Your money is not safe in US banks!

bank-failureIf this comes as a surprise to you, then you have not been paying attention. But cheer up! You are in “good” company. Most of the American People are happily oblivious to the danger. The banking system is in worse shape today than it was in 2008. WHEN (not if) the next economic downturn hits it will most likely be devastating to the USA and to the World. It makes me wonder if the elites in charge of the US government don’t intend for this to happen? Could they really be this stupid?

A little bit of history: The 2008 crash was partly caused by bad lending practices on housing, but made much worse by risky investments made by the Too Large To Fail American banks. A complete banking collapse was narrowly avoided, although some suggest at an unreasonable price. The US government (that means current tax payers and future generations) essentially absorbed the bad loans and ignored what many consider to have been criminal behavior by the banks.

And the bad news is that the only thing that has changed is that the Too Large To Fail banks are even fewer and larger. The same practices that caused a near collapse in 2008 have only increased under the approving eye of the Obama Regime.

The solution? Make it easier for the government and the banks to seize deposits, and make it more difficult for clients to get at their money. Banking rules and regulations are getting more complicated, and getting your money out of the bank is getting more difficult. Investing your money outside the USA is getting even more difficult due to FATCA and FBAR. Laws are now in place to prevent “capital flight” outside the USA, and to allow the banks to convert deposits into equity (that means your money is taken from you and in exchange you get some kind of share or security in the bank itself). The vice is slowly tightening upon the passive and supine American People.

It seems to me that the coming financial collapse is being orchestrated by the Obama Regime (or whoever is pulling the strings). Remember, these guys never let a crisis go to waste. An economic collapse that resulted in bank failures and widespread loss of wealth may not be such a bad thing to the radical Leftists who are now in control of the US government. It would give them an opportunity to bring about some fundamental changes that they seem so eager to implement.

Don’t believe me. Read it and weep: http://www.theblaze.com/contributions/why-im-closing-my-bank-accounts-while-i-still-can/

About fafc

The goal of the “Find a Free Country Project” is to research, explore and find a safe and secure free country outside the USA, that is not too large, has a relatively open immigration policy, has a friendly business climate, has a non-intrusive government committed to freedom, and then move to it.
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6 Responses to Your money is not safe in US banks!

  1. Croatian Capitalist says:

    Sadly, there are very few Western countries in whose banks I would gladly/confidently deposit my money, since most Western countries are either suicidal (the UK, Sweden, etc.), or are passing stupid laws because of American pressure (Switzerland for example), so this kind of problem isn’t limited to the USA.

  2. Croatian Capitalist says:

    Even ignoring all of these stupid laws and the fact that American banks have a history of poor leadership, I still see no reason for people to keep their money in American banks, because not only are the interest rates shamelessly low, but also when you add the inflation rate into account, you actually lose money by keeping it in an American bank!

    • fafc says:

      That is true for most people, but the US is in fact the worlds number one tax haven. You just can’t be a US citizen or resident. The laws protecting assets and privacy are actually better than most other countries, certainly better than Switzerland. The tax rates are even better now, but that is irrelevant if you are not paying any taxes at all, which is the case for most non-resident individuals and businesses who use the USA in this manner. As for asset parking (putting money in banks and asset managers) in the USA there are a lot of options that don’t involve putting your money in low rate CDs, particularly when you have a lot of money. Investing billions of dollars in the USA is easier since the money doesn’t tend to distort the markets. In some countries such investments would effectively destroy the markets by flooding the country with liquidity that it is unable to deal with. Look at places like Angola. The investments have enriched a small part of the country while impoverishing the rest and devastating the traditional economy. When breakfast is $100 a meal at a lousy restaurant you have a problem. The USA can absorb trillions of dollars without causing too much financial distortions. Also, many of the extreme rich don’t care about income. When you have billions of dollars you don’t tend to worry as much about making money. What you worry about is losing your principal. Making risky investments become less appealing. Parking your money in safe banks become much more appealing, even if those deposits effectively earn negative interest rates.

      • Croatian Capitalist says:

        Yes, but I was talking about working people and small and medium business entrepreneurs, of course that billionaires don’t care about the shamelessly low interest rates.

        • fafc says:

          small and medium business entrepreneurs are seldom interested in professional tax planning services, which is a pity for them. Taxes are just an item of overhead, and if you can find a legal way of avoiding them you should. If your competition does you are at a real disadvantage.

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