Sunday, March 19, 2017

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WALL STREET INSIDER JIM RICKARDS WARNS IN HIS LATEST FORECAST...

THEFT

THE LEGAL TAKING
OF YOUR MONEY

Here’s What You’re Not Being Told…
And How You Can Prepare

Dear Reader,
“It didn’t go through…”
You stare at the cashier…
Then at your debit card…
As she hands it back to you with an annoying look on her face.
“Sir, I said it didn’t go through.”
You stand there, confused…
“I know I have enough money in that account,” you say under your breath.
Behind you, someone in line sighs impatiently.
Embarrassed, you apologize and ask where the store ATM is.
She points to the corner of the store…
You pick up the items that you were about to purchase and make your way to the cash machine.
You keep thinking, “I got my balance the other day and it was fine…”
After inserting the card, you put in your account information and ask for $100.
You notice the quietness of the machine as you wait for cash so you can buy your groceries and get home to your family.
Nothing is happening... except for the continuous blinking bar on the screen…
You wait…
And wait...
Finally, a message appears on the screen…
You can’t believe it.
Now you’re annoyed.
You leave your groceries and head out to your car.
Taking out your cellphone, you give the bank a call.
As the phone rings, you have this feeling of dread inside that you can’t explain.
Have you been hacked?
Has someone broken into your account and drained all your savings?
Finally, a recorded message comes on…
“Sorry, we’re not here to take your call.
This bank is now closed indefinitely.
Please call the government hotline at 1-800…”
How could this be happening?
Where’s my money?
How long is our food going to last in the pantry?
How much gas do I have left?
Something is very, very wrong…

Hi, my name is Jim Rickards.

And I’m the ultimate insider’s insider...
For the past 40+ years, I’ve had access to what goes on in the boardrooms of Wall Street banks...
I have studied and analyzed the banking industry from the inside.
For example…
I was the lawyer that the Federal Reserve used to help organize a private bailout of a hedge fund named Long-Term Capital Management.
Perhaps you remember the story?
It was the late 1990s… and LTCM’s failure nearly brought down the entire financial system…
Until I struck deals to bail out the bank.
I am also the trusted financial threat advisor to the U.S. intelligence community…
Both the U.S. Senate and the U.S. House of Representatives have sought my advice.



Senators and representatives alike seek my personal assessment of the serious risks in the global banking system.
As for you…

Perhaps you have seen me on Fox News, CNBC, CNN and Bloomberg.


Now, I don’t say these things to brag...
But this experience allowed me to warn my clients about the 2008 financial collapse and a rise in the price of gold…
Years in advance.
And that brings me back to the story about the bank that I just shared with you.
That moment your bank fails…
And freezes all your money.
All your accounts.
All your stocks.
Think the scenario I just described can’t happen to you?
Think again.
It already happened in one developed nation a few years ago... which I’ll explain in a moment...
And it’s exactly what could happen here during the next financial crisis that hits America.
Because as you’re about to see…
The rules have changed.
Our government has put in place a sinister system to replenish losses during a bank crisis.
And it starts with banks stealing your money.
I know that sounds impossible...
But it’s all 100% legal.
A “done deal,” as the saying goes.
The laws are already in place…
And if you think your money is safely insured, be sure to read on...
When the next crisis hits, the regulators don’t have to have secret backroom meetings…
They can simply flip the switch and legally lock you out of your own money.
Think for a moment how stealing your bank account will affect your life…
This isn’t just a stock price going down, temporarily affecting your portfolio…
Or a reduction in an interest rate that affects how much your CD is worth…
This is your savings…
The money in your wallet.
What your family counts on day to day...
For food… gas to get to work… medicine for you and your children… energy to keep the lights on…
Imagine being suddenly locked out of your bank account…
Limiting the amount of cash you can withdrawal from your own accounts.
How panicked you’ll feel when you realize there isn’t enough money for even basic necessities.
How long do you think people would keep from stealing and violence if they couldn’t afford to even get a meal?

