Looking Ahead to 2018 in the EU
-- Part 4
The final aspect of the property market I want to look at is
simply money.
There is a problem with money and banks. Banks screw up, then
are bailed out by governments with tax payers’ money, and also
via the bail-in legislation, with the money on deposit. If you
don't know what bail-ins are, then I suggest you check out the
rules. You may well be shocked. Your bank deposits are at risk.
However you look at it, that’s theft. In no other business would
that be allowed.
I have all my life invested in wine. My stocks are labelled, and
if the warehouse company went bust, my wine would not be sold to
defray their debts. So why are depositors’ funds which are kept
in the bank’s warehouse used to defray bank losses?
Governments screw up, and spend like irresponsible teenagers,
and tax payers are ultimately hit with paying interest on these
debts. In order to get out of the mess they have created they
print more money which devalues that already in circulation. The
general public loses whichever way you look.
Okay, we all know this, but things are taking an interesting
turn at the moment and until we can see how things will turn out
I am not keen to take more risks than necessary.
The first problem is what happens when we have this great
financial re-set. How precisely will SDRs affect us? They are
about to become far more widespread than in the past. Formerly
they were used in times of extreme emergency as liquidity of
last resort. Now there are moves to used this form of money as
the world reserve currency. How will that affect probably every
aspect of life?
More immediately there is the small matter of banks which are
insolvent, and that covers almost every bank in the EU.
Obviously things are getting worse in Euroland because Brussels
is about to put a support plan in place. And who will be
supporting these bankrupt banks? Do you have to ask? Just look
in the mirror. Let me simply quote from a recent article.
“The safety threshold that protects bank customers’
cash when banks go bust is under threat from Brussels.
The first €100,000 of a customer’s savings currently is
protected across the European Union if the bank gets into
trouble.
Brussels is now backing a change in long-established rules, to
prevent customers getting hold of their money for months,
instead of the present seven day period.
Those affected could apply to be advanced small amounts of
their own money to meet living costs but even these funds will
be delayed by five days during which their accounts will be
frozen.”
I hope you read the above quote twice, and think about it.
Shortly, I mean within weeks or months, if you hold money in an
EU bank you are at risk. When the bank gets into trouble, which
it is likely to do as hardly any bank in Europe is properly
solvent, the bank can hang onto your money for as long as it
likes, and if the bank needs propping up, the first money to be
used for that purpose will be yours under the current bail-in
rules.
You have been warned. Hold money in an EU bank at your peril.
Guys, this is getting ridiculous. The more I hear about matters
concerning the EU the gladder I am that I have an exit route.
Buy a house in the EU if you must, but if you do buy, then for
pity’s sake don’t keep more than a couple of thousand euros in a
European bank account.
YOU HAVE BEEN WARNED!