Thursday, December 7, 2017

Your Money in Bank is not Safe!

If Narendra Modi and Arun Jaitley get their way then when next time some bank will fail in India they will be legally allowed to confiscate all your hard earned saving, that you have deposited in that bank in the form of savings or term deposit accounts etc., to rescue themselves. Because doing so will be made legal by the government under the new bill that they are drafting, you will not be able to do anything about it once they do it! You will simply have to watch helplessly banks seize your lifetime savings. Modi government is drafting a new bill viz., the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 which will give these enormous powers to the banks and other financial corporations. In financial market jargon this method (sic) is known as ‘bail-in’. In just legal language this should be called embezzlement on a grand scale. After demonetization and GST this is another big scale confiscation scheme being devised by Modi and his ministers like Jaitley.

If you are thinking that such things cannot happen then think again because such bail-ins are becoming global phenomena and many have already took place in recent past e.g., most famously in Cyprus few years ago.

It seems Modi government is learning from or being advised by foreigners. This bill is just another logical step, after demonetization and digital money drive, in the direction of worldwide war on cash that governments are waging since long. Cash allows individual citizens to escape the clutches of the government. With cash economy it is very hard for the government to control its populace. With cash it is also very hard for them to do their central planning which requires tight control of everyone’s behavior, and that is the reason why governments hate cash and want to abolish it. Narendra Modi is trying to tighten his grip around our necks, and this bill is another sign of that process. And as usual, the government is calling this bill people friendly in that they are trying to protect citizens’ deposits in a better way! Remember when the government says it is coming for your help you better pack your bags and run.

The best thing in this type of environment is to diversify your portfolio and not to rely too much on banks. It is better to keep your cash saving in hard monies like Gold and Silver. Do whatever is possible to keep yourself safe from these coming shocks and prepare for the worst.

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