by Doug Casey, Casey Research:
It covers a threat you’ve probably never thought about. We’re not talking about a stock market collapse…failure of the Social Security system…or even a national debt or currency crisis. This is more dangerous—and much more likely to happen—than any of those things.
Today, Casey Report editor E.B. Tucker shares the chilling details…and explains why you can’t rely on the government to protect you…
Billions of dollars are transferred electronically every day.
We bank online, shop on our computers, and pay for lunch with credit and debit cards. Even the stock exchanges are now 100% electronic.
In today’s world of digital money and quick-swipe payments, it’s very common to view physical money as a relic… like fax machines or CD players.
In fact, according to a 2016 Gallup poll, 62% of Americans said they believed cash would cease to exist within their lifetime.
However, digital money is also very, very dangerous. And if you have a significant amount of money in digital form (like at a bank or a brokerage), you and your family are in grave danger.
Banks, brokerages, credit cards, and the payment systems used by billion-dollar corporations all rely on electronic systems. And they are all at risk of catastrophic failure.
To understand exactly how fragile the financial system is, consider the damage a major incident, like a successful cyberattack, could cause.
If terrorists, rogue governments, or even the U.S. government attacked or sabotaged the financial system, it could instantly shut down your ability to buy food, clothes, medicine, or other necessities.
What if all the accounts at a major bank like Wells Fargo were suddenly erased? What if businesses couldn’t process digital payments? What if your bank told you all records of your life savings had disappeared?
If your life savings were suddenly gone, how would you buy food, water, medicine, and gasoline?
We know these claims and questions may sound outlandish.
But think about it…
If you have $100,000 in the bank, what do you really have?
These days, it’s certainly not a claim to hard assets like gold or silver.
And it’s certainly not real cash in a bank.
Many local banks don’t even have that much cash on the premises!
Just try asking your bank for $25,000 in cash. The teller will say, “We can’t give you that much money.” And he’s obligated to file a report on any amount over $10,000.
If you have your life savings in a bank, or a brokerage account, what you have are electronic entries that hackers can easily and quickly delete.
Chilling, isn’t it?
All the money you’ve earned… the hard work, the sweat, the sacrifice… the nest egg you’ve built to provide for your family…
In an instant.
That’s exactly what could happen during a large-scale financial attack.
Think we’re crazy? Cyberterrorism experts deal with hundreds of cyberattacks every single day. Most of the time, these attacks are stopped. But some get through.
In 2013, a gang of mostly Russian hackers stole up to $1 billion from bank accounts.
The hackers secretly infiltrated computers at over 100 banks. Once they had control of the computers, they ordered bank ATMs to distribute cash at a set time… where an associate would pick up the cash. One bank lost $7.3 million.
By stealing relatively small amounts per transaction, the hackers kept the scheme going for nearly two years. The names of the hacked banks are still secret.
In 2015, we learned hackers infiltrated some of the largest and most sophisticated financial firms in America. The media called it the “Largest Cyber Breach Ever.”
The victims included big names like JPMorgan, E-Trade, and Scottrade. Americans trust these companies to safeguard hundreds of billions of dollars in assets. Yet hackers were able to breach their security and steal personal data on over 100 million customers. The hackers also manipulated stock prices.
The hackers have used the stolen data to set up false bank accounts, credit card accounts, and gambling accounts at online casinos.
These giant, successful cyberattacks have targeted and damaged the world’s most powerful institutions. And they demonstrate that financial terrorism isn’t just something to worry about in the future.
It’s something that is happening right now.
In fact, even the U.S. Federal Reserve is not immune from these hacks.
According to Reuters, the Fed “detected more than 50 cyber breaches between 2011 and 2015.” On February 4, 2016, hackers stole $81 million from a Bangladesh Bank account at the New York Fed.
The Government and the Banks Are Lying… They Can’t Protect You
What we’re saying about the safety of our financial system is controversial.
The government and the banks don’t want you to question the system, because the system is unstable. It rests largely on confidence.
And confidence can disappear overnight.
After all, the government NEEDS you to have confidence in our monetary system.
If you and your fellow citizens didn’t have confidence in the safety of money, all hell would break loose.
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