With the media fixated on the fiscal cliff, no one seems to be noticing the fact that the FDIC’s expanded 100% coverage for insured deposits ends January 1st, 2013.

Submitted by SD Contributor AGXIIK:

As of January 2013 the FDIC stops offering 100% coverage for all insured deposits.  That amounts to $1.6 trillion in deposits, 85-90% deposited with the TBTF mega banks.  Once the insurance ramps back to $250,000 the FDIC risk amelioration offered to large depositors will cause them to flee from the insecurity of the much reduced FDIC coverage.  This money will rotate immediately into short term Treasury securities.  The treasury, in order to handle this flood of money, will immediately offer negative interest rates.  This financing will resemble the .5% negative interest rate offered by the Swiss and Germans on the funds flooding to their banks from Spain, Greece and Italy.
This will be a bank run much larger than the Euro banks flight to safety
.

 

I have noticed two disturbing matters that will most certainly come as a result of the Fed MBS program.
1.  The funds from the Fed purchases will rotate to the Too Big To Fail Banks. This debt is already junk bond status due to the nature of the underwater mortgages and delinquencies, hence the reason for the new Fed goon Squad going after borrowers.
This debt will be as bad or worse than the debt of Greece, Spain and Italy, rated CCC-

2. The banks receiving these funds will rotate the money immediately into short term treasury securities that will be priced at NIRP. the reason for that follows:

3.  As of January 2013 the FDIC stops offering 100% coverage for all insured deposits.  That amounts to $1.6 trillion in deposits, 85-90% deposited with the TBTF mega banks.  Once the insurance ramps back to $250,000 the FDIC risk amelioration offered to large depositors will cause them to flee from the insecurity of the much reduced FDIC coverage.  This money will rotate immediately into short term Treasury securities.  The treasury, in order to handle this flood of money, will immediately offer negative interest rates.  This financing will resemble the .5% negative interest rate offered by the Swiss and Germans on the funds flooding to their banks from Spain, Greece and Italy. This will be a bank run much larger that the Euro banks flight to safety.

4. The Social Security Trust fund must make at least 5-6% return to maintain its balance and provide income to the SS recipients.  The TF is still guaranteed to go bankrupt by 2033, 21 years from now.  The TF is required by law to invest in Treasury bonds.  The actuarial problem now facing the TF is that they will be rolling old bonds yielding 5.6% into a yield pool averaging 1.4%, a 75% drop in income.  This dramatic yield drop coupled with a 60% increase in SS recipients from 50 million to 91 million in the next 10 years will assure the TF will go bankrupt in about 10 years.

This irreducible math is going to prove an insurmountable obstacle to those who are recently retired, have long live genes or plan to retire in the next 10 years.  If the SS TF goes bankrupt then benefits will be cut by 25% .  Inflation adjustments were never able to front run the lost in income.  The inflation rate of 8% today and 15% tomorrow will destroy the senior investment pool.
Another few unintended consequences of QE 3.  Thanks Ben.   May you rot in hell!

  1. Similar arrangement on this side of the pont. I was actually expecting such insurances to simply fail, rather than be discontinued with advance notices.
    This is almost the same as telling customers that your bank will close in about a month’s time, due to insolvency.

    • For the umpteenth time, I would advise everyone to leave just enough in a bank for Bill Pay; keep the rest at home or buy silver.  Please review all the articles/posts that suggest that your deposit monies have been hypothecated and re-hypothecated 100 times over.

    • These insurances are failing because they will have way too much losses to recover when hyperinflation arrives so they are doing it on purpose. I think this is a warning telling people that their currencies are not safe inside banks and that they should withdraw them all.

  2. When will the sheeple realize that they are being led around a maze like some lab rat. The FED is in slow motion failure and the ONLY place to put money where it will even have ANY value in the coming years is gold and silver. I mean, really, it’s so obvious that my 14 year old son can see it.

    So many lives are being ruined. 

  3. The anti-silver club is running out of options.  The Pilgrims Society is going to create confusion by stripping money, services, and the like to brainwashed persons. Knowledge is acquired and stupidity is free.   Marshal Law here we go.  Chinese people will set up camp in California as a vacation zone.  People will not be prepared and they have to pay taxes on it?  The FDIC is NOT a GOVeRNMENT function, it is a Federal Reserve Function which is outside the realm of the Federal GOVeRNMENT . Are You Being Taxed or Are You Being Screwed? Bend over while you give me your answer! 

