There's a lot of reasons for you to be concerned about the global economy this week. Greece owes a huge payment on their debt and everyone knows they won't be able to pay. A default could trigger a larger financial collapse worldwide, but no one seems to be worried. But will people start paying attention if every single bank account over a certain dollar amount gets a 50% haircut? Glenn spoke with an informant with inside information of what's going on behind-the-scenes, and what he told Glenn should scare everyone.
Glenn said he had a conversation with Tania a few weeks ago, and during their talk he suggested taking all of their money out of the bank because a Cyprus-esque haircut could be coming.
"I said, there's going to come a time where they'll just give everybody a haircut. You have money in the bank, they'll just give you a haircut. And not let you take money out of the bank," Glenn said. " Everybody gets 10 percent to 50 percent. Everybody just loses ten to 50 percent of whatever you have in savings. Whatever you have in the bank. Then they say on top of that, and, by the way, you can no longer withdraw anything more than $5,000, you know, per account. Per month."
Glenn said that he called his "Deep Throat", the insider who told him about TARP the Sunday before it was announced. While in the past he has been able to provide intel on what might be coming, recent events have him completely lost.
"This is the guy who called me the day before TARP was made public. He called me on a Sunday night crying. And he said, I was just in the treasury meeting, and he said, I just got out. They're going to announce something tomorrow. And he said, it's bad. But he convinced me that it had to be done. He said, because we're lights out. If this doesn't happen, we're lights out, he said. And I just walked home in Manhattan. From lower Manhattan to mid-Manhattan. And he said, I was crying all the way because I was looking at the drivers of the car and the people in the cabs and everything else, and he said, they have no idea what's coming our way. Nobody has any idea what's coming," Glenn said. "So he's been talking to me for a long time about what's coming."
"So I'm talking to him and I said, so, tell me how do we get out of this? How do we unravel this situation? And for the very first time he said, I have no idea. I have absolutely no idea. The world is never done this. I've never seen anything like it. He said, what's really disturbing is, everybody on the planet is doing this now. All of the central banks are doing this now. He said, at some point there is a tipping point. And the US dollar is just lights out," Glenn continued.
Stu brought up the debt crisis in Greece and how no one seems concerned that Greece has no money to pay it off.
"We talked about the situation going on in Greece this morning," Stu said. "The markets aren't really reacting to it negatively. They have this giant payment they have to make, and they can't make it. Everybody knows they can't make it. They just assume there will be a last-second deal as there's been the last few times they couldn't make this payment. There's a chance that they can't make this payment and the deal is not struck. Then it's like financial catastrophe for the world. And no one is really even paying attention to it. We've come to the point now where financial catastrophes are like the 12th story in the newscast."
Glenn's "Deep Throat" insists that the IMF and other global financial institutions will not be able to just bail everyone out. In fact, the informant has no idea what will happen, something Glenn has never heard him say before.
Glenn said, "So remember the guy we had on The End of the Dollar, and he said, what will happen is the IMF, or the World Bank will bail everybody out. My Deep Throat guy said, no, not possible. He said, that's just not possible. He said, they don't have the money to do it. He said, so we give them money to do it. So that's a circular thing. He said, that's not even possible. It doesn't even make sense to me. And I said, so where -- how do you -- and he said, I don't know. I don't know. That's significant. That's really truly significant. And like Pat said, so what happens?"
One thing you can't do, apparently, is take your money out of the bank. The Dennis Hastert scandal shined new light on regulations that prevent people from removing more than $10,000 out of their accounts.
"Are we even in America? You want your money, they're not going to give it to you," Glenn said. "Again, that brings us back to, am I the suspect here? Is the average American who is just living their life, are we the suspect? If you have something on me, okay, then get a warrant and show it. But if it's just I'm removing my money from a private institution because I want to go blow it all in Vegas or I just want to put it under my bed. As long as I'm not doing anything illegal with it, it's none of your business what I'm doing."
Glenn predicted that if things don't change, it will be illegal to carry large sums of cash.