The coming Capital Controls are designed to protect the banks from YOU.
Of all the peculiarities about human nature, one of the most interesting in my opinion is that we’re so resistant to change. Humans simply don’t deal with it well. We tend to root. We find comfort in familiarity. And, even when the familiar becomes unpleasant, we still put up with it. We prefer to suffer through something that we know rather than change things and risk the unknown.
This is why people stay in bad relationships. Or why they continue working for bosses they dislike at jobs they despise. It’s the fear of change.
But everyone… absolutely everyone… has a breaking point. It’s a point where the status quo becomes so uncomfortable, so painful, that we snap. And walk away.
It’s the same in finance. People stick with what they know, even if they have to endure a little pain and suffering.
Today’s current banking environment is the perfect example. In the US, interest rates for most bank accounts are so low that they fail to keep up with inflation.
You are doing very well if you can generate a whopping 0.5% interest.