USD in Lebanon.
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    My foreign currency and gold are IN foreign countries. If you leave it here, the US government will order you to sell it to the Federal Reserve Bank at a crap official conversion rate. As FDR did in 1933.
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    Read FDR’s executive order:
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    https://en.wikipedia.org/wiki/Executive_Order_6102
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    There are also a number of more recent Executive Orders that purport to give the president emergency powers and proclaiming capital controls is also in those. I think they are unconstitutional, but possession is nine tenths of the law and an ounce of foreign currency or gold in a foreign country is worth a pound of yelling at your bank about the Constitution.
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    Are those rioters a picture of my future readers here who did not read and follow the advice of my book? No. I f you have not followed my advice to get out of USD and into foreign currency, you are not as half smart as these rioters and the capital controls will not affect you.
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    Your USD will be worthless not because your bank won’t let you withdraw it but because of the Fed “printing” so much of it that it became worthless.. YOU will be rioting around the corner at your local Federal Reserve Bank. They are the guys who made YOUR life savings that you held in USD-denominated assets worthless.
    Executive Order 6102 - Wikipedia
    EN.WIKIPEDIA.ORG
    Executive Order 6102 - Wikipedia

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