Posted Nov 16, 2014 by Martin Armstrong
Apparently my post is now being taken up and regurgitated by others rewriting what I have written that your bank account has been stolen, and somehow this is the end of money to just about aliens have landed. These exaggerations are obviously written by people lacking the legal understanding of this issue.
LEGALLY MONEY IN A BANK HAS NEVER BEEN YOUR’S – nothing has changed. What has changed is that government is reneging on the New Deal and Socialism. The entire reason for creating the FDIC was for the government to regulate banks and thus guarantee them. The money is simply NOT yours and NEVER was once you deposit it into a bank. You become the same as a shareholder possessing merely a claim as an UNSECURED creditor in the case of a bankruptcy.
G20 is recognizing this LEGAL status and simply saying – HEY, there is NO obligation to bail anyone out. Remember I explained the Constitution is NEGATIVE not POSITIVE and that means there is NO legal obligation upon government to do anything for society but restrain its own actions.This is part of the DEFLATIONARY warning I have been saying all along and getting a ton of shit for. This is NOT going down the road of HYPERINFLATION – this is DEFLATION. The destruction of capital not the expansion of it. I have warned this is the COLLAPSE of Socialism. That means government walks away from its promises – it will not print money into oblivion.
Governments are walking away from Socialism. That is the ONLY change – nothing else. Nobody stole your bank account because it was NEVER yours to begin with. This is being completely misreported once again. If you do NOT understand the system, how can you make claims about it? People will act in the exact wrong manner with false info.
BEWARE of sophistry here. These statements are NOT true. Money did not die nor did anyone take your account, which was legally NEVER yours to start with. When you deposit money in a bank, you are agreeing to allow them to lend it out meaning its is not your’s anymore. If you deposit a $20 bill, you do not get the same exact $20 bill when you withdraw.
I do not know how I can explain this any better. They simply reneged on bailing out the banks. The last collapse 2007-2009 has been devastating. I keep warning liquidity is down 50%, then they are hunting money like crazy stopping global capital flows resulting in higher systemic unemployment with greater volatility on the horizon. Go ahead and withdraw $20,000 in cash. Then the police will stand right behind you and confiscate it under Civil Asset Forfeiture presuming the MONEY is guilty without having to prove you committed any crime. Reasonable people for not carry $20,000 in cash – you must be a criminal in their view.
This is a serious issue that should NOT be spun to scare people. Come on. These stories can seriously hurt people. This is the collapse in Socialism – the government walking away from its promises. That is the bottom line. Your credit cards will still work and they will move faster toward electronic money and that will prevent bank runs. How will you take your money out of a bank? Say please, put it on this CD-ROM?