As things worsen in Greece, Greek banks are down to only a few days’ worth of cash reserves, and rumors are swirling that they may soon raid bank accounts to prevent a complete collapse.
Officials on Monday announced that the banks would remain closed until at least Thursday, as opening them would cause a run on the banks that would wipe out cash reserves in a matter of hours. Daily withdrawal limits have been set at 60 euros ($66) per account per day for over a week now, but many are finding it hard to even find an ATM that has cash.
— Mashable News (@MashableNews) July 1, 2015
The extension of the week-long bank holiday came after the European Central Bank (ECB) denied a request from Greece to provide additional emergency funding for its banks. As it stands, even with the 60 euro withdrawal limit, the country’s banks may not have enough funds to last past Thursday.
Over the last couple of months, Greeks have pulled tens of billions of euros from their accounts in anticipation of the coming economic collapse.
ECB Considers Seizing Deposits
According to Bloomberg News, the option of seizing depositor accounts is already being considered by the ECB. The so-called bail-in, which may start with seizing deposits on accounts of more than 100,000 euros, is similar to what happened during the 2013 Cyprus economic crisis.
How safe is your money? Could U.S. Seize Bank accounts during a Collapse?
Before we even get into whether or not U.S. banks would seize deposits during a collapse, you need to consider the fact that bank accounts are routinely seized in this country, with little to no evidence of criminal behavior, through so called civil forfeiture laws.
For years now the federal government and even some state and local governments have been using laws like Civil Forfeitures and the Bank Secrecy Act to seize bank accounts from U.S. Citizens – without a trail, without a warrant, and without ever being charged with a crime. It’s a very lucrative business that many in our government are using to fill their coffers.
Loretta Lynch, the Obama administration’s new Attorney General, is a huge proponent of civil asset forfeiture. In fact, while she was district attorney in New York, she used the unconstitutional process over 120 times to bring in over $113 million.
FDIC cannot possibly cover all insured deposits?
Should we face a crisis similar to Greece, and something happens that causes the banks to crash, there’s simply no way the government can repay every bank depositor. In fact, according to Terry Burnham, former Harvard economics professor and longtime critic of the Federal Reserve, the FDIC only has about $41 billion in reserve against $6 trillion in insured deposits.
If our economy collapses, don’t think for a second that these politicians won’t raid your accounts or nationalize the banks. They already essentially nationalized healthcare, seizing control of 1/6th of the economy, what makes you think they won’t use an economic crisis as a pretense for nationalizing the banks?
Consider the Math:
One thing to consider when deciding whether or not to plan for economic problems here in the U.S. is to think about what this government thinks a balanced budget really is.
18 Trillion In debt + 200 Trillion in unfunded liabilities = a balanced budget to the morons in Washington! Anyone else see a problem? If not, maybe you need to check out these numbers and then start planning!