    • It’s “martial” laws by the way and not “Marshall” laws lol. Marshall is the person that posts the commercials’ gold and silver reports on SilverDoctors. The anti-silver clubs’ last option might be to confiscate all physical silver’s ownership along with gold.

  4. Im a little confused about 2: Banks will buy short term treasuries at nirp.
    By doing this wont the banks now be losing money re negative interest rates.Wheres the benefit for the banksters.I understand how this helps the Usa by perpetuating the national debt ponzi scheme.
    Wouldnt the banks be better off and allocate the mbs money into equities or commodities at least they would be receive some sort of positive yield on the money ?

    • Short term treasuries at zeri interest are still better than losing 6+% a year to inflation as long as the casino pays them back. That is the gamble they are taking. The people will pay the bets off at the expense of the taxpayers.

  5. The real downside to this great read is based upon the premise that Treasury bonds will go to NIRP. What if that doesn’t happen and, the interest rates are propped up, just like the can that keeps getting kicked? How big can that bubble get before it’s raining crap all over us? Being retired wasn’t supposed to be this spooky.

    • “Being retired wasn’t supposed to be this spooky.”

      It wasn’t?  Guess that I missed the memo on no more crap hitting the fan once one retires… and I retired in 2004.

      As to that now infamous “can” and all the kicking it has gotten… well, it’s not really a can.  People just THINK that it is a can.  In reality, it is not a can but a grenade.  One of these next kicks is gonna deliver one helluva bit surprise, ala BOOM!  Bits and chunks of can kickers will be splattered everywhere.  Seems only fair, doesn’t it?

  6. Inlikeflynn   My logic was based on the banksters opportunity to unload CCC- MBS tranches of bad mortgages that are festering on the balance sheets like toxic debt bombs waiting to explode. Banks are not moving forward with any speed on the work outs that were required of the $25 billion legal settlement thatsupposedly compelled the banks to start giving their clients some modest debt relief.  So the stink bomb mortgages are bad and getting worse since the economy and all those factors we speak about are getting worse by the month. If let run to their end these mortgages would not self correct for at least 10 years.
      I surmise these banks are very anxious to get rid of these toxic tranches.  Once they dispose of the worst performers, they will have cash that needs to be sterilized since the Fed expects that in buying these MBS tranches the banksters would rotate this Uncle Generous Ben’s QE3 money back to the Fed to help finance our deficits.
    Any pact with the devil has its price.  The price will be a forced purchase of short term treasury bonds.
    Presently we have $1 trillion in deficit financing in the next Federal fiscal period  starting October 1 2012.  That must be funded so the fiscal cliff is avoided.  There are another $ 3 TRILLION IN SHORT TERM NOTES to be refinanced in this upcoming fiscal period.  They offer the most hideous of rates running from 5 to maybe, at best 25 basis points for the 3, 6 and 12 month treasury notes.  These must be refinanced and since no outside entity will buy this low rate AA- crap, the only remaining players are our banksters who will be basically forced to buy whatever the Fed offers up.
      The Fed can offer any rate it wants and since German, France and the Swiss have set the stage and are now offering NIRP of as much as 50 BPS, there is nothing to stop the Fed from doing the same. Of course, once they open that Pandora’s Box of financial ineptitude, the entire world will know this messy game. The emperor will be seen to have not clothes, buck ass nekkid and defrocked. He will be dragged into the town square and put in stocks with lots of rotten tomatoes in his face while the less seemly of the gang will service him from behind without the courtesy of a reacharound.

    But the banksters still need to put money somewhere and ugly as it may seem, NIRP is the order of the day and it will hit our shores soon enough. It beats the losses certain to hit the books with the worst of the mortgages held on the books. In any case, with inflation at 8%, anything earning .005% a year is running backwards by 8% in its pathetic yield.  That’s pretty much how I see it. 
    I could be wrong but the Fed still calls the tune and the bankers really don’t care since the notes and bonds are collateral with the best rating in the world, even if its AA-. They’ll probably rehyo them the following day. The best looking horse in the glue factory is still a pretty filly to those who don’t know horseflesh  IMO

  7. I have a question – is NIRP deflationary?  Since our money is created out of thin air and loaned into existence at interest I understand that is inflationary – you’ll always need to create more to pay off the interest, and so on. 
     
