Germany's Bundesbank proposes bankrupt nations hit private wealth with tax - Wealth Managers

Meanwhile, top-200 Russian bank reportedly freezes cash withdrawals

Capital controls, currency devaluations, and wealth confiscation are some of the last refuges of bankrupt nations and institutions, as evidenced by the Cyprus bail-ins and pension seizures by Poland last year. And just this week, fears of bank runs have erupted as HSBC limited cash withdrawals by its customers and Lloyds-owned ATMs went down. All this amid Argentina's currency devaluation and other turbulence in emerging markets.

The shocking reports just keep coming -- the latest from Germany. According to Reuters, on Monday its Bundesbank said nations facing bankruptcy should impose a one-off capital levy on its wealthy citizens before asking other states for assistance. This proposal follows a suggestion by theInternational Monetary Fund in October recommending a 10% tax rate on households with positive net wealth.

"(A capital levy) corresponds to the principle of national responsibility, according to which tax payers are responsible for their government's obligations before solidarity of other states is required," the Bundesbank said in a monthly report.

And that's not the only trouble on the horizon. According to Zero Hedge: "Bloomberg reports that 'My Bank' -- one of Russia's top 200 lenders by assets -- has introduced a complete ban on cash withdrawals until next week. While the ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia."

"To anyone paying attention, the warning signs are all flashing red," writes Simon Black at the Sovereign Man blog:
"The days when you could simply assume that your bank is healthy, and a safe custodian of your money, are long gone ... and people need to be aware of this.

"There are consequences to keeping funds in overstretched and starved-out banking systems. When push comes to shove, those banks will either go under and take your deposits with them (Cyprus), or they'll make it incredibly difficult for you to access your own money. This is what HSBC is doing in the UK."
One solution to this turn of events is simple -- and timeless: Own gold and silver stored outside the banking system, stored safely and securely and accessible to you when you need it.

More information can be found online at http://www.goldbullionadvisors.com