As we’ve seen in recent history…
Bank runs can quickly turn violent…
Resulting in riots...


Of course, you never think these types of things are going to happen to you.
It’s human nature.
Your brain actually won’t let you believe it can happen…
It’s called “willful blindness.”
But when something threatens that sense of security, we instinctively take action and defend ourselves.
This is your chance to do just that…

Take Action Now…

Today, I’ll show you exactly how this next crisis could play out…
I’ll show you the devious laws already in place to steal your own money…
I’ll prove to you why a banking crisis worse than the 2008 crash is happening right now.
Most importantly, I will show you the exact steps to take in order to protect your wealth and make a lot of money in the process.
*** In fact, I’m personally taking $1 million of my own money and will use the same kinds of steps I am outlining in this letter.
This is the same type of information I’m sharing
right now with my own family.
Believe me...
I’m not here to scare you.
I’m not here to tell you to run to your bank and take out everything you have and stuff it under your mattress.
That’s not my intent.
But I have worked closely with government officials and the banking industry for a long time.
I know the secret inner workings of how and why decisions are made.
I hope you’ll review my research and, after listening to my conclusion…
Take action.
So your money can be safe.
But I’m getting ahead of myself.
Let me back up and explain how we got into this situation…

The New Rules

What do you remember most about the financial collapse of 2008?
If you’re like me, it’s the fact that we as taxpayers had to bail out these “too big to fail” banks.
Outrageous, wasn’t it?
Well, as bad as that was…
It’s gotten a lot worse.
Shortly after the collapse, President Obama signed into law the Dodd-Frank Wall Street Reform Act.
Part of this law states that the government will no longer bail out banks that find themselves in trouble.
So, who will?
According to the law…
YOU will bail out the banks.
But NOT in the same way you did in 2008…
See, most people don’t know this, but…
When you deposit money in a checking or savings account, that money technically becomes the property of the bank.
The bank just issues you what amounts to an IOU.
As far as the bank is concerned, it’s an unsecured debt.
That makes you an unsecured creditor.
Listen closely, because I’ll repeat that again…
*** The money you have in the bank is NOT technically yours.
The law is now in place…
Therefore, my latest forecast is this:
During the next crisis…
When the banks fail…
They’ll be able to seize your account…
Steal your money…
And use your savings to recapitalize the bank.
It is not a bailout by taxpayers any longer…

It’s Called a “Bail-In”...

But it’s really legalized THEFT.
And this new type of bail-in will have worse consequences than a bailout for you.
If your taxes go up, you would probably still be able to pay the bills.
But if your bank account gets wiped out, that’s a different story.
You could wind up on the street... or wonder where the next meal is coming from…
The legislators signed into law exactly what the banks wanted…
Put simply...
*** When the next banking crisis hits, the money you have in a savings or checking account could be confiscated and converted into shares of the bank’s stock.
Stock that will be worthless…
Incredible, isn’t it?
You might think…
“But Jim... I can just move my money to a bank’s safe deposit box...
It will be safe there…”


Nope.
Under the Patriot Act, the Homeland Security Dept. has given banks permission to confiscate certain items in safe deposit boxes at their locations, too. That includes gold, but could include money if it is ever made contraband.
Or maybe you’re thinking…
“But Jim... The money I have in the bank is safe... I am always insured up to $250,000 by the FDIC.”
Nope.
Here, let me show you...

