Friday, September 16, 2016

Not Everybody Went Down with the Titanic
International Man's Nick Giambruno dispels the myths of the current financial system, highlights the inherent risks even after financial reform resulting from the financial crisis .. "The American thinks cash he deposits into a bank is a personal asset he owns. But that’s not true. Once a deposit is made at the bank, it’s no longer your property. It’s the bank’s. What you own instead is a promise from the bank to repay. It’s an unsecured liability." .. government deposit insurance is another myth - it is giving a false sense of security .. "With their current reserves, they could only cover less than half a penny for every dollar they supposedly insure." .. just look at what happened in Cyprus with bank bailins .. how do you mitigate these risks? .. somewhat through international diversification .. he highlights the benefits of international-based investments.
LINK HERE to the essay

2 comments:

rbblum said...
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rbblum said...

A viewpoint giving an impetus and clarity that the U S monetary system is backed not by gold and silver but by the full faith and credit of the U S government. . . . with ever-increasing debt.