Posted May 1, 2015 by Martin Armstrong
So what is the purpose of paying taxes? It was supposed to be about protecting society, but politicians are bribed to allow the banks to do as they like with other people’s money. The whole system of insuring the people to create confidence goes out the window when those protections cost too much.
It was reported that Austria is now planning a wide-ranging reform of deposit insurance, abandoning government insurance for deposits. The new view states the people should pay attention to the banks, since politicians are bribed way too much, and regulators cannot do their job anyway. This is where it starts. We already have bail-in legislation from the USA to Switzerland. We can count on this type of insurance vanishing when the system crashes and burns.
Look to the private assets as the hedge. Government guarantees will mean nothing.