Buying foreign currency=illegal??? | Forex Factory

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Buying foreign currency=illegal???

  • #1
  • First Post: Oct 5, 2008 10:00pm Oct 5, 2008 10:00pm
I've just listen to this interview and the guy said that it could become illegal to buy foreign currency or even gold. http://fr.youtube.com/watch?v=Ii2t7hI_VZs Listen the video at 6min30sec and give your opinion.
  • #2
  • Edited 12:15am Oct 6, 2008 12:03am | Edited 12:15am
Well, I don't know. This guy is pushing a
real doomsday scenario... and his own
services to help save you! LOL
  • #3
  • Oct 6, 2008 1:33am Oct 6, 2008 1:33am
The market reveals who we really are...
  • #4
  • Oct 6, 2008 2:40am Oct 6, 2008 2:40am
Don't believe everything you read, hear or see on the internet...
  • #5
  • Oct 6, 2008 3:14am Oct 6, 2008 3:14am
Quoting Rabid
Don't believe everything you read, hear or see on the internet...
Can I trust what you say?
The market reveals who we really are...
  • #6
  • Oct 6, 2008 4:44am Oct 6, 2008 4:44am
Quote
Can I trust what you say?

I don't...
  • #7
  • Oct 6, 2008 5:34am Oct 6, 2008 5:34am
Quoting Bridge
I've just listen to this interview and the guy said that it could become illegal to buy foreign currency or even gold. http://fr.youtube.com/watch?v=Ii2t7hI_VZs Listen the video at 6min30sec and give your opinion.
Governments have created a financial crisis by allowing and encouraging abuse of free markets while irresponsibly expanding the money supply. Governments will attach blame to the markets themselves. Do not be surprised to see further measures to curtail speculation such as transaction taxes and capital controls.
  • #8
  • Oct 6, 2008 5:56am Oct 6, 2008 5:56am
Quoting euclid
Governments have created a financial crisis by allowing and encouraging abuse of free markets while irresponsibly expanding the money supply. Governments will attach blame to the markets themselves. Do not be surprised to see further measures to curtail speculation such as transaction taxes and capital controls.
I agree. There also seems to be a lot of repressed protectionism that is ready to burst out because the average person doesn't understand the way a true free market economy works - they've never seen one in action. The only "invisible hand" these days is the government's - and it is in people's pockets, robbing them.
  • #9
  • Oct 6, 2008 6:22am Oct 6, 2008 6:22am
is the video about foreign currency or foreign women ?
  • #10
  • Oct 6, 2008 7:10am Oct 6, 2008 7:10am
Quoting Rabid
I don't...
Should I believe you?
The market reveals who we really are...
  • #11
  • Oct 6, 2008 7:47am Oct 6, 2008 7:47am
Quote
Should I believe you?

I don't...

Quote
is the video about foreign currency or foreign women ?

It's all the same, really. First you get one, then you get the other. I'll let you guess as to the order.

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I agree. There also seems to be a lot of repressed protectionism that is ready to burst out because the average person doesn't understand the way a true free market economy works - they've never seen one in action.

Yeah, dang those pesky depressions, they take all of the fun out of a free market.
  • #12
  • Oct 6, 2008 8:30am Oct 6, 2008 8:30am
Quoting Rabid
Yeah, dang those pesky depressions, they take all of the fun out of a free market.
If there was a free market, there would be no depression.
  • #13
  • Oct 7, 2008 12:13am Oct 7, 2008 12:13am
Quote
If there was a free market, there would be no depression.

ROFL, yea. When I think "great economists" I surely think of Calvin Coolidge and Herbert Hoover.

Save me some of whatever you're smokin', that promises to be a great stash.
  • #14
  • Oct 7, 2008 12:48am Oct 7, 2008 12:48am
Quoting Bridge
I've just listen to this interview and the guy said that it could become illegal to buy foreign currency or even gold. http://fr.youtube.com/watch?v=Ii2t7hI_VZs Listen the video at 6min30sec and give your opinion.
Take some and leave some. That show has the occasional tidbit of useful information. For example, Schiff explains earlier in that segment that if your money is in USD that you'll go broke. Jim Rogers split to Singapore for that reason and I'm not one to argue with Rogers. But that show isn't the gospel.

The fact is that there already are some form of currency control. If you don't believe me, stash $10,000 cash in a suitcase and try to board a plane leaving the country.

Also, what would the large corporations do? Many of them deal with multiple currencies so would they all suddenly become scofflaws?
Not all sins are created equal
  • #15
  • Oct 7, 2008 2:22am Oct 7, 2008 2:22am
Quoting Rabid
ROFL, yea. When I think "great economists" I surely think of Calvin Coolidge and Herbert Hoover.

Save me some of whatever you're smokin', that promises to be a great stash.
Let's just put it this way: The market would have never allowed interest rates to be as low as the Fed did. The Greenspan Fed (libertarian that he is) manipulated interest rates and now we are seeing the results of that interference.

BTW, did you really roll on the floor laughing because of what I said? If you did, your stash seems just fine, so you won't be needing any of mine. Please don't try to insult me just because you disagree with me. We're not 8 (I think). Can we be friends now?
  • #16
  • Oct 7, 2008 6:01am Oct 7, 2008 6:01am
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Also, what would the large corporations do? Many of them deal with multiple currencies so would they all suddenly become scofflaws?

Laff. Never going to happen.

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Let's just put it this way: The market would have never allowed interest rates to be as low as the Fed did. The Greenspan Fed (libertarian that he is) manipulated interest rates and now we are seeing the results of that interference.

