Americans may never see the day where banking executives are indicted on a wide array of financial crimes they have been accused of… but they did pay one of the largest fines ever recorded.
The banks involved include: Bank of America, JP Morgan Chase, Wells Fargo, Morgan Stanley, CitiGroup, UBS, HSBC, and Goldman Sachs.
Of the crimes in question are acts like mortgage servicing to involvement in the Ponzi scheme masterminded by Bernie Madoff. One particular fine handed down to HSBC involved laundering money for the Sinaloa Drug Cartel.
There are two different views one can take when analyzing the outcome of the fine.
One is the line of thinking that perhaps politicians are trying to police bad behavior on the part of bankers. Forcing them to pay restitution and fees is clearly a step in the right direction. However, the reality is the fine was simply their version of a “get out of jail free” card. Many of the crimes committed would result in prison time for most Americans.
Another and deeper problem is the government’s failure to learn from the mistakes of 2008. Even after hammering the banks with the fine a spending bill was passed allowing banks like the ones mentioned here to once again engage in risky speculation with derivatives. The very same derivative which caused the housing bubble just seven years ago.
Perhaps more troubling was the collusion between big banks and the IRS. The New York Times released a groundbreaking article on October 25th of 2014 detailing how banks allowed the IRS to seize accounts based solely on suspicion.
In the article a woman by the name of Carole Hinders, who owns a Mexican restaurant had $33,000 worth of cash seized by the IRS. There were no charges of money laundering or tax evasion. Her only crime was not depositing more than $10,000 per transaction. The IRS claimed she did this to avoid triggering a report required by law, however, she was denied due process violating her Fourth Amendment rights. Her bank did nothing to protect her and simply allowed the IRS to take her money.
What this should signal to Americans is the one bastion of security when it comes to your money, banks, is now a corrupt and failed institution.
Moving To Safety
There is one place you can move your money to without exposing it to risk of seizure from the IRS or casino-like gambling from your bank. In fact, even billionaire investors are find this safe harbor a far more attractive option than investing in stocks or bonds. This safe harbor has been the bedrock of the most powerful nations in recorded history.
Of all the arguments for investing in gold there are two which speak clearly to the safety and security it can provide investors.
Stephen Leeb, a Forbes.com contributor put it best when he said:
I’m not a conspiracy buff, but everything suggests that the West, in ways not necessarily illegal, hopes to kneecap gold. It may work for a while, too but eventually gold will migrate into a reserve currency basket and its price will advance many times from its current level.
In plain English what Mr. Leeb is saying here is despite their best efforts bankers will not be able to prevent gold from being used as currency whether as a standard or for everyday transactions. As he suggests the price would undoubtedly jump rapidly in value.
However, there’s another argument to be considered when it comes to investing in gold. In light of the recent malfeasance on the part of bankers there’s a matter of trust which has been broken between institution and customer.
Money deposited by customers was used for risky; some would say reckless purposes of selling and investing in mortgage securities. Risks which exploded in their faces and forced the taxpayer to bail out these same banks.
This begs the question of whether or not you can absolutely trust your bank with your money?
If you believe it’s time to look at safer solutions for investing your cash gold may be the safest and wisest investment you can make.
Call us today at (800) 510-9594 to learn more about how gold can protect your money and even grow in value. Trusting your banks in today’s political climate may be the riskiest bet you ever make.
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On January 8, 1835, President Andrew Jackson proclaimed that the last installment of our national debt had been paid, and that the United States was debt free! This was the only time in American history that the U.S. had no debt.
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