Economic analyst and
financial writer David Morgan says, at some point in the
not-so-distant future, the world is going to have
another banking crisis. Morgan contends in the next
financial crisis, the banks are going to take
depositors’ money in what is called a “bail-in.” Morgan
explains, “We have this saying in the precious metals
world, and that is ‘If you don’t hold it, you don’t own
it.’ Let’s move it over to the currency realm. What if
you had that same idea that if you don’t hold it, you
don’t own it? The reason why that is so important to me
and many others is the bailout situation is over. It
will be bail-ins next time, which means you become an
unsecured creditor of the bank. This means that if you
don’t hold it, you may not own it. If we were to have a
bail-in . . . they may not take all of your currency,
but they would probably take part of it. . . . If you go
to Argentina during one of their episodes, all the money
in their banks was still yours, but you were limited to
what you could take out. You could be a millionaire or a
multi-millionaire, but you could only take out 300 pesos
a week. So, what good is that? If your mortgage was
4,000 pesos a month and you can only get 300 pesos a
week, you would default on your mortgage.” |
