After the people of Cyprus had their money ‘commandeered’ in 2013, this unprecedented event sent shockwaves throughout the banking system and also the general public. In a weekend, the Banks had lost the last modicum of trust the public had for them. Even the definition of a bank: “A safe place to store your money” is now null and void. As a result of this ‘wealth grab’ banks and governments around the world have done their best to try and calm the public into thinking that this was just a one off incident and that ‘it won’t happen here’. Here in the UK the government has spent millions in TV, radio and newspaper advertising campaigns that our money in the banks is safe and insured up to £85 000.

What a farce…

When this whole Cyprus debacle unfolded I went on record to say that this ‘wealth grab’ was just a testing ground before there was widespread implementation of it elsewhere. As usual, I got a lot of flack from financial commentators and other financial professionals saying that it could never happen in Britain. Well, I haven’t been vindicated yet, but the dominos are starting to fall. In late 2013 the blue print and legislation that was used in Cyprus was secretly installed into fabric of the banking systems in Canada, the US, Australia, New Zealand….and the UK. This means that when there is another banking crisis, instead of having a ‘Bail Out’ where the Governments prop up the banks, there will be a ‘Bail In’ – where a grubby hand will dip into the personal bank accounts of the public to pay for the mess. The reason for this is that the Governments no longer have any money, so they are now targeting the only remaining pool of money…ours.

Bet you didn’t know this…

The thing is, the moment you deposit your cash into the bank, by LAW, it is not yours. It becomes the banks property. So they can spend, speculate and do anything they want with it. So when you withdraw your cash they are effectively loaning it back to you at 0% APR. So in Cyprus a new term was introduced to the public, ‘Capital Controls’. This is where the banks limited the amount of money the Cypriots could withdraw everyday to just 300 Euros. And right now, capital controls are slowly finding their way into the UK. Already HSBC customers have been experiencing Capital Controls when trying to withdraw funds of over £10 000 and in Nationwide, some people have been severely questioned when trying to withdraw just a few thousand Pounds. This is only set to get worse.

But my money is safe up to £85 000 no?

According to the ad campaigns, yes. But what hardly anyone has bothered to do is look behind these claims and crunch the numbers. And the short answer is no. You see, the FSCS is a private company, not a government entity and there’s no pot of money backing up everyone’s account. So if someone claims on this, the compensation is raised by levies (taxes on the public). Being really conservative, if just 10% of the UK claimed on this…the system would crumble. But realistically, if just 1% of the nation claimed on this (just 700 000 people), the system wouldn’t cope. It’s totally ridiculous. So in a nutshell they are claiming that our money is safe, but if there are any claims, they’ll compensate you by taxing the nation. The Government are so scared of a bank run (people dashing to the cash machines to withdraw all of their money) that they’re promoting this absolutely everywhere to try and make the public think everything is ok. Far from it…we’re the 3rd most indebted nation on the planet with our debt increasing by £277 000 per minute and the European Banking community is about to go bust (see my new video ‘The Great Crash of 2016’ at www.TheRealisticTrader.com). Also the Yanks have a similar system called the FDIC. This is even sillier as they actually have a pot of money to draw from, $25 Billion…..but it’s backing $9.3 Trillion! That’s like backing your mortgage with the loose change in the back of your sofa!

P.S. The FDIC went bust and totally failed during the 2008 crash….so too will the FSCS…