Jim’s Mailbox

Posted at 7:03 AM (CST) by & filed under Jim's Mailbox.


I just received what appears to be an “odd” email from Fidelity Investments this morning (Tuesday; 06-04-2013) about the FDIC insurance limit of $250,000 dollars.

In light of what you have been explaining about the coming Bail-Ins, and now Monday’s closed door hearing (yesterday) of the “The Financial Stability Oversight Council, which includes Treasury Secretary Jacob Lew and Federal Reserve Chairman Ben Bernanke,” I wonder if this is merely a coincidence or another example of public being told what is coming?

Note the last sentence in the Fidelity Investments email:

"Please keep in mind, monitoring your FDIC coverage is your responsibility."

CIGA Stephen

From: Fidelity Investments [mailto:Fidelity.Investments@mail.fidelity.com
Sent: Tuesday, June 04, 2013 9:56 AM
Subject: Important FDIC insurance information -> Please keep in mind, monitoring your FDIC coverage is your responsibility

Monitor your FDIC-insured balances

Because one or more products or account positions in your Fidelity account are eligible for FDIC insurance coverage, we want to remind you about current FDIC coverage limits and why you should monitor your balances.

Learn more about FDIC coverage

Generally, deposits at a bank held in nonretirement and qualified retirement accounts such as traditional or Roth IRAs are eligible for up to $250,000 coverage per account owner, per depository institution. Certain holdings at Fidelity are eligible for “pass-through” FDIC insurance coverage subject to these same limits.

Eligible positions include:

• Certificates of deposit (CDs) — Brokered CDs that are issued by an FDIC-insured institution

• Core balances in the Fidelity® Cash Management Account1

• Core balances in eligible Fidelity IRAs or Fidelity Health Savings Accounts1

• Any 529 Bank Deposit Portfolio investments

Please keep in mind, monitoring your FDIC coverage is your responsibility.


Hi Jim,

A recent report from the Irish Times outlines the Bail-In proposals currently being debated throughout Europe to deal with European bank collapses.

This article contains an actual copy of a bank statement which was sent to a depositor at one of the failed banks in Cyprus after the Bail-In.

The bank statement reflects the following:

The depositor’s original account balance was: $849,682
The amount that was blocked after the Bail-In was: $720,898
The depositor’s available balance is now: $128,784

Approximately 85% of this depositor’s original bank balance was appropriated.

Your urgent message for depositors to “get out of the system” is certainly substantiated by the facts.

Best regards,
CIGA Black Swan

Get Ready to be “Cyprused” at a Bank Near You
By Christopher Quigley

The banking situation in Europe continues to deteriorate rapidly. As a measure of the ongoing crisis the “ Bail In” option used in Cyprus is actually being made European Commission policy. The following is a recent report from the much respected Irish Times:

“Proposals under Irish presidency to deal with European bank collapses likely to ‘bail-in’ large depositors.

Deposits of over €100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week.

Discussions on the controversial bank resolution regime, which is likely to see savers with deposits over €100,000 “bailed in” as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesday’s meeting, which will be chaired by Minister for Finance, Michael Noonan.

“We will try to get some guidance from Ministers about the possible design of the bailout tool,” one EU official said yesterday.



“Currency wars” comic provided for your enjoyment.



Thanks Jim,

Hope you consider coming to continue to travel to speak.



There once was a message still totally valid that "gold is the bedrock of investments for the millennium," and I did everything possible to bring this message to you. Now you must loosen the bindings you have volunteered to the System. I will travel until currency and capital controls make effective financial freedom impossible for you.




I’ve been buying junior miners to get out of the system. I am also purchasing, and have been since 2000, physical Gold.

I am nervous about storing it. Is there a better way to buy significant amounts without storing it at home? Specifically, what could I do? Where do I go? Any suggestions?

You said recently, don’t store more at home than you are willing to lose!

CIGA Wolfgang


One alternative for storage is to speak with Egon von Greyerz evg@mamag.org.

The second and attractive place to store is in Singapore.

Monty Guild does not provide any such services, but you might consider speaking with his office about Singapore. Monty can be reached at mguild@guildinvestment.com.

You keep near you the maximum amount of physical that you would be willing to give up under a stressful situation.



Hello Jim,

Well finally got back home to Basel, Switzerland and I just want to say that it I am so glad that I took the effort to come and hear you speak and engage with other likeminded CIGAs at this especially important time. As you said, “The End Game is here.”

Here we are discussing Petunia!


I will say a big thank you to Anna too who effortlessly sorted out an issue for me, the session organization was immaculate and very slick.

I got switched onto you long ago as a HSL Lifer as Dean Harry Schultz (for whom I also have the utmost of respect for) said we should be listening to you – I know you two did a lot of work together in the past.

A million thanks – and let’s all get through this together as best we can.

CIGA Farley

Dear Farley,

The end game has come and that is a fact. Loosening the ties that bind you to the System in the ENTIRE Western world, is the solution.

"How To for Smart People" is the theme of the meetings.

Harry Schultz is the Dean of Gold, and personal Freedom. He is to me a dear friend, comrade in golden arms and hero of the 90 years he has been with us.

Petunia is simply HUGE!

Thanks for coming Farley,


Hi Jim,

Where Gold is now (in hundreds of dollars), and where Gold will very soon be exploding to. Fun!




Bail-in risk in the US rise dramatically by Oct 2013…

"The Federal Reserve would be responsible for policing the companies."

"Authorities “took another important step forward by exercising one of its principal authorities to protect taxpayers, reduce risk in the financial system, and promote financial stability,” said Jack Lew, treasury secretary. Regulators did not identify the companies or indicate the number that were selected.

The companies now have 30 days to decide whether to contest the designation, and an additional 30 days to challenge the label in a hearing. After that, regulators have 60 days to come to a final determination."

Best regards,
CIGA Christopher

‘Systemically Important Financial Institutions’ Named By U.S. Regulator In Crackdown
Posted: 06/03/2013 9:45 pm EDT

WASHINGTON — The U.S. government on Monday preliminarily designated at least three financial companies as having the potential to pose a grave threat to the financial system, the first time regulators have used post-financial crisis authority to crack down on companies that have previously escaped federal attention.

AIG, the bailed-out insurance giant; Prudential Financial, the life insurer and asset manager; and GE Capital, the $530 billion lender responsible for a bulk of GE’s profit in recent years, all confirmed that the panel of regulators known as the Financial Stability Oversight Council has proposed to tag them as being so-called systemically important financial institutions, or SIFIs.

The designation, if finalized, may not amount to much in the short term, analysts and officials have said, because the rules detailing heightened oversight and limits on activities that the selection entails are unfinished. But over time, the SIFI tag is likely to constrain the companies’ abilities to take excessive risk or otherwise engage in activities that may threaten the health of the nation’s financial system.

The Federal Reserve would be responsible for policing the companies. The Fed and the Federal Deposit Insurance Corp. would be charged with forcing the companies to develop detailed plans — called living wills — that spell out how the companies would be wound down under the bankruptcy code should they near insolvency.