Why NO Bank Account is Safe (Not Just the Ones in Cyprus)

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.

 

To watch the above video on YouTube and to gain access to all the referenced articles & links above (included in the YouTube video description beneath the video)... 

 

Please click here.

 

 

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