Instead, the whole ordeal will likely be soon forgotten. The notion that your money could be seized by government is just too far-fetched to believe even when it does happen. It’s like the old adage, when your neighbor’s money gets plucked from his bank account without notice, it’s said to be part of a bailout plan. But, when your bank closes its doors, freezes your accounts and takes your money – that’s confiscation and theft.
It’s ingenious isn’t it? Lock the doors on Friday and on Saturday announce to all your customers that government needs to take 6% to 10% of your money because they are broke. And then you click a few times here, punch in some new numbers there… and DONE!
I mean it’s only 6% to 10% of your money, so what’s to worry? In America, the financial hurricane made landfall on September 15, 2008 with the announcement that Lehman Brothers was bankrupt. Almost overnight, $7 trillion of home and market equity was gone. Here’s the catch though. 6% to 10% isn’t enough to bailout Cyprus and another 6% to 10% of your money isn’t enough to bail us out either.
Our debt situation is so bad, if we all paid 100% of our income as tax, for 5 years, we couldn’t pay off our debt. What’s to say the Cypriots believe this is the end of the confiscation? What’s to say it can’t happen here? I mean our debt is $7 trillion higher today than it was in 2008. Something is going to happen – Guaranteed!
I suspect, anybody who had money in a Cypriot bank is going to do whatever they can to get out whatever they can. Let the bank runs begin. And while the media may try to hush the story and ignore the facts, the story is far from over. It’s almost a guarantee that every citizen of every European country, that got a bailout or needs another one, is plotting to get as much money out of their own bank as they can. It was just too easy to take the money.
And where will they put the money? Let’s see. There’s hard money, paper money and cyber money. Cyber money, was just confiscated with a click and a punch. Paper wealth is confiscated more slowly through debasement of currency and inflation. But hard money, like physical gold and silver, can’t be confiscated – at least not without your permission. By all accounts so far, this is a no-brainer. If you had money in the bank, 6% to 10% is gone. If you had physical gold and silver in your hand? – you still have it?
As always, don’t take my word for anything. My words are just my opinion. But if you want to learn more, visit LearCapital.com for more breaking news, free reports and insights into the precious metals markets. And if you would like to follow me @DaveTheGoldDR, I would be honored.
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