“Is your money safe in the bank? Obviously not if you deposited large sums in Cyprus – where the decision to raid savings accounts has rung alarm bells in other countries teetering on the bank bailout high-wire,” posts Giles Tremlett of the UK’s Guardian News.
“One Spanish business has hit upon a novel update to an old idea to bypass the country’s banking crisis – a mattress in which you can stash your hard-earned euros.” Read the Guardian post here.
“But what else can you do with those hard-earned pounds, euros or – for Russian tax-dodgers and mafiosi – roubles?” continues Mr. Tremlett’s Guardian News’ story. “Stuffing them under the floorboards or your mattress is hardly a secure option.
Step forward La Caja de Ahorros Mi Colchón, My Mattress Savings Bank, a novel Spanish business that provides you with a mattress that has a safe hidden inside the springs. A few months ago the company’s founder, Paco Santos, saw his bespoke mattress company [MICOLCHON] in the small western town of Santa Marta de Tormes heading the same way as many small businesses in a recession-plagued country with 26% unemployment. With scared consumers keeping purses tightly zipped, sales had dried up and companies were folding. “Sales in the slumber sector are down more than 50%,” he explains.
At the same time, hundreds of thousands of angry Spanish small savers were taking to the streets. Why? Because they had invested in the country’s dodgy cajas, or savings banks. Last weekend, the worst was confirmed: 350,000 small savers who each bought €6,000 in shares in the rescued Bankia bank were cleaned out as their shares’ value fell close to zero. A further 300,000 people who bought complex, often unintelligible, products from savings banks that eventually needed a joint €40bn European bailout saw their savings shaved by so-called “haircuts” of 30-60%. “Banks are in the headlines now because of Cyprus, but in Spain we have known how dangerous they can be for several years,” says Santos. “People were starting to say it was better to keep it under your mattress.”
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At the urging of advertising company VCCP Madrid, providing free help under a scheme to stop small businesses from folding, Santos explored the idea of helping people to do exactly that – by adding safes to mattresses. A tongue-in-cheek advertisement encouraged suspicious punters to avoid bank charges and “keep your money close – and far from the banks”. Wilier Spaniards may also have seen a system for dodging the tax man. Either way, the mattress safe has saved Santos’s business. The first 20 sold out within 24 hours. He refuses to give figures for orders, but admits these will keep him going for several months at least. Security firms are also showing interest. And export inquiries have come from companies trading with Chile, Mexico and – inevitably – Cyprus.
Santos claims that by putting the safes at the end of the mattress, customers snooze just as comfortably as on a normal bed. He also admits that, as a bank, a mattress has certain disadvantages. It does not hand out credit cards or overdrafts and it will not lend you money. But in credit-crunched Spain, your high-street bank probably will not lend you anything anyway. [Want more information on the Micolchon mattress safe? Contact DeadlyClear below.]
As Cypriot banks finally opened their doors again yesterday, and while German chancellor Angela Merkel presses for savers (rather than her own taxpayers) to fund bank rescues around Europe, punters in countries such as Spain, Italy, Greece, Portugal…and the US may find Santos’s message irresistible: invest wisely – stick it in your mattress.
Un-BANKING IS NOTHING NEW TO THE UNITED STATES
During the Great Depression of the 1930s much of the same thing happened to savings accounts due to the banksters of that era. Grandparents often tell stories that they did not trust banks to safeguard their money. Many times older homes were outfitted with wall safes – behind the framed artwork or in closets…and grandpa kept a shotgun just in case somebody tried to get feisty and try to break into his safe.
Most people didn’t have much money in the 1930s, but the few who did have cash guarded it carefully. They were wary of another financial crash like the one that sent the country into the Depression. But pulling up a fence post, hiding a Mason jar of gold or silver coins in the hole, and then replacing the post made a “bank” that was easy to get to, reliable and easy to remember. It was also risk-free, provided nobody else found it.
