The latest failure of major banks to successfully complete the stress tests is yet another indication that banks cannot be trusted and your money should be placed safely in certified gold now.
Posted by Adam King on March 14, 2012
Banks Can’t Be Trusted, Put Your Money in Certified Gold
March 14, 2012 – The latest failure of major banks to successfully complete the stress tests is yet another indication that banks cannot be trusted and your money should be placed safely in certified gold now. Citigroup’s shares fell after it, and three other major banks, failed the federal stress tests that proved the bank did not have enough capital to cover losses. Ironically, this is being hailed as a victory in the banking sector as stock shares are at eight-month highs.
It’s frightening to think that we would entrust our money to a sector that considers a 25 percent failure rate a victory. These is the very same industry that brought us credit default swaps, mortgage backed securities, and derivatives. Placing any money with banks is risky business considering what they are doing with it. But add on an inability to comply with Federal stress tests and you have a real reason to move your money into the safety of certified gold.
In January, Canadian Barret Capital was accused of commingling client funds, and there have been several instances of the same activity at other banks in the US since then. You will remember this is the same problem MF Global had with its client accounts. While technically legal per a ruling from the Commodities Futures Trading Commission, the commingling of accounts is the first rule learned in accounting and has been considered the most heinous possible crime. This is how MF Global managed to lose $1.2 billion of customer funds. It commingled its customer funds with its own. $1.2 billion of customer funds are still missing, but yesterday the NYT reported that MF Global customers are “said” to have been made offers.
The bottom line is that your money is not safe in a bank. They have repeatedly demonstrated they are no longer responsible holders of your wealth and will in fact use it to create debt instruments. Certified gold is the best way available to you and me to take our money out of the reach of unethical bankers. By purchasing gold, you segregate your money from the market exposure most banks need in order to commingle accounts or use your money to fund investment bets.
Gold has been in an 11-year bull market, which continues to show strong indicators of continuing for multiple years. Interest rates are at chronically low levels with promises from the Federal Reserve that they will remain there until the end of 2014. There is no incentive in keeping your money in a bank. Now there are a few good reasons to put your money in certified gold.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
Categories:
US Gold Market
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