Ohh, so that's why people traded in CMOs. Hrm, funny me, I thought it was just a bunch of people trying to make money w/ borrowed money.

Quote
BTW, did you really roll on the floor laughing because of what I said? If you did, your stash seems just fine, so you won't be needing any of mine. Please don't try to insult me just because you disagree with me. We're not 8 (I think). Can we be friends now?

I did LOL, but didn't exactly hit the F, so not literally.

Anyway, I'm pretty sure most of this thread belongs in the "We're 8 years old" bin.

I always find it ironic. A large portion of our current problem is caused by reduced barriers to various things. Some of it caused by regulation, some of it caused by deregulation. A lot of it caused by unrestrained greed and a "let the market be free" mentality.

So now a bunch of free market ppl, most of whom could barely provide a timeline for the great depression (let alone understand it's depths), are at a loss. Some have acknowledged "hey, maybe a little oversight is a good thing" but many just tuck their head in and recite the talking points. Of course it's all BS. There's no evidence to think that a "free market" would be free from major corrections... and quite a lot of evidence to the contrary.

When a patient gets this sick he needs a doctor, not rhetoric. The longer we wait, the worse it gets. We should've intervened back in December.
  • #17
  • Oct 7, 2008 6:30am Oct 7, 2008 6:30am
Quoting Rabid
Ohh, so that's why people traded in CMOs. Hrm, funny me, I thought it was just a bunch of people trying to make money w/ borrowed money.
Exactly. Why was it so easy for them to get borrowed money?

Quoting Rabid
Anyway, I'm pretty sure most of this thread belongs in the "We're 8 years old" bin.
You're right about that.

Quoting Rabid
So now a bunch of free market ppl, most of whom could barely provide a timeline for the great depression (let alone understand it's depths), are at a loss. Some have acknowledged "hey, maybe a little oversight is a good thing" but many just tuck their head in and recite the talking points. Of course it's all BS. There's no evidence to think that a "free market" would be free from major corrections... and quite a lot of evidence to the contrary.
I am not saying oversight is a bad thing. A free market needs oversight in order to minimize fraud. Oversight and market manipulation are not the same thing. The Fed manipulated the market, while oversight was weak. That's exactly the opposite of what a free market should be. I think you are confusing a free market system with a lawless system. They are not the same thing.

I am also not arguing that there would be no corrections under such a system, but what we have now is something more ominous than a simple correction. It is a correction exacerbated by market manipulation AND a lack of oversight.
  • #18
  • Oct 7, 2008 1:02pm Oct 7, 2008 1:02pm
Quoting Bridge
I've just listen to this interview and the guy said that it could become illegal to buy foreign currency or even gold. http://fr.youtube.com/watch?v=Ii2t7hI_VZs Listen the video at 6min30sec and give your opinion.
Few months ago when they were trying to solve the 'Energy Crisis' that was one of the options that was laid on the table. They were saying that small time traders like us were devaluing the dollar and causing the price of oil to go up.
  • #19
  • Oct 8, 2008 3:55am Oct 8, 2008 3:55am
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Exactly. Why was it so easy for them to get borrowed money?
It's called leverage, well, that and interest.

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I am not saying oversight is a bad thing. A free market needs oversight in order to minimize fraud. Oversight and market manipulation are not the same thing. The Fed manipulated the market, while oversight was weak. That's exactly the opposite of what a free market should be. I think you are confusing a free market system with a lawless system. They are not the same thing.

A "free market system" is one where the market is allowed to freely price everything, regardless of what it is. Contrary to theory, prices have only a correlative relationship to supply and demand. It's not the actual s/d that matters, but rather people's perceptions of changes in (delta) supply and demand that inevitably drive prices. Strong emotions therefore lead to problems w/ illiquidity.

Once a market loses it's liquidity it breaks down, ceases to function as a market, and can no longer fix itself. Nobody is willing to make a market because no sustainable market can be made w/o sacrificing capital to restore liquidity. Few people can afford to sacrifice the capital and take the long term risk necessary to restore the markets back to liquidity. At least to the point where it's needed for a bottom to form.

I suppose if you wanted to wait for 20 years, the bottom would eventually form on it's own for markets that solve a need. But the costs of waiting so long would be extreme.

This effect has happened thru out history. It has happened during our entire history as a nation, and has happened thru out the history of the world. Ancient kings used to create massive work projects during times like these in order to stimulate the economy and bring back liquidity to local markets. Ex: the pyramids.

We've recently realized, however, that the federal gov't is very good at efficiently diffusing capital risk. We began realizing this around the turn of the 20th century, and w/ the great depression there was enough political willpower to give it a try. And it worked, and has kept us out of a major depression since. Has kept us out of anything even resembling a major depression, in fact. Properly done, and with a little patience, federal level interventions to restore liquidity tend to be very effective.

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I am also not arguing that there would be no corrections under such a system, but what we have now is something more ominous than a simple correction. It is a correction exacerbated by market manipulation AND a lack of oversight.
Statistically, returns regress to the mean. Returns have a normal distribution. Realizing that, this correction is relatively minor compared to the growth over the last few decades. If the DOW drops below 5000, afew thousand more banks go under and unemployment gets over 20%, then that will be a major correction.
  • #20
  • Oct 13, 2008 8:03am Oct 13, 2008 8:03am
Quoting Jay Walker
Also, what would the large corporations do? Many of them deal with multiple currencies so would they all suddenly become scofflaws?
From today's news:

"Individuals can now only purchase foreign currency in Iceland on proof of a valid travel ticket overseas, and firms must apply to the Central bank proving they want the money for essential foreign purchases such as food, fuel and medicine."
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