17. Your Money in Bank and Brokerages – Rules You Need to Know

Welcome to RIGGED, the podcast that helps you RIG the wealth game back in your favor. I’m Terry Sacka AAMS of Cornerstone Asset Metals.

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This is RIGGED. I’m Terry Sacka.

Today, I’m going to talk about your money in a bank or a brokerage firm and the rules that they don’t want you knowing. And this is a pretty important topic that you’re going to want to listen to because the vast majority of Americans have never been properly informed about this. And these rules are so severe to the protection and preservation of your money and your wealth. You’re going to want to know now starting out, it was probably about three or four years ago when it comes to your brokerages and your banks. Most people that would keep money and something called a money market fund. Now they would do that because they’d get a little bit of interest and it was a way for them to say, okay, I’m not interested in taking risk right now. So I’ll just put my money in a money market fund and it should be safe.

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Well, what you don’t realize is a few years ago, all brokerage firms and your banks in your statement, somewhere deep in the back end of the statement for that month, they notified you that your money market fund is no longer just cash stored on your behalf. And if you don’t like the changes, close your account and go somewhere else. And that’s literally what they said. What they did is the money market fund was converted to a government cash reserve account, or a variation of names like government in cash account. So most people didn’t think much of it. They saw the word cash and they like, okay, although the word government should have alarmed them. They didn’t because they weren’t cash was there. So they figured all it’s just cash. What’s the big deal, money market, government cash account. What’s the difference. What they didn’t tell you is your money market.

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All of a sudden your money market fund was converted. And if you look at the perspectives of it, 98% into U S treasuries. So when you think your cash is just sitting in a money market safe, it’s not, it’s in us treasuries now for those who believe the U S treasury is a safe investment. Well, good luck to you. I would never put my faith in a government bond. It’s an IOU debt instrument. And you just need to ask that question seriously in your heart, but it’s not cash. It’s us treasuries. That’s deep. Now what they did is they basically raided the money market because there was about $3 trillion sitting in money market funds and they needed it to buy us treasuries. It was one way we’ve kept this kind of, I don’t know, I guess you’d call it an economy going. It was, they needed to cause no one else was buying the bonds.

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The foreigners have been dumping the treasuries, and this was a way that they were able to get a hold of cash to take care of the business. And most people never knew what happened. Now. That’s not the worst part. Now that’s important because many people are not interested in trusting treasuries, but that’s not. What’s important. What’s really important is in your brokerage firm and or your bank. Now you can think the MF Global case back with Jon Corzine when he just completely blew it, the court rules that they didn’t really know lose the client’s money. Because when you give money to a brokerage firm or you put money in a bank, it is ruled no longer your money. That’s right. When you put money in a bank or a brokerage firm, you have given them a loan. That’s why they pay you a pittance of interest because they’re giving you a, they’re paying you a little bit for the right to borrow your money.

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Now, most of us don’t believe that we always thought when we put money in the bank, it was ours or even in a brokerage account. And we think it’s ours, but it’s not the MF Global case decided it. Or the judge said, no, you are giving a loan to the institution. And the institution has an obligation to pay you back now for anybody who has been involved in bankruptcy proceedings you’ll know that the odds are you getting anything back when a unit fails or an institution fails is slim to none. You are considered an unsecured creditor. Now the tier of repayment, they say that in this wasn’t a defense authorization act, which is amazing. They snuck it in there. This was under the Obama administration. And basically it said if a bank or financial institution fails, their very first people to be paid back will be derivative holders.

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Second would be secured creditors. And third will be you the unsecured creditor. Now derivative holders hate to break the news to you. They’re absolutely to hundreds of trillions and derivatives. And that that’ll be it right there. It stops there because many people think well, it’s FDIC insured. Well, no FDIC is not federal. It’s a private insurance corporation. They do have about 25 billion in that fund if the institution were to fail. But the problem is the payment system would go to derivative holders. First secured creditors second. And, and then you, so you’re, if you got anything, it would be pennies on the dollar. And besides look at the bylaws, they have 99 years to pay you back. So the FDIC insurance does not protect you. So you need to understand that you are an unsecured creditor, and you’ve given a loan to a bank in the financial institution, and it’s not your money anymore.

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That’s why it’s so important that a least a third of your portfolio is in a tangible asset. I would always recommend having physical, silver and gold in a vault over currency in a bank or brokerage firm in a money market all day long, not to mention the fact that gold and silver have outperformed the markets and the currency system over the last 20 years dramatically, you would be wealthier, but if you just want to look at it from a constitutional point of view, article one, section eight, our money always was golden. Silver, let alone biblically it’s because it’s an honest weight and measure 31.1 grams. So having gold and silver in a vault is no different than currency in a bank except in the bank. It’s not yours. You’re an unsecured creditor now. And that’s really scary because if anything goes wrong, you lose everything because an unsecured creditor will never get paid back.

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If anything, pennies on the dollar. That’s just the facts. Now, this came down years ago. Most people are not aware of it, but you must know that you are, you are definitely at risk in your brokerage retirement accounts and your bank accounts. If you’re sitting in any form of a money market or just cash sitting there in the savings account, same thing we have given them alone. They’re using our money to their benefit and they have an obligation to pay us back. But banks are fractional folks. So if you deposit a dollar in a bank, they will go and loan out 25 to $30. So the money is not there. If they, if there’s something happened to a bank, they would have literally billions upon billions. They would have to give to people that they don’t have. It’s called fractional banking. Every bank is part of it.

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So if you put a $500,000 and it’s sitting in a bank, they have loaned out millions on that. And so if anything happens, you think you’re getting that money back, being an unsecured creditor, it’s not going to happen. And that’s why it’s very important to understand being a fractional banking system, the bank and the brokerage firm are obligated to pay you back. The loan you’ve given them and a vast majority will never happen. Just like bond holders in general motors, back in the day, when everything collapsed, no wait, they never got paid back. They got zero. It was terrible. Tragic. No, I’m not saying that there’s going to be a systemic collapse of banks, but I got to tell you what you want to play. That roulette that’s on you. I would highly recommend being diversified. Understanding this rule is paramount because it’s real, it’s factual.

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You can look up the MF Global case if you want to. It decided it in stone that it is not your money in a bank or a brokerage. So I sure hope this helps. If you have any questions, I would highly recommend calling Cornerstone Asset Metals. They’ll help clarify it. And in summary always know that you can buy gold and silver quick and easy call to order. If you want to diversify out for physical shipped to your home or a private depository at (888) 747-3309 that’s (888) 747-3309. You can make a onetime purchase or reoccurring monthly order. If you choose have your gold or silver stored or take physical delivery as a cornerstone customer, you may have your metal stored on behalf at an independent depository with a certificate of deposit issued directly to you, or take personal delivery at any time. Many of the Cornerstone gold and bullion products, silver and gold, are authorized for use in IRAs and are ISO 9,000, 2008 certified poured in derived from an LBMA approved refinery. We fully stand behind each and every product we deliver with a guarantee that what you order will surpass your expectations. So I hope these rules clarification’s have helped you. God bless each. And every one of you see you next week.

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