Bad economic times and capital controls go hand in hand. In 1933 FDR used Executive Order 6102 to confiscate US citizen’s gold as mentioned in the above video. The International Emergency Economic Powers Act (IEEPA), means the same thing could happen again today.
Extreme capital controls aren’t just a possibility, they are a reality in a many parts of the world, particularly Argentina.
Earlier this year, in an attempt to keep money in Argentina, the tax authority, AFIP introduced a 15 percent tax surcharge every time a purchase is made outside the country using a credit card, and restricted access to foreign currencies.
Interestingly, the Argentine government considers gold to be a foreign currency and will only allow it’s purchase if an Argentine citizen is traveling to a country that uses gold as legal tender.