Saving Silver Before the Real Confiscation

swat milk raidThe likelihood of electronic asset confiscation happening long before physical precious metals are called in is not very hard to imagine.
Being “Cyprussed” is probably on the table if the U.S. dollar eventually collapses. The monetary powers did not state this quite so directly, but it was clear enough.
So what is left for the reasonable person who has worked hard and saved a few pennies? Not much, but silver is certainly high on the list as an investment vehicle and hedge against such a scenario.

 

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By Dr. Jeffrey Lewis, Silver-Coin-Investor

The general case for holding silver continues to improve as the MFGlobal and HSBC scandals confirm the absence of any rule of law or justice in the global financial system. The Peregrine Financial fiasco only serves to verify this somewhat jaded viewpoint.

Furthermore, the Cyprus “bail-in” or savings confiscation debacle makes it perfectly clear that keeping more than a small portion of one’s assets in the financial system is increasingly unwise and could be subject to greater risks than most investors think.

Add to this situation a dysfunctional government, the media’s overwhelming daily propaganda, and the fact that the rest of the world is sick and tired of being bullied by the United States. Also understand that many nation deals are being forced to bypass the un-backed fiat U.S. Dollar, and it is becoming increasingly clear that the days of paper fiat currency are numbered.

Implications of the Cyprus Bail-in

Being “Cyprussed” is probably on the table if the U.S. dollar eventually collapses. The monetary powers did not state this quite so directly, but it was clear enough.

So what is left for the reasonable person who has worked hard and saved a few pennies? Not much, but silver is certainly high on the list as an investment vehicle and hedge against such a scenario.

Sadly, the majority of the American population does not have much saved, and the lucky ones who do have wealth stored are usually holding it in the form of real estate.

Perhaps one good thing is that before the projected fiat crisis is over, Keynesianism will have been debunked for a long time. They will just have to follow what the government says or what the real market dictates.

If Washington initiates a Cyprus type savings confiscation action here in the United States — which could occur as early as this year— most media consuming Americans will probably be conditioned to think it is a good idea, especially since it will not really affect them.

The growing confiscation of savings risk continues to make a good case for investing in precious metals that has been driving both new PM investors and the mainstream into the market. Silver confiscation currently seems unlikely given that it will be much easier to go after pensions, other retirement accounts, and/or bank deposits first, since they are mostly in electronic form.

Retirement Plans at Risk

We consulted with a retirement plan potential to get a sense of the vulnerability pensions and retirement plans:

The Federal government sees retirement plans as a form of “tax expenditure” in much the same way as the mortgage interest tax deduction.  Nevertheless, retirement plan contributions are not an outright tax “give-away” like the mortgage interest deduction, but they are merely a deferral on taxes being paid.

Still, that logic will probably not matter for long. Thanks to the almighty ten-year budget window — and the fact that the U.S. government will need it all well before then — what you know today as 401k, 403b, etc… retirement plans will probably no longer exist in the not too distant future.

 

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The Possibility of a Forced Treasury Allocation

Even if there is no mandated minimum U.S. Treasury bond allocation in pensions or 401k plans, even worse things could be in store. If the trend follows the healthcare and student loan template, no company-sponsored retirement plans will probably exist in just a generation.

Pension savers will very likely all get shunted into a version of the Federal government’s “Thrift Savings Plan”.  In this scenario, you might expect a mandatory 50% Treasury bond allocation in your pension portfolio.

Salary Deferrals and Withdrawal Penalties

Such a bail in plan could even include a mandatory ten percent salary deferral for everyone earning money in the United States, perhaps combined with a roll-back of the tax-deductibility of those deferrals. These may even be considered “contributions” since you will see little back in return later on. As such, the incentive for an employer to “match” your pension plan contribution will become a relic of the past.

Furthermore, the penalties for early withdrawal will remain and will probably be made even more draconian. For instance, an increased 30% penalty for early withdrawal could be instituted versus the current 10% penalty, along with an increase in the non-penalized withdrawal age from 59.5 to 65 or higher.

When things get really serious — yes, even more serious than they are now — the retirement plan marketplace is a big target hanging right over the middle of the government’s financial bull’s eye. They will come after these very tempting plans. And their tax-haven value will very likely decline over time.

About the time the typical person will say that, “it’s not even worth it to contribute anymore”, they could easily mandate your contributions, in a similar way to how the Social Security system is currently funded.

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Comments

  1. LMAO at this one, I received a letter from my bank that one of my accounts was dormant so I transferred over 50c to help the cause and it’s active again.
    Also I’m never without my Silver in my pocket. Keep Stacking.
     

  2. Everything will be fine…the people will re-learn to farm and barter and the govt’s will starve because they can no longer ‘administer’ the peoples energy!

  3. Mark my words, the government will outlaw any seeds to be used for farming unless you buy the special seeds from the government. They will figure out a way to control use no matter what!

    • They will certainly try.  But they also have a serious problem.  Many of their 3-letter agencies are staffed with people who are patriots and who take their oath to the US Constitution far more seriously than most of the politicians do.  It will be quite difficult for them to maintain the necessary illusions without the cooperation of these people and the citizens.  What will they do if they lead and no one follows?
       
      As to outlawing seeds… lol!  The Gov has long outlawed marijuana and its seeds, yet both still seem to be plentiful.  These can even be found in most commercial bird seed mixtures.  I have heard that they look like tiny coconuts.  Not that I’d know, of course.
       

