If you look at it from a most pragmatic view, central banks and governments are doing the very opposite they intended for conventional banking through the passing of policies they thought would save and secure financial institutions residing on the cusp of collapse just seven years ago. And with the rise of crypto-currencies, block chain technologies, and financial products forged outside of the banking system, the ability to function in a new paradigm of personal finance is growing at an extremely rapid pace.
Now don’t get me wrong here… there are are plenty of cons to go with the myriad of new systems that are now allowing someone to function outside the conventional banking system, but these potential problems are primarily tied to cyber-hacking and the ability for nations to sustain their electrical systems, which naturally are also issues that are prevalent in having accounts with your mom and pop bank or credit union anyway.
In addition, the rise of alternative financial systems that perform the same functions as a standard bank allow one great advantage that those institutions which are tied to the Fed and government controls can no longer do… allow you free access to storing your wealth offshore while still being able to use it at a moments notice to transact in your native country.
Debt cards and online bill pay
One of the most powerful tools someone can get today is a debit card that is backed by a traditional credit institution like Visa, Mastercard, American Express, but coordinated through a non-banking corporation like Karatbars or Bitgold/Goldcore. Since many of these new agreements are between companies incorporated through the World Trade Organization (WTO), and not as a bank and subject to the rules, regulations, and openness requirements that today’s Western banks are bound to, one can protect the anonymity of their money and name, but still function with just a few extra steps outside of the conventional banking environment.
Nearly all utilities, commercial retailers, and even ATM machines accept monetary debit and credit cards backed by independent financial corporations like Visa and Mastercard. And more and more, you can find these agencies signing agreements with non-banking financially based companies that allow you to use these cards in every capacity that you could if it were a bank issued debit or credit card, but without the invasive tracking that is done currently by the government via local banks and credit unions.
In addition, if you choose to keep a conventional bank account for any number of legitimate reasons but don’t want to store your money with them for any length of time, you can now purchase generic Visa and Mastercard gift cards from a local grocery store, and use that as your sole method of payment for all online and retail purchases.
With the fact that banks no longer pay you for holding your money, and enact just as many fees as third party card servicers like Paypal, etc… do, there is no reason why anyone would keep their wealth or even their discretionary funds stored in a bank when the risk of liens, civil forfeitures, confiscations, and even bail-ins are a real threat as banks find themselves once again in the same condition as they were in 2008.
Physical gold and silver now coming under scrutiny when you travel across borders
In the newest blog publication by the famous offshore economist Doug Casey, he discovered recently while traveling across a number of borders in South and Central America that customs officials were asking him about the physical silver he was carrying in his luggage, and if he had an gold coins with him. This is a very new phenomenon since for decades now, gold and silver were only recognized as collectibles and customs officials usually only worried about cash being taken from one country to another if carried or brought on your person.
It’s well-known that you have to make a declaration if you physically transport $10,000 or more in cash or monetary instruments in or out of the US, or almost any other country; governments collude on these things, often informally.
Gold has always been in something of a twilight zone in that regard. It’s no longer officially considered money. So it’s usually regarded as just a commodity, like copper, lead, or zinc, for these purposes. The one-ounce Canadian Maple Leaf and US Eagle both say they’re worth $50 of currency.
But I’ve recently had some disturbing experiences crossing borders with coins. Of course, crossing any national border is potentially disturbing at any time. You might find yourself interrogated, strip searched, or detained for any reason or no reason. But I suspect what happened to me in three of the last four borders I crossed could be a straw in the wind.
When I left Chile a couple of months ago, the person monitoring the X-ray machine stopped me and insisted I take them out and show them to her. This had never happened before, but I wrote it off to chance. Then, when I was leaving Argentina a few weeks later, the same thing happened. What was really unusual was that the inspector looked at them, took them back to his supervisor, and then asked if I had any gold coins. I didn’t, he smiled, and I went on.
What really got my attention was a few weeks later when I was leaving Mauritania, one of the world’s more backward countries. Here, I was also questioned about the silver coins. A supervisor was again called over and asked me whether I had any gold coins. Clearly, something was up.
I haven’t seen any official statements about the movement of gold coins, but it seems probable that governments are spreading word to their minions. – International Man
This has always been the fear for many who want to have the option of leaving the U.S. should the environment become so dire that expatriation became a necessity rather than an option. And for those that have large amounts of physical gold and silver in hand for the myriad of reasons that are vital for wealth protection in case of a bank holiday or shutdown of access to cash, it is becoming increasingly important to have the larger portion of your gold and silver offshore, and in a secure location while keeping some in hand for use in your native country if the system collapses.
The number of people living outside the banking system is substantial
While there are a number of new and growing options for performing commerce outside of a banking system, one thing appears to be trending for people both at lower income levels, and in those who are waking up to events coming on the horizon. In a recent article out of Albuquerque, NM, an estimated one third of all households do not have accounts with a banking institution, and function quite well in alternative methods such as cash only, barter and trade, and using Visa/Mastercard based card products for retail transactions. In fact, with workers able to cash their paychecks for a small fee at places like Walmart or other check cashing facilities, it is not at all inconvenient for someone to live completely outside the banking system, while still having the protections and capabilities of conventional monetary programs for those that do not want to always carry around large amounts of cash.
The irony that has manifest now from the events that came out of the 2008 Credit Crisis is that global central banks and government regulators are actually driving more and more people out of the banking system, and leading entrepreneurs to build new platforms that can allow the common man anywhere in the world to function outside of a conventional banking model with just a Smartphone and a little bit of ingenuity. And while aspects of globalizing the financial systems of the world have many downfalls for one’s monetary freedom, it has also made it possible to be protected from these same entities, and is providing the impetus for their own downfall by finding the new ways for you to get out of the system, while still being able to do all the things you could before under conventional banking.