"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Tuesday, September 6, 2016

Losing Faith in Banks, Stash Cash at Home

In 2015 Greece announced that their banks would stay closed all week for a total of six days
following the refusal from the European Central Bank to offer emergency funding.

Dig Your Cave Deeper

  • Once again the banking system is teetering on the edge of collapse, and we see Germans hiding cash at home.
  • It is not an accident that governments and banks are pushing for a "cashless" society. As money goes digital the virtual printing presses gear up to light speed.

(Wall Street Journal)  -  German savers are leaving the security of savings banks for what many now consider an even safer place to park their cash: home safes.
For years, Germans kept socking money away in savings accounts despite plunging interest rates. Savers deemed the accounts secure, and they still offered easy cash access. But recently, many have lost faith.
“It doesn’t pay to keep money in the bank, and on top of that you’re being taxed on it,” said Uwe Wiese, an 82-year-old pensioner who recently bought a home safe to stash roughly €53,000 ($59,344), including part of his company pension that he took as a payout.
Gold Coin of Emperor Constantine I
Minted in 324 AD the coin still has value today unlike the digital and paper
money currently flooding our economy by bankrupt governments.

Interest rates’ plunge into negative territory is now accelerating demand for impregnable metal boxes.
Burg-Waechter KG, Germany’s biggest safe manufacturer, posted a 25% jump in sales of home safes in the first half of this year compared with the year earlier, said sales chiefDietmar Schake, citing “significantly higher demand for safes by private individuals, mainly in Germany.”
Germans point to the European Central Bank, which since 2014 has tried to reignite eurozone inflation by pushing interest rates below zero. Savers now face the prospect of being charged fees on their deposits. Some companies and large private depositors already incur charges.
The latest such sign that penalty rates are creeping in comes from a small cooperative bank in the Bavarian town of Gmund on the Tegernsee lake. As of Sept. 1, the bank, Raiffeisenbank Gmund, will charge its customers 0.4% on deposits above €100,000. Some 140 customers with total deposits worth €40 million are affected, said management board member Josef Paul.
In a country where few people buy stocks, the possibility of having to pay fees on deposits has turned savers’ world—and their piggy banks—upside down.

“The moment the bank tells me I have to pay interest on my deposit I’ll take my €50,000 or whatever it is and put it under my pillow, or buy a safe and stick the money inside,” saidDagmar Metzger, a 53-year-old entrepreneur in Munich.

Read More . . . .

"Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them…. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”  
George Washington

1 comment:

Anonymous said...

gw couldn`t be more right about it , if he see how things work now on FED