Portugal is starting to bail-in banks. The fascinating aspect that nobody seems to see is that this is a total failure of socialism. The U.S. Federal Reserve was formed in 1913, with the shareholders being the banks, to provide the cash needed to prevent bank failures. To stimulate the economy when the banks could not or would not lend, the Fed was supposed to buy CORPORATE notes. Then World War I came and the politicians ordered the Fed to buy government bonds. Of course, they never returned the Fed to its original purpose.
FDR usurped the Fed, placed it in Washington, and instituted a single national interest rate; each of the branches maintained a different interest rate to attract capital when there were shortages in one district. So it was common to see rates differ around the country based upon the local economic conditions. FDR also created the FDIC because the Fed failed to function during the Great Depression. The creation of the FDIC was sparked by bankers who were willing to let a New York bank fail in 1930 that happened to be named THE BANK OF THE UNITED STATES. Bank runs began nationwide as people assumed that this Bank of the United States was the government or Federal Reserve. The Bank of the United States was a Jewish bank and the other bankers wanted it to fail to get its business. When it was settled, the Bank of the United States eventually paid out 92 cents on the dollar.
Note: The blue tags show the start of when that issue was used in the index and do not reflect the date relative to the chart. Upon that issue date, the bond expired.
Then, for World War II, FDR ordered the Fed to support the U.S. bond market at PAR. Therefore, bonds rose during the war because of this support ordered by FDR. However, that was terminated in 1951 when we begin to see the long process of government bonds collapsing into 1981 when Volcker raised interest rates to insane levels.
With each economic crisis, the government has failed to comprehend the cause and attributed effects to esoteric events that are domestic. Even Larry Summers admitted he was not competent to forecast and that economists have never been able to forecast a single economic decline since World War II. Consequently, the response has been an ever-increasing progression of attempts to control the economy by resorting to ever more Draconian measures.
We have now gone beyond TOO BIG TO FAIL to TOO BIG TO BAILOUT. Thus, all the promises from socialism are collapsing from Social Security, to pensions and insuring banks. This is what I have stated for the past 30+ years. We are headed into BIG BANG (which began 2015.75), which is more than just a sovereign debt crisis; it is the total collapse of socialism and a crisis in democracy. We have watched our forecasts made back in 1985 unfold on time and in perfect harmony with history.
In Europe, not a single head of the Troika has EVER stood for election! The people dictating the lives and direction of Europe by forcing the euro down the throats of everyone NEVER present themselves for election. The European population has absolutely no chance to say these people are wrong or decide to vote them out. There is no democratic process and that is what, historically, leaves only one option — REVOLUTION.
As Bloomberg has reported, the bail-in has begun in Portugal. These people will simply confiscate our money and now they are trying to move to electronic money to prevent bank runs and hiding cash. The move to electronic money will appear in Europe first.
This is BIG BANG — the total collapse of SOCIALISM as the result of politicians who are incapable of, not just forecasting the economy, but managing it. If I managed your money and lost it each month, then returned always asking for more, just how many months would you continue to give me more money until you said enough is enough? The mere fact that politicians raise taxes PROVES they are incapable of managing even a bubble gum machine. They squander the money, and when the machine is empty they simply rob us blind to fill it up again.
“Even Larry Summers admitted he was not competent to forecast and that economists have never been able to forecast a single economic decline since World War II.”
Didn’t Peter Schiff do it?
Someone’s going to take your money.
If it isn’t the Banks now it will be Sanders or Hillary that does it in a couple years.
It might be wise to figure out a strategy that will avoid this by making your monetary assets untouchable or undesirable to seize without making it illegal to use them in the process (i.e. cash and gold and such could be made illegal under anti terrorism and drug laws, and likely will be at some point, making yo a criminal for having or using them.).
Suggestions please.
Shop,
When the collapse of German currencies under the Wiemar started, the smart Jews went into Diamonds (the smart ones, most were just average go along to get along types that didn’t do anything until it was too late for them).
A fortune could be sewn into the seams of a suit and escape detection when moving to other countries and trade in them was not outlawed anywhere, even in Germany.
You have to be an expert to get into Diamonds and such, most of us lack the expertise to do so without being taken to the cleaners in the process.
Paid up real estate might be a hedge if you have enough money, particularly productive land since it produces income as well as having real value in whatever becomes the next “money” that will emerge and -barring Bernie’s communist revolution- will be legal to own and sell in private transactions.
Declared -I stress declared- foreign bank accounts in places like Switzerland or the Cayman’s might end up the only portable holdings and are most likely to remain legal for at least most of the crisis.
Other than that, I don’t know what would be good for the average person with little to stash away in liquid assets that doesn’t run the risk of being criminalized during the process of collapse or a changeover to a new financial system.
Shop Local: Christians commit less crimes regardless of what else you may think about us, as Franklin Graham is going about saying. All the Useful Idiots voting for crooks bearing gifts are about to find out they are caught in a snare (Prov7:23). As for economic safety, I have a good friend who makes big bucks as an economist for Florida Gov Rick Scott but he says he cannot think of anything that is safe for wealth anymore, including his own. I tell people that any wealth (paper or hard) the banksters or government knows about will get taken. Besides our Guardian Angels, I’d suggest a retreat in the Appalachian Mountains with a small garden and neighbors who are God fearing Christians; and who are Conservative voting Patriots. Think survival (not UN Agenda 21 Sustainable) and stock up on Precious Metals (including lead) and lots of food and water. The POTUS and the SCOTUS have given us the Days of Noah (Lk17:26) just as sure as sparks fly upwards (Job5:7).
@RHS: Christians may commit less theft crimes but it’s the sex crimes that matter. Go see “Spotlight” and educate yourself.
I have a good friend who is a GIA certified Gemologist for one of the top jewelers here. I’m going to buy her lunch and pick her ear about investment grade diamonds. Maybe I’ll learn enough to post a short article.
Is there anyone here buying diamonds or gemstones to preserve wealth? Seems like a great way to further diversify wealth. They should certainly be less frowned on than PM’s by our owners. The trouble will be keeping the wife unit from flaunting them!
The problem I have with diamonds is the belief I have that diamonds are not really rare gems. I have read, and finally convinced my wife, that dabeers has enough of them for every man, woman and child to have 10 each.
A many years ago I invested in a blue diamond. Shoved it away and forgot about it. 2.5 years ago a neighbouring property came up for sale. I did some research and found the retail cost of the diamond had gone up almost 200%. Thought I had done well, until I tried to sell. Mark up on colored diamonds is 100%+. I could sell for almost what I paid almost 25 years earlier. Only market to sell into was the New York. Not sure what clear diamonds are like but for investments I would stay clear of colored diamonds.
If you remove Priests (nominal Christians), does the stat go to normal?