    So, would NIRP have a mild, but present deflationary effect?  Trying to wrap my head around this nonsense…

  8. NIRP and ZIRP are terribly inflationary since they force people who are suffering from all kinds of mal investments and zero returns into either dangerously speculative investments like Ponzis or into hard assets like land, homes and precious metals.  People in the street seeing their hard earning capital, what little they have left of it, will flee to anything that sounds even remotely secure and offer a decent rate of return. Silver is a miniscule market and when these long suffering people seek this metal, a PM that has gone up well over 20% in the last two months.  Even a short lived increase in value will get people’s interest in very short order.

    • In my opinion, silver will be more attractive than gold because of its low price compare to gold. The above ground of silver supply is diminishing and the demands are growing. In conclusion, silver will go up faster than gold in terms of percentage gains compare to their prices.

  9. I always withdraw whenever I receive some dollars in my bank account so that I can buy some gold and silver. So for me, it doesn’t matter that much since I always withdraw! :D I never deposit some cash in my bank account by the way.

  10. mmth  I did note that the FDIC coverage will be reduced to $250,000 by Jan 1, 2013  This leaves $1.6 trillion in deposits uninsured.  Doc did fact check this a week ago. There are moves to extend the FDIC insurance coverage, retaining some form of the  unlimited level after Dec 31, 2012.  The FDIC only has about $9 billion plus a $50 billion line of credit on account to handle losses that could exceed that if a large bank failed.
    My thoughts are that if the the government at large can’t seem to get their hands around the sequestration or the much larger issue of the ‘fiscal cliff’,  the FDIC extensions may just slip between the cracks.  This presents a very large risk to the holders of these accounts given that there is a good chance one or more of the  mega banks could have issues within the next 3-6 months, requiring bailouts. 
      There is reason to yell ‘fire’ in the theater if it is on fire.  It’s reasonable to assume that smoky smell might be worthy of some attention. 

  11. @mmth -  did you bother to check the FDIC link included in the article?   http://www.fdic.gov/deposit/deposits/insured/temporary.html  Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts

    From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the account balance and the ownership capacity of the funds.’

    You are mistaking the $250,000 coverage, which is set to expire at the end of 2013, with the unlimited coverage, that tapers back to $250k at the end of 2012

    • Now I understand.  I removed my comment.
      Only interest bearing accounts are limited to $250,000. Non interest bearing are currently unlimited. By the way, the link in the story did not work when I tried it.

  12. Stacksmack3000. I understand your sentiments since they were mine a couple of years ago. If someone had told me in 2009 that we would be seeing what we now see in this country and others, I would have told that person they were a psycho wingbat looney tune. I would have likely kicked them in the butt just to make my point on that too boot.
    If I am wrong I will be the first to admit it and want you to call me on this. If someone sees my themes as factually inaccurate or off the wall due to a lack of critical thinking, then I want you to call me on that. If you have data that counters my conclusions I welcome them. I will also print your post and mine and if I’m wrong I will donate some silver to your favorite charity
    I would really love to hear some good news. At this time my conclusions are based on some harsh realities and hard facts. These factoids are my touchstones in posts like this. And I wish what I see never happens. Dot connecting is fun sometimes but not now.
    There is strong evidence of crises now in this country, including personal food insufficiency at 20% of the population. I work with local food banks and contribute whatever money and time I can spare to filling food barrels. In our service club our major fund raisers are designed to create funds for emergency cash relief for families in food crisis, housing and utilities. And I’m no goody two shoes. We live in an area where incomes are relatively high but in Nevada we have the highest unemployment in tha nation. People here have been kicked in the nuts and hard.
    Overseas the situation is dire and growing worse.
    In Greece there are people in desperate straits foraging for food in dumpsters, without any medical care and homelessness in increasing exponentially. This is entirely due to the austerity forced by bankers, may they rot in hell. Greece is in freefall and wel have not seen the worst yet.
    Spain is in a similar situation with food shortages, food looting in some depressed areas, riots on a country wide basis.
    Both Spain and Greece have unemployment of 25% with youth at 50-55%.
    In contrast, the US unemployment is 22% according to Shadow Stats with youth unemployment at 35% plus. 26 million kids are now living back with their parents and between 13 and 20% of student loans are in default. That blows back to the parents and student with non-dischargeable debt.

