Safe Deposit Boxes Are Still Closed - The Dangers In The Banking System.
How to Manage Yourself
By IMP Group, 6th July 2015
We have been warning IPM Group's customer base that holding a certain percentage of their assets outside of the banking system is imperative. But this also means safe deposit boxes held outside of the banking institutions themselves !
When it comes to bail-ins (banks take large percentages of your personal deposit holdings permanently !) or bank collapses then not only will your deposit account be unduly taken, but your safe deposit boxes held within the banks will also be forfeited (Definition: to lose or give up as a necessary consequence of bank losses).
Cash is essential obviously and a reasonable amount should be held safely within the compounds of your own home. Precious metals (gold, silver etc.) should be held with an allocation of between 10% to 20% as a percentage of total investment capital (in our opinion) as your wealth preservation insurance policy in the face of a melt down in the financial system (aka 2008/09, but effectively much worse this time around).
The precious metals should be held outside of the banking system and held under a fully allocated facility under your sole family name. The facility we provide via Freeport of Singapore can be read about here.
Safe deposit boxes to remain locked
Greeks cannot withdraw cash left in safe deposit boxes at Greek banks as long as capital restrictions remain in place, Nadia Valavani the deputy finance minister has told Greek television.
Even Paul krugman gets it as he wrote this weekend, a section of which we have posted below (we are normally diametrically opposed to Mr Krugman's ramblings, but he seems to get it here).
What he states here is that the Greeks (independently) and the ECB across Europe will embrace further massive money printing. An exit from the Euro is effectively Greece's only choice now and the massive pain of this exit has actually already been felt, so what are the further downsides from here for the Greek economy ? Staying in the Euro at this stage just does not make any sense.
The most immediate question involves Greek banks. In advance of the referendum, the European Central Bank cut off their access to additional funds, helping to precipitate panic and force the government to impose a bank holiday and capital controls. The central bank now faces an awkward choice: if it resumes normal financing it will as much as admit that the previous freeze was political, but if it doesn’t it will effectively force Greece into introducing a new currency.
Specifically, if the money doesn’t start flowing from Frankfurt (the headquarters of the central bank), Greece will have no choice but to start paying wages and pensions with i.o.u.s, which will de facto be a parallel currency — and which might soon turn into the new drachma.
Suppose, on the other hand, that the central bank does resume normal lending, and the banking crisis eases. That still leaves the question of how to restore economic growth.
In the failed negotiations that led up to Sunday’s referendum, the central sticking point was Greece’s demand for permanent debt relief, to remove the cloud hanging over its economy. The troika — the institutions representing creditor interests — refused, even though we now know that one member of the troika, the International Monetary Fund, had concluded independently that Greece’s debt cannot be paid. But will they reconsider now that the attempt to drive the governing leftist coalition from office has failed?
I have no idea — and in any case there is now a strong argument that Greek exit from the euro is the best of bad options.
There will be repercussions from this Greek tragedy; the huge debt default that is coming will leave many large ripples across the European banking system. Then we have France, Portugal, Italy and Spain waiting in the wings with massive unsustainable debt loads and faltering economies (to say the least). These domino through the world financial system.
This may well be a slow burner world wide, but the dangers are extremely apparent and real, preparations for your wealth preservation should be made now.
Protect your wealth; invest in physical gold, silver or other precious metals at best prices from Indigo Precious Metals. Physical delivery in Singapore, Malaysia or safe storage at Free port Singapore.
Disclaimer : The information contained in this website should be used as general information only. It does not take into account the particular circumstances, investment objectives and needs for investment of any investor, or purport to be comprehensive or constitute investment advice and should not be relied upon as such. You should consult a financial adviser to help you form your own opinion of the information, and on whether the information is suitable for your individual needs and aims as an investor. You should consult appropriate professional advisers on any legal, taxation and accounting implications before making an investment.