Posts
Most people don't understand
the legal framework of bank deposit
accounts. The banks, not you, are
the legal owners of the assets in your deposit accounts, and in
essence, the digital numbers that show up
in your deposit account book or on the ATM machine are
a liability the bank must make good on. So what
happens if the bank makes an investment with your money
in some uber risky derivative product they invented and it loses your money? Automatic monetary devaluation,
or theft, will occur, more commonly known in "banker speak", as inflation or quantitative easing.
The one crystal clear
lesson that all people need to understand from the Cyprus debacle is that in essence, the legal
framework of all bank accounts makes the cash you deposit into
your bank account the equivalent of a loan to the bank.
In essence, you are the lender, or creditor, to the bank, for your own money and in turn, your receive
an IOU note from the
bank. This is why Chris Drake, a former BBC correspondent, retired in Cyprus, recently
exclaimed,
" 'I'm
furious with myself. I had somany opportunities
to move my money abroad but was taken in by all the promises that
any attempt to raid my
savings was a red line not to be crossed. Experts said it was
against the law. Now, I've lost several thousand euros. As someone
who is retired, the money in my account is all I have to live on for
the rest of my life. What's really upset people
is that they've been lied to. They were told that their money was
safe and that they shouldn't move it and then they announce this.
Everyone's accounts are frozen and the ATMs have no money. Some
people are struggling to get enough cash together to buy food and
water...[people] just feel that they've been robbed by the
Government."
This is why Nigel Farage has stated that ALL "savings held in countries where the euro is the currency are no longer safe." But Farage's statement does not apply just to EU banks, but to ALL commercial banks in all countries in the world. Why? I explain in the video below. Please click the video below and watch it so you won't be furious with yourself in a week or several months from now, for not acting right now while you still have the opportunity to do so.
In addition to your digital fiat
money, holding physical gold and physical silver at a
bank is also a TERRIBLE IDEA,
as you are subject to bank theft as well of an
infinitely even more valuable asset that actually has
great intrinsic worth, unlike
your digital fiat money. Consider that Dutch megabank ABM Amro just informed all their customers that
hold physical gold with them that they can no longer withdraw
physical gold anymore but only its equivalent fiat currency worth at
the current spot price. But the whole point of holding physical gold
is to store your wealth in a
form of money that will not lose massive purchasing
power like fiat currency. Consequently, buying physical gold at a bank and then being
informed by the bank that you will only be able
to redeem it in fiat currency
defeats the whole point of owning physical PMs! And this
is why we have been saying for seven years to never
ever, under any circumstance, buy and hold physical PMs at a
bank.
