Well banks are guilty of many things, but they are not the reason for the debts of states and it’s their right to expect that bonds they bought will get served.
Anyway banks in the current form a nothing more than fud machines. At first banks lend out money they do not own. That’s what happens if they lend out demand deposits that is defraud.
This money is guaranteed to be available for the account owner. If you lend it out not all the owners can get this money at any time. This is a crime
Bonds from states are treated as beeing without risk. So it does not matter if you have dollar and/or bonds from states. This can’t be. No bonds is without risk and the risk especially from government bonds are not neglectible the threat the survival of banks. Anyway it’s would be good risk managment to be careful even with bonds. It seems banks are just starting to realize the problems. But banks do not have the biggest problems with it. That are retirement fonds etc which are “enforced” to invest in “excellent” debt. Now if anyone here things bonds of any state to be an “excellent” risk well then I guess you have not even started readin von MIses.
As you have seen in the EU zone I thin 1. x trillion were offered to banks for 1 % or so in 5 years. Now the banks have taken this and you can see they are fueling the stock markets with it. So the central banks have kept the interest on a level well beyond anything realistic. This means that banks were relieved to find new money. They just were “given” it for free. In fact with 1 % interest and 3 % of inflation the ECB has handed out 0.02 * 1 000 000 000 000 = 20 000 000 000 for nothing. That is the EZB finances the the banks with 20 billions. This is robbery. And it shows the last actions of the current fiat-money system. Banks do participate and again it’s not the customers they are working for it’s for the governments. That sucks.
Anyway this does not change the fact that government have issued bonds banks have bought them and insist on repayment. Anyway what anyone should do is
a) write to your congressman and ask him what he’s going to do for keeping your moneys value
b) do not buy any bonds of any state anytime again. There are and for ever will be alternatives. Buy bonds of corporations. Buy shares, by land, by whatever but do not buy any bonds from states.
c) get rid of your depenceny of banks. Yes I know you can’t really but what you can do is
- get rid of your debt. If you keep it you will be in the hands of banks and you won’t get a few trillions to help you out
- move your money outside your country. Yes I know the pastures are not greener elsewhere, but if the break down starts to set in and you are
bound to one country, then you are bound to the disposal of your deledefs. (don’t count they will think of you while saving their skin)
- Currently you still can by precious metals without any problems. Don’t count it will stay that way but if some gold is kept in a safe in your country or in another
does not make a difference for you (it’s yours) but it makes it impossible for the deledefs to get to it if it’s another country. It’s unlikely that all the countries will start
to expropriate you. So search for countries with extreme high standards for property rights , and open an account there (it will be a bank you can bet ;-(
All the best you can hope for is if you fight against the fiat-money systems. They are though by bureaucrats and politicians for all to good reasons. It’s the first time that you do not even have to degrade the coins. No you just add a few zeroes at the end. It’s the perfect system of exploitation. Just see that Utah as agreed to reintroduce gold-$. Insist on them everywhere.