Something is getting lost amid all the discussion of the fiscal cliff and America's fast-rising federal debt that is shaking the economic foundations of this country.
However, now there's an additional "cliff" to consider : Federal Deposit Insurance Corporation insurance coverage of your deposits at banks could come to a complete end. Beginning January 1, the federal government will rescind the "short-term limitless protection for non-interest - bearing transaction accounts."
Just what does that imply? Well, it suggests that the government will be completely at liberty to curtail unrestricted insurance on your accounts to the standard $250,000 restriction. And it means that, upon termination, you'll have a very important choice to make on whether or not to relocate your cash elsewhere or simply accept that your down payments will be transformed from a government credit risk to an unsecured bank credit risk.
This is simply another hole in the crumbling dike. The U.S. economic situation is veering toward financial oblivion. This is possibly a crucial modification of our capitalist system.
We recommend that you take advantage of this precipitous disappearance of federal insurance by shifting your now-uncovered funds into the only really reliable investment instruments for these times: gold and silver.
The "short-term" improved FDIC protection was originated in October, 2008, during the worldwide financial collapse, as a method for the U.S. government to attempt to stem just what might have been a devastating run on American banks. But it's important to note that the infamous Dodd - Frank Act of financial reform extended this coverage only until the end of this year.
So here's an example from the FDIC web site of what will happen: If after December 31 a depositor "has $500,000 deposited in a noninterest- bearing transaction account and $250,000 deposited in a certificate of deposit, or total deposits of $750,000, the depositor would be insured for up to $250,000 and uninsured for the remaining balance of $500,000."
It's certainly possible that Congress might extend the coverage, but it is also rather unlikely. Most economic experts believe that it is unlikely because Congress will be focusing on other, more urgent, fiscal matters on its overloaded plate this month.
Some fiscal experts believe that the majority of investors will respond to the disappearance of this safety covering by deciding to turn their funds into money-market funds and short-term bonds.
We know that our customers-- and possible new customers-- are smarter. They should take this opportunity to invest these now-uninsured funds and secure them in God's gold and silver. It's actually the only protected investment you could make when you think about it.
However, now there's an additional "cliff" to consider : Federal Deposit Insurance Corporation insurance coverage of your deposits at banks could come to a complete end. Beginning January 1, the federal government will rescind the "short-term limitless protection for non-interest - bearing transaction accounts."
Just what does that imply? Well, it suggests that the government will be completely at liberty to curtail unrestricted insurance on your accounts to the standard $250,000 restriction. And it means that, upon termination, you'll have a very important choice to make on whether or not to relocate your cash elsewhere or simply accept that your down payments will be transformed from a government credit risk to an unsecured bank credit risk.
This is simply another hole in the crumbling dike. The U.S. economic situation is veering toward financial oblivion. This is possibly a crucial modification of our capitalist system.
We recommend that you take advantage of this precipitous disappearance of federal insurance by shifting your now-uncovered funds into the only really reliable investment instruments for these times: gold and silver.
The "short-term" improved FDIC protection was originated in October, 2008, during the worldwide financial collapse, as a method for the U.S. government to attempt to stem just what might have been a devastating run on American banks. But it's important to note that the infamous Dodd - Frank Act of financial reform extended this coverage only until the end of this year.
So here's an example from the FDIC web site of what will happen: If after December 31 a depositor "has $500,000 deposited in a noninterest- bearing transaction account and $250,000 deposited in a certificate of deposit, or total deposits of $750,000, the depositor would be insured for up to $250,000 and uninsured for the remaining balance of $500,000."
It's certainly possible that Congress might extend the coverage, but it is also rather unlikely. Most economic experts believe that it is unlikely because Congress will be focusing on other, more urgent, fiscal matters on its overloaded plate this month.
Some fiscal experts believe that the majority of investors will respond to the disappearance of this safety covering by deciding to turn their funds into money-market funds and short-term bonds.
We know that our customers-- and possible new customers-- are smarter. They should take this opportunity to invest these now-uninsured funds and secure them in God's gold and silver. It's actually the only protected investment you could make when you think about it.
About the Author:
Discover the value of gold and silver for your investments. Or, stop by Anne Trimble's site where you can find out all about her latest bookFaith Through The Flames.
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