Last August, Runnymede Capital warned our readers that a financial hurricane was coming. Over the past six months, the stock markets around the world tumbled and the US has followed suit in 2016. Our clients, who gave us permission to raise cash reserves, were fortunate and their assets were protected.

Today, we are sounding off another BIG alarm that the banks are planning to take principal out of your bank deposits. Most Americans don't know that the Central bank is not an agency of the US government but a privately owned banking cartel. It is owned by the banks which are members of the Federal Reserve. No one knows how much of the system each bank owns because it is a deep dark secret. Their actions and assets are never audited by anyone.

The Fed's number one priority: Bank Profitability

The Federal Reserve has power over the U.S. banking system and it makes certain that the banks make lots of money. The depositors (you) are not the Central Bank's number one priority. The Fed controls the money supply, sets the interest rates and hands out bailouts to the big banks by asking the banks not to pay depositors any interest payments. Billions of dollars in taxpayer money allowed banks that were on the brink of collapse in 2008 from underwriting low quality subprime mortgages and gambling in derivatives, not only to survive but to flourish. These banks collected $1 trillion in revenues mainly from funds out of our pockets by not paying interest to us and made billions in profits. Are they still in trouble eight years later? The answer is YES because they are still gambling with trillions of derivatives and moreover, the energy loans are going sour.

Expect negative rates in 2016 or 2017

Once you understand the Central Bank is not your friend, you can predict their next move: say goodbye to zero interest rates and say hello to its evil twin negative interest rates. The “den of thieves” is coming to take your principal straight out of your bank accounts. You and I will soon have to pay the bank interest as a “patriotic” way to stimulate the economy. A negative interest rate means the banks will charge you fees based on the size of your deposit; instead of receiving interest on deposits, depositors must pay regularly to keep their money with the bank. They say this is intended to incentivize banks to lend money more freely and businesses and individuals to invest, lend, and spend money rather than pay a fee to keep it safe. Do you really believe their line of reasoning?