“Governments finds all sorts of ways of repressing their citizens and certainly do it for the banking system. In America today if you have a bank account you have no privacy anymore. Your banker is basically an unpaid spy working for the government trying to monitor your activities for anything suspicious so they can turn you into the government!

Bail-ins are a function of government deposit schemes which really don’t work! When these government insured banks fail, rather than having to just create a lot of money they will resort to the bail-in where they dispense the loses among the depositors. Actually (the later) is the right thing to do! We shouldn’t have any government insurance for bank deposits! If you deposit your money in a bank and that bank fails, your deposits SHOULD BE at risk! In fact if we had deposits at risk we would have a much sounder banking system like we had before the invention of deposit insurance during the Roosevelt era!”

Peter Schiff points out that not all countries have these deposit schemes and the ones that don’t have healthier banking institutions becuase now you have the market forces reigning in risky banking activity because “when people have to assume the risk of ther deposits they do their homework! Banks then compete with each other based on SAFETY”. 

Video Length: 00:21:01

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