I wrote yesterday regarding alleged capital controls coming at Chase bank. This was reported at both Zero Hedge and Drudge Report. A copy of the actual letter sent to clients was published in both articles. Since then, Forbes has come out and “debunked” the thought that capital controls are beginning and they say that customers can opt for a higher fee account which will allow more than $50,000 in withdrawals per statement cycle and also allow international wires. Forbes says that this is simply Chase Bank trying to rake in more fees and nothing else.
I’m sorry but that is NOT what the letter to clients said. Below is a copy of the letter.
Specifically it says that “you will no longer be able to send international wires.” It says nothing about changing to another type of account nor does it say anything about paying higher fees to accomplish a wire…it just says NO INTERNATIONAL WIRES. This letter also states that “your activity limit for these account(s) will be $50,000 per statement cycle.” Again, no mention of changing to a different “type” of account or paying higher fees to allow more activity.
Those of us who wrote about this have been termed “the lunatic fringe” because there is no way that Chase would ever do this “and see, Forbes says it ain’t so…so it ain’t so.” Well OK, so I’m a lunatic, no arguments there. Anyone who thought that the Earth was round or not the center of the universe was also termed a lunatic so being one is OK I suppose. My point is this; the letter says what the letter says. Was it a mistake? Or Miswritten? Was it for real and did Chase get some blowback or saw some big withdrawals as a result of the letters? I don’t know and maybe we’ll never get an answer or maybe we will. All I know is that what this letter states doesn’t “smell” of capital controls, it is ABSOLUTELY capital controls. Will they actually enforce this? Change this? Send another letter telling clients that they can “pay up” for another account and everything will be fine? I don’t know. All I can do is write about what we do know and try to logically connect the dots. Unless Chase sends letters to clients that spell out their “alternatives” as reported by Forbes, the only thing I can go on is what we have. What we have is a mass mailed letter to clients telling them there access to THEIR funds is being restricted. I stand by what I wrote yesterday until Chase clears this up in writing to their clients. You decide for yourself what the letter says.
I also stand by my statement that “capital controls are coming.” I believe they are coming as sure as the sun will rise tomorrow as they have always come to countries when they over borrow and over print their currency. THAT is pure logic and actual history.
These types of documents confuse me. WHEN we read the document very carefully – I just can’t seem to get my arms around things like this:
1. The top of the letter states only international wire transfers are being stopped
2. Near the bottom it clearly states that both domestic and international wire transfers are being stopped
hmmmmm!
Rich, the restriction at the top of the letter is for business checking accounts. The bottom is for business savings accounts.
Rich, Mike, I cannot really make sense of it. I am not a conspiracy idiot but the letter says what it says and yet we are being told “not to worry”. I guess we shouldn’t worry until “we have to”? The rules are not being made for you and me as we are merely the “expendables”. I feel that we are being warned and given advance notice…only you have to read between the lines.
All the rules are soft elastic these days, including those in our Constitution. The powers that be can twist the words in the, “rules” any way they want to, it’s all a matter of, “interpretation.” I mean when I read, “all men are equal” that does not seem to be open to interpretation to me; but I have not had my Supreme Court defend my right to equality when it comes to my tax rate. How can they claim it is not discrimination to tax one citizen at a higher percentage rate of their income than another? and, at the same time claim all men are treated equally under the law? Isn’t a graduated tax rate one of the laws in this country? I know I’m having it enforced on me, and when one citizen has to pay more for the government other citizens vote for than they do, that’s a clear cut case of legalized discrimination – is it not? Joe Biden claims, “it’s only fair,” but it doesn’t feel very fair to me. What it feels like is theft by popular demand.
Yeah! All of us who see what is going on are, “on the lunatic fringe.” I’m sure in the early stages that is how those who felt the need to split away from English Rule (aka The Founding Fathers) were seen by many citizens of the day. John Adams said, “A third of us are Torries, a third of us are timid, and a third of us are TRUE BLUE.”
The powers that be (the state builders) chip away at our rights and freedoms, a litte bit here, a little bit there, always in the name of the, “common good.”
Convoluted words and convoluted logic… “It can’t happen here,” but it is happening… I’m sure the citizens of Cyprus could tell us a thing or two about, “lunatics” who warn people of the dangers of unexpected capital controls.
As an off the wall aside, I just read an article in which the author said, “Silver may reach a new record high within ten years.” Unreal! These people are living in a totally different world than I am. I mean did they just drop in from Mars? An article closer to reality would read, “the dollar’s value may reach zero witin ten years.”
You are correct Don Paul but you need to relax, a heart attack along the way will not be a good thing. It would be nice if “individually” we could do something but it’s not gonna happen. All you can do is protect you and yours.