Wednesday, July 15, 2015

Santa Cruz County Votes to Cease Doing Business with Five TBTF Mega Banks

For those who still hold on to the notion it is only conspiracy theorists who believe our banking system is completely corrupt, look no further than Santa Cruz County to spell it out for you.  This is close to home for many of you, so perhaps you might want to take note.

It is interesting that UTIMCO, the endowment fund for the University of Texas system, repatriated their physical gold from HSBC's vaults in New York.  Texas is traditionally a very conservative state, wary of the federal government's over-reach, and generally mistrustful of .gov.  This is duly noted--and understandable.  As the saying goes, "Don't Mess With Texas!"

But contrast that with Santa Cruz County, which is traditionally very liberal.  Yet, both sides of the aisle now mistrust the global banking system.

Wake up, people.  The sun is setting on fiat currency regimes.  Prepare for it, because it is coming.  Well, what does that mean--prepare for a currency reset?  It means your social security checks, pensions, even bank deposits, as well as your money market funds will be eviscerated.  In fact, any debt instruments, even short-term bills, carry inherent risks, including currency devaluation, counterparty, inflation, higher interest rates, default, and liquidity.

In other words, why take on all those risks for the privilege of earning 0% returns?

See Cyprus, Greece, bank depositor bail-ins, and capital controls coming to a country near you.

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