Tag: deposits

Is Your Money Safe in a Regional Bank?

Guest Post by Martin Armstrong

People often ask if their money is safe in a regional bank. Yes—if you keep it under $250,000 to guarantee the FDIC insures those funds. Some clueless minds brainwashed into fighting the class warfare thought, “Oh well!” for people who had more than them in the bank and did not care if the Silicon Valley Bank or Signature Bank failed.

My phone did not stop ringing and the bankers wanted to know if they should cover ALL the deposits. I actually lost my voice, screaming, “YES YOU MUST COVER ALL THE DEPOSITS! ALL OF THEM!!!” Aside from the fact that no one deserves to lose their hard-earned money, the primary issue here is that failing to cover the deposits would have completely wiped out small businesses.

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Widow faces federal charges because she deposited inheritance money in lumps

 Via Police State USA

“You won’t prosecute a widow,” she pleaded.

Justice in America

DUBUQUE, IA — A widow’s bank account was seized by the IRS and she now faces criminal charges for depositing her legal inheritance money in lumps instead of all together.

Janet Malone, 68, had $18,775 seized from her — money that was legally earned and was legally bestowed to her by her late husband, Ronald Malone. The problem, according to the government, was the fact that she deposited it in several lumps instead of all at once.

According to the Associated Press, Mrs. Malone deposited the cash in increments between $5,800 and $9,000. The widow’s private financial affairs evidently set off red flags under the watchful gaze of the federal government.

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YOU ARE ALREADY BEING CYPRUSED, BECAUSE MATH IS HARD

The internet has been abuzz all week about the plan to steal money directly from bank depositors in Cyprus. The Eurocrats want to abscond with 3% to 15% of bank depositor cash as a bribe to keep from letting the Cyprus banks collapse under the weight of bad debt created by the policies of the Eurocrats. There is outrage among the critical thinking alternate media and yawns from the Larry Fink’s and Barry Ritholtz’ of the world who depend on muppets to keep investing with them. The MSM does their usual propaganda spiel about the FDIC backing up trillions in deposits with their $25 billion fund.

This could never happen in America. Right?

It has already happened and continues this very second. The ruling financial class are so supremely confident in your lack of math skills that they openly and blatantly steal money from your savings account every second of the day. They have been doing it since December 2008.

I take you back to the days of yesteryear – 2006 and 2007. In those pre-crisis days you could put your money in a Vanguard Money Market fund and earn a 5% return. Over this two year period, inflation averaged 3.2% according to our friends at the BLS. That means you were getting a REAL RETURN of 1.8%. Even if you don’t believe the BLS numbers, you weren’t losing by keeping money in a savings account.

Then the Wall Street/Federal Reserve created financial collapse occured in late 2008. In order to protect his owners on Wall Street, Helicopter Ben swooped in with free money for his boys in December 2008. He lowered the Federal Funds Rate to between 0% and .25% and has left the rate at this level to this day. You can see from the chart below that the last time the Fed dropped rates below 2% for a significant time period, they created the housing bubble. I wonder what 0% interest rates over 4.3 years will create?   

Now we get to the math. By lowering the Fed Fund Rate to near zero, Ben has thrown savers and senior citizens under the bus. For the last 4.3 years savers have been able to get a .15% return on their money. Over this same time frame the CPI has risen 10.4%.  Let’s put this into a real life example.

Suppose grandma has life savings of $100,000 that she needs to live off of to supplement her meager $13,000 of Social Security income. Back in 2007 she could earn $5,000 per year in interest to help her make ends meet. Since December 2008 she has been able to earn a total of $650 in interest at .15% rates. That means she would have $100,650 today.

But one problem. The 10.4% inflation has resulted in the $100,650 only having $90,200 of purchasing power today. This means that Ben Bernanke has already stolen 10% of your savings and handed it to his banker buddies. He is much more devious than the Eurocrats. They are being too transparent. Ben understands that our government run public school system matriculates functionally illiterate dullards into society and they will never figure out the beauty of inflationary stealing.

Of course it is much greater than the 10% calculated above. We know that true inflation is at least 2% greater than the BLS manipulated data. Therefore, the ruling class has actually stolen closer to 20% of your savings since December 2008.  

And the good news is that Bennie has absolutely no intention of raising the Federal Funds Rate for a few more years. By 2016 he will have stolen another 20% of your savings and no one will be protesting or rioting in the streets, because math is hard.

You’ve been CYPRUSED and didn’t even know it.