Donald Hank
Is your money safer under the mattress?
By Donald Hank
Several investment advisers are now warning people not to put too much money in the bank, or if you have more than a 'safe' amount, to pull some out – and also to divvy up your deposits in more than one bank.
They base this on some new laws being crafted right now in various parts of the world enabling banks to steal deposits under a euphemistic concept known as the "bail-in," which first reared its hideous head in Cyprus last year (see links below for details on these new developments).
Like bailouts, bail-ins are a way to transfer wealth from the people to the banks. Bailouts made the little guy pay the bankers back in 2008. But finally, the bank robbers in the IMF, the EU and the rest of the top echelons of our globe will be stealing mostly from people who in their estimation have too much money deposited in their bank accounts.
When the IMF-EU team pulled the first heist – er, bail-in – in Cyprus last year, they took something on the order of 80% of the overage above 100,000 euros from depositors with 100,000 euros or more in their accounts. So they were soaking the rich, right?
Well, not exactly. See, I was a business man once and I sometimes had a rather large bank deposit too. But often about 70-80% or more was owed to my creditors and employees.
Let's say you own a corner grocery store and you have 4 employees and temporary help @ about $10,000/mo counting their benefits and social security taxes, etc, and you buy $90,000 worth of products from your wholesaler every week. On top of that, you pay $4,000 rent every month and have hefty taxes and utilities costs for the lights inside and outside the store plus heating fuel, amounting to roughly $2000/mo. You have a service vehicle that costs $800/m in mortgage payments and $200 for gas and maintenance. Your liability and fire insurance runs you $2000/m and you have, on a smaller scale, similar personal car and home costs of around $2500/mo. plus food and clothing costs of about $2500/mo for yourself and your family.
If I added correctly that makes $114,000 in bare-bones costs alone. To be on the safe side, you let some money accumulate and after a few years you wind up with $140,000 in that account, not very much overage.
But the government doesn't give a crap about you and your family. When the bank crisis hits, they hold an emergency meeting in secret and, since the their willing accomplices in government have already passed a law enabling bail-ins under certain dire circumstances, they swoop down and take 80% of the "overage" of $40,000, or $32,000 from your account without prior notification of you the customer.
Now you have only $108,000 left, which is below your expenses. Assuming that is all your cash, you either get a quick bank loan or max out a credit card or two or your home is foreclosed!
You see, to government, which is as stupid as a box of hammers, you – in truth a struggling business man with a gazillion strikes against you – are a "rich" man because you have over $100,000 in the bank.
Little do they care that most of this is not yours at all, belonging instead to your employees and your creditors in business.
Subtracting the $114,000 that you need to live and do business, you really only personally own $26,000 of that deposited cash.
But the government is now our god in a full secularized society where religion is swapped out for sacred material symbols and godheads. The government giveth and the government taketh away. And We the people have met the threat with our silence = consent, because the conservatives took the crooks in the GOP to be their lord and savior while the liberals took the crooks in the Democratic Party to be their lord and savior, and they both voted out one set of crooks to replace it with another in a never-ending cycle of total futility.
Germany to start bail-ins by 2015.
http://www.marketwatch.com/story/germany-oks-plan-to-make-creditors-prop-up-banks-2014-07-09?link=MW_home_latest_news
(The same story broke in German financial sites in July, for example, here: http://informisten.de/m/newsinfos/view/Enteignung-bereits-beschlossen)
Recent Bail-in law in Australia
http://cecaust.com.au/releases/2014_03_20_Treasury_Bail_In.html
So if you have an account that was earmarked for retirement and you are close to 65, you might want to yank that money out now and/or divvy it up among several bank accounts.
But don't bet the money that your government will not come up with a new plot to seize it.
© Donald Hank
September 28, 2014
Several investment advisers are now warning people not to put too much money in the bank, or if you have more than a 'safe' amount, to pull some out – and also to divvy up your deposits in more than one bank.
They base this on some new laws being crafted right now in various parts of the world enabling banks to steal deposits under a euphemistic concept known as the "bail-in," which first reared its hideous head in Cyprus last year (see links below for details on these new developments).
