Around the years 2007 and 2008, when the media was filled with concerns about bad bank investments threatening to cause big USA banks to go bankrupt. Those big banks tapped their friends in high government places to cover those bank losses by using BAIL OUTS.
Likely you are familiar with a bail out. The government takes your tax dollars and hands it over to a big bank or a large corporation, with a wink and a nod. You get stiffed. The politicians get favors which we will never hear about.
Banks didn’t learn any lesson from that but one.
If banks make bad investments their government friends will be there to protect and save them. But politicians did not want to have to face the electorate each time big banks, or big corporations, call to ask for funds in the form of a BAIL OUT. So, to short-circuit the process, and to remove themselves as a go-between, politicians argued for a new law called a “BAIL IN”, which permits big banks to dip into depositors’ savings and take as much of depositors’ money as the bank needs or wants.
In CANADA, on September 23, 2018, bank bail ins officially became law. You may not have recognized this event. It was called, “bank recapitalization”. It means bail in: banks can take your money from your bank account.
In addition to your savings covering a bank’s bad debts, bad investments, we can also expect something called NEGATIVE INTEREST RATES. It’s been in the international press. Some countries have already implemented that: Switzerland, Sweden, Denmark and Japan
A negative interest rate is the opposite of what we have today, (April, 2019).
If you deposit your money with a bank, today, the bank pays you interest on your deposit. A few decades ago interest rates paid to depositors was around 5% range. Today, we are lucky to get as much as 1%. In the near future you will be paid a negative rate, such as -0.25%,o -0.75. Meaning: you pay the bank to have the bank hold your money.
Between bank bail ins and negative interest rates, the banks will always emerge the winner by using YOUR MONEY to protect and grow their profits…at your expense.
It’s a beauty…and too few people are aware of what’s dead ahead.