    The average net worth of the US citizen in about $70,000, down 40% in the last 10 years but most net worths are well under $10-15,000. 33% of the citizenry have no net worth and a large number have less than $100 in the bank accounts. Average income has collapsed 9% in the lst 4 years, now to a meager $48,000 while these employed income earners face an average 8-9% inflation headwinds while trying to make ends meet. The average worker now toils 47 hours week for less pay, up from 35 hours a week as little as 5 years ago.
    These depression level statistics means that it would take only a small nudge to shift millions more on to the government doles and poverty.
    49 million people are on food stamps. Food stamps offer a meager $200-400 for a family’s monthly food budget. This will not buy enough calories to keep a person alive. Real unemployment has increase by 200-300,000 per month for the last 9 months. These people have fallen completely off the government calculus, consigned to some wretched statistical Soylent Green of humanity.
    There are areas in major cities and rural areas where dysentery and cholera are popping up. That is a terrible sign that shows the infrastructure is shutting down and sanitation services are compromised.
    This means the population least able to avoid these diseases and the least nutritionally able will suffer from these third world diseases.
    I am a member of a Rotary club. We stay in close touch with fellow club members in this country. Some of the indications of food deprivation are close to home and require immediate action. The stories are grim.
    My greatest worry is that no matter how well intentioned the government , NGOs and community service clubs are prepared, we won’t be able to stave off some serious issues that will happen in our country within a year.
    I hope for the best and plan for the worst, putting my time and money were it does the most good. 25% of my income goes to to charity in the hopes that we can stave off some of the worst. This keeps me awake at night too boot.
    I am also not optimistic that we will get past this present rough patch unscathed since the statistics clearly indicated that this last 5 year hard slog is evolving into another multi year period of economic and financial hardship for many people in this country
    I don’t pull punches because my research into historical precedents and the course we are travelling leads me to believe we facing crises that we have not faced in nearly a century.

    • You are totally correct AGXIIK.

      I am not proud to say I am currently under employed. I am doing what I can and have five children to look after, so in no way would I ever give up. I am not in the severe state of many in Greece or Spain, but I am living month by month. I don’t have any savings left. I have a small stash which will never be given up for fiat.

      What I’m trying to add is that, I would go under the radar. I’m not unemployed, I do get some much needed help, but I square this away with the fact that I have paid my taxes when I could and that is what I paid in for, so that if I did ever need a leg up, I could get it.

      As soon as I’m at a level where I am back to the earning capacity required to not get some help, I’m out of here. As much as I do square it away, I still feel bad, but what I get just helps with bills. It’s certainly not a ticket to party!!!

      Hopefully honesty doesn’t come back to kick me in the ass! 

    • Some months ago I stepped into a neighborhood public library I hadn’t been in for some years that had a children’s floor the kid used to hang out at after (home) school to socialize. We were well-known and liked there. I was chatting with one of the main librarians who still works there about this and that, I tend to steer convo to politics and finance to give people a heads-up, because who else is going to tell them, nobody. He told me a story about how one of the patrons came and asked for his help, her stuff in storage was being auctioned off for non-payment and she had wanted to retrieve some family photos beforehand but they wouldn’t let her, so she asked him to intervene on her behalf. She was on welfare with two small boys. He convinced the storage facility to let her get them. Sometime a few weeks or months later, he found out she had died, of starvation.
       

    • “We live in an area where incomes are relatively high but in Nevada we have the highest unemployment in tha nation. People here have been kicked in the nuts and hard.”
       
      Not a problem, AG.  Just keep on voting for old Harry and he’ll fix everything!  :-D
       

    • Jcc I was hurt at work (tribal casino, sovereign territory, can’t sue them and they deny all non-tribal member work comp claims) in 2006. 2 shoulder surgeries, a knee surgery, and back surgery in the next 3 years to stop further damage (only slowed it, my spine is going downhill fast) so I am somewhat in the same boat. Took 3 years to get social security and during that time I ran into $200k in medical bills that wiped out my 401k and savings.
      Living on $1206 a month, I do get some medical insurance help and food support of a whopping $16 a month. I am one medical emergency away from being totally broke again and ongoing monthly medical bills are killing me. I still manage to sneak in a silver purchase now and then I got 50 mercury dimes 2 weeks ago for $106 (sold some electronic junk on ebay to pay it). I am lucky that my beat up old house is paid for (but needs a new roof) and my car is paid for. If I had to make a house payment or pay rent I wouldn’t make it month to month.
      The people who have never been in the position of needing help don’t realize how little you actually get. The stereotypical drugs and driving a Cadillac you see everyone talk about and portrayed by those who want to cut benefits may be true for drug dealers or someone who is cheating the system. Those who really need it are not partying and many are struggling just to eat. Things are going to get worse in the coming years and I am glad I planned in advance.

    • Sorry to hear about your physical problems, Mary.  It is not easy to deal with such things but I sure do admire your spunk.

