How Banks Can Tap into Your Savings

What You Need to Know About
How Banks Can Tap into Your Savings

 

a question being asked by some readers 

of the NESARA blog website

 

Technically, a bank legally owns the depositor’s funds once the depositor puts the money in the bank. Therefore, we become “unsecured creditors” and the bank is obligated to pay us back; typically, as we normally operate, we can be “paid back” those funds in cash any time we want when we withdraw money. But because the bank officially owns your money, this isn’t guaranteed.

With the approved G20 law, this obligation becomes much blurrier, because in order to prevent financial collapse:

1. Banks can “recapitalize” themselves by converting depositor funds into stocks as they deem necessary. This means you are taking the same risk putting your money in a savings account than you would be investing that money in stocks…because the banks can convert your savings to stocks at any time, leaving you without the cash.

2. Uninsured bank depositors run the risk that their savings will be tapped into to pay back government debts. This is exactly what happened in Cyprus, and the G20 decision to allow this behavior shows irresponsibility in the international banking system toward its citizen taxpayers. (Note: Insured deposits are protected up to $250,000 in the U.S.)

Strikingly, derivatives (large amounts of money from hedge players and institutions themselves) are protected, while individual taxpayer savings accounts are not. Derivatives are “secured” while your money is not.

Increasingly Legal in Different Countries

Just a few days ago, Austria became the first European country for which it is entirely legal to “share debt” with senior creditors, meaning a failed bank can tap into the accounts of its senior creditors to pay back money it owes to avoid insolvency. Creditors are fighting this law, but it has officially been written into the books.

In the U.S., it seems as if the G20 law’s language was added to the Dodd Frank Act, a 2,300-page document on economic policy. Other countries appear to have added the language to their national laws, as well.

Why and How? What Do We Do?

Why would any global financial institution that’s supposed to be protecting economic stability approve this sort of law? From the perspective of a financial marketplace, the logic is that this safeguard serves to prevent “banks too big to fail” from disrupting an entire economic ecosystem…at the cost of individual depositors.

Why is this relevant now, if the law was passed in 2014? If you’ve paid attention to global economic news in the last few months, you know that things are getting bad. China had a stock market crash, their manufacturing industry is tanking, there’s threat of a “Brexit” from the EU, stock and equity markets are in the red zone, and essentially, there is very little grounded stability anywhere. The entire banking system is floundering.

So what happens when the house comes crumbling down? If your money is in the bank and uninsured, it’s as unsecured as any stock responding to the whims of the market. We’d like to believe in the safety net of a savings account, however, it’s better not to be fooled. Arm yourself with knowledge and protect yourself against the whims of big banks…because when they fall, it’s your savings at risk.

How to Secure Your Money Now

There are a few ways to protect yourself against the likelihood of a Cyprus bail-in:

1. Insure your money that’s in the bank.
2. Avoid participating in banking schemes as much as possible.
3. Diversify. Invest your money in places that can’t fail, such as precious metals. Precious metals are solid, physical stores of value, and have been for all of human time.

If you’re concerned about the risks of having your money at the whims the banking industry, it’s a wise solution to have a portion of your portfolio in gold and silver. Precious metals offer protection, safety, peace of mind and practical liquidity. The value of gold and silver is real and can’t be diminished by the poor decisions of your government.

Scottsdale Bullion & Coin

http://www.sbcgold.com/blog/