ATMs, bank accounts, bank holidays, Bankrupt, Bankruptcy, banks, bureaucrats, Cyprus, economic collapse, EU, Europe, European Union, FDIC, financial institutions, Germany, government, Greece, IMF, insurance, International Monetary Fund, money, Morgan Stanley, Politics of Cyprus, private, Saxo Bank, stealing, theft, U.S, United States
There’s only one reason people leave money in a bank: because they think it’s safe there. They think they can get their money back out when they ask for it. This trust is what makes bank accounts possible, and without this trust, there is no longer any reason to put money in any bank.
The government of Cyprus just destroyed that trust across the entire EU. How did it accomplish this feat of destruction? By raiding the private bank accounts of everyone with a checking or savings account. In a surprise act of nationwide government theft, the government of Cyprus — under orders from the IMF and German bureaucrats — simply looted private bank accounts, stealing up to 10% of private account deposits.
It’s being called “the great EU bank robbery.”
Let it be known that governments can now directly loot your checking accounts without permission
This act should not necessarily surprise us. We all know that governments are voracious thieves that steal savings and wealth from the productive working class of society. But what’s really shocking here is the wave of distrust now being set off across the Eurozone.
If Cyprus can suddenly and without any warning loot private bank accounts and steal money away from people who have rightly earned it, then what’s to stop the same thing from happening in Greece, Spain, Italy, Portugal or any other country?
“I believe it could be the beginning of the end for the Eurozone as this is an unbelievable blow to the already challenged trust that might be left among investors,” wrote Lars Seier Christensen, CEO of Saxo Bank. (SOURCE)
He continues: “If you can confiscate 10 percent of a bank customer’s money, you can confiscate 25, 50 or even 100 percent. I now believe we will see worse as the panic increases, with politicians desperately trying to keep the EUR alive.”
And that’s the point here. If a government can instantly steal 10% of your savings, it can also steal 100%. So what’s the point of putting money in a bank at all? The only people who didn’t get ripped off by the Cyprus government were people who had nothing in bank deposits!
Banks even went to great lengths to stop customers from getting away with their own money. “Cypriot banks banned online transfers and emptied cashpoints to stop withdrawals,” reports the Daily Mail. “Economists warned the move would fatally undermine confidence in the safety of money being held in banks in other countries, risking bank runs across the eurozone.”
Is this the beginning of the great EU bank run fiasco?
Right now, depositors across the EU are thinking to themselves, “Gee, this could happen here next. I’d better get my money out while I still can…” That’s the kind of thinking that causes bank runs, of course. Given that the banks in nations like Greece and Spain are already on the verge of financial collapse, any run on deposits will likely set off a cascade of liquidity implosions that ripple across the EU and eventually make their way to the shores of America.
Get ready for the announcement of “bank holidays” across the EU. A bank holiday means the bank closes its doors and refuses to allow you access to your own money. Bank holidays are the last red alert warning sign before a systemic banking system collapse. If you hear an announcement of a bank holiday at your bank, you’re already too late. The only way to protect your savings is to get it out of the banks before they declare bank holidays.
“The raid on bank accounts risks triggering new convulsions in the financial crisis that began in 2009 in Greece,” reports Bloomberg.com. It continues:
The [looting] is “a worrying precedent with potentially systemic consequences if depositors in other periphery countries fear a similar treatment in the future,” Joachim Fels, chief economist at Morgan Stanley in London, wrote in a client note.
FDIC insurance is a mathematical hoax: here’s why
When most Americans read this, they will mistakenly think to themselves, “Oh, this won’t affect me. My accounts are insured by the FDIC.”
FDIC insurance is a mathematical hoax… a delusion. The FDIC only has a tiny fraction of the funds it would need to bail out account holders in a systemic banking failure. If just 5% of the banking institutions in the USA went belly up, the FDIC would be bankrupt itself.
The FDIC, accordingly, is no protection against systemic failure. It can only really protect account holders of isolated, rare bank failures that do not happen as part of a systemic collapse. And yet the collapse that’s coming is, of course, a systemic collapse of the global debt-based banking system which is deeply tied in with government spending and global debt instruments like derivatives. The only way to be safe from that inevitable implosion is to have no money in the bank. In other words, have your assets in other real things like land, gold, food, etc.
For the record, a systemic financial failure of U.S. banking institutions is not yet imminent, but it is inevitable. The timing is the real question, but with European governments now directly looting — stealing! — deposits from the accounts of private citizens, we are quite clearly one step closer to a systemic, global implosion of the failed debt cartels.
The banksters are getting very, very desperate and it’s clear they are going to steal everything from the citizens in a bid to save themselves. If the global debt-based banking system is the Titanic, the banksters just motored away with all the rescue boats and left the passengers standing around with their d!*#s in their hands.