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[In a recent] conversation about international banking and the state of the global 
financial system [with] a senior executive of a large international bank – the ultimate insider – I was floored by what he told me. [Here’s what he had to say and, in his opinion,] what basic steps, taken now, will enable you to be one of the few people left standing should the house of cards collapse. Words: 465
So writes Simon Black (www.sovereignman.com) in edited excerpts from his original article* entitled Why a banking insider says “it’s time to be very worried”.
This post is presented compliments of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Black goes on to say in further edited excerpts:
[Here’s what the banking insider said:]1. …Banks are frauds; most banks, particularly in the developed west, only hold a tiny fraction of their customer’s deposits in cash [and] the rest is gambled away on whatever the popular toxic “security du jour” happens to be.
2. Most of the investment products promoted to their customers are “crap” and, as such, it struck him as incredible that people still had confidence in banks.
3. Central bankers are destructive, creating untold amounts of inflation that only serves to make people poorer, while enabling governments to go deeper into debt.
4. Very few of the banking sector’s underlying deficiencies have been addressed since the 2008 meltdown and that many western banks are still insolvent, with the key difference that their governments are now also insolvent.
5. In the coming years this confluence of risk will finally burst, most likely induced by the effects of the currency wars and competitive devaluation.
It was astounding, he said, that the G7 actually published a statement trying to soothe concerns about the global currency wars. “Whenever the government tells you to not worry about something,” he said, “it’s time to be very worried.”
Unfortunately, most people:
- don’t know what’s happening;
- don’t know that their government is insolvent, and that the only way they can persist is to go deeper into debt and devalue their currency;
- don’t know that the money in their bank account isn’t safe and
- don’t have any idea how far their government will go to maintain the status quo.
- are happily ignorant, distracted and completely unaware and
- simply aren’t going to see it coming.
From a big picture perspective, it all seems so obvious:
- National balance sheets across the developed west are deeply in the red.
- Bank balance sheets are precarious at best.
- Central bankers are flooding the world with paper money and
- Governments are trying everything– capital controls, competitive devaluation, pension nationalization– to keep the party going.
Conclusion
The writing is on the wall and taking some basic steps now can make a world of difference. This includes:
- purchasing real assets (precious metals, productive land),
- moving a portion of one’s savings to a well-capitalized banking system, and
- taking control over retirement funds.
The above are steps that make sense no matter what. Even if the worst never occurs, you won’t be worse off – and should the house of cards collapse, you’ll be one of the few people left standing.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
* http://www.sovereignman.com/finance/why-a-banking-insider-says-its-time-to-be-very-worried-10938/
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