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Former Banker States The Case For Owning Physical Gold
From AGXIIK:
Until the advent of the FDIC, bank runs and failures meant the client lost everything. That is why they call them “bank runs”. You run to bank as fast as you can and withdraw your money. The first one out gets the best deal. The FDIC is a hollow shell that will not protect a multi-trillion dollar failure.
Allocated and unallocated storage facilities are likely to be stripped of all precious metals and valuables. When governments go broke the rule of law is the first thing sacrificed on the altar of saving the people and their way of life.
It will get very interesting when 100 paper golden chairs are surrounded by scores of bankers all trying to get a seat on the single physical golden chair when the music stops.
The reason I write this bit of self confession, being a former banker, is to just reiterate my prior warnings and suggestions that if you trust a banker you would also trust a scorpion. Ask the frog.
There is a reason the FDIC exists. It protects the trusting and unaware bank customer from the foolish, greedy actions of bankers betting on unwise and imprudent loans that have not been subject to even minimal underwriting while using your money to do so.
Much has been said recently about bankers having the potential for going into customer accounts to use those segregated funds to place bets on bank investments and loans. Those are your funds until they are not. If the bank makes a series of really bad loans without the income and additional deposits to replace their depleted capital base, the customer’s funds are gone; disappeared and vaporized. Watch the movie with Jimmy Stewart–It’s a Wonderful Life. Then watch the truly hilarious South Park show ‘Aaaaand, it’s gone!”
Until the advent of the FDIC, bank runs and failures meant the client lost everything. That why they call them “bank runs”. You run to bank as fast as you can and withdraw your money. The first one out gets the best deal. The FDIC is a hollow shell that will not protect a multi-trillion dollar failure.
Anyone with a safe deposit box should not put anything of value in it. Mea Culpa when I suggested to use that resource to store your phyzz. The ‘safe’ portion of that wording no longer exists. Leave nothing of value in that box. Better yet, save yourself the $100-200 cost.