  4. (With apologies to The Who)
    People try to put it down
    Talking ’bout the confiscation
    I don’t know, but I’ve been told
    They won’t take my stack ’cause they’re not that bold
    Talking ’bout the confiscation
    Why don’t the .gov just fade away
    They don’t care what the People say
    I’m not tryin’ to cause a big sensation
    I just don’t want re-hypothecation

  5. Gold is for wealth preservation, but Silver is for wealth multiplication.  Both Gold and Silver are presently undervalued assets, but the Gold to Silver price ratio is 1:65.  The physical availability ratio is 1:10.  So, either Gold is overvalued (which it is not), or Silver is way undervalued.  Besides Silver, what other commodity is there in the world with a price today lower than the price from more than 30 years ago (in 1980)?  As money, Silver has the attributes of Gold.  When Silver was valued as money, the price ratio to Gold was a more or less constant 1:16.  Silver will be valued as money again when enough people buy it and save it as money, it does not have to be a decree by anyone, just people buying and treating it as money.  There is arguably not enough stock of Silver in the world for every person on Earth to hold even a single oz of Silver in their hand.
     
    So save a little Gold, and INVEST your future in Silver.

    • Keep in mind it’s gold the gov’ts and central banks are buying not silver.  Silver will see it’s day and is poised for a spectacular run.  But, ultimately you’ll want to move into gold.

  6. If anyone worries having quality seeds to stack, may I suggest that you spend the equivalent of 5 ounces of silver and buy 3 sealed container of HEIRLOOM VEGETABLE SEEDS.  These heirloom seeds are not GMO. The container has 1 acre’s worth of seeds.  Thus 3 acres.  That can feed 3 families for a year.  This can be set aside in a coool dry place for storage up to 10 and even 25 years.  Go to startpage.com to google ‘heirloom seeds’.  I have the equivalent of 3 acres of seeds.  While I am not great fan of veggies, they are some of the best medicine available and are a MUST HAVE supplement to your diet.  These seeds will produce vegetables with their own seeds that can be planted the next year.  GMO seeds are not self replicating.  Need I say more.  What did your mother say???
    “Eat you damn vegetables you little snot, there are people starving in Armenia’.  Well, that what my mother said to me.  I never figured out the Armenian angle though.
    Heirloom seeds.  Get ‘em on line Eddie Albert and one of those goofy Gabor sisters will thank you.

    • Got some of those hummers last spring.  The corn, squash, carrots, and beets did very well.  The green beans, not so much.  But what the hey?  Maybe that was more a problem with “pilot error” than the seeds themselves.  They did sprout, so must have been OK.  They probably just needed more TLC than they got.  :-/
       
      As to the beets, they are delicious when steamed until done and then served with a bit of butter and a trace of salt on them.  They are putting out a LOT of seeds as well, so their future is assured.  From what I have read about root cellars, beets, acorn squash, and potatoes all store very nicely in a cool dry place.  We have a basement closet that serves this purpose.  We had a 5-gallon bucket of potatoes in there that lasted well into February.  They might have lasted even longer but we ate ‘em!  :-)
       
      I agree that heirloom seeds are the best because they are self-sustaining and non-GMO.  If even a couple of your plants go to seed, there will be MANY seeds available for replanting next year and beyond.  These can be collected, dried, and stored for a long time in a cool, dry, dark place.  Well preserved seeds are also a 1st class trade item.
       
      They can be relatively expensive, though, so for anyone who wants a less expensive alternative, ordinary garden seeds from the local farm and garden or home improvement store will still be much better than having no seeds stored at all.  They are cheap enough that putting a dozen or more packets of each of your favorite veggie seeds aside won’t dent the budget all that much.
       
      A really good food storage program involves multiple types of food, so that nutrition and taste can be varied.  My plan involves about 25% home grown food from the garden or a local farmer, 25% as freeze-dried emergency foods, 25% as long-term bulk dry foods, and 25% as canned goods that are rotated regularly.  With this plan, it is possible to maintain a good supply of tasty and nutritious food for any potential hard times that may come along.  Such preps were once very common in America but we seem to have largely gotten away from it.  It is making a come-back, though, especially with stackers.
       
       

  7. Cool Ed,  now I know what I’ll get from your pad when my 10+ stormtroopers and myself arrive with our armored cars, rifles, and RPKs.  …. I think I’ll go by the new nickname: ” The Aetola of Rockin’ Rolla!” Lmao
    Really tho, thanks for the tip, I mustve overpaid for mine. Dropped like 120$ for one acre seed vault.Grrrr

    • Only 10+?  HA HA… better man-up to at least platoon strength!  The neighbors thought that I was putting in a sprinkler system last summer but it was really a PVC-based anti-personnel system.  Two clicks on the hand-held remote and… KA-BOOM! goes the whole front and back yards, along with any invaders.  Only one shot in it and we’ll need new windows afterwards, though, so there IS a downside to it.  ;-)
       
      Ayatollah of Rock-n-Rollah… Sounds like a Heartbreak Ridge reference.  ;-)
       
      No prob on the tip.  AGXIIK brought this all up and I just added my 2 cents worth to it.
       
      Most of these seed vaults were in the $35-40 range last season if you shop around a bit.  Could be more now.  Look for reviews of the various web sites that sell heritage seeds.  There are some with really good reps for decent prices, high quality, and good service. 
       
       

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