Have you really no desire to know?

Paolo Cabrelli | 27 Oct 2020 Your negative interest is a worry…  Dear Reader,     It's so easy to turn a blind eye.   To show negative interest.   To claim it's "none of our business".   Sometimes it's just a defence mechanism.   A desire not to get involved…   Not to be drawn in to a situation that might harm you.   People do it.   Companies do it.   So do nations.   Then finally someone steps up to the mark.   This month one of the mainstream press placed China on the cover…   And The Economist took the country to task:   "The persecution of the Uyghurs is a crime against humanity - It is also the gravest example of a worldwide attack on human rights"   Of course, without getting into scoring points, here at Southbank Investment Research, two of our editors had put the Chinese Communist Party in the dock for the very same thing back in January.   And they asked our readers a tough question:   "Who are you really? An appeaser, an apologist, or an agitator? And what would you have done in 1933?"   The thing is, however unpleasant, time-consuming or inconvenient it is…   Each one of us needs to take an interest in what is going on around us.   Even if it is only for the selfish reason of the wealth, health and happiness of ourselves and our nearest and dearest.   Just take the threat of negative interest rates.   Something that could affect the health of the very place you no doubt keep some of your money.   The bank.   And that could have very serious consequences.   You see, after the last financial crisis, Britain passed a law that would allow the government unprecedented control over your finances in exceptional circumstances.   In 2009 and 2013 it created a rather extraordinary risk to digital cash in the bank. (Particularly to any large amount you might have if you'd just sold your investments to escape the stockmarket crash). Here's how the government's explains it:     The Financial Services (Banking Reform) Act 2013 (the 'Banking Reform Act') added a bail-in tool to the Special Resolution Regime (SRR) through amendments to the Banking Act 2009. The bail-in option allows the Bank of England to resolve a bank or building society that is failing or likely to fail by writing down or cancelling certain debt liabilities and/or converting debt into equity Let me translate that.   Now, perish the thought that your bank could be close to failure (but I don't think we can rule out anything in future)…   In exceptional circumstances, the Bank of England can declare a bail-in.   That means it'd convert deposits not covered by the deposit guarantee into bank shares to save the bank. The deposit will be converted to stocks.   Put simply, you'd get shares in the bank.   I think this demonstrates why, right now, you need to take control of your finances.   To be prepared for the uncertain times ahead.   And I'd like to introduce you to a man who can help.   A man who took on the political establishment and won…   And who is now taking on the financial establishment.   You can meet him and listen to what he has to say here.   Many thanks,   Paolo Cabrelli Publisher, Southbank Investment Research

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