The FDIC Illusion

 
“Backed by the full faith and credit of the U.S. government”
It’s a lie that the government has used for years to “reassure” bank depositors nationwide.
Take a look at this:
What’s wrong with this picture?
Reportedly, there is $9.3 trillion in deposits at commercial U.S. banks currently being insured by the FDIC…
But the FDIC is suspected to have only $25 billion to cover any losses.
In other words, there is 370 times more money in deposits at U.S. banks than the FDIC has to cover those deposits.
The fund has only $6.00 (six dollars!) to insure every $10,000 deposited.
Doesn’t sound very safe, does it?
“But Jim... The FDIC can always borrow from the Treasury Dept. to cover losses in case of a bank failure...”
Nope.
Just consider the numbers:
The FDIC’s legal credit limit with the Treasury is at $100 billion…
With an increase to $500 billion in a dire emergency.
At the very legal limit, there would still be 18 times more money in deposits than could be covered.
Do you see where this is going?

Your Money Is No Longer Safe in the Event of Another Bank Failure in the U.S.

Unless you make the moves I recommend today…
The same kinds of moves I’m making with my own money…
You’ll risk your money being legally stolen.
Imagine…
You walk into your bank and request a cash withdrawal.
Instead of getting cash, the teller gives you a stock certificate.
You are told it’s up to you to cash it for money…
With any luck you may be able to sell the stock to someone else.
But when?
And at what price?
You keep a deposit account so you can have money to pay the bills whenever you need it...
How would you survive without this cash when it’s not available?
This is why it’s important to take action now.
I’ll outline the exact steps in a moment.
First, it’s easy to underestimate the urgency here…
To put this off for another day.
After all, we don’t have a bank crisis right now… do we?
The answer will shock you…

Deja Vu All Over Again…

What caused the massive bank failures after the 2008 economic collapse?
The banks had way too much derivative exposure…
...those very risky bets that they like to make on whether an event will or won’t happen in the future.
Think of it as having a large amount of money bet on something... and not having funds to cover the bet in case you lose.
It’s why Warren Buffett called derivatives “financial weapons of mass destruction.”
And over 77% of these derivatives are based on interest rates.
When the Fed raises interest rates, what happens to these speculative bets that depend on rates staying low?
Light the match.
Kaboom.
So, now the banks are bigger than ever…
With more derivative exposure than ever before…
Consider the following two charts:
Here’s Chart #1:


 It shows the total derivative exposure at the time of the last collapse in 2008...
$200 trillion worth of speculative bets.
But how much is backing up those bets?
Only $10 trillion in assets!
That’s called 20x leverage.
And it’s extremely dangerous…
Well, look what happened after the 2008 crash...




You’d think they’d learn their lessons, right?
Nope.

Check out Chart #2:


Today, there is $250 trillion worth of speculative bets…
With only $14 trillion in assets to back it up.
Amazing, isn’t it?...
The very cause of the worst economic collapse since the Great Depression has been totally ignored.
In fact, there is more derivative exposure today than ever before!
And again... higher interest rates are on the way...
The banks that spectacularly blew themselves up with toxic derivatives in 2008…
Becoming worthless stocks during the crisis…
Receiving the largest taxpayer bailout in U.S. financial history despite being insolvent...
Are thumbing their noses at you...
Playing you for a fool...
And continuing to gamble with your money…
Any one spark lights the whole powder keg on fire.
With the heat hotter than in 2008.
The good news is there are ways to protect yourself and even make a fortune at the same time.
This happened for many before the last crash…
And can happen for you…
IF you take action today.
That’s why I’m putting my money where my mouth is.
I’m taking $1 million of my own money and following the same steps I am going to recommend to you today.
I see what’s coming.
And don’t want you to be caught like 99% of people with money in the bank.
More on these recommendations in a moment, but first…
Just how close could the start of a crisis be?
Take a look...

