Friday, March 29, 2013

OBAMA WILL TAKE ALL YOUR BANK ACCOUNTS THANKS FOR VOTEING FOR THIS ISLMIC TERRORIST I WILL LAUGH MY ASS OFF WHEN HE TAKES ALL YOUR MONEY

Jim Rogers: Taking people's bank accounts is going to happen

On March 28, billionaire investor Jim Rogers appeared as a guest on the CNBC program, Squawk on the Street. During the four minute interview, Rogers was pointedly asked if what occurred in Cyprus was a one time deal, or if this is now a template for the future of Western economies and banks. Without hesitation, Rogers said that this is going to happen, and taking people's money from their bank accounts is a certainty as both the IMF and ECB have already condoned it in their precedent.
CNBC Host Carl Quintinella: What's your appetite on Europe at these levels?
Jim Rogers: No, I'm certainly not buy there. It's pretty scary what's going on in Europe when they start taking money out of people's bank accounts. I for one am making sure I don't have too much money in any single bank account anywhere in the world now because now there is a precedent Carl. The IMF has said sure, loot the banks accounts. The EU has said loot the bank accounts. So you can be sure in other countries when the problems come are going to say, well, it's condoned by the EU, it's condoned by the IMF. let's do it too.
I have started the process of in a couple of countries in Europe already to make sure I am under the guaranteed amounts. And everybody you know should do the same. - CNBC
There are several important factors to look at from Cyprus that is causing investor Jim Rogers to not only hedge his deposits in the European banking system, but also in their stock markets as well. Before reopening the banks on Wednesday, Cyprus had to enact capital controls, and set withdrawal limits on the citizens of the country, otherwise an instant bank run would have taken place, potentially collapsing the nation no matter how much bailout the IMF could offer. Secondly, the impact on thousands of small businesses is already being felt as many employers are unable to access or withdrawal enough cash to cover payrolls for their employees, and are being threatened with having to close their doors.
In America, bank deposits are guaranteed by the FDIC up to $250 thousand per account, but as seen in 2008, this insurance system is extremely leveraged and vulnerable. Currently, the FDIC has only $25 billion of insurance protection for over $9 trillion in deposits, and even a small banking crisis in the U.S. could instantly deplete those reserves.
Investors, as well as Americans with deposits they have in banks, are watching Europe with great interest and trepidation. Several analysts have recently discussed whether what happened in Cyprus could happen in the U.S., and opinions are mixed. Historically however, America has its own precedent of depositor and asset confiscation, when the government closed all banks in the 1930's, and proceeded to raid security deposit boxes without approval of the owners, or general public.
Economic and monetary policy is an evolving process, with a myriad of new programs being implemented in both the U.S. and Europe over the past six years in an attempt to stave off insolvency and stimulate the economy. The precedent of bank account confiscation in Europe is the newest and latest tactic central banks are trying to introduce in this ongoing global recession, and long time investor Jim Rogers feels that it is only the beginning, and will become the norm for the banking systems all across the Western economy.
You can also follow Ken Schortgen Jr on Twitter, and listen to the weekly economic roundup segment of the Angel Clark radio show from 6-7 p.m. EST on Friday evenings.

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