COMMENT: You talked about that the EU would impose capital controls on the WEC. I used to be within the banking trade 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’re completely right. Sweden launched wartime trade controls in 1939. Maintained a strict regime for many years. As soon as imposed, they claimed that they then prevented cash from fleeing throughout the Nineteen Seventies inflation disaster. They had been solely eliminated in 1989.
United Kingdom – Alternate 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 overseas forex purchases, abroad investments, and transferring capital overseas. They had been NOT lastly abolished by Thatcher in October 1979.
• Structural debt disaster strain
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Europe faces sovereign-debt fragmentation danger (Italy, France, and even Germany now going through fiscal stress).
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When Europe appears weak, capital tends to depart the EU and movement into the U.S., which strengthens the greenback.
• Capital flight from Europe
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From our laptop 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 attempting to assist the Euro.
