Talk about whistling past the proverbial graveyard! I mean, seriously, it wasn’t too long ago when banks were considered the bastion of financial security; not to mention, where the “miracle of compounding” could fund one’s retirement. Today, however, not only do you earn zero nominal interest on your deposits – and adding insult to injury, negative real returns; but as we learned in 2008, your assets could be frozen amidst a bank failure. To wit, worldwide real estate prices are weaker than they were in 2008 – “recovery” and all; whilst derivative holdings are larger and “mark to fantasy” accounting hiding the true nature of bank balance sheets. Thus, it should be crystal clear that banks are not only unsafe, but eminently dangerous. And then, of course, there was Cyprus; i.e., the Pandora’s Box that introduced the titled “bail-in.” In other words, the possibility of your bank legally stealing your money – to fund its own speculative losses. Obviously, neither Dodd-Frank nor the “Volcker Rule” will prevent banks from continuing to act as government-sponsored casinos; and in fact, the banks themselves are re-writing the rules. And thus, how anyone would still leave their life’s saving within the banking system is beyond me.
Since the Cyprus bail-in shocked the world in March, it has been widely accepted as a precedent for future bank insolvencies. After all, the Central banks used up both their capital and credibility bailing out banks over the past five years; and thus, needed to come up with a way to continue their “too big to fail” policies aside from money printing. And since Euro-group President Jeroen Dijsselbloem deemed Cyprus a “template” for future European bank emergencies, the odds of such an event have exponentially increased. After all, the European economy has since worsened to the point that the ECB last month lowered its benchmark lending rate to 0.25% – going so far as discussing not only a formalized QE program, but negative interest rates.
And quite the Pandora’s Box it was; as in the ensuing eight months, active, public discussions of the mechanics of future bail-ins have been as commonplace as JP Morgan financial scandals. However, the really scary part of this whole, sordid situation is the Cyprus bail-in was not just decided in an impromptu, emergency meeting in March; but instead, via a “white paper” authored by none other than the U.S. FDIC and the Bank of England two months prior. In other words, the bail-in concept had already been predetermined; and thus, was simply seeking its first victim.
Frankly, it is nothing less than shocking that people remain so complacent amongst such risks; let alone, the nearly weekly headlines of bail-in scheming. Aside from the U.S. and the UK – i.e., the “twin towers” of government financial fraud – such plans are actively being discussed essentially everywhere. Heck, European finance ministers confirmed so much at last week’s “Future of European Banking” conference – supported by essentially all participants, of course. I mean, if you had money in the collapsing Italian banking system, and Italy’s Finance Minister told you he supports a minimum 8% bail-in “in case” of a bank failure, you’d have to be crazy to keep your money there, wouldn’t you?
And forget the banks themselves; how about the countries they reside in? It’s estimated that the (fudged, underestimated) average debt/GDP of “advanced economies” is projected to reach 110% next year – i.e., above the historical ‘death zone’ above 100% – compared to just 75% in 2007. In other words, governments are preparing to “bail-in” citizens in much the same fashion as banks will be doing to depositors. Look at the onerous, nation-killing taxes Francois Hollande instituted since being elected France’s President on a so-called ‘populist’ platform just 18 months ago. Subsequently, France’s economy is weaker than any in the EU right now – yes, Greece is a good comparison; whilst Hollande’s approval rating is at an all-time low. To wit, just last week, the IMF itself – i.e., the “henchman” of the world’s leading financial powers, proposed comprehensive, broad-based ‘wealth taxes’ – including a 71% top tax in America. And I’m not talking about socialism here; but instead, a back door bail-in of collapsing government finances.
As for the need to act quickly, such warnings go doubly for younger generations seeking to feed growing families, fund retirement, and leave nest eggs. The “millennials” – and worse yet, following generations – have been doomed to financial serfdom by decades of self-serving, bank-dictated financial policies. Consequently, their only hope is to escape “the system” as soon as possible; not only by avoiding government imperiled institutions, but through the protection only real money has afforded through history.
Source: Zero Hedge
Today, the world stands at the precipice of an unprecedented financial collapse – principally rooted in the “bad money” underlying it. Desperate attempts to prevent people from protecting themselves with gold and silver are resulting in the wholesale destruction of the mining industry and rapid migration of the little remaining PHYSICAL metal from the dying West to the emerging East. It won’t be long before PM prices are rejoined with reality; and more importantly, when supply becomes nearly impossible to secure. Hopefully, you too see the writing on the wall; and if you do, it’s imperative you perform due diligence on the topic as soon as possible. I know what conclusions the Miles Franklin Blog has made – and what actions its principals have taken. However, what will you do?
PROTECT YOURSELF, and do it NOW!
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