Banks are supposed to be safe places to store your money and keep your other valuables. Yet as recent banking history has shown, when you entrust your money to a bank, you actually become nothing more than another senior creditor to the financial institution.
It was only back in 2013 that the world woke up to a new grim banking reality courtesy of the small Mediterranean Greek-speaking island of Cyprus. All of their banks were suddenly simultaneously insolvent through gross mismanagement and irresponsible overexposure to Greek sovereign debt that suddenly had to be marked down to the near-worthless paper that it actually was at that point.
The banks faced a stark choice. They could either go bankrupt, bringing down the country of Cyprus and its million inhabitants with them, or they could seize the deposits of any clients who possessed in excess of 100,000 euros in their bank account.
Without warning, apology, or preamble, the Cypriot banks simply chose to confiscate these billions in deposits and restore their troubled balance sheets. The only explanation they gave out to the shocked (mostly foreign large) deposit holders was that it had been “necessary” to stop the banks from failing completely.
To the chagrin of the depositors, other banks and sovereign governments throughout not only the European Union, but also the entire world, concurred that this was the optimal and only practical solution. Obviously the right thing to do was to protect the smaller depositors— the working class Cypriots— by saving their banking system.
Were it not for the tacit approval of the entire international banking and governing community, this mass confiscation would have been called theft or looting. The Cypriot bankers actually robbed their own banks.
If you were surprised that the other financiers of the world simply nodded their approval to the action of after all a tiny banking system and insignificant island nation, you should not be. Banks and governments are collectively in the business of confiscating on a regular basis. In the situation of the Cypriot banks, the others would have all done the same thing.
What is important is that this was the critical first precedent for such an action. Banks today the world over are all aware that they too can gain the silent approval of the world financial and governing community if they run into trouble and see the ultimate need to seize their wealthy depositors’ money.
Thanks to this action four years ago, you can reasonably expect both financial institutions and governments the world over to rob and pillage the assets of anyone who is stupid enough to trust their money to banks in the future.
The EU bail-in law set this precedent in the legal books back in 2014. Any EU jurisdictional bank may simply confiscate its own depositors money if it unilaterally determines that this constitutes an “emergency” situation. Canada passed the same law back in 2013, while the United States approved a similar measure for bank bail-ins in 2010.
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Cypress was more important than its size belies because it was the first mass-scale, real-world application of such financial seizure laws in actual practice. As it was wildly successful and met all of the stated objectives of the banks and government of Cyprus, you should expect to see it repeated again in the future. Next time might be at a local banking institution near you.
What this means for you is that money you entrust to the banks you may never see again. Already if you try to withdraw a large amount of your own money in a single go, you will be treated like a money launderer or international crime syndicate. Gold on the other hand has no such liabilities, particularly if you opt for home storage or international vaulting beyond the reach of your friendly neighborhood bank and dependable U.S. government. Click here now to obtain your completely free and no-obligation gold IRA rollover kit from the world’s leading retirement accounts manager Regal Assets so that you have all of the important information you require to safeguard your retirement accounts with a partial diversification of your IRA assets into physically held gold.