How much of your wealth is allocated as zero’s and one’s on a computer screen? If your wealth resides in a bank or brokerage account, then it is nothing more than a target for wealth confiscation. Many of us, myself included, have been conditioned into thinking that our “accounts” are immune from confiscation. The reality is our money is at risk. Take for instance the customers of MF Global, the brokerage that “lost” what looks to be upwards of $6.9 Billion. Some claims have been repaid, but what is currently outstanding is $1.6 Billion, gone in a instant! When we make deposits in our brokerage accounts, we place great trust in the people behind the computers to do what is right. We assume our registered agents are good moral people, and typically they are, but often times a loss is out of their control. We trust that they, or any government agent will not confiscate it, or deny us access to it. So, this begs to question, if you cannot stand in front of your wealth and defend it, then is it really yours?
Anything that sits in an ‘account’, doesn’t really exist, it is just numbers and transactions on a computer server. Consider PFG Best they have recently experienced customer losses in excess of $200 million, all while a well known and highly regarded CEO was at the helm. Bottom line is, we put our trust in brokers, financial advisers and other investment representatives and put our faith in the Rule of Law to “keep our finances safe”. I am convinced that our current monetary system will collapse in the coming years. History has shown that paper money systems only last a few years or maybe a few decades at most, but eventually they all collapse. These issues are not local, the problem is the exposures to the Global Financial Market, of which our broker has little to no control over. None of the problems that could strain the global financial system originated in 2012. These issues have been building up for years and even decades. The first major blow up was the Credit Crisis in 2008. In this case, as in many others it seems, the problem was “solved” by more debt and more money printing. This approach has only postponed the inevitable, since taking on more debt creates a bigger debt problem down the road. It is impossible to create something of value out of thin air by printing money. Its unintended consequence has and will continue to be, the creation of a great deal of inflation).
Beware! “Desperate times call for desperate measures,” that will be the argument governments will use when hyperinflation hits. Private property rights will be suspended and the commencement of outright confiscation will begin. The media will jump on board by selling the benefits of “wealth confiscation”, how it will be for the greater good of all people. Most certainly though, wealth confiscation will not be the media’s chosen term for what is really going to go on. Then, governments in a desperate need of financing will start to nationalize corporations, homes, farm land … and as history has proven, confiscate your precious metals as well.
Tune in to future posts, I will help educate you on where some safe havens are and even ways in which you can profit from the coming fiscal crisis.