      It is unfortunate that those who work in a lot of the government agencies either do not want to work very hard or are hampered by idiotic laws, rules, and regs that even they hate but MUST obey.  My thought is that public assistance should be dedicated to those who truly need it.  It takes effort to determine this in many cases, though, so it is a lot easier to simply have a 1 size fits all approach.  While this is easier, it is not better.  Personally, I would like to see the benefits doubled for those in real need and all those not in real need kicked off of these programs.  This is something that a lot of folks just do not get.  Every person who consumes part of these resources but does not truly need them is depriving others who do need them.  That’s a shame and should also be a crime.

    • Hey MaryB, you brave soul. Keep going. You’ve had a tough ride so far. Good to hear you’ve got some elements locked down.
      Like you I am selling stuff on ebay to try and collect the odd ounce here or there. Getting withdrawal symptoms, haven’t bought for a couple of months!!!

      I haven’t had the problems you have, but being self employed I lost clients to the recession and have struggled since. Had to sell up before going underwater, got into rented, used up all my savings keeping going. The help more recently has steadied the ship. That’s all. I don’t game the system, just got to the point where I didn’t know how I would keep up. When finally lost my dignity I found out you can get the help I’m getting and still have £16k savings!!! If I’d have known, I’d have quite an impressive stack :)))) However I was trying to survive on my own, without help. That’s how you do things – don’t you? I didn’t apply until I had virtually no work! Anyway. I’ll keep fighting. I like a challenge – many of these to come in the near future.

    • Most people think that the Great Depression happened because people at that time were less developed than today. Before, we used to have sound money in our currencies so it was easier to get out of the crisis but now, things are different since our currencies are fiat.

  13. The headline to this article: “As of January 2013 the FDIC stops offering 100% coverage for all insured deposits.” by AGXIIK is incorrect and misleading the readers to believe this refers to all bank accounts.

    The only accounts eligible for the full insurance coverage are those in a new deposit insurance category called “noninterest-bearing transaction accounts,” which are checking accounts that cannot pay interest.

    After December 31 2012, checking accounts lose the unlimited protection and return to $250,000 insured coverage just like savings accounts.
     

    • J-14…I think what AG12K is saying is that the ‘unlimited protection’ stops at the end of the year. In my opinion the best move would be to eliminate all FDIC insurance citing moral hazard.  Then people would do their own due dilligence. That would change the landscape.

    • Indeed it would, UD.  I have long thought that banks should be required to buy private depositor insurance.  With real money at stake, we can believe that those boys and girls would be auditing the dog crap out of the banks and rating them for the soundness of their investments.  Those that play fast and loose would see sky-high insurance rates for their troubles while those that operate more conservatively would see low insurance rates.  Depositor insurance should be run just like any other legit insurance business.  It does not need the “blessings” of government to work well, IMO.

    • Right! We both don’t have to worry about a bank run since we have a big part of our savings in physical gold, silver and even copper for me. We also don’t have to worry about the collapse of the fiat currencies since we only have a small portion of our savings in fiat currencies. 

  14. $100,000 or $250,000 FDIC ‘insurance’, it’s all a farce to begin with.  If they really did allow the banks to fail, there would be nowhere near enough money set aside to pay the insurance claims, regardless of whether it’s $100,000 or $250,000.  These numbers are used just to instill ‘confidence’ in the system, to prevent widespread bank runs (which is the banker’s biggest fear).  Why else did they increase the deposit insurance from $100,000 to $250,000 (a remarkable 250% increase) at the very start of the financial crisis?
     
    By the same logic, the cartel does not want prices of silver and gold to go up suddenly by large amounts, because that would cause people to question the validity of paper financial assets, and they would decide to withdraw all funds and buy real assets (stuff) with it, creating bank runs and a run on brokerage houses, 401Ks, etc. etc.

    • That thundering and thrilling sound you are hearing is The William Tell Overture being played over loudspeakers far and wide as Helicopter Ben rides to the rescue once again with unlimited money printing to solve any and all fecal… er, fiscal… emergencies!
       

  15. I do not understand the notion that the Social Security Trust Fund is solvent through (pick you date).  The Trust Fund is empty right now.  There is nothing in the “lock box” except IOU’s.  Congress has taken all the money and spent it on other things.  Recipients are barely being serviced through incoming revenues.  Going forward federal gov’t will have to borrow money just to pay current claimants.  The Trust fund is by definition insolvent.  Anything else is just smoke and mirrors bookkeeping entries on the government ledger.

