The Daily Paul has been archived. Please see the continuation of the Daily Paul at Popular

Thank you for a great ride, and for 8 years of support!
4 votes

What Is Backing Your Deposits in the Bank?

What Is Backing Your Deposits in the Bank?

December 9, 2011

By Elliott Wave International

Is the bank really the safest place to keep your money? Robert Prechter joins the Mind of Money host Douglass Lodmell to discuss what backs bank deposits and how you can keep your hard-earned money safe.

We invite you to watch the interview below. Then read Robert Prechter's free report, Discover the Top 100 Safest U.S. Banks.

What is the best course of action to safeguard your money?

Read our free 10-page report, Discover the Top 100 Safest U.S. Banks, to learn:

  • The 5 major conditions at many banks that pose a danger to your money.
  • The top two safest banks in your state.
  • Bob Prechter's recommendations for finding a safe bank.
  • And more!

Download your free report, Discover the Top 100 Safest U.S. Banks, now.

This article was syndicated by Elliott Wave International and was originally published under the headline What Is Backing Your Deposits in the Bank?. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

I saw Pretcher and I was immediately turned off.

Dude is a clown.

"A living Constitution is a dead one" -Ron Paul

Its not only the banks that

Its not only the banks that are not safe it is the dollar also. but Prechter won't tell you that.

Prechter's Assertion

is that the dollar won't be in danger of losing much more value until after the tremendous debt liquidation has run its course.
As of now the banks don't even have enough of those so-called "worthless" US dollars backing deposits. He recommends people have cash on hand in the event of a banking crisis where ATMs could be emptied and depositors wont have access to funds in their accounts. Just common sense advice really.

fireant's picture

Since Bank of America moved some toxic assets around...

..., exposing FDIC to unpayable liability, and since seg funds were raped by MF Global, I wouldn't keep any more than monthly expense money in any bank, foriegn or domestic.

Undo what Wilson did

I'd highly recommend everyone

I'd highly recommend everyone open 1 or 2 bank accounts outside of the US this year. Don't wait. Panama, Costa Rica, and Switzerland are all attractive choices.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

I recommend everyone keep their money

SPENT. Buy food, supplies, protective gear, and other commodities that you USE. Keeping money in banks is going to bite you one day. Keeping stacks of cash around leaves you vulnerable to being wiped out by a thief. Having heirloom seeds, sacks of rice and beans, things like that do not tempt theives, and what is it you need money for? To buy food and stuff. Well, just buy the food and stuff, and minimize your exposure to bank fraud, runs, or food supply disruptions.

Love or fear? Choose again with every breath.

In a run on Treasuries/the system/the dollar,

... all dollar denominated paper assets will drop in value. There will be no safe banks. They will all be zombies. It is just a matter of the degree of zombification.

There are favored banks. Systemically Important Financial Institutions will survive the carnage. The Treasury Department gets to decide which ones are systemically important. My guess is Goldman Sachs, JP Morgan Chase, and Citibank will be at the top of the list.

Under rules in force TODAY at Citibank they can take up to 7 days to give you cash from your checking account. There is nothing stopping them from deciding to take 14 days, 21 days, or 6 months. So even if your cash is in a favored bank, by the time you get it, it will be worth considerably less. So M0 means nothing.

Money market mutual funds? SEC rules permit them to suspend redemption indefinitely.

Clowns to the left of me, jokers to the right.

We are all screwed.

“None are so hopelessly enslaved as those who falsely believe they are free.” – Goethe

Interesting video.


M0, M1, M2, M3

What makes holding M0 better than M1, M2, or M3? It's all the same to me. Paper and tokens are minutely better than electronically stored zeros and ones. I'll take the real thing, s&g (heck, tulips are more valuable than paper and tokens). What Mr. Prechter never accounts for is government's incessant need to increasingly find new debt(complex derivatives now, including re-hypothecation, which simply double, triple, dodotuple collateralize underlying collateral assets) to keep the ponzi alive. They cannot stop adding debt, and when debt can be added by simply typing 1,000,000,000,000 into a computer, unlike the old fashion need to actually print, what would give them the incentive to stop? Furthermore, history tells us they won't stop. The loss of confidence in fiat will determine the end of it and the scramble to hard assets. The loss of confidence of the USD as the world reserve could come sooner which would mean an instant devaluation. I would not want MO in either case, except in the amount of any outstanding dollar-demoninated debt I may have.

Seeing as how

I bank at Bank of Me... Silver backs my money!!

I can give you a simple answer to that question in which most...

if not all of the DP listeners would simultaneously agree that absolutely nothing is backing our currency. The last year was 1971 under Richard Nixon which we finally went off the final remnants of the gold standard. The beginning of the end of Sound Money, of Sound Currency. The true beginning began in 1933 when FDR seized Every American's gold, silver, etc. as well as other precious metals under the confines of The "Patriotic" thing to do. He stole a significant part of Americas wealth/assets. He utilized modern day Executive Orders. In the same year, he initiated the Trading with the Enemies Act. And again in 1938, he initiated the Administrative Procedures Act. One of the greatest Presidents in history. I don't think so, he was just another tool for the wealthy Industrialists who needed favors. President FDR was more than willing to oblige. That sad cliff note, nothing has changed since the days of FDR and if anything, things have actualy gotten worse. I fear for our near term future.

The Newter loves FDR

But he doesn't say if it was the executive order sending Japanese Americans to concentration camps, the confiscation of gold, or the attempt to pack the Supreme Court with additional justices that earned Newt's undying admiration.

And THAT is why I do not have accounts and why I do not


I control my own money in my own possession and I NEVER entrust it to anyone else.

It Sounds Good...

....when you say it out loud: ours is a Faith-based currency...

But when you think about it for a moment...well, um, I like the sound of this paraphrase better:

"In God We Trust, All Others Must Pay in Specie!"

My deposits are backed

by absolutely nothing but more debt.

My accounts are backed by the Fed's ability to counterfeit more

As long as they don't run out of ink we are ok.


I'm pretty sure my bank uses

I'm pretty sure my bank uses pixie dust and the tears of leprechauns to back my deposits. So far, so good. The leprechauns have been very sad lately.

Citibank has people arrested

Citibank has people arrested who are trying to close their bank accounts:

|^^^^^^^^^^^\||____ San Luis Obispo, CA
| RON PAUL 2012 |||""'|""\___,
| _____________ l||__|__|__|); Freedom 101

the dollar its self isn't

the dollar its self isn't safe.