Like bailouts, bail-ins are a way to transfer wealth from the people to the banks. Bailouts made the little guy pay the bankers back in 2008. But finally, the bank robbers in the IMF, the EU and the rest of the top echelons of our globe will be stealing mostly from people who in their estimation have too much money deposited in their bank accounts.
When the IMF-EU team pulled the first heist – er, bail-in – in Cyprus last year, they took something on the order of 80% of the overage above 100,000 euros from depositors with 100,000 euros or more in their accounts. So they were soaking the rich, right?
Well, not exactly. See, I was a business man once and I sometimes had a rather large bank deposit too. But often about 70-80% or more was owed to my creditors and employees.
Let's say you own a corner grocery store and you have 4 employees and temporary help @ about $10,000/mo counting their benefits and social security taxes, etc, and you buy $90,000 worth of products from your wholesaler every week. On top of that, you pay $4,000 rent every month and have hefty taxes and utilities costs for the lights inside and outside the store plus heating fuel, amounting to roughly $2000/mo. You have a service vehicle that costs $800/m in mortgage payments and $200 for gas and maintenance. Your liability and fire insurance runs you $2000/m and you have, on a smaller scale, similar personal car and home costs of around $2500/mo. plus food and clothing costs of about $2500/mo for yourself and your family.
If I added correctly that makes $114,000 in bare-bones costs alone. To be on the safe side, you let some money accumulate and after a few years you wind up with $140,000 in that account, not very much overage.
But the government doesn't give a crap about you and your family. When the bank crisis hits, they hold an emergency meeting in secret and, since the their willing accomplices in government have already passed a law enabling bail-ins under certain dire circumstances, they swoop down and take 80% of the "overage" of $40,000, or $32,000 from your account without prior notification of you the customer.
Now you have only $108,000 left, which is below your expenses. Assuming that is all your cash, you either get a quick bank loan or max out a credit card or two or your home is foreclosed!
You see, to government, which is as stupid as a box of hammers, you – in truth a struggling business man with a gazillion strikes against you – are a "rich" man because you have over $100,000 in the bank.
Little do they care that most of this is not yours at all, belonging instead to your employees and your creditors in business.
Subtracting the $114,000 that you need to live and do business, you really only personally own $26,000 of that deposited cash.
But the government is now our god in a full secularized society where religion is swapped out for sacred material symbols and godheads. The government giveth and the government taketh away. And We the people have met the threat with our silence = consent, because the conservatives took the crooks in the GOP to be their lord and savior while the liberals took the crooks in the Democratic Party to be their lord and savior, and they both voted out one set of crooks to replace it with another in a never-ending cycle of total futility.
Germany to start bail-ins by 2015.
http://www.marketwatch.com/story/germany-oks-plan-to-make-creditors-prop-up-banks-2014-07-09?link=MW_home_latest_news
-
BERLIN – Germany's cabinet Wednesday approved plans to force creditors into propping up struggling banks beginning in 2015, one year earlier than required under European-wide plans that set rules for failing financial institutions.
The new bail-in rules are part of a package of German legislation on the European banking union – an ambitious project to centralize bank supervision in the euro zone and, when banks fail, to organize their rescue or winding-up at a European level.
Germany "leads the way" in Europe by implementing European rules quickly and "creates instruments that allow the winding-down of big systemically relevant institutions without putting the financial stability at risk," the country's finance ministry said in its draft bill seen by The Wall Street Journal.
(The same story broke in German financial sites in July, for example, here: http://informisten.de/m/newsinfos/view/Enteignung-bereits-beschlossen)
Recent Bail-in law in Australia
http://cecaust.com.au/releases/2014_03_20_Treasury_Bail_In.html
So if you have an account that was earmarked for retirement and you are close to 65, you might want to yank that money out now and/or divvy it up among several bank accounts.
But don't bet the money that your government will not come up with a new plot to seize it.
© Donald Hank
The views expressed by RenewAmerica columnists are their own and do not necessarily reflect the position of RenewAmerica or its affiliates.
(See RenewAmerica's publishing standards.)