    • Yes, the SS “Trust Fund” has no money in it and hasn’t since LBJ discovered that he could raid it, spend it, and replace it with IOUs that future generations HAD to honor.  This works well, as it allowed him to fund a war without raising taxes.  It also allowed him to screw future voters so that current voters wouldn’t be screwed.  Such a deal!  So good, in fact, that every knot-headed president since then just kept on doing the same stupid thing.
      So, here’s how it goes.  Every dollar that comes in to the SSA these days is immediately spent on paying out benefits.  Since this is not enough to pay for ALL of the benefits promised, a few of the “special” US Treasury bonds that are in the trust fund are cashed in.  They get sent to the US Treasury and then to the Fed and they authorize enough money to be printed by the treasury to pay off the bonds.  The Fed gives the bonds to the treasury, the money goes out to the recipients, and the special bonds are destroyed.  And they all lived happily ever after.  Except for that really annoying Baby Boomer generation, of course.  The financial Armageddon of the entitlement programs that no one knew was coming… except practically everyone who studied numbers for a living for the past 40 or so years.  Yes, this is inflationary but what the hell?  We’re really fighting hard against deflation and every little bit helps.  X-p
       

  16. “As of now, the FDIC raise to cover $250,000 per depositor per institution is a temporary deal. The limits are set to return to $100,000 per depositor per institution in 2013.”
     
    It’s a return to $100,000, not $250,000.  There appears to be an error in the article.

  17. @Plebian – you are thinking of the $250k insurance that is set to revert back to $100k in coverage at the end of 2013.  These are separate issues.  The article is correct, please use the link to the FDIC statement provided in the article for clarification/ verification if desired.

    -Doc

  18. Notice the last line.

    Even though Treasury securities are not covered by federal deposit insurance, payments of interest and principal (including redemption proceeds) on those securities that are deposited to an investor’s deposit account at an insured depository institution ARE covered by FDIC insurance up to the $250,000 limit. And even though there is no federal insurance on Treasury securities, they are backed by the full faith and credit of the United States Government – the strongest guarantee you can get.

    • Too bad that there are still a lot of people trusting who are trusting the Treasury securities even if everyone knows that the government is in a lot of debts and that there are a lot of high annual inflation rates. I don’t trust paper that has values written on it because their values can eventually be lost one day.

  19. All the major indexes, including the Russell 3000, are below their 200 day moving averages Baltic Dry is languishing in historic low rates. The Intermodal Shipping volumes are in a serious slump. Mine and oil production outputs are declining. It’s looking more and more to me that ‘there’ is finally here.

  20. Pat those indices are really scary and speaks volume about the conditions around the world.  Even though the FDIC is insuring stupid bankers bad loan decision, it’s not really designed to help us, the account holders.  The last stat I read showed the FDIC with a few billion in the sock drawer and a $50 billion line of credit just in case the big one happens.  Not that $50 billion is a small amount of money but some of these TBTF banks has hundreds of billions in their MMA and other customer accounts.  It has come to pass that larger account holders had to wait for their full bailouts. 

  21. When I see stats on how much we owe to social security, Medicaid, treasury bonds, agency bonds, municipal bonds, bla bla bla I rap them all up into One category, The Governments Promise to PRINT that much money when needed. Greenspan said they can guarantee unlimited dollars to make any payment, what he can’t guarantee is the purchasing power of those dollars. The yuan hit a high against the dollar today.

    • And the BS express rolls on!  Different day, same crap.  OMG, I am SO sick of all this s***!
       
      Next thing we know, they will put Corzine in charge of the US Treasury so that it can be looted properly!
       

    • Locally owned banks and credit unions are the only way to go. Still, keep only what you have to in them, just in case. My checking account balance is $2.18. I will have to deposit a few fiat dollars in a couple of weeks to pay my Internet bill online. All my other payments are paid directly in fiat.

    • I don’t have to worry for paying bills since I don’t have any and my parents take care of them. I don’t have to worry that much about a bank run because there aren’t a lot of dollars in my account. :)

    • Ya know 45, I used to say talk to them, explain all that they need to hear, maybe they will be enlightened and start stacking.  But, I’ve had to re-think that option.  Now, I say F&*K ‘em.  Why?  Because when you give them the prepper, stacking etc, they will learn ONE THING ONLY….they will KNOW where they can go to get some…..BEWARE.

  22. US BANK RUN IMMINENT……………………. another misleading post and once again I’m sure the author knew that when posting.  You don’t even have the facts right.  That’s the problem with sites like this…. too much bs and no accountability.  For what reason I don’t know.  When the bank run doesn’t happen will you stop posting?

