Mexico hops on capital control bandwagon

[Teal Lantern]

http://dollarvigilante.com/blog/2012/10 ... contr.html

Practical Implications
Because all Notarios will be required to ask and record the source of funds for a purchase, and secure a tax ID number from the seller on any transaction that must be recorded, the days of most large, heretofore legal, cash transactions will soon be ended. Indeed, the days of showing up at a real estate closing with a Zero Halliburton attaché full of cash are a thing of the past.

It has been common in Mexico for buyers and sellers to record an amount on real estate deeds far below the actual amount paid for real estate, resulting in less taxation of that real estate going forward and often avoiding taxation on the capital gains of a real estate sale. Those days may be over, too.

Parting shot
If you stick around anywhere too long, the local elected banditry will come sniffing around with their guns to demand the protection money that the other locals have to pay. But it's not just having to pay the extortion money to the protection racket that annoys me. It's also having to report my financial transactions, or having to file an accounting every few months of the money I've earned—on pain of imprisonment or death. They don't just steal from you, they also want you to help keep their books! It's like making you watch them have sex with the women in your family, and then having to make them a sandwich afterward.

[Exod]

Of course. It's always the same shit over and over again. Capital control is always, always a bad sign, as any law or action that goes heavily against human nature. It signals desperation.

They're doing this shit in Italy too. If you try to cross the border with more than 10k Euros you have to declare them and pay hefty taxes. People are trying to move their assets abroad and, sure enough, the financial police is all over them. They even use dogs, as if moving their hard-earned assets wherever they want were some sort of drug smuggling operation.

http://dailycapitalist.com/2012/08/13/i ... gold-cash/
http://www.zerohedge.com/news/guest-pos ... ne-fascist

Also cash transactions are limited to €1000 and they want to lower them to €300.

http://alternativeeconomics.wordpress.c ... over-e300/

Another click on the ratchet. Well, clicks. So much for the "free movement of people and capital". Treaties and promises and good intentions vanish like a fart in the wind when the economy is in the drain, as history bore out over and over.

I wonder if this will happen to the US as well.

[Teal Lantern]

Of course. It's always the same shit over and over again. Capital control is always, always a bad sign, as any law or action that goes heavily against human nature. It signals desperation.

They're doing this shit in Italy too. If you try to cross the border with more than 10k Euros you have to declare them and pay hefty taxes. People are trying to move their assets abroad and, sure enough, the financial police is all over them. They even use dogs, as if moving their hard-earned assets wherever they want were some sort of drug smuggling operation.

http://dailycapitalist.com/2012/08/13/i ... gold-cash/
http://www.zerohedge.com/news/guest-pos ... ne-fascist

Also cash transactions are limited to €1000 and they want to lower them to €300.

http://alternativeeconomics.wordpress.c ... over-e300/

Another click on the ratchet. Well, clicks. So much for the "free movement of people and capital". Treaties and promises and good intentions vanish like a fart in the wind when the economy is in the drain, as history bore out over and over.

I wonder if this will happen to the US as well.

The amounts are different, but the same is done. Dogs and all. Your laptop is subject to copying or outright theft, too.
http://www.computerworld.com/s/article/ ... S._borders

They'd never pass any info found on your machine to your company's U.S. competitors.
http://www.theregister.co.uk/2001/09/06 ... ng_report/