COMMENT: You talked about that the EU would impose capital controls on the WEC. I used to be within the banking business in Sweden. The capital controls that had 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 through the Nineteen Seventies inflation disaster. They had been completely eliminated in 1989.
United Kingdom – Trade Controls (1939–1979) Imposed on the outbreak of WWII below the Emergency Powers (Defence) Act 1939. They remained in place for 40 years. They restricted international foreign money purchases, abroad investments, and shifting capital overseas. They had been NOT lastly abolished by Thatcher in October 1979.
• Structural debt disaster stress
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Europe faces sovereign-debt fragmentation threat (Italy, France, and even Germany now going through fiscal stress).
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When Europe seems weak, capital tends to depart the EU and circulate into the U.S., which strengthens the greenback.
• Capital flight from Europe
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From our pc perspective, the EU is shedding confidence quicker than the U.S.
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This outflow helps the greenback, not the euro long-term, whereas short-term the ECB is making an attempt to help the Euro.
