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I had this topic queued up all week, but just got to it today – Friday afternoon.  What perfect “literary karma,” given GLOBAL stock markets are collapsing – led by the banks – and sovereign debts of numerous European nations.

I’m going to make this short and sweet, starting with a quote from Eric Sprott’s most recent commentary:
No matter what happens in the Eurozone, the absolute worst case scenario is a bank run.  It terrifies all involved, because they can spiral out of control faster than governments can stop them, save for the most Draconian measures.  They also prompt banks to liquidate whatever they can, revealing the truth about what their “assets” are actually worth.  In this environment, no one wants to find out what the market will really pay for them.  We’re seeing this now in Spain, where many banks are avoiding property sales so they don’t have to mark to market the REAL valuations. Instead, they’re giving developers new loans to pay debt coming due, to prevent defaults.
The flimsy “banking system” is all that stands between today’s “modern world” and chaos.  Born of the unholy union between Washington, Wall Street, and London, its sole foundation is fiat currency, backed only by the “full faith and credit” of lying, thieving, MONEY PRINTING governments (i.e., ALL of them), whose top officials have nicknames like “Tiny Tim”, “Brown Bottom,” and “Helicopter Ben.”

After 41 years of utilizing un-backed currencies, the ENTIRE WORLD has built a debt edifice many multiples larger than it can service, increasing exponentially as its true nature is revealed – a PONZI SCHEME that must grow larger to survive, and must foster CONFIDENCE.  At some point, it grows too large and collapses, but usually does so beforehand when CONFIDENCE is inevitably lost.  This is why TPTB work so hard to suppress PMs and support the “DOW JONES PROPAGANDA AVERAGE,” as CONFIDENCE can be as fleeting as a shooting star, particularly when unwarranted.

Unfortunately, one of the most harmful side effects of global “fiat cancer” has been the ongoing PROPAGANDA campaign – four decades running – that BANKS ARE SAFE.  No matter how many have absconded with or misappropriated deposits – or mismanaged them to the point of bankruptcy – the government tells you BANKS ARE SAFE, so much so that deposits are guaranteed via FDIC, SIPC, and who knows what other acronyms.  Of course, such guarantees have maximum values, and the government reserves the right to freeze your funds via “bank holidays,” at its arbitrary discretion.  Not to mention, the FDIC itself is bankrupt – only replenish-able with PRINTED MONEY – and thanks to the Fed’s “ZIRP until at least late 2014,” it is impossible to generate interest on your deposits, while watching them get eaten away by fees, surcharges, assessments, and inflation.

The “BANK RUN” is the most feared of all economic events – particularly in today’s post-gold standard era, where large percentages of bank assets are denominated in fiat currencies – making them vulnerable to the same issues that cause depositors to become fearful – and the remainder in the COLLAPSING real estate markets.  A major European bank run – which could be catalyzed in a nation as small as Greece, given that all nations are now intertwined – will likely take down the entire GLOBAL ECONOMY, and in rapid fashion.  Per Eric Sprott’s article below – and countless articles I have posted in recent months – the “BANK RUN” has started, shortly to ANNIHILATE GREECE, and with it ALL THE PIFIGS (PIIGS plus France).  And then – in due time – “big dogs,” i.e. the UK, Germany, Japan, and finally, the owner of the “world’s reserve currency,” the United States.

Eric Sprott – The Real Banking Crisis, Part II

I have long espoused my view that – aside from modest sums for day-to-day operations – ALL assets should be withdrawn from the “banking system,” and NOT just commercial banks.  Investment banks, brokerages, credit unions – you name it.  They are ALL part of the same fraudulent, corrupted system that shortly will be no more.  I have taken 98% of my net worth out of “the system,” with the only amounts remaining in cash (NON-MARGIN) accounts at Schwab, which has a better balance sheet than nearly all banks on Earth.  And if my wife would let me, I’d take the remaining 2% out as well.

Readers, time is running out, and even the most died-in-the-wool polyannas will shortly “give up the ghost” in their incessant denials of the systemic, ongoing banking collapse.  When all is said and done, you will “fondly remember” 2008, when there was at least some hope for the future.  Hopefully, you will be CALLED TO ACTION before this occurs – as when it does, it will already be too late.


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