Iran Confiscates U.S. Dollars

The value of Iranian currency is plummeting against the U.S. dollar.  Of course if you were an Iranian citizen sitting with a savings account holding Iranian money you would have seen the value of your savings go down by over 30% in just the past few months....which isn't good. 

So the prudent Iranian would attempt to swap his Iranian money for U.S. dollars...the value of which isn't falling as fast.

The problem is that the Iranian government may now confiscate those U.S. dollars and you may be imprisoned if you are found to have "too many" of those dollars.

See this interesting video here;  http://www.bbc.co.uk/news/world-middle-east-16623747

You can start to see the problem with paper currency.  It begs the question that one day when the U.S. dollar starts plummeting against the Swiss Franc or the Chinese Yuan and Americans start trying to hold those currencies instead of U.S. dollars.....could the U.S. government employ the same tactics as Iran...and simply start confiscating them.

Of course the reason that will be used will be "national security concerns."  The U.S. government did it once before in 1933 when they confiscated every one's gold....so I'm guessing that one day they will do it again.

Hat tip to Tom F.