Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

EU Proposal Would Allow Banks to Suspend Cash Withdraws

  by    0   0

An EU proposal underscores just how much control governments have over your money.

According to a document reviewed by Reuters, EU member states are considering a proposal that would allow them to temporarily stop people from withdrawing their own money from their accounts. The policy is intended to help prevent bank runs.

The move is aimed at helping rescue lenders that are deemed failing or likely to fail, but critics say it could hit confidence and might even hasten withdrawals at the first rumors of a bank being in trouble. The proposal, which has been in the works since the beginning of this year, comes less than two months after a run on deposits at Banco Popular contributed to the collapse of the Spanish lender.”

Under the plan, banks would be able to suspend payouts for five business days. They could extend the suspension up to 20 days “in exceptional circumstances.”

The EU working paper said giving supervisors the power to temporarily block withdraws was “a feasible option.” Some countries in the EU, including Germany, already allow a moratorium on bank payouts. These countries support the move to make it an EU-wide policy.

The desire is to prevent a bank run, so that when a bank is in a critical situation it is not pushed over the edge,” a person familiar with German government’s thinking said.

Withdraw limits, and even complete shutdowns of the banking system, aren’t merely theoretical discussions. During the Greek financial crisis, people faced withdraw limits and currency shortages. The entire banking system shut down for three weeks. Even when banks reopened, depositors faced withdraw limits of 420 euros a week. As a result, a robust barter economy quickly developed out of sheer necessity.

Imagine  if you couldn’t access your own money for two or three weeks? What would you do? Money in the bank means nothing when the government restricts your access to cash, or even seizes your deposits. But you can protect your wealth in better forms than fiat currency tucked away in a government controlled bank.

Gold and silver offer protection against government policies that could conceivably tie up your money for weeks. If you have precious metals, you don’t have to worry about a bank, or some crazy government policy, making it impossible for you to obtain the things you need on a daily basis. Gold and silver are liquid and their value is recognized around the world. Silver is also a perfect medium for barter transactions. You can even buy gold in barterable forms.

When you buy gold and silver, you take away government power over your life.

TaxFreeGold.Banner.1000x285

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

India Silver Demand on the Rebound

Indians are buying silver. India ranks as the second largest gold consumer in the world, behind only China, but Indians also have an appetite for the white metal. After a drop in silver demand last year, Indians are once again buying. Related

READ MORE →

Some Key Reasons Gold Should Shine in 2018

gold coins and bullions laying on a newspaperThe last few weeks have been tough on gold. If you have a short-term mentality, you might even think the gold market has gone bearish. But as World Gold Council chief market strategist John Reade pointed out in a piece he wrote for the December issue of WGC Gold Investor, 2017 has been good for […]

READ MORE →

FOMC Meeting: Yellen Follows Her Script

The December Federal Open Market Committee meeting went pretty much according to scrip. Analysts widely expected the Fed to raise rates by .25. It did. Analysts also expected the Fed to signal three more hikes in 2018. It did that too. Gold went up, as we said it probably would, hitting a one-week high in […]

READ MORE →

The US Government Is Spending Money Like a Drunken Sailor

The US federal government is spending money like a drunken sailor. And that’s probably unfair to drunken sailors. In November alone, the US government reported a $139 billion deficit. Related

READ MORE →

Crypto vs. Gold: Gold Has Value Unto Itself

gold barsBitcoin mania is in full force. When I get to my desk in the morning, the first thing I do is check the latest gold news. But lately, when I google the word “gold,” I mostly get Bitcoin news. In his most recent podcast, Peter Schiff even suggested CNBC should rename its network the “Crypto News […]

READ MORE →

Comments are closed.

Free Newsletter & Notification of Special Deals
RSS Feed
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
https://schiffgold.com/key-gold-news/eu-proposal-allow-banks-suspend-cash-withdraws
Call Now