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Bank Depositors are “Unsecured Creditors”; Bank Savings Aren’t Safe

31 Aug

Here’s an informative video that explains the risks inherent in banking with some of America’s biggest and most aggressive banks.  The video does not allege that all banks are likely to file for bankruptcy.  But it does suggest that the nation’s biggest banks (like Bank of America, JP Morgan, etc.) are so deeply ensnared by their “investments” in derivatives, that their bankruptcies are least possible, and perhaps inevitable.

In the event of such bankruptcies, bank customers will lose some or all of their deposits.

The video focuses on the risks associated with the biggest American banks. However, we can also speculate that if one or more of the biggest banks collapse, the financial consequences might be so “contagious” that the entire banking system (including local banks that are otherwise solvent) might also be temporarily paralyzed.  If so, all depositors might be unable to access their funds for several days or weeks.

What do you suppose would happen to his country if the banking system was effectively shut down for just one week? No credit cards, no debit cards, no checks, no ATM or bank withdrawals. People would have to live for a week on just the cash they had in their hands or had squirreled away in their homes.

We could survive a week of such inconvenience, but it wouldn’t be fun.  If the “inconvenience” lasted for several weeks or months, there’d be chaos.

The video concludes by suggesting that, in order to protect our deposits, every community should establish a new kind of local bank that keeps local depositors’ funds in the local community and prevents placing those funds into distant or foreign investment vehicles.  That’s an interesting idea, but unlikely to be implemented in the near future.

I suggest that you: 1) consider how vulnerable some of our major banks are to bankruptcy; 2)  decide how much of your wealth you’re prepared to risk in the American banking system; and 3) decide how much of your wealth that you’d like to protect by keeping it in or near your homes in the forms of cash, gold or silver.

I’m not suggesting that you close your bank accounts. I am suggesting that you keep a secret “stash” close to home in a form of money (cash, gold, silver) that could get you through several weeks or months of a banking collapse.  These suggestions can be implemented immediately.

video 00:12:52

 

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5 responses to “Bank Depositors are “Unsecured Creditors”; Bank Savings Aren’t Safe

  1. Michael

    August 31, 2013 at 8:53 PM

    Its not if, its when, If Governments where not corrupt it would defuse the banks in their nation, and if the banks did not like it, they would be stripped to operate in that nation as in fact a few nations have done, yes that’s correct the central bank has been kicked in the teeth, but then these small nations are nothing and not important to the plan of the central bank.

    Americans don’t understand its their system of corruption that people of other nations HATE, don’t WANT, don’t NEED, and the central banking system acting in concert with the United Nations as a world government of control behind nations Governments.

    So Obama wants to play thug and have war with Syria, and help out his Muslim brotherhood as the US is going to have talks with, so the US has to help out to secure a resolution. Assad was told not use chemical weapons and the US knows he has them. Now they have to smack Assad hands to show that bad boys who don’t follow the rules of war and not use weapons that are band to kill his sheepeople but only to use conventional weapons others wise he will be removed, after all they offered him safe passage out and taken somewhere safe, but like any dictator he does not want to admit defeat and will fight to the end.

    Its nice to know if your owned and payed for by the with the western powers your allowed to kill the people when they rise up. Maybe Americans should take heed as if and when rebellion happens in America that the people will be slaughtered by their own Government.

    The Sheep of America have there own problems then to worry about than the middle eastern murders of innocent women, and children that the central banking system is funding all sides.

    Every dollar you earn and given to the Banking system are funding wars, and the murder of other people, the blood of the murdered are on your hands, and you don’t even know it that you have payed for it.

     
    • grr82cu2

      May 9, 2015 at 9:12 PM

      Obviously you are more interested in ranting ignorantly than in addressing facts @”Michael” – but trying point out such specifics would no doubt be like pointing a water hose at a brick wall. Nothing would penetrate.

       
  2. Kee

    September 1, 2013 at 2:33 AM

    Take action with your resources. Be accountable! The writing is on the wall.

    Look a little deeper into Syria, there is more than meets the eye…how about the gas line? Who is really strong-arming here? Is that why Europe has nothing to do with participating in the Syria clamor? Hmmm? Wake up! Something doesn’t seem right.

     
  3. Pat Fields

    September 1, 2013 at 2:49 AM

    Money, At Law, is a weight of fine copper, silver or gold coin. There is no money circulating today, only banknotes. These Notes are best perceived as ‘Trade Facilitation Instruments’ loaned into circulation against an applicant borrower’s signature credit. The owners of these banknotes are the issuing banks and the instruments are in fact, their retained ‘Intellectual Property’, as they’re not sold outright upon market value in money.

    From this view, it’s logical then, that the instruments are ‘re-hypothecated’ when loaned back to the bank (as ‘deposits’). In reality, though, the ultimate holders of Title in the banknotes never relinquished their Property Claim to them. Every last physical stamp or digital banknote is owed back to the banks when called in.

    So, it isn’t only the ‘savings’ represented by the banknotes, but the instruments in and of themselves that aren’t safe.

     
  4. Peter

    September 1, 2013 at 6:14 AM

    A bail-in is coming to a neighborhood bank near you very soon, like the Cyprus garden variety. Don’t say you have not been warned!

    ” all pioneers wear arrow shirts” Ed Hart

    Money in the stock market used to exhibit Flight to safety into bonds when sell offs occurred, this time gold may be the beneficiary due to steady rising rates now.

     

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