  23. SS 3000  ther you go again.  When will you stop sniping?  I have no plan to stop posting.  If you doubt this could happen thenleave your money with stock brokerages, banks and other financing institutions. Leave your pension with a financial institution which has rehypothecated your funds many times over. Read the prospectus on that investment if you doubt what I am saying.
    If you think you or anyone else with funds in US banks and brokerage is immune from runs due to any number of factors including the absence of FDIC insurance you might want to remove yourself frmo harms way. I did.  Pensions and money markets are presently seen as a means to bail out public pension plans.  Argentina just took $30 billion in private pension plans to bail out their banks. 
    If you cast youe eyes sto Spain, you may have noticed their bank runs are approaching $300 billion  Euros.  Their banks are being taken over by the goverment or merged into other banks to save their system and still the runs flow to safe havens including the far east, Switzerland, the UK, Germany and the US.  The Swiss, Germans and French now pay negative interest on their deposits. 
    If the bank runs do not occur exactly on schedule, jan 1 2013, that won’t bother me  My posts are designed to inform people as to the risks that are posed by external forces that could easily damage your financial wellbeing or mine.  There are plenty of signs and portents to support these contentions.  Their timing is not exact. Nothing every is.  But there is a fact that these coverages will end. If you have mid to high 6 figures in any accounts you are at risk of losing funds if that lender goes under.  Many did lose most of their funds with major banks that failed in 2008.  Their balances were well in excess of the maxium insured amount and they lost.  I removed a high 6 figure MMA from Fidelity earlier this year including pension funds to prevent this potential problem. Warren Pollack and Ann Barndhardt made it abundantly clear that our funds were not safe.  The Congress just today criticized Jon Corzine for financial incompetence but did not charge him with fraud or any other financial crime. He got off scott free and thousands of clients are out $1.6 billion. He was and is a criminal but being well protected he was given a mulligan for one of the crimes of the century
    If you want to criticise that is your right on this or any other channel.  But while you are sniping, spend some time researching the reality of the world we live in. 
    Your money is NOT SAFE.  That is why I post. Not to just protect myself. That would be too easy. I am concerned and worried about everyone who has assets at risk.  That’s why I spend 4-5 hours a day working these subjects to ferret out the potential and real dangers we face.  if you don’t believe me there no worry there  But do something to be able to watch your own back.

    • Thanks AGXIIK, your thoughts are well appreciated and informative as usual. Please keep informing us what you find out in your research and your conclusions. Now, what I think of Brother John is a different story.

    • @AGXIIK …. First of all, check my post again.  Your title states US Bank Run IMMINENT.  Imminent means likely to happen without delay.  You do not talk about different Ownership Categories.  You do not talk about FDIC insurance for $250,000 per depositor, per insured bank.  Meaning that a single depositor could have $250,000 covered by FDIC in 10 different banks.  I can go on but what’s the point?  Second, why would you make this post to begin with?  FDIC is an agency of the Federal Government.  With or without the 2010 Wall Street Reform and Consumer Protection Act, the whole premise of FDIC insurance is that your Government is the one guaranteeing that depositors will not lose their funds.  Knowing how you like to post about how much our country is like Hitler’s Germany, I would think that you wouldn’t waste your time posting about this subject.   Also, this isn’t sniping and I didn’t have to do any research to know that your post, like many of your posts, is more hyperbole. 

  24. 300 billion Euro in bank runs over there?    Well, I’m no math genius, but that’s over 12 billion ozs of silver at current prices!  That’s about $400B USD. How many years of global mine supply is that?  About 17-19 years?!?!!!

    What happens when 100 million people decide they want 100 ozs?    10 billion ozs ain’t gonna be there!!!

  25. This will not have as big of an impact as many may think. 
    The unlimited insurance only covers accounts earning zero interest, aka checking account balances.  So if you have your funds in a savings account earning .01% interest, you are not 100% covered automatically.  You need to add beneficiaries.  Each beni will increase insurance another $250k.  
    FDIC has eased who is a qualified beni, but you still need to add people to increase the coverage on interest bearing accounts.  
    Working in the banking industry for years, I can tell you that it will impact many but excessive bank runs are not likely.  Now a scare in the soundness of the bank will cause a bank run.   

    • Guess what.  The banks are not sound.  I’ve seen their balance sheets.  Institute ‘Mark to Market’ accounting principles and they all go down.

    • 0.01%? I hope that is not the annual interest gains with keeping your savings in the bank! That is the same as gaining a dollar for every 100$ per year when you can simply sell some scrap stuffs and get more earnings. That’s way not worth it!

