Will your financial condition serve you at all in the days ahead?
Sadly,
far too many Americans are trying to save for the future by placing
their money in one of the many prescribed government-approved
institutions.
Simon
Black, Publisher of Sovereign Man writes:
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“If
I told you that your bank only held 1% of its customer deposits in
reserve, would you feel that your money was safe?
“If
I told you that the insurance fund which backed your bank deposit
only had enough cash to bail out 0.35% of the banking system,
would that make you feel any better?
“Probably
not. But this scam is the reality in the US banking system... and
across the West.
“As
an example, US Bancorp has $248 billion in total customer deposits
according to their most recent reporting, yet a mere $6.9 billion
in cash... roughly 2.8%.
“PNC
Bank holds just 1.8% of its customers' $248 billion deposits in
cash. And BB&T holds barely 1.0% of its customers' $131
billion deposits in cash.
“These
figures are indicative of the entire western financial system.
Banks hold a very small percentage of customer deposits in cash.
The rest is sitting in loans, bonds, and other securities of
indeterminable value-- mortgages that are still under water, shaky
commercial real estate deals, etc.
“Truth
is, nobody really knows what's on their books. Loan portfolios are
like a black box, and the liquidity structure doesn't leave a lot
of room for error.
“Think
about it. If the slightest thing goes wrong-- a spike in customer
withdrawals, a decline in bond prices or commercial real estate,
etc.-- banks simply don't have any rainy day funds set aside to
handle it.
“And
who can blame them...? The FDIC, one of the US banking system's
chief regulators, has a mere $33.0 billion reserve fund to insure
$9.3 TRILLION worth of deposits in US banks... a ratio of just
0.35%. And the FDIC is backed by the insolvent US government!
“Bottom
line, we simply can no longer afford to blithely assume that our
bank... our most intimate financial partner... is in good
financial condition.”
Truth
is, with so many manmade and natural disasters dotting today's
landscape, many believe, as I do, we'd all be better of EXCHANGING
our hard-earned money for physical gold, silver, long-term food -
things like that - than we would be trying to hang on to as many
US Dollars as we can.
Where
money is concerned, I suggest the REAL stuff and not the paper
play money we've grown used to. First, there's Junk Silver coins,
US silver coins dated before 1965. They're recognizable and
contain 90% silver. Second, small, affordable, user -friendly
1-gram units of pure gold bullion from Karatbars.
Ball's
in your court. I hope you're getting prepared.
miketummillo@me.com
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