Are Your Savings Accounts Safe?

Are Your Savings Accounts Safe?

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?By Dan Harkey

Business & Financial Consultant

Cell 949- 533-8315??email [email protected]

The short answer is?NO! But members of the public may or may not be aware of the multiple reasons that their checking and savings accounts are not safe from possible government pilferage.?

  • The?first reason?is the government's propensity to create and pump seemingly unlimited trillions of new fiat currency into the economic system. ??Injecting absolute fiat currency has and will continue to occur under the guise of economic stimulus and economic improvements.?

There is direct, on the books U. S. debt of $28 trillion, unfunded, and underfunded obligations of between S160 -200 trillion, and mysteriously missing or unaccounted for monies of $21 trillion. As a result, we face significant economic challenges of not repaying past obligations or paying current and future commitments. The strategy is to kick the debt can down the road out of sight from public scrutiny. Just create more debt in the form of executive orders or passing into law more phony stimulus bills and ensure the purchase of future votes.

It is estimated that 40% of the money that the government spends is created out of thin air and dilutes the value of actual hard-earned currency and corresponding work effort.?Members of the public work, expend effort, earn income, pay taxes, and live on the remaining 50 or 60%. The government merely creates new money without effort, work, or competition. Whatever they create they can spend 100% of it on their pet projects.?

  • The?second reason?is the U.S. Federal Government's policies toward forced/mandated near-zero-interest rates for savings and lending.?Zero-Interest-Rate-Policy?(ZERP) is the term.?

Near-zero interest rates have adversely impacted banking savers and investors who invest in real estate and other capital-intensive assets. Low-cost borrowing for investment and using the proceeds with the expectation of higher profits is now the norm. ZERP encourages excessive risk-taking and speculation without consideration for market fluctuations as if all investment assets will continue to go up in perpetuity. This irresponsible policy has created a "bubble of everything."?

The policy of ZERP constitutes "expropriation of private assets by the government." It includes the unconstitutional taking of private property (banks checking and savings accounts) away from tens of millions of hard-working folks who prefer earning bank interest income, liquidity, and immediate access to bank account cash.?

ZERP is a fraud perpetrated against the public and constitutes the largest massive transfer of wealth in the history of the world. Governments openly promote this policy as their answer to how to produce positive economic activity. At the same time, corporations and governing elites are entirely in control of mainstream media. Mainstream media are their lapdogs as recipients of advertising dollars. The mainstream media and large corporations have mutually beneficial symbiotic relationships.

Wall Street banks use financial repression to balloon high leveraged profits and artificially inflate stock prices. Financial repression relates to government policies that result in bank depositors earning interest returns below the inflation rate. Banks can provide super-cheap loans to consumers, corporations, and governments, thereby reducing debt burdens.

Depositors get cheated because this process creates inflation, which reduces purchasing power, but corporations and governments benefit.?

Stealing wealth from the public works beautifully when government elites are 100% controlled by Wall Street banking oligarchs and giant corporations. Policies resulting in institutionalized theft have taken corporate and bank stocks in an unimaginable upward trajectory. Of course, this is unsustainable, but the public does not seem to be aware or care that these banksters are defrauding them. The term bankster is pejorative, implying that the banking industry may make money through illegal, highly irregular, or unethical tactics. The process may be legal, but it is highly unethical to take advantage of one subset of the population (usually the middle class) for the benefit (upper-class financial elites).

What would happen if the depositor public acknowledged this fraud perpetrated against them and, as a result, created an action plan to pull most of their money out of the banking system, all at the same time? How about a national and international run-on-the-bank? How about the public deciding to keep most of their deposits in cash or transportable assets? How about the public getting fed up and discontinuing purchasing all the stuff that is not necessary for existence?

Between ZERP and the issuance of unlimited trillions of fiat currency into the system, we now have created a giant bubble of everything in the world that has ever existed. The only actual beneficiaries are the wealthy 1% who operate with high leverage formulas referred to as financial repression. Since these folks also control the government, this becomes a form of monopoly crony capitalism, a formula for self-gain.

Issuing fiat currency is not backed by a physical commodity, such as gold or silver, but only the illusion of the government's full faith that gave it. The U.S. can only get away with this because of its position as a world reserve currency holder. Nothing else! There may come a time when purchasers of U.S. sovereign debt dry up, and no one will agree to invest in our treasuries.?

