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F.D.I.C. INSURES US, RIGHT?

December 17, 2012

DID YOU KNOW? That insurance companies have assets the equivalent of 80% of the value of all American properties. This is an impressive figure to put it mildly. My claims on my insurance in my entire life have been somewhere around $5K-$10K.  I figure they have made out fine by me. I hope you have been as lucky as I have been.  I believe in Murphy's law: If anything can go wrong it will!  I added my own law: Prepare and prevent, don't repair and repent!

Insurance companies are owned and operated by the private sector, and aside from an occasional glitch, they seem to operate very sucessfully according to the bottom lines they post. Many customers though have found that no insurance company will insure them if they think you may actually use the insurance. Pay-outs would bankrupt them! Actuaries determine, based on their claim tables, how much you pay in premiums or if you get insurance at all.  If there is a pretty good chance you will use the insurance, you probably won't be able to purchase any. This is why insurance companies are hugely profitable. When hurricanes blow the East coast away the losses for insurance companies are huge.  After the insurance man pays legitimate claims they may now refuse to insure you in the future or dis-allow claim owners to rebuild any longer as is the case now occurring. It's the same reason that teen-aged boys have a hard time getting their cars or themselves insured. There's just too much risk!

When you go to the bank with a deposit look at the lovely, impressive sign boasting that the bank has insurance with the FDIC (Federal Deposit Insurance Corp.) unlimited on each account does n't it make you feel warm and fuzzy inside. It sort of gives you a sense of strength! A sense of security…and, well…just a happy feeling of permanence, and solidarity. It is great knowing your dollars are safely tucked away in the vault, and that the FDIC will shoulder any chance of a financial meltdown, crooked bank officers, bad loans, or other mayhem? Really?

Let me assure you that this institution enjoys the full backing of the US government. We have already looked at the private insurance companies and their assets, so we know that if we get burned, flooded, or in some way inconvenienced, we will be taken care of; but how about the FDIC? A few years ago, the FDIC had less than a nickel tucked away for each $100 worth of insurance, and now it may be no more than a penny or two. Does it make you feel secure knowing that your bank deposits are insured by an insurance company with a cent or two on deposit for each $100 worth of insurance? 

So, if the local banks goes belly up, what happens to your deposits? We are told they will be paid by the FDIC, of course. Banks close more often these days in America, and the FDIC promptly pays the bank depositors. The FDIC hasn't had a run that taxes its reserves as the FSLIC (Federal Savings & Loan Insurance Corp.) did a few years ago, which broke it, but it still paid. The pressman pushed the "Start" button, and the payments rolled off the presses.  If there were ever a major dollar meltdown, and banks everywhere were insolvent, the same thing would happen, so your dollars are safe.  Well as long as there are trees to cut, paper to make, and ink and presses available, you will be secure in your dollars.   

DID YOU KNOW? That the FDIC insurance on deposits started at $3,000 raised to $10,000, then $40,000, then $100,000,$250,000 and soon $100,000 after Dec. 31,2012. In my lifetime I have seen gasoline go from 75 cents to $4 a gallon. This is the reason it is a poor reason to save in dollars. The FDIC is a pseudo insurance company. It would fail any test of a legitimate insurance institution, as it has virtually no assets to back its insured. Like Social Security, any major claims would be paid via bookkeeping gimcracks and the printing press. All Social Security involuntary withdrawals from your paycheck, are simply used to pay current bills,and there isn't a silver dime in the entire Social Security "trust fund," as they like to call it.  The FDIC has a few million dollars stashed away to  satisfy the few bank failures that occur every month, but if a massive meltdown occurrs, your deposits will be paid in bright, stiff, uncirculated, bills, fresh off the presses. Then with the presses running night and day to pay your dollar deposits, your purchasing power would vanish like the magicians pretty girl after she ducks into the safe. Who knows how much anything will cost in the future? I'll gaurantee only one thing, prices won't be falling anytime soon.

Prices aren't going up as much as dollars are going down in value. SO STOP SAVING IN DOLLARS!!  But don't worry about it if you do save in them, because the number of DOLLARS you own is secure. It's the PURCHASING POWER of those dollars that is as secure as a hen with a fox to guard her. The FDIC is there to make your dollars secure from the robbers at the Feds and their quantitative easing. All will be fine if it is fiat paper dollars you save in, and depend upon for your security. Your Social Security checks will be issued but you won't be able to live on them because those dollars are now worth 4 cents for every dollar you get. After all, don't you know that the monetary system is based upon "The Full Faith and Credit of the U.S Government?" What more could you ask for?

Depend upon things you can use, see, touch, feel and admire. I depend on my family, home, tangibles I can use like my tools and generator, my dependable GMC I can work on myself, my hand guns and other firearms that remain loaded and my intelligence and fortitude. I don't depend on fallacious promises, contracts and "Insurance" issued by the narcissistic demi-gods in Washington, D.C.  After all, can any of this nonsense continue much longer? The speed of our demise and dollars are continuing to be diluted with the pointless quantitative easing (new word for continuous fiat printing) as has happened several times already worldwide!  hey will continue to steal our personal assets with their continued expansion of their bureaucracy with their own larger payrolls, pensions, medical plans, handouts, wars, military bases and programs  The whole failing system will disintegrate and you and I will be left to fend for ourselves for the sake of our families survival.  No jobs, no police, no military, no civility for one another.  It will not be a "Wonderful Life". Pray for change but don't bet on it.  Just ten years ago our government spent $2 trillion and  collected $1.7 trillion, now they spend $6 trillion and collect $2 trillion, and they print the balance, thereby diluting the existing dollars. It's like adding  milk to your Bailey's Irish Creme. It just doesn't have the strength it had right out of the bottle. Protect your family!


 


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 0.1800


 22.20


 2.90


Spot prices accurate as of
Fri Oct 20 13:00:56 PST