As I compose this essay the news of the proposed “taxation” of the depositors of the banks in Cypress via a confiscation of up to 9.9% of the balance from all savings accounts (and then the decision to not take that step) is rocking the financial world. The government of Cypress expressed the need for this measure in order to meet their obligation to the European Union. They called it a “tax on deposits” and “giving depositors a haircut”. I think a better term would be “stealing depositors’ money”. So go to Plan B….seizing funds in pension accounts and turning them into government bonds to pay for the bailout? Plan C?
Of course that could never happen here in America. Right ?
Don’t think that for a moment. First of all, put aside any preconceived notion that the markets are honest and fair to all participants. The multi-trillion dollar printing by the runaway Federal Reserve that is controlled by the mega-sized private banks is nothing more than another engineered plan to acquire your assets. Artificially suppressing interest rates is essentially robbing blind every person who has money invested in a savings account, checking account, money market, or CD. The next step will be to orchestrate a plan to grab every last dollar held in IRAs, 401ks, pension accounts, etc. by those who control the money supply and have the mechanisms in place to manipulate the markets. The game is rigged…and you don’t stand a chance of surviving without implementing a plan of your own.
I have been a Certified Financial Planner for almost two decades and in the financial services industry as a stock broker with both a regional and wirehouse brokerage for a good number of years before that. In 2005 I became an independent advisor because I could no longer stomach the corporate environment and how customers were forced into packaged products. I have seen complete economic cycles over that period of time….falling and rising interest rates….business expansions and contractions….periods of relative peace as well as war…..boom and bust. I have always been able to tell my clients that they could count upon the strength of American Industry, the American Workforce, the American Taxpayer, and the American Consumer to provide stability and steady growth to the American Economy.
I have also been a prepper since the late 1970s. After returning from my wartime military service in Southeast Asia in early 1974, I watched the economy stagnate and then evolve into a chaotic jumble of escalating interest rates and soaring precious metals prices. Americans contended with rising gasoline prices, shortages of heating oil as well as regulated natural gas supplies, a hostage crisis in Iran, and the “general malaise” that Jimmy Carter told us was to blame for all our woes. It wasn’t until the election of Ronald Reagan and some new economic policies that we were able to recover as a nation. Things improved, then got better. The 80’s and 90’s were good and productive years for America.
But the differences between yesterday and today are truly jaw-dropping. Back then the U.S. was economically sound despite the expense of the Viet Nam War financed with newly printed dollars that were not backed by gold (Nixon closed the window in 1971) and the growing (but manageable) social welfare programs. Tax revenues back then essentially covered and met the government’s expenditures. One just knew that every economic downturn would be followed by recovery ….because that’s just the way things worked.
Today the U.S. has spent the nation’s blood and treasure as well as our emotional capital on the conflicts in Iraq and Afghanistan. We have become involved in Libya, Egypt, and Syria. Potential issues with Iran and North Korea loom large. There are 47 million people on food stamps. Unreported millions are unemployed. Spending on social programs has exploded. The housing market collapsed and has never fully recovered. The banking system is on life support. The Federal Reserve is purchasing $85 billion dollars each month (a trillion dollars a year) in U.S. Treasury issues because no one else is willing to do so. Despite government statistics and reports Inflation has driven prices on energy, food, clothing, health insurance, and everyday items beyond reason. Expenditures outstrip tax revenues. Government spending is out of control and we are approaching $17 trillion dollars in national debt with untold (and unfathomable) amounts in promised future benefits, entitlements, mandates, and promissory notes. By some estimates the U.S. has 238 TRILLION DOLLARS in unfunded liabilities. We can’t cover it. We are flat busted. And if our leadership refuses to address and fix the problem, the rest of the world will fix it for us.
People are genuinely concerned and are looking for answers. Yet they are also experiencing cognitive dissonance as well as normalcy bias. They are fearful at what might happen and fearful of taking steps towards addressing that fear because doing so conflicts with their ingrained belief system. They want to believe that an economic collapse could never happen in America. Life continues to be pretty good for most Americans….we shop, vacation, purchase luxury items, and enjoy eating in restaurants. Life appears pretty normal.
But perceptive Americans have an intuitive feeling that something is really wrong. Despite the message spread by the talking heads on NBC, CBS, ABC, CNBC, and MSNBC that the nation is in “recovery” or “the employment picture is improving” or “corporate earnings are growing” these savvy folks dismiss the messages as much akin to the old Soviet press releases back during the Cold War. The mass media has refused to acknowledge that the Federal Reserve’s continued money printing is a complete disconnect from the reported “improving” economy.
I am assuming that since you are reading the “SurvivalBlog “ that you have made plans for your basic needs for the other aspects of survival. My focus is on the financial aspect….protecting the value of what you have worked so hard to put away. Again, set aside all preconceived notions that the marketplace is honest and fair to all participants. What’s the difference between loss of purchasing power via paying depositors low interest rates or stealing the money outright. Depositors will lose money one way or another…thru actual loss (theft) or loss of purchasing power (inflation). And the FDIC doesn’t really exist for the protection of depositors….it exists to protect the banks who operate on a fractional reserve system from bank runs. A perception by the public that their deposits are somehow covered from all risk prevents those runs. If you think your money in the bank is safe, you better grow up. There is also a concerted effort to grab every last dollar held in IRA’s, 401k’s, pension accounts, etc. by those who control the money supply and markets. Americans will find the funds they worked so hard to save for their retirement years raided and invested into government securities. The American people will essentially be forced into placing their retirement dollars into financing the country’s debt. An outright theft. The game is rigged against all of us. If you think your money in the bank or in that 401k, IRA, or pension account is safe, you better wake up and smell the coffee.
So what is a prudent and careful person to do?
First of all, commit this mantra to memory:
BET AGAINST THE DEBT….BECOME YOUR OWN CENTRAL BANKER
I am suggesting that you take the following steps to have control of your funds, maintain purchasing power, and protect those assets from confiscation:
The U.S. dollar is just the latest in a long line of currencies that have had their value stolen due to decisions made by politicians and central bankers. Taking a valuable commodity like paper and reducing its value by printing numbers, images, promissory verbiage, and fancy artwork is a criminal act. Currency backed by gold and silver will eventually return. But until then it is wise to convert the existing currency to the real thing. Fight the debt….become your own central banker.