Could The Cyprus Bailout happen here?

samsonWhat if when you woke up today your bank account had been cleaned out? You ask your banker why your balance reads ‘zero’, and he tells you that the government took the money in order to pay their national debts.

Farfetched?

It seems conveniently forgotten now, but only back in March a western, sophisticated democracy seized over half of the wealth of its citizens in order to stave off a debt crisis.

Remember Cyprus? The government there seized over half of all cash in bank accounts that were over 100,000 euros. They called it The Cyprus Bailout or even The Cyprus Bail in…

Could The Cyprus Bailout happen in your country?

You bet. But, learning from the Cyprus example and how I advised a client there at that time, there is a way to protect yourself…

More hinting by Euro-politicians at the ‘solution’ to any further liquidity/banking crises is, understandably, causing concern.

These days bank-robbers don’t sneak around in masks, they do it in broad daylight with diplomatic plates on the getaway car. Shortly after The Cyprus Bailout, a Dutch Euro-politician let it slip that Cyprus would be a template for other countries. The Euro crashed and he withdrew the remark, but more recently the EU have made more noises along these lines. After all, most people have no savings to seize, so are they going to care? Heck, they would LOVE to see those ‘rich’ people suffer!

Ummm… except these ‘rich’ people only had assets of 100,000 euros…

It’s no secret that America’s debt situation is bad and getting worse, 2008 crisis only staved off by people continuing to accept the government’s funny-money. The UK is in an even worse state, despite their government doing their best to undo the damage. It’s a global debt black hole that isn’t going away.

So could The Cyprus Bailout happen in America or the UK or any other civilized country?

Absolutely- it’s a vote winner and it would solve a lot of the government’s problems. Would they actually do it? Your guess is as good as mine, but I know the Cypriots didn’t think that their government would do it…

I know this because I was advising a client before March of this year, and this client banked in Cyprus. Remember this was BEFORE The Cyprus Bailout. I knew Cyprus was in trouble though, so I advised the client that if they must bank in that country to NOT leave any cash or CDs on account. I said this because I felt there was a bank risk, meaning that there was a risk that The Bank of Cyprus could go broke. Not in my wildest nightmares did I think that a government-heist would be the risk…

The client asked what to do with the cash instead. Learning from the Barings Bank/Nick Leeson affair, I explained that if the money was in an investment account and used to buy securities such as stocks and Treasury notes, the bank risk would disappear. When a bank goes under, the only people who lose money are those with cash or CDs on account- if you own a stock, you own a stock.

And then The Cyprus Bailout went down, and people with money on account lost half of it to pay for the government’s overspending. But my client’s money was safe (and so was my contract with them forevermore as a result!).

There’s a lot of scaremongering going around about The Cyprus Bailout. Yes, it could happen in your country, so do not rule it out. But what many commentators on this outrage don’t understand is that it would ‘only’ be people with cash on account who would lose their shirt. When thieves (aka politicians) rob a bank they primarily go for the cash.

Bottom line: cash is not safe. Get your money invested in paper assets, real estate, and precious metals (the ultimate insurance).

And your investment plan/401k/pension fund may not be safe either, just because it’s invested in securities. The government could ‘nationalize’ those, just as has been proposed in the UK under the perversely named ‘NEST’ scheme. There’s been rumors about something similar in the US.

And, as The Cyprus Bailout showed us, if it happens there will be no warning, it will be overnight- you’ll just wake up and hope you were still dreaming when you switch on the news.

Take control of your own future immediately. Owning assets DIRECTLY, in your own name or in the name of an entity you control will give you maximum security against the next government heist.

And that’s what The Midas Legacy is here for- to help you do just that.

Best,

Jim.

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