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'it's Time To Put Cash Under The Mattress'

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You can see that they're on the savers' side ;)

...or borrow it and turn it into cash if you can......converting numbers into cash is not easy whether you own it ie paid for it or not, makes no difference, not that much cash available probably less than there is gold about. ;)

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If the banks go bust again the BoE will just print the money needed to make depositors whole.

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It wasn't that long ago when most people got paid exclusively in cash......very few, only the wealthy held a bank account that they rarely used, only issuing a cheque now and again.

Now it is almost impossible to live today in a modern world without a bank account......but do we truly need one? could we survive without one? ;)

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If the banks go bust again the BoE will just print the money needed to make depositors whole.

But printed money is not cash....and cash is what we are talking about. ;)

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It wasn't that long ago when most people got paid exclusively in cash......very few, only the wealthy held a bank account that they rarely used, only issuing a cheque now and again.

Now it is almost impossible to live today in a modern world without a bank account......but do we truly need one? could we survive without one? ;)

I dont think any of my grand parents ever possessed one.

They got by on cash and a Post Office Savings book.

Of course, they never had much money to start with but then they did not have any debt either

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There's a roaring trade in safes and gold ingots on Northern Council estates.

Best way to keep your assets hidden from the dole hole.

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I found this interesting from the article:

"His concern is that global debt – particularly mortgage debt – has been pumped up to record levels"

"For everything else there's your central bank balance sheet...blip bloop".....(if anyone's old enough)

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Your money's not safe in the bank. Nor is it wise to be in debt in the UK. What to do? I'm buying more (cheap) property in Thailand. Hold assets without debt. Not easy, disruptive, out of your comfort zone. But....your comfort zone isn't a safe place to be. Oh, and have some cold hard cash under your mattress.

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Your right it's not. He also said this in the article:

"He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded – and that the Government has said it will not rescue banks in future, hence his suggestion that some money should be held in physical cash"

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He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded

This is the worrying bit. The £85K "promise" of protection is yet another empty promise by the government if/when bail-ins happen. They'll have an emergency parliament vote "for the good of the country" to u-turn this promise if they need to. The promise was there to give people a false sense of security.

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if this is true banks are going to have to offer better savings rates soon.

currently i have my tsb 5% current account which i make use of and use as rainy day money other than that pay of your mortage as quick as possible

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This is the worrying bit. The £85K "promise" of protection is yet another empty promise by the government if/when bail-ins happen. They'll have an emergency parliament vote "for the good of the country" to u-turn this promise if they need to. The promise was there to give people a false sense of security.

I'd say the opposite is true.

The government are saying that they won't rescue banks in future and won't bail out depositors over the £85k limit because they want to seem responsible and not a source of moral hazard.

Nonetheless, words are cheap and if/when the bank runs start again I think they will almost certainly panic, print and make all depositors and maybe all bondholders whole with the justification that they had to do it to "maintain financial stability", "restore confidence in the markets" and "make sure the lights stayed on and there was food on the shelves".

Edited by Dorkins

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Your money's not safe in the bank. Nor is it wise to be in debt in the UK. What to do? I'm buying more (cheap) property in Thailand. Hold assets without debt. Not easy, disruptive, out of your comfort zone. But....your comfort zone isn't a safe place to be. Oh, and have some cold hard cash under your mattress.

So you're reducing risk by buying land in a politically unstable country where it's illegal for you to own land. Good luck maintaining your assets through the next coup d'etat (and the one after that).

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So you're reducing risk by buying land in a politically unstable country where it's illegal for you to own land. Good luck maintaining your assets through the next coup d'etat (and the one after that).

Well I own a property that's already seen a couple of coups (since 2008) and it's still mine.

Also, it's an apartment (freehold) - not land.

I'm not saying put all your eggs in one basket.

I'm saying put your eggs in several baskets.

Good luck to you if you want to put all of your eggs in one basket. If so, you just have to hope the trustworthy and reliable UK government who always keep their promises will keep the £85K guarantee promise and not simply reneg on it via a rushed parliament bill when all hell breaks loose.

Edited by canbuywontbuy

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