INTRODUCTION
Thrift, saving, honesty and alertness are time-proven virtues, taught by the Bible.
Another book also helped me learn the value of thrift: the little bank book of my first childhood savings account, which taught the rewards of saving today for tomorrow. But bank accounts today offer little reward and growing risk!
Over a century ago, Henry Ford summarized modern banking:
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
It is this lack in understanding of our money and banking system that prompted my long-trusted friend and advisor Craig R. Smith and former Reader's Digest Roving Editor Lowell Ponte to write DON'T BANK ON IT! The Unsafe World of 21st Century Banking.
Nine out of 10 adult American households have some kind of bank account, but the deeper Craig and Lowell looked into our banking system, the more they discovered that our bank accounts are now a high-risk, low-reward gamble; a bad investment that makes it illogical to keep much of your money in a bank.
4 SHOCKING BANK FACTS!
1. Under current law, you don't even own your bank account. Your deposits are an "unsecured asset" belonging to the bank, Craig and Lowell found, and the receipts it gives you are merely IOUs from a bank that could go bankrupt.
2. Are your deposits safe in any bank with an "FDIC Insured" sticker in its window? No, Craig and Lowell reveal because the Federal Deposit Insurance Corporation has only enough reserves, at most, to replace only one out of every $14 it insures.
3. Banks, as we have known them, will largely cease to exist by the year 2030,except perhaps as crony organizations that depend on the government, not depositors, for their funds.
4. Modern cyber-criminals can steal not only your past savings but also your present financial identity and future credit. Stagecoach robbers used to demand your money or your life. Today's cyber criminals can rob you of both at the same time!
How can you safeguard your money? Craig and Lowell introduce readers to a former Harvard economics professor who withdrew his life savings of nearly $1 Million from one of today's "Too Big To Fail" banks because of the huge risks he sees.
YES DEPOSIT, NO RETURN?Craig and Lowell's investigation into our banks began when a friend tried to withdraw $25,000 in cash from her account, and the bank refused to return what she thought was her own money.
Such bank refusals, Craig and Lowell discovered, are now happening widely – with small depositors, and even with nations. The Federal Reserve Bank of New York told Germany it will take seven years to withdraw its gold deposited there – refusing to let Germany audit or even see its 1,536 metric tons of bullion in America's Central Bank.
Don't take our word and documentation for this, write Craig and Lowell, "test" your own bank by trying to withdraw $10,000 or $15,000 in cash – not a check.
If your bank won't give you your own money when things appear calm, what chance would you have of getting your money back from your bank or the FDIC in a financial crisis or national bank run, with millions of depositors demanding their money?
BANK PONZI SCHEME
Most people do not understand ours is a system of "fractional reserve banking," in which the giant banks have at most only 10 cents in actual reserves to cover every $1 in deposits.
Some economists regard this as a Ponzi scheme that nearly collapsed in 2008. It continues to cause economic insecurity and instability, and could crumble if people find out that the FDIC only offers "fractional reserve insurance" that, in a crisis, could not repay the trillions of dollars that millions could lose in their bank accounts.
Our entire banking system is built on this Ponzi scheme, as Craig and Lowell explain. But the dangers in our banking system are far bigger. Since 1971 we have lived with paper fiat money whose value is backed by nothing but our willingness to believe in it. That belief is fading.
Inflation is reducing the value of the U.S. Dollar by 6 to 10 percent every year … far more than your bank pays you in interest. Our government, Craig and Lowell explain, now follows a deliberate policy of "financial repression," holding what banks pay depositors below the real inflation rate, so that your deposited dollars lose purchasing power every day they are in your bank account.
Our government and the Federal Reserve turn bank depositor losses into government gains. They create this inflation by printing trillions of dollars out of thin air, each of which gets its value by reducing the worth of every dollar you earn and save. Your bank account is being robbed right now, as you read this.
POLITICAL BANK ROBBERS
As Craig and Lowell explain, government has begun to loot both banks and bank depositors in many other ways, too.
Revenue-hungry welfare state politicians have recently used the regulatory state to siphon off $16.65 Billion in fines and penalties from Bank of America, $15 Billion from JPMorgan Chase Bank, and began a systematic pattern of squeezing these and other big banks both for direct money and billions in loans to favored constituents.
As Craig and Lowell document in chilling detail, our spendaholic politicians are also busy planning how to confiscate most of the $20 Trillion Americans have in private IRAs, 401(k)s and other retirement accounts.
Craig and Lowell explain how this, as well as a global confiscation of bank accounts via a world "wealth tax" plotted by economists at the International Monetary Fund (IMF), could produce surprise raids on your bank accounts.
Something big is coming. Our government is busy closing the escape exits individuals and corporations have increasingly been using to flee crushing American taxes and regulations by moving abroad.
Rather than future taxpayer bank bailouts, the European Union, United Kingdom, and United States – in a December 2012 joint memo of understanding between the Bank of England and the FDIC – have agreed to "bail-ins," using money confiscated from bank depositors to pay bank debts.
YOUR BANK IS A TARGETYour bank account is not dollars locked away in a bank vault or safe. Today your bank account is merely electronic blips in bank computers.
We have rebuilt our entire civilization around computers and electronic networks. These new systems are amazing, write Craig and Lowell, but they have not stood the test of time and could be crashed in many ways … from giant solar flares, to unnoticed defects, to attackers.
The People's Republic of China has 125,000 Red Army cyber warriors whose full-time job is to sit at computers and hack into Western banks and other companies to steal secrets and money. Russian hackers recently stole 40 million credit/debit card holders' private information, nearly took control of the NASDAQ stock exchange and heavily infiltrated America's centralized power grid.
No wonder America's Secretary of Defense warned that one of the greatest dangers we face is an "electronic Pearl Harbor," the new mode of warfare with your bank as one of its biggest targets.
We are plunging into a cashless society of convenient but ultra-risky computerized banking in which every transaction will be hackable, trackable and taxable – with government taking 20 percent of everything you do. In the emerging "Internet of Things," everything will contain computer chips, and your bank account could be robbed via your refrigerator.
A BOOK YOU CAN BANK ON!Receive a FREE review copy of DON'T BANK ON IT! THE UNSAFE WORLD OF 21st CENTURY BANKING today, simply
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In the 256 pages of DON'T BANK ON IT!, Craig and Lowell take readers on a mind-boggling ride that will forever change their view of economics, politics and the frighteningly high-risk new world of banking.
Yes, thrift is still a great virtue, and saving is wise and rational if done right. Craig and Lowell show us how to reduce the huge and growing risks our bank accounts and the value of our dollar now face, and how to save our savings!
Get Your FREE copy of DON'T BANK ON IT! TODAY!
( hari krishnamurthy K. HARIHARAN)"
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