Practice safe banking
Oct 4, 2013 / 5:00 am
We live in a world of duplicity and hypocrisy. We bomb countries to teach the lesson not to be violent. The most deadly and violent government is the one who polices the globe to pursue “peace.” We are told that useless pieces of paper have value, while real money (gold and silver) are labeled as a barbarous relic. The so called “Land of the Free” has less civil liberty than the proclaimed non-free countries of Russia and China. And one of the most dangerous places to put your currency is regarded as one of the safest places to store your wealth.
The truth of the matter is that one of the riskiest places that you can store your currency is in a bank. This includes Canadian banks. Essentially the fundamental model of present day banking is a Ponzi scheme. The instant the second loan goes out the door, the bank is insolvent. This is not new: We’ve known this for a long time. However, what is new in the global banking arena is that when the next financial crises hits, which should be any minute now, the tax payer will not be on the hook. Nope, it’s going to be the unsecured creditors. Who are unsecured creditors? Those who hold deposits at banks! The next time the banking system fails, and it will, the banks won’t go crying to the government. They will simply be acquiring your deposits. Whether you know it or not, if you hold deposits at a bank you are an investor in that bank. This is just like a public company. If the company suffers…so do the shareholders. You are now considered a shareholder in the bank.
We saw this put into action in Cyprus a few months ago, and just a few short weeks later the Canadian government adopted this practice with Action Plan 2013 (pages 144 & 145). The US has also implemented legislation that will allow the banks to steal directly from depositors accounts in the event of a crisis.
Why are these policies being put in place? Because the banks and governments know full well that the next financial crises is around the corner. The collapse of 2008 was never resolved; it was masked over with more debt putting us in a far worse financial situation today. So won’t CDIC cover any losses? I wish. The losses will exceed the depth of the pockets of CDIC and for that matter FDIC in the US.
As I’ve stated previously, with few exceptions, banking is a global arena. All the big banks are attending the same financial orgy and no one is wearing protection. Contraction of an FTD (Financially Transmitted Disease). Yes I did just come up with that and I think it’s quite clever) is an absolute certainty. As is the way of global banking, when one gets the disease….they all get it. When this happens, policy is already in place to steal from your bank account to protect the precious banks.
So what do you do to protect yourself? Well, we all know that abstinence is the best form of protection. Get large deposits out of the banks. Pay down debt. Own gold and silver and real non-paper assets.
Read more Economics Made Easy articles
- Canada: The 51st State Nov 29
- Practice safe banking Oct 4
- When will it end? Part 2 Sep 20
- When will it end? Sep 6
- Something rotten in the State of Denmark Jun 14
- Don't vote May 3
- Canada is the next Cyprus Apr 19
- Banking disaster Mar 22
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