Notes From the Field By Simon Black
November 26, 2016
Sovereign Valley Farm, Chile
Here’s how to find out how safe your bank is
[Editor’s note: At the end of this email is a complimentary preview of our ultra comprehensive 2016 World Wide Banking Review Black Paper.]
It’s bizarre when you really think about it-- but the reality is that most people give more thought to where they’ll go on vacation this summer than where they should bank.
That’s because we’ve been programmed, practically since birth, to believe that banks are rock-solid institutions beyond reproach.
But the data simply doesn’t support this fantasy.
Hardly a month goes by without a major banking scandal dominating the headlines, whether they’re creating fake customer accounts, colluding to manipulate interest rates, or making some obscenely stupid bet with their depositor’s savings.
More importantly, banking is a black box. There’s almost no transparency whatsoever.
We hand over our hard-earned savings to our bank without the foggiest idea of what they do with it, or what sorts of mindless investments they might be making.
The public only finds out AFTER there’s been a major crisis-- like in 2008 when it turned out that the banks had spent years giving million dollar, no-money-down mortgages to unemployed homeless people.
And when the giant financial crisis erupted, the banks went to the taxpayer with hat in hand for a trillion dollar bailout, claiming they were too important to go bankrupt.
Banking hasn’t changed a lot since then. Their own financial statements show that major banks, in both Europe and North America, still have questionable levels of capital and razor thin liquidity.
And in the US in particular, banks use very clever accounting tricks to hide their losses and mask their true financial condition.
Never forget that, the second you deposit money in a bank, it’s no longer YOUR money. It’s the bank’s money. You become the bank’s unsecured creditor.
Your bank has full legal rights to freeze you out of your account, and they won’t hesitate to do so.
And if you ever want to see how ‘valued’ you are as a customer, just walk down to your local bank and ask to withdraw $10,000 in cash from your account… see how fast they treat you like a criminal terrorist.
What’s your reward for putting up with this madness? About 0.1% interest, a rate that fails to keep up with inflation.
What’s the point?
I’ve often said that if your banking system is in pitiful shape, don’t keep all of your savings there. It’s a simple concept.
Holding some physical cash at a safe in your home is certainly one easy solution. But this has limitations.
It’s also worth considering opening another bank account, preferably in a much stronger, safer jurisdiction.
Think about it-- instead of taking on all that risk, your money can be held in a bank that is highly liquid, extremely well capitalized, dependably conservative… AND pays an interest rate in excess of 6%.
Does this really exist? You bet it does.
Great banking options exist all over the world… if you know where to look.
Finding the hidden jewels of worldwide banking is a major focus of our premium service Sovereign Man: Confidential.
In fact, just last month, we provided Sovereign Man: Confidential subscribers with an ultra-comprehensive, 99 page report analyzing banks and banking jurisdictions around the world.
We showed readers where (and how) to open accounts in the best places, and which places to avoid.
Today, for the first time ever, we giving non-members a sneak peak behind the curtain.
Click Here to download a complimentary preview of our 2016 Worldwide Banking Review Black Paper.
This preview starts with a primer that will teach you, step by step, how to determine if you own bank is safe.
On top of that, the preview will show you a detailed analysis of three (out of 21) worldwide banking jurisdictions including Hong Kong, which is one of our top picks.
You will learn which Hong Kong banks still open accounts for foreigners (even Americans), how to do it and which banks are the safest.
To your freedom, Simon Black
Recaps Note: This is for informational purposes only - Please seek out your own personal, licensed, trustworthy professionals when investing or making financial decisions