I’m reading with alarm about the EU’s actions in Cyprus. Can you foresee a time when the government tries to take our savings or close the banks?
There is precedence. You may recall that in 1933 President Franklin D. Roosevelt ordered banks closed and pushed through Congress the Emergency Banking Relief Act. Banks were shut down for four days and the government raided bank safe deposit boxes looking for gold, which it had just decided was illegal to own — despite the gold coins being legal tender in the U.S. The government is currently considering confiscating the retirement funds of Americans and converting them to bonds. I wrote about that here.
It is certainly not out of the realm of possibility that the U.S. government will decide to raid the savings accounts of Americans, close the banks for a period of time or revalue the currency. That is why I recommend keeping only the amount needed to cover monthly bills in the bank. At least one month’s worth of cash should be kept in a safe in your home, hidden away, to protect you from bank holidays or other emergency situations. Gold and silver are the only real money and I recommend everyone own some, especially junk silver. Junk silver is pre-1965 silver U.S. coins (dimes, quarters, halves and silver dollars). Because of their silver content they will retain their value no matter what the government does to currency. They will be readily acceptable in trade because they look like the coins we use every day.