Of course, hiding places were not limited to post holes. People hid money wherever was most convenient and accessible for them. That might have been in the wall of their home, under a floorboard, at the base of a tree, in a cellar or barn floor, in a garage, in the attic—or even in an outhouse.
Maybe it’s time to buy a new mattress and make your own MATTRESS BANK. CLICK HERE for Keetsa Mattress details.
DEFEND YOUR WEALTH – Is the next Great Depression about to begin? Posted by Al Schieman
“And where does it end?” writes Schieman. “If cash savings can be stolen by central banks, then why not pension savings – a ‘special’ one off 10% tax on retirement schemes?
The ECB and IMF have just proven themselves to be bankrupt of all conscience. They have no morals, no ethics. People long ago stopped trusting their banks, but now they can’t even trust the authorities that are meant to control their banks.
Could this cause a run on other banks? Absolutely. Could this new philosophy spread? Absolutely. If you’ve got cash in the bank, the ECB and IMF have just given you one hell of a warning.”
It’s not just Cyprus and Europe these days. In Australia, the miners, polluters and ‘super profiteers’ are the target…for now. And on May 31st, the government will raid small superannuation accounts and unused bank accounts. Be aware.
So, How Do You Survive & Protect Your Family From A Bank Run (Run On The Banks)? By Emergency Outdoors
“Remember a bank run occurs when people lose confidence in their bank and quickly try to remove their funds. In the past, this was done primarily by literally going to the bank and withdrawing money. Most of us have a mental picture from the 1930′s, of a line of people in front of a bank.
Bank runs like that don’t usually happen anymore, but there was one in 2007 when Northern Rock collapsed. A couple of hours later, the UK government said it would back all the deposits, and the run was effectively over. In general, these days, you and I will never hear about them until they are over. Money moves much faster over the internet.
So do not wait to see if your bank lines get longer when depositing your weekly payroll check, you must diversify your risks now.
1. Diversify Bank Accounts – If you must use banks to hold a majority of your monetary assets please split them among 3 to 5 safe banks. Safe banks are banks that have not expanded aggressively between 2002 and 2005, expanded loan portfolios and offered higher than average CD yields.
Try to stick with local credit unions as well.
2. Cash On Hand – Storing cash in your home or business can be risky but having the green backs close at hand can keep you and your family alive when others cannot withdraw money from a financial institution due to bank runs.
You can use this fiat currency to purchase last minute preps you and your family need to weather out the storm.
3. Physical Assets – The problem with cash, even if it’s in a safe in your own house, is that it can be devalued right before your eyes.
But with physical assets such as precious metals (gold, silver, copper, etc.), land, food, family garden, etc., it is very rare that when bank runs occur that they will be devalued. As a matter of fact you may gain some great return on investment by holding physical assets during a financial crisis that results from a bank run.
In America’s modern economy, the idea you could lose your money in a bank failure seems far-fetched The fact is, thousands of banks are about to fail and the FDIC’s deposit insurance fund is showing a deficit. Besides, banks pay almost no interest right now, so apart from the convenience of a small checking account balance, what’s the point in keeping your money in the banking system? There isn’t one.”
The last thing the world’s financial system needs right now is a run on the bank. Don’t think that could happen? Then deposit your cash in your bank and believe the government when they tell you it’s safe. And remember; ignore the people in line at the ATM as they withdraw the cash you just deposited … the government and the bankers will protect you.
Remember: “First come, first served”
Like the Billionaires dumping stocks – get it out of the banks now and invest in something tangible. Plant a garden, put solar on your roof – you may not want to leave those 401ks and mutual funds just sitting there because they may not be there when you need them most.
“I sincerely believe . . . that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” Thomas Jefferson, Third President of the United States (1801 – 1809). Source: Thomas Jefferson in a letter to Richard Rush, June 1819. From The Jefferson Cyclopedia (New York; Funk & Wagnalls, 1900), quoted in Thoren &Warner at 141.