Will Wealth Expropriation Stop At Bank Accounts?

By: Tom Chatham

It is becoming a foregone conclusion that Cyprus was just the beginning of the new bail-in plan taking root in the world of finance. The mentality of the banking industry is that they will continue with their machinations as long as people are dumb enough to go along. The majority of Americans still live under the assumption that their bank accounts are safe and any loss will be covered by FDIC. Like a thief in the night the banking industry has changed the rules allowing the theft of bank deposits in such a way that FDIC insurance will not kick in to reimburse depositors. Many banks have sent their customers revised banking agreements in the last several months knowing that most never read these statements and throw them away. These new policies will not become known to most people until it is too late for them to protect themselves.

The banking industry is setting the stage for massive wealth destruction brought on by their massive misappropriation of funds. The bankers will walk away with their golden parachutes and massive bonuses while the ordinary citizen pays for it all. Credit markets will be destroyed and massive wealth in the form of savings will be destroyed leaving people a bleak future with many unknowns.

Even massive wealth destruction might be a recoverable event and new prosperity assured as long as hard assets survive the collapse. If the coming destruction were an accident that might be possible but the approaching destruction is organized and well planned. If that is true is it impossible to think that complete destruction of privately held assets is not the ultimate goal. Paper assets are the most readily available wealth but far from the only significant wealth in private hands.

Private property is the foundation of much of the wealth in the U.S. and the recent real estate scandals by TBTF banks gives us a look at a possible future. Much of the property held in America has a mortgage on it and would be easily foreclosed on by banks if the financial sector locked up in response to bail-ins and triggered foreclosures.

A sudden devaluation of currency could also cause default if debts were not indexed. An even sinister aspect of this is the fact that Fanny Mae and Freddie Mac underwrite most of the mortgage debt. A TBTF bank could easily foreclose and pass the property on to the government, after taking a sufficient handling fee of course. This would place much of the private property in the U.S. in government hands. Increased property taxes in the name of social justice would take care of the rest of the wholly owned properties.

In a world where there is rule of law this would be unthinkable but the rules are being rewritten almost daily now and it is only a matter of time before the unthinkable happens. Why would government want to deprive citizens of privately owned property?

Even with the destruction of wealth private property provides people the ability to be self sufficient and care for themselves. This places them outside of much of the governments control and control is the purpose of government today. Because of this private property must be eliminated along with private wealth. The nature of current events leads one in this direction and to ignore the potential of this possibility is to surrender any future prosperity sought by society.

He who controls money, controls commerce but he who controls property controls everything else including freedom.


Posted on May 28, 2013, in Preparedness and tagged , . Bookmark the permalink. 3 Comments.

  1. Exactly WHY the 2nd amendment has nothing to do with duck hunting.

    Molon Labe……any of it.

  1. Pingback: Will Wealth Expropriation Stop At Bank Accounts? | project chesapeake « olduvaiblog

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