  • The?third reason is the cancellation of the fractional reserve banking system. The fractional reserve system has existed since 1791 in the U.S. It required banks to keep a small fraction of deposits as actual cash-on-hand and available for operating capital or withdrawal. As of March 26, 2020, the fractional-reserve banking system was replaced with a zero-reserve banking system.

Banks are no longer required to keep any reserves on hand for safety. If a bank needs extra cash for safety for excessive depositor withdrawals, they can borrow money overnight from the Federal Reserve.

If the economy crashes, these same banks will demand a bail-out of their financial troubles by the U.S. taxpayers. They can rely on getting the bail-out because the elites who control banking are the same elites who control the government. Economic losses were and will continue to be transferred to the public.

  • The?fourth and equally dangerous reason?is the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.?

Can the government legally confiscate your checking and savings accounts?

Yes, confiscation of the balances of your checking and savings accounts is possible for a large percentage of hard-working families. The Dodd-Frank Act in 2010 has provisions to allow for the seizure or confiscation of private checking and savings accounts from private parties. The fact that you and your family took significant risks over many years to invest and accumulate substantial savings accounts creates no protections.??

This confiscation process of private party assets is designed to protect insolvent giant banking corporations (Federal Reserve Banks), phony government (FDIC) insurance promises, Wall Street Corporate Investments, and the administrative State. The status-quo is still well seated and remains the goal.

The Dodd-Frank law from 2010 has provisions for a "Bail-In" in place of "Bail-Out" in the event of bank defaults.?

A mechanism for any subsequent bank bail-out is now in place, ready to trigger at a moment's notice. Government-backed "bail-out" of large banks and financial institutions which become insolvent and default for any reason?will now be rewarded with a "bail-in"?provision. The Federal Deposit Insurance Corporation (FDIC) will oversee what is referred to as an "orderly liquidation" of defaulting?banks.

Depositor’s checking and saving assets will be legally seized or legally frozen and swept (confiscated) to keep the defaulted banks solvent.?An "orderly liquidation" of the insolvent bank(s) constitutes transferring the wealth away from individual private parties onto the accounting books of the significant (defaulted) banking institutions. Dodd-Frank provides the authority for the government to seize up to 50% or more of the account balances.

Your safety deposit box contents may also be frozen and confiscated. The potential risk should serve as a reminder that keeping anything in a bank safety deposit box is a bad idea. At the same time as a declaration of bank insolvency, bank stockholders will lose their stock equity. Stockholders of the banking corporations will lose their equity unless they are friends of the government (FOGs) and will expect to be bailed out, which is the usual case. Crony capitalism is what occurred in 2007-2008. It has not changed.?

In exchange for the confiscation and loss of the privilege of owning your hard-earned money in checking and savings accounts, private depositors may be given an equivalent number of shares (stocks) in the otherwise insolvent banking entities. They will be given draw rights in the future for a small percentage of the account balances not confiscated. The process would force the public to take an illusionary or phony future asset in exchange for the hope and promise of returning it of an extended period of up to 30 years. A net present value calculator would prove that the depositor who has had his assets confiscated has been underwater from day one while waiting for up to 30 years.

Poof, you may be driving to work listening to the morning news, and you hear something that does not sound real. You may hear over the radio that the government has lawfully stolen your checking and savings?accounts. Leaving a portion of your saving and checking in your bank account and available to you to withdraw will be designed to reduce rioting and social discord.

Digital Currency system:

The Federal Reserve is in the process of installing virtual currency to replace paper currency. Early adapters sell the replacement system as having potential benefits for consumers who do not have bank accounts.

The benefits are guesswork and challenging to measure, but the downsides are significant. All forms of digital currency would be traceable, taxed, and manipulated to benefit preferred groups and political beneficiaries.

Those non-compliant folks or political enemies could find themselves being locked out of the system temporarily or permanently. How would you like to make your rent or house payment, go to the grocery store, and gas station, and discover that you have been locked out of the system??You may have credit cards as a backup.?Credit cards may also be frozen because credit card companies are controlled by the government.

A bail in action by the government would be easier with a financial system of digital currency.

Remember the phrase, "you-can-take-it-to-the-bank." Figuratively, this means that something can be verified as true by a third-party source. The something is assumed reliably safe. Well, the new phrase should be "do-not-rely-on-receiving-your-money-back-if-you-deposit-it-in-the-bank." You are better off with your deposits held in small regional banks or, better yet, state-chartered credit unions.

I have researched the above subjects through various data sources. There may be conflicts, especially with time and different data sources.

If you find value in this article for you and your associates, please forward it to others that may appreciate its contents.

Thank You

Dan Harkey

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