Could the U.S. Government limit cash withdrawals?
Question: Sen. Ron Paul is not the only person who speaks of a financial apocalypse and others have written books too. From what you know or foresee, is there any possible way the U.S. government (with the way U.S. banks are set up)…could possibly limit cash withdrawals? Also, if the U.S. Dollar is devalued…By what amount and what affect would this have on U.S. consumer buying items in U.S.A.?
Answer: This is a story that apparently is not going away soon. Former Senator Ron Paul is particularly worried about the $18 trillion that the U.S. owes and that our biggest creditor is China. To repay the debt, every man, woman and child in America would need to fork over about $57,000! Clearly that’s not going to happen and so far our leaders (President, House and Senate members- Republicans and Democrats alike) are not only unwilling to pass debt reduction programs, but by their policies, they continue to grow the debt. Yes, at some point this chicken is coming home to roost and it may get ugly…but, after observing our economy at work for over forty years, I’ve concluded that it is much more elastic than most people think. And while we witnessed the citizens of Greece recently standing in long lines at the bank with withdrawals limited to $300 per day, I can’t imagine that happening here in America. Let’s not lose sight of the fact that while Greece is a country, its economy is about the size of Alabama’s economy. Likewise, it’s highly unlikely we’ll see a ‘devaluation’ of our currency although the value of the Dollar rises and falls versus other world currencies based on global financial and economic conditions. If the U.S. Dollar did ‘collapse’, I suspect what we’d see would be sharply inflated prices of goods sold here. Again, this is a highly unlikely scenario.