Are You Prepared For a US Bank Bail-In?Jeff Berwick The days of the federal government stealing money from taxpayers, or borrowing it from the Federal Reserve, to save troubled banks as in they did in the 2008 crisis may be over. Congress is considering imitating the theft in Cyprus and letting troubled banks bail-in depositor money in order to make themselves solvent. Jim Sinclair, chairman and chief executive officer of Tanzania Royalty Exploration Corp., and whose family started Goldman Sachs, Salomon Brothers, Lehman Brothers, and others, has been warning of this for a while. Bail-ins are coming to North America without any doubt, and will be remembered as the Great Leveling, of the great Flushing. Not only can it happen here, but it will happen hereIt stands on legal grounds by legal precedent both in the US, Canada and the UK. Financial expert Michael Snyder adds, When major banks fail, they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the Western world. This news isnt exactly new, but the story is still developing, the monetary system is much closer to collapse and the bail-in is imminent. In fact, US banks presented the Federal Reserve with a bail-in plan to pay for large banks restructuring in the event of a future crisis, The Wall Street Journal reports. The plan was presented to the US Federal Reserve in an attempt to preempt tougher rules from the regulators. The proposal presented to Federal Reserve officials would involve the largest financial-services holding companies would be willing to hold a certain amount of debt and equity which would be used to prop up any failed bank subsidiary seized by regulators, but the regulators will likely stick to their own plans which involves more aggressive measures including capping bank-size, breaking-up institutions or forcing banks to take on more long-term debt. In the end, however, its not just creditors who will be on the hook but depositors as well. Jim Sinclair pointed out that banks legally own depositors funds as soon as the depositors hand those funds over to the banks. The money becomes the banks and the depositors actually become unsecured creditors holding promises to pay. Previously the banks were obligated to pay back this loan on demand with cash. Under the new Federal Deposit Insurance Company Bank of England (FDIC-BOE) plan revealed this year, however, these promises to pay become equity in the bank, which wont be able to be used as payments for bills, which is why most people have money in the bank in the first place. The point is that your money is not yours while it is deposited with a bank. And bail-ins are coming to shatter any illusion that they are for US depositors. Notice that banks are already setting up deposits for seizure. Despite the excuses of the likes of JPMorgan, the banks are indeed clamping down on outgoing international wire transfers and now putting in limits for withdrawal that they are closing the doors. If you dont get your money out now, possibly by end of this year or sooner, you may not be able ever to get it out. Once doors are closed the federal government might do a bank holiday and bail in to make the banks solvent again. At best you may get some bank equity that is both illiquid and which will ultimately be worth a tiny fraction of the deposit it replaces. And, not to mention FATCA coming into effect in July 2014 it will be nearly impossible for an American to get a bank account outside the US (it already is, but will be even worse). Now is the time to get your assets in an offshore account and TDV can help. Click here to learn more about how with TDV Offshore. The smart money is leaving now while they still can. Sign up for a subscription to the weekly TDV newsletter so you can get detailed advice on how to join them. Anarcho-Capitalist. Libertarian. Freedom fighter against mankinds two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the worlds freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business. 