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And this is why HB's advice on cash is correct
Posted: Mon Aug 24, 2020 11:03 pm
by Hal
https://www.facebook.com/adamseconomics ... 9099938751
For US readers, Australian version of FDIC only applies if the bank fails. If Bail-In enacted, bank doesn't fail -> you lose your bank deposit.
Re: And this is why HB's advice on cash is correct
Posted: Tue Aug 25, 2020 3:50 pm
by Ad Orientem
I don't think there is much to worry about here. The level of financial repression you are describing could not be attempted w/o committing political suicide, at least in a democratic society. And if either the US or Australia reached the point where politicians were seriously considering confiscation of bank accounts, then we would have a great more to worry about than the loss of money.
Re: And this is why HB's advice on cash is correct
Posted: Tue Aug 25, 2020 5:13 pm
by Hal
Guess I am old enough to remember this
https://www.theage.com.au/national/vict ... 5232x.html
The Government assured depositors their money was safe before it collapsed....
btw, the State Government Bank collapsed as well.
https://en.wikipedia.org/wiki/State_Bank_of_Victoria
Good Memories
Re: And this is why HB's advice on cash is correct
Posted: Tue Aug 25, 2020 7:42 pm
by I Shrugged
There were depositor losses in Europe a few years ago, no? Cyprus or Malta maybe?
Re: And this is why HB's advice on cash is correct
Posted: Tue Aug 25, 2020 7:43 pm
by Kriegsspiel
Cyprus.
Re: And this is why HB's advice on cash is correct
Posted: Wed Aug 26, 2020 8:36 am
by Kbg
USA...we print the world's money. All of the examples in this thread are completely irrelevant. Why seize money when you can just print it?
Re: And this is why HB's advice on cash is correct
Posted: Wed Aug 26, 2020 9:47 am
by I Shrugged
^^^ Yes, I think that is the correct answer.
Re: And this is why HB's advice on cash is correct
Posted: Wed Aug 26, 2020 12:18 pm
by Kbg
Re: And this is why HB's advice on cash is correct
Posted: Wed Aug 26, 2020 12:28 pm
by Kriegsspiel
Hmm? I think I Shrugged was referring to when Cyprus jacked people's bank accounts. I'm not aware of anything like that happening in Malta.
Re: And this is why HB's advice on cash is correct
Posted: Wed Aug 26, 2020 12:58 pm
by Kbg
Kriegsspiel wrote: ↑Wed Aug 26, 2020 12:28 pm
Hmm? I think I Shrugged was referring to when Cyprus jacked people's bank accounts. I'm not aware of anything like that happening in Malta.
My point here is that countries who don't control their currency can not be compared to those who do. Countries who don't control their currencies are subject to serious liquidity issues. Those who do are not. (even though you will hear that term used...when it gets used in the US what it really means is some big company or banking institution is probably insolvent and no one trusts them and is trying to yank money away from the failing commercial institution as quickly as possible)