It is going to take some time for this system to lurch and fail - but
the point is maybe to start watching the company holding your deposits
like a hawk.. The smartest thing to do if the banks get in a
weakened position is to buy silver bullion... with WITHDRAWN ASSETS
(aka take the money physically out of the bank and physically buy
silver bullion)..
Check out this article its implications are very BIG to peoples future
savings :
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/12/09/IN5BTNJ2V.DTL&feed=r\
ss.business
Two possible scenarios can easily and most likely will occur in
Scenario A. Joe Taxpayer (you and I ) get screwed in Scenario B. Joe
TaxPayer (you and I) get screwed again..
When the Savings and Loan collapse occured what actually happened is
about 700 banks went bankrupt because of the laws determining interest
rates - as a result in order to cover the closed banks the FSLIC
department simply covered the losses of the deposits and then added
the charge to the federal deficit! - It means in order to cover the
money on deposit they simply raised taxes / lowered services and
increased their federal debt. So in the end the end user payed... and
then the FSLIC went OOPS! WERE BANKRUPT - and rolled themselves into
the FDIC that all the banks crow about are sure to protect you - NOT!
- This is a possible scenario when banks start to fail when faced with
financially crippling lawsuits when the court lawsuits are filed...
Check it out for yourself here :
http://en.wikipedia.org/wiki/Savings_and_Loan_Crisis
But here is the situation - they have peddled trillions in sh*t loans
on ARM mortgages - which are basically like a balloon loan you would
get off a unethical car loan like the ones were you don't pay for 6
months / get a free trip to Hawaii!! and all that garbage... However
instead of giving them their correct rating (C or lower) they
mis-labelled them deliberately as AAA+ loans and then fooled
international investors to buy trillions of dollars in them... Nice
hey - but the problem is under US contract law if their was deliberate
misrepresentation or false dealing in the loan the contract is VOID
and must be repurchased at face value - the value of these bad bonds
is 10x the value of all the US banks put together. So somebody has
to eat it and I will show you in both cases it will be Joe Taxpayer...
So in scenario A they loose in court and then are faced with huge
penalties and a pile of US banks go Chapter 11 bankrupt - then the
internationals demand the deposits of the depositers in lue of the bad
bonds - tying up depositor assets into a legal limbo for years while
they fight and squabble over it... So the depositor either looses his
deposits or FDIC steps in and issues the currency to cover the loss -
which they then roll into the federal debt all over again... Just like
they did in the Savings and Loans Collapse - So Joe tax Payer gets it
one way or the other...
But in Scenario B is just as bad because the Government can foot drag
itself and that is exactly what it is doing by legislating this latest
Good Hope Program it is a deliberate legal hurdle meant to keep
Bernankes friends from real jail time... But it doesn't work either
because if the the United States decides to break contract law - then
the international community will come in and dump US dollars crashing
their economy... and will also cease trading with the US - So Joe Tax
Payer gets it in the end again.. Because productivity in the US is so
LOW and nothing is made here the dollar would devalue immediately
against the lack of products and the huge amount of currency... So
the dollar becomes worthless either way!
I figure this will be unraveling all year - Remember NONE of the banks
will tell you they are awaiting their insolvency or that they mis-sold
ARM bonds and are about to get sued -
In ALL SITUATIONS THE END RESULT IS A SERIOUS COLLAPSE IN THE VALUE OF
THE US DOLLAR - Silver will stop deflation, I do not know how well
Canada's financial system is in this...
Make sure you goto news.google.ca and be watching you bank or the
banking sector (especially in relation to lawsuits) it is going to get
ugly.. Some are going to become VERY rich if they have enough sense
to completely get out of the system - others are going to loose it
all... Its up to us as people where we want to be in all of this..
Silver is heavily undervalued right now - so it is a good purchase...
and it will be worth ALOT more in the future.
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