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| comment | | "parent_author":"",<br>"parent_permlink":"imploding",<br>"author":"hfh777",<br>"permlink":"the-worst-place-in-the-world-to-bank-this-includes-canada-and-the-eu",<br>"title":"The worst place in the world to bank - This includes Canada and the EU.",<br>"body":"It started with an illegal wiretapping scandal.\nJean-Claude Junker,<br> after spending nearly 18 years in office as Prime Minister of Luxembourg,<br> was forced to resign in 2013 after evidence surfaced of his complicity in a domestic spying operation.\nSo what does a disgraced politician who resigns in shame do?\nWhy,<br> receive a promotion,<br> of course.\nLess than a year later,<br> Junker was appointed to the most powerful political office in Europe\u2013 President of the European Commission.\n(I say \u201cappointed\u201d because Junker was selected by the reigning political establishment,<br> not by voters.)\nAside from being one of Europe\u2019s most prominent unelected policymakers,<br> Junker has become legendary for his bizarre quips and daft behavior.\n(Here\u2019s some incredible footage of an intoxicated Junker marching in place and slapping around other world leaders at a press event.)\nAmong Junker\u2019s most famous quotes are perhaps the truest eight words in politics: \u201cWhen it gets serious,<br> you have to lie.\u201d\nThat was from 2011 when Junker was caught lying about a secret meeting about Greece\u2019s debt crisis.\nOn the surface,<br> the politicians insisted that Greece was just fine.\nYet all the while they were lying to the public,<br> they were preparing for an emergency behind closed doors.\nI was reminded of this quote recently when the European Central Bank published results of its bank \u201cstress tests\u201d.\nThe ECB conducted these tests to prove that Europe\u2019s biggest banks were just fine and would be able to withstand another major crisis.\nSurprise,<br> surprise,<br> nearly every bank in Europe passed with flying colors,<br> as if the ECB were saying,<br> \u201cNothing to see here people\u2026\u201d\nOne of the ECB\u2019s primary missions,<br> after all,<br> is to maintain stability in the financial system.\nAnd when your financial system is this toxic,<br> the ECB can\u2019t maintain stability by telling the truth about their insolvent banks.\n\u201cWhen it gets serious you have to lie.\u201d\nHere\u2019s the reality: Europe\u2019s banking system is toast.\nWholesale interest rates on the continent are already negative.\nNegative interest rates essentially penalize any bank that tries to be responsible and hold extra reserves\nWhat an unbelievably stupid policy.\nRather than encourage banks to be conservative with their customers\u2019 deposits,<br> the ECB is practically forcing them to make as many loans as possible.\nSo it\u2019s not exactly much of a shocker to find out that,<br> in their haste to loan out almost 100% of their customers\u2019 money,<br> many of the loans went belly-up.\nEU data showed that by the end of September 2015,<br> 17% of Italian loans were non-performing. The non-performing loan rate is a shocking 43.5% in Greece,<br> and 50% in Cyprus.\n(That data is nearly a year old,<br> so the numbers are worse now.)\nThis is a huge problem. Banks have lost a big chunk of their depositors\u2019 savings.\nThere\u2019s a lot of talk now about government bail-outs. And some of that has already taken place.\nIn Italy,<br> the government already had to step in with a 150 billion euro guarantee just to forestall a potential bank run.\nBut the Italian government is one of the most bankrupt in the world,<br> with a debt level that exceeds 130% of GDP; they\u2019re in no position to bail anyone out.\nThat\u2019s why,<br> as of January 2016,<br> European \u201cbail in\u201d legislation has taken effect.\nThe rules are already in place whereby depositors can be held liable for the idiotic financial decisions of their banks.\nIf the bank goes under,<br> they can take your money down with it.\nIt\u2019s already happened.\nIn 2013,<br> the government of Cyprus froze EVERY bank account in the country,<br> locking every single depositor out of his\/her savings.\nThese risks are very real.\nBanks are illiquid and overleveraged. They\u2019ve made far too many bad loans with their customer\u2019s savings.\nThe governments are in no financial position to bail them out. And the bail-in legislation already exists to steal from depositors.\nWhat\u2019s the point of holding money in this kind of system,<br> especially when the biggest benefit you could hope for is about a 0.1% yield on your savings account?\nWhen you step back think about the big picture,<br> the conclusion is pretty obvious: don\u2019t hold money in such a precarious banking system.\nAnd yet,<br> it\u2019s very seldom that anyone really thinks about his\/her bank.\nChances are most people put more thought into what they\u2019re going to have for dinner tonight than where their money should live.\nA bank is your silent financial partner. This is an incredibly important decision.\nEspecially given that once you turn over your hard-earned savings,<br> it\u2019s not even your money anymore. You become an unsecured creditor of the bank.\nA decision of this magnitude deserves more analysis. And anachronistic features like a bank\u2019s location shouldn\u2019t factor into the calculus.\nGeography is totally irrelevant in the 21st century. You shouldn\u2019t hold your money somewhere just because the bank is near your house.\nRather,<br> your money should live where it\u2019s safest and treated best.\nJust in the same way that you would choose your neighborhood based on its safety or quality of schools for the kids,<br> you can choose your bank (or at least banking jurisdiction) based on safety and quality.\nFor example,<br> avoid banking in countries that have already adopted bail-in rules that allow them to steal depositors\u2019 savings.\nThis includes Canada and the EU.\n(The US Dodd-Frank legislation is conveniently opaque on this issue\u2013 more on that another time.)\nAlso,<br> avoid banking in countries that are heavily-indebted; those are the places most likely to run into serious problems,<br> and you don\u2019t want your money anywhere near them.\nAgain,<br> this rules out most of Europe.\nLast,<br> consider other options. You don\u2019t need to hold 100% of your wealth in a bank,<br> especially one that is in questionable health.\nPhysical cash and precious metals can be an excellent substitute for bank deposits,<br> especially as interest rates continue to slide below zero.",<br>"json_metadata":" \"tags\":[\"imploding\",<br>\"zionist\",<br>\"financial\",<br>\"system\",<br>\"\" " | | vote | "voter":"hfh777",
"author":"hfh777",
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