Recent government actions are a warning to every thinking person.

I should not have to waste time providing links on this because it is in everyone's faces but the government is using this opportunity to triple down on their stimulus so that the Global Debt Ponzi doesn't collapse.  And please, don't for a second believe that corona is responsible for this breakdown.  Here is a chart from late January where I told my subscribers to begin looking for a massive breakdown.

This massive stimulus is now policy.  By that I mean they cannot stop or another pin will prick what is left of the global economic bubble.  The recent action included elimination of reserve requirements for banks.  Folks, that is the official end of fractional reserve banking.  Keep in mind that the reserve requirement was put in place in order to maintain some sort of fiscal discipline for leveraged market gamblers, kind of like margin requirements for stock market players.  It made sure that gamblers actually have some of their own $$ in the game.  It also left something in the system in case people wanted to withdraw something.

But that's gone now.  CoronaCover(tm) has been used to eliminate the 10% reserve requirement which, IMO, simply removes the legal penalties from those banks that didn't have 10% reserves anyway.

From the article linked above:

Reserve Requirement

The Fed has now decided to pull a third and lesser known lever, and that’s the overnight reserve requirement. 
Simply put, banks are required to hold 10% of their total money in the vaults at the end of each day. The 10% is a requirement chosen based on the statistical possibility of how many people might want to pull out their funds at any given time. During a financial crunch, this number may increase to prevent a ‘run on banks’, something we have seen in many countries during a liquidity crunch. Think of lines at ATMs in Venezuela, Hong Kong and Lebanon, to name a few. 
Stated on the Fed’s website, “As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020.  This action eliminated reserve requirements for all depository institutions.”
This news was barely discussed by major media, yet this third lever is perhaps the one most relevant to the average American. If too many people choose to pull out cash too quickly, the institution may temporarily suspend withdrawals or even become insolvent.


This elimination of reserves is a HUGE deal which the government tried to slip in there quietly but it will soon lead to a rapidly growing loss of confidence in the issuing authority.  I predict bank closures in our future and even though the exact timing is cloudy, things are now moving at an exponential rate and that tends to compress the time between "events".

I can't tell people what to do with their money but I can tell you this: I demand that my wife leave as little cash as possible in the bank.  I was VERY nervous about the recent transfer of cash to the sellers of our "new" (new to us) canal front home in the Bahamas.  I was worried the banking system would "ICE 9" (new subscribers: google ICE 9 Rickards so you know what I am referring to...) and take my cash to money Heaven along with everyone else's.  This will at some point happen because in a Ponzi scheme most of the perceived value is imaginary and this is CLEARLY nothing more than a GDP (Global Debt Ponzi).