GNG, re: [So what happens when all the cash is trapped in your bank and instead of cash that you
will want to utilize to buy high dividend paying PM stocks is now converted into worthless bank shares
of where you had the money "deposited" or better described as loaned?]
Why would "all my cash" ever get trapped in a bank?
The primary takeaway here is to not leave all your eggs in any one basket...
I'm not going to publicly go into my exact diversification or the names of those institutions,
but first, I've not only diversified my "cash" between more than one (highly vetted) bank,
but between banks, credit unions and S&Ls as well, which also diversifies my risk to any
singular deposit insurance program.
The same goes for my physical gold and silver. I've diversified those holdings as well. If anyone
has any significant amount of physical metals, they probably don't want to keep it all at home no
matter how secure your safe, or hiding place may be. I like keeping some junk silver and silver
eagles and a little gold on hand, but I also like the peace of mind and the flexibility of having
accounts with vaulting companies that allow me to diversify into insured accounts with a top
Swiss vault and a Brinks vault in Singapore, in addition to an account here in the US.
Those accounts also allow me to switch in and out of metals to a choice of currencies like
dollars, euros, swiss francs, yen etc. And I can wire cash from my insured pm accounts to
my brokerage account or my bank with a click of the mouse.
I can also legally take any amount less than $10,000 in "cash' to my bank, deposit it
and wire those funds to my brokerage account as well.
Can any one of those entities go broke?
Sure, just like every other entity carries the same risk.
Even keeping cash and metals at home or buried in the dessert is not without the risk of
fire (cash) or theft (metals).
Even crypto is not without risk. No electricity, cyber hacks, losing a password or your hard wallet
itself, having it outlawed and extreme volatility.
While all diversification carries some risk, it carries a helluva lot less risk than not diversifying.
That said...
I also don't think the "End Game" is going to happen in a singular, unseen "Big Bang"
event either.
While it may be possible, it's not likely that we're going to wake up one day and "Bamm!"
they've seized your bank accounts and reissued you bank shares...
I think we're going to see many events with many warning signs play out before that day arrives.
And as I said before, that's why its imperative to stay tuned into the daily news flow in this environment.
I believe this will be a historic event much like World War II, but just like World War II, it will play
out in a series of battles over years, not weeks or months.
It took America nearly four years from the day Pearl Harbor was attacked until we developed
and dropped "The Bomb" on Japan and ended the war.
The planned collapse (their Great Reset) and their desired "End Game" result is also a "war"
that will take years to come into complete fruition, not weeks or months.
I also believe that financial markets will for the most part, remain open and functional during
that entire time frame.
I also don't believe the US Dollar is going to immediately collapse in the first phase of the
stock market collapse.
I believe money will flood into US Treasuries and the US Dollar when the market first breaks.
The US Dollar won't be the first to collapse, it will be the last among the major currencies.
The Chinese Yuan is incapable of replacing the USD now because China does not have a bond
market anywhere near mature or big enough to even come close to replacing the US Dollar.
And I believe the entire Chinese financial system is a House of Cards. That's why you see
so many Chinese party members and oligarchs constantly trying to find ways to get cash
out of China and invested in Western assets.
The Euro is a basket case - Germany will leave first, collapsing the Euro, with money
flooding into the dollar. Why do you think Britain never adopted the Euro? The EU was
constructed by the City of London/EU oligarchs. The Germans were duped into becoming
the ultimate bag holders which they are now coming to fully realize.
There's going to be many huge events unfold over time before the US Dollar collapses,
and being diversified (cash, physical precious metals, stocks, land, income properties,
a small business etc) will be important.
How you want to weight that diversification is entirely based upon your individual priorities
and circumstances, but I think the dividend income from mining shares is going to be one
of the bright spots, especially in an environment where income could be hard to come by.
Just my .02 cents...
SOTB |