  26. The US banking empire is built on air just like the Euro banks.  the entire enterprise is poised for some really hard falls.  Europe is is flames with street protests and country-wide strikes in spain and Greece.  No way to tell when this whole shebang will go down in europe but the signs are pretty strong that europe’s center is not holding. unlimited printing is not getting the job done. their QE’s last buy about 1 week to 1 month.  my reason for fearing US banks is their counterparty risk in CDS exposure to eurobond, ECB and other tranches of greek and spainish debt.  those are bound to fail soon.

    • I am surprised bankers in EU aren’t being hunted down. Oh wait gun control over there is a lot tighter than here. It happens here the bankers of the really big banks better have good security!

    • “Oh wait gun control over there is a lot tighter than here.”

      That it is.  The bad news (for banksters) is that torches and pitchforks are still abundant in EU-land, so I expect to see some of these banksters writhing on pitchforks while others set them afire.  No mere shooting or burning in effigy for them!  They get to last a while and truly contribute to the spectacle.  Meanwhile, the US banksters will be saying things like, “My God!  I’m so glad we have guns here in the US!”.   :-D

       

  27. Mary B  You have had a real rough patch.  What I notice about your posts you are pretty entrepreneurial.  With a business orientation you can make money on nearly anything.  Ebay is a good way to sell items for a profit.
    Our business is down 80-90% and taxable income off to the point where we pay very small taxes. We are semi retired and live as much off of savings as business profits.  
     Back when I was working a deadend low pay job I began a small side business from my 1 br apartment.  I bought , repaired and sold fishing reels and outboard motors.  It brought a few thou a year and that  made ends meet or at least waved as they went by.  If you can find something that strikes your interest and is sellable it would seem that this could turn a nice profit. I wish you the best.

  28. If that happens, then a lot of people would lose their confidences over the banks which is good in my opinion because banks are bad. A bank run will be a good thing since it will make the banks lose a big part of their power over the world.

  29. Sumkid  1 Basis point is one onehundreds of one percent.  or 01%   that is the equivalent of making $1 for every $10,000 invested in an MMA.  That is what Fidelity paid me   My account was larger than that but the insult of making .01% on my meney market was exacerbated by the fact that fidelity’s management fee was .48%.  So they made nearly $50 for my measley $1.  That is why I removed my money market and IRA from Fidelity and went all in with phyzz.

  30. This looks perfectly timed to drive the lower-tiered wealth on board the coming metals dirigible, but they wouldn’t do that on purpose, now, would they? There’s definitely more potential for continued win in this game, looking backwards suggests that, but the timing for moving out into tangibles (ideally, somewhere off-planet) is critical if it looks like they’re going to crush everything, and I sure don’t have a multi-faceted gameplan in place, just fantasies.
     

  31. There was a post on another channel that noted some large shifts of funds from this FDIC accounts into MMA’s and other accounts. They were large enough to get the attention of the people who watch these things.  The totals were over $60 billion.  I think that 2013 will be a bumpy ride for many big money people, both individuals, corporations and shadow banker equity funds trying to get to safety even of the yield is bupkes.

  32. There will be no bank run. First of all very few of the majority of people even know about this and how many people even have 30,000 dollars just sitting in a bank account and people that have real wealth dont have theyre money sitting in a bank account.

  33. There was an article a week ago that outlined another plan that would permit Money Market Accounts to BREAK THE BUCK, thus reflecting the true value of the investments in the MMA.  I’ve seen the contents of these MMA accounts and they are filled with alot of junk bonds and notes from campanies that are questionable at best, such as TBTF banks.  If the MMA accounts are allowed to break the buck then this one last bastion of safe haven currency parking lot with trap many people unwittingly. They will sign the forms and park their funds, only to wake up one day to find theri fund has just dropped 5% in value when all along they thought their money was safe.  Transiting funds from an FDIC insured account to an MMA could be little more than jumping from the frying pan into the fire.  We will soon hear more about this as it becomes a reality  I recall the announcement of this legal manoevering was posted on SGT Reports.
    The reason I originally posted this was to note that the very large account holders, ranging from those with $250,000 or more, might be inclined to strip their accounts from banks to protect their holdings. In Spain a few hundred billion euros have been removed due to the potential of bank failures. The large account holders, personal, corporate, hedge funds and pension plans, would look very carefully at their exposure to loss. The average person with 4 and 5 figure accounts would probably not notice the change.

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