03/15/2016 - Egon von Greyerz: Wealth Confiscation Through ZIRP, NIRP, Bank Bailins, Forced Savings, Currency Debasement
Egon von Greyerz explains how ZIRP & NIRP is essentially confiscation of your money & it is happening now .. highlights also the growing potential for more bank bailins across the indebted western world .. negative interest rates leading to a cashless society leading to bank bailin confiscation of bank deposits – it is all related & connected .. “The biggest reason for creating a cashless society is stop bank runs. The banking system is insolvent and leveraged up to fifty times and even more if derivatives are included. This means that there is only enough money in the bank for one client in fifty or two percent of clients in total to take out their money. If more people tried, the bank would have to close its doors because it would be bankrupt. By stopping clients to take cash out, bank runs are no longer possible. In theory clients could transfer their money to another bank but that would also be stopped. So now the bank has your money, it charges you for that pleasure and you can’t get your money out because your money is frozen or confiscated. This is what has become of the bankrupt banking system .. When a bank becomes insolvent, depositors money will be used to save the bank and to pay the bank’s losses .. Another method that bankrupt governments will apply is to use bank deposits for forced savings. Every depositor will be obliged to put some or all of his cash into long term government bonds, probably for at least thirty years. It is easy to imagine that the money will be totally worthless after thirty years .. And if your money hasn’t been lost already after all the above, central banks are guaranteed to print enough money in coming years that most currencies will reach their intrinsic value of zero. Governments will have no other option in their attempt to save the financial system. We know of course that money printing can never save the world. All it will do is to add more debt, thus making the final collapse even bigger.”
