right now so many people are frightened enough that "it;s like Bernanke flies his helicopter over your house and drops a million dollars in your yard and the people are so frightened that they scoop up the money and put it in the garage.
And that, IMO, is one of the reasons a fear is being "generated" about uninsured (and insured?) deposits being confiscated for bankster "bail-ins"..
Look, I'm sitting on a sum of money in my bank account that is drawing me less than 1% interest. That's not much more than if I kept it in my mattress, or buried in my back yard. And there are quite a few people like me out there, who are just not sure where to invest that money. So that money just sits there, drawing very little return, but now facing maximum risk of confiscation.. So what do they expect people to think??
Ah.. but little do we know that we're not really "depositors".. We're actually creditors to that bank. And therefore, like bondholders, they can legally seize the money we loaned to the bank... And supposedly DHS, in the event of an emergency, has the right to seize safety deposit box contents...
So what is left for cash holders (savers) to do? You might just as well take the money (before the Gov't/Fed does) and go out and buy something physical.. a House.. car.. new toys.. go to Vegas.. get a hooker.. etc.. right?
I'm watching the current shortage of ammunition with a lot of trepidation.. If the people of this country can be so scared that they create the worst ammunition shortage I've ever seen, what are they going to do when they REALLY get scared about the limited money they have in the banks?
So.. maybe the ECB, and ultimately, the Fed, are cynically trying to flush money out of "savings" accounts to prevent deflation and increase monetary velocity. But that's a very dangerous path they are going down.. one which would ignite a serious global financial bank run..
Hawk |
