Exchange controls in the US

Discussion in 'Economics' started by Daal, Mar 3, 2008.

  1. Daal


    Will america join the UK in the 70's, Argentina in early decade and Malaysia in the 90's and implement exchange controls due declining currency or this time is different?What kind of impact this would have on currency futures trading?
    I worry about this because I got all my money in US brokers and banks, its all USD hedged but if the government interferes with the hedging instruments that would stink
  2. amylase


    May i inquire how your assets are "USD hedged"?

    I also sit on tons of USD in US banks that I would be interested to hedge and transfer overseas in case of trouble.
  3. Exchange controls always create "black markets." With a black market one can always find value less the "harassment tax."

    One USD will always equal something of tangible value...given certain fluctuations. Exchange controls ultimately only inhibit those who seek control.
  4. BTW: if you're all hedged up then what's the worry.


    of course you're not all hedged because no "hedge" is correct.. (i.e. perfect.)

    Years ago I began to buy non-dollar based sovereign debt. You get the hedged USD cover plus the coupon kicker. I still recommend that to USD holders. And mining shares....not the actual.

  5. Daal

  6. Yup. Good advice, IMHO.