Ukraine government tries to force gullible citizens into living with its fake money.

Mish reports that the Ukrainian government is putting capital controls in place including a moratorium on buying gold valued in excess of $125.  First off, the reason government thinks it has to do this is that people have decided that the Ukrainian hrynvia (i.e. their basic unit of fake money) isn't worth very much.  The confidence has left now that the country is in tatters and so the currency is returning to it intrinsic value of zero.

Capital controls are desperation measures that never work.  In fact, I think it accelerates the capital flight process.  There is an important lesson here that you will hear very few honest money people communicate.  Honest money people will go on and on telling you that hyperinflation is due to printing too much money.  This is only partially true.  The full truth, however, and the most important truth is that the currency is worth zero from an intrinsic standpoint and if the people generously treat it as if it had value then that does not in fact mean it has real value.  Any con looks real for a time.

So the dirty secret of all fiat currency is that hyperinflation eventually happens not because of direct money printing but rather because of loss of faith in the issuers of what is in fact faith based currency.  Even smart guys like Mike Maloney who get everything 95% right seem to just ignore the most important aspect of fiat currency: the fact hyperinflation might be catalyzed by money printing but the main force behind it is loss of confidence in a con game.

By the way, "fiat" means "by decree".  Governments decree this and decree that but unless the people agree, the decree is a joke.  That goes for every government decree, every law, every action it takes.  If the people stand together, and I don't mean a very large percentage of the population here, and tell the government any or all of the following...:

• Your currency has no value.
• I will not fight in your wars.  Your enemies are not mine and I will not die or send my children to die for you while you and yours laugh it up at how gullible the masses are.
• I will not comply with [put unjust law here].
• I will not work against my fellow many no matter the threats or the bribes you throw at me
• You are not my leader.  I do not recognize your legitimacy.  Be gone before something bad befalls you.
• Your jackbooted enforcers have no power over me; their tin badges came out of Captain Crunch.  I will resist them with force that is commensurate with the harm they are trying to do to me.
• I do not agree to your alleged right to tax my income or my property.

...then such proclamations automatically become law through the rule of precedent.

Government can tell people "you cannot leave the corrupt, dying currency.  You must leave your life savings in it while it heads toward zero..." but nobody will listen.  So you see, government does not rule by decree even though it would have you think that it does.  It rules at the pleasure of the people and when enough people say "get out" then the government collapses and new government is brought in.

Just remember that folks.  People are free unless they walk into the psychological prison voluntarily.  Just say no en masse and the answer will be no.  By the way, the numbers we are talking about here are not large. If just 1/3 of 1% of the US population took up arms against government which crosses the line into tyranny then that is 1 million people.  Government cannot survive that.  Aircraft, tanks and sophisticated weaponry are of little use against that kind of pissed off and dedicated fighting force.  Importantly, most of the population would sit it out and simply back the winner of the contest.  Like everything else associated with our government, the idea that they are actually in control is all show and psyops.  An enlightened people will not listen to their threats and lies but will instead self organize for mutual defense.

Fortunately, while our government has crossed into dangerous territory several times, it has never crossed so far as to label it true tyranny.  Even more fortunately, their progress seems to have reversed, at least for now (I am aware that it could just be a corrective wave in a larger wave of liberal tyranny).  So now is not the time to worry about taking up arms but now is the time to make sure you have them and enough ammo to do your part should the need arise and furthermore to make sure you are proficient with your firearm for the purpose of self defense.

I want to leave you on a final note: when everything begins to collapse like it has in many countries over the past 4 years, that is when words coming from government should be paid the least attention to.  Why, in fact, should you listen to those who caused the problems and who led society to its doom?  No, folks, if you want to listen to government, do it now while everything is still well above any level that could be called "collapse".  But after the collapse?  Just ignore them and in fact sweep them away like the trash that they in fact are and then work with your fellow man to rebuild.