Falling Like Dominos…



 Look at what’s happening to Germany’s largest bank…



Deutsche Bank is collapsing.
When we speak of derivative exposure for a bank, Deutsche is just out of control…
It has $64 trillion in derivative bets…
More than any other bank in the world.
And to put it into perspective…
That’s more than 20 times the size of Germany’s economy.
As a result of such a high derivative exposure with little assets, Deutsche Bank is collapsing…
The stock is imploding.
Down over 50% this year alone...
A repeat of the U.S. bank stock charts after 2008.
History is a guide of future events.
Always has been.
Look at how Deutsche’s stock collapse compares to Lehman Bros. in the meltdown of 2008:
As Deutsche’s stock implodes, its banking partners like Citibank, JP Morgan Chase, and Goldman Sachs are getting very nervous.
Remember, in 2008 it started with Bear Stearns’ collapse…
Then Lehman…
Then the whole system almost went under.
Before the government bailed them out.
But this time…
There are no more government bailouts for our U.S. banks.
So, a “bail-in” will go into effect.
This means your deposits could be stolen.
What does the imminent collapse of a German bank like Deutsche mean to U.S. banks and depositors?
Plenty.
As you can see, Deutsche Bank is at the center of the banking world…
It does business with nearly everyone from the Bank of China to Citigroup… Wells Fargo… JP Morgan… and on and on.
When Deutsche fails… like it’s doing right now…
It will create a contagion of bank failures felt worldwide.
According to a Wall Street Journal article, none other than the International Monetary Fund has said the same:
“Among the G-SIBs (globally systemically important banks),
Deutsche Bank appears to be the most important net contributor to systemic risks…”
Take a look at how other banks are reacting to the Deutsche problem:
Credit Suisse: Down 60%
UniCredit: Down 69%
In Saudi Arabia, a bailout cash injection can’t stop the bloodbath:
So what’s it look like when the crisis hits our shores?
Take a look…

Coming Soon to America…

In Cyprus in 2013, the banks overextended themselves in risky speculations.
The “bail-in” went into effect.
Cypriots ran to the bank, trying to withdraw their money…
The government declared a national holiday and closed the banks.
So everyone ran to the ATM outside the bank…
There were restrictions on how much cash could be withdrawn…
ATMs were depleted of cash...
Depositors were confused and angry.
One parked his bulldozer in front of his bank in protest…
How bad were things?
Well, listen to what several Cypriots said of their experiences to The Guardian...
Stelios, a truck driver in his late 50s, said:
"People are panicking... they're afraid of losing their money... they don't feel they can trust banks anymore. The problem is that it is the cautious, working-class people who are being made to pay. My son is studying chemical engineering in Edinburgh. I'm worried I won't be able to get money to him."
Christiana, 26, a lawyer, said:
"We're really worried that this is only the beginning: next will come salary cuts, austerity, rising unemployment and very likely people going abroad to work."
Tryfonas, a clothing store owner, said:
"Europe shouldn't have allowed this disaster to happen here. Cyprus was paradise and they've turned it into hell."
Frightening to think of this happening in America, isn’t it?
As Martin Hutchinson, a global investment strategist, said about the raid on deposits:
“If these worries become really serious... small savers will take their money out of banks and resort to household safes and a shotgun.”
But wait…
That’s Cyprus…
A far away, tiny nation.
This wouldn’t happen in America, would it?

My Friend… It Already Has!

You know what happened in 1929...
Bad speculative betting by Wall Street banks crashed our economy…
Created bank runs…
And widespread panic in the country.
In 1933, President Roosevelt declared a "banking holiday" that shut down the entire U.S. banking system for four days…
Depositors had no access to their money.
Look…
History always repeats itself.
When our banks do not learn their lessons from history…
...and double down on the dangerous path that created the most devastating banking crisis this country has ever seen...
Then you must take action to control your own financial security.
So, what can you do?
How can you keep your money safe and out of the hands of greedy bankers who are gambling in the name of profits?
Well, I have found that there are a few simple things you can do to protect what you currently have...
...and also potentially make a fortune at the same time.
Here is what I’m doing and hope you do the same…
How You Can Protect Yourself and
Make Great Profits at the Same Time
Well, making sure you don’t lose any of your money is priority #1.
In our new digital world, things can happen very quickly with a keystroke.
So, here are specific steps you should take…

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