Is Paypal FDIC Insured?

PK it’s perhaps off-topic but as someone who has been pushing the gold standard for well over 5 years now (Ron Paul has been doing so for over 20 years) I have to speak up regarding this distorted view:

That doesn’t change the fact that gold has little practical value, which doesn’t justify its price. You seem to be suggesting that gold should have a high value because it has had a high value in the past, without suggesting an actual basis for that value. For almost all other goods, the price is determined by a demand fueled by an actual need for the good. That is not the case for gold.

Firstly it IS the case for gold, it’s value is indeed determined by the market like any other commodity. In fact gold is one of the very few things that governments and central banks often HAVE tried to manipulate the value of, which poor results. You can’t argue with the market.

I find it amusing that people immediately bring up this “Well in the event of a crash you can’t eat gold” idea. That is true but you cannot eat federal reserve notes either can you?

Can you?

No, you cannot. With gold however you can continue to use it as “money”. What is “money”? Money is simply the most exchangable commodity, ie that which is most easily exchanged for goods and services, be it beads, pearls, copper strips, cows, sheep, paper printed by some bank - or gold.

Basing the value of the global economy on the mining of a specific mineral, and therefore fixing the growth of the global economy to the amount of the mineral which can be mined, makes no sense. It forces the economy to grow when there is no growth and limits the economy’s growth when there would otherwise be a high growth rate.

What you suggest in itself makes no sense. Why would an economy “not grow” just because the value of the currency increases? Stop and think about it - the value of the currency, in this case gold, increasing IS THE DEFINITION OF A GROWING ECONOMY!

A “grown” economy does not simply mean more people or more shops or whatever, it means more is made available from the same number of people, the same raw resources and so on. There are no more natural resources on this planet than there were 300 years ago but 300 years ago people could not afford or obtain the goodies, services and lifestyle we have today.

That we have these things is the result of market forces in action, not because the US government printed bits of paper.

An economy needs “the most exchangeable commodity”, ie currency. When that currency is paper, being printed from nothing, it devalues that commodity and is a DRAG on the economy, not a help. Sure, in the short term you get “boom”, which will always lead to “bust”. Right now we are facing an extra-large bust because the world’s reserve currency is going bust. Did you not notice Zimabwe’s currency already went bust? Or any of the dozens of other national paper currencies that have gone bust over the last 200 years, the most famous being the hyperinflation in Germany?

Paper currencies with no backing never last for long, just long enough for politicians and well-connected cronies to make a killing and retire perhaps but not in terms of history. The American dollar has already lost more than 95% of it’s value since going off the gold standard, yet you say:

The paper standard is excellent, as it can be easily regulated. It isn’t tied to anything, and can therefore be adjusted to suit the economy’s need, rather than trying to cram the economy into factors over which noone has any real control.

Why should anyone need to “control” the economy? Did you learn nothing from the collapse of the Soviet Union and every other controlled economy in history?

While it can be abused in theory, so can the gold standard. If noone but the central banks controls the amount of gold held, then the central banks have the same freedom as they do now.

Sure, which is why the American government actually outlawed gold, literally confiscating that owned by Americans and banning the sale of gold.

In America.

That made the depression much worse but didn’t stop gold being valuable everywhere else on the planet. Despite the government’s best efforts to do so, they could not kill gold as a currency.

Governments hate gold, as it tells the truth and draws attention to government lies and printing of money. When the price of gold rises quickly people ask “Why?” and governments hate them finding out the answer - “Because government is printing a lot of money as an inflation tax, meaning the paper notes are going down in value”

Those who first get the new paper today can spend it at yesterday’s prices, those who get the paper tomorrow pay tomorrow’s price.

If you bury $100 in gold and $100 in paper notes, then dig it up in 10 years time, not only will the paper have rotted but it would be worth very little. The gold however would still be worth what it was when you buried it. It is a true “store of value”. Paper notes are not, they lose some percentage of their value continously. They ARE currently the most exchangable commodity, simply because A. government force, such as confiscating gold and “legal tender” laws, B. because that’s who the banking system is currently set up, ie based on nothing and as usual for a fiat paper currency, heading for a collapse.

The problem is that as the Western world recovered from WW2, the American dollar became the world’s reserve currency, meaning this bubble was slower but bigger, in fact the biggest ever. When it pops…


Sorry for the typos, in a rush


Regarding those ‘legal tender’ laws, isn’t it interesting that the Constitution mandates that no State shall “make any thing but gold and silver coin a tender in payment of debts” and that the Constitution specifies that Congress has the authority to “coin Money”?

The founders really liked their coins, because coins made of gold and silver truly hold their value.


Unlike the garbage taught at modern state schools the founding fathers were well educated in both history and economics. They knew exactly what would happen with fiat (“at will”) paper money.

Despite the constitution it has happened 3 times, first with the colonials, then the continental, now the dollar. “Note worth a continental” is now part of the modern lexicon, meaning “utterly worthless”. How long before people across the world will be saying “not worth a dollar”?

This isn’t the first time the US has had a central bank either, though you’d be hard pressed to find an American on the street who knows this or anything about it.

I forget who said it or the exact quote but I’m reminded of it, goes something like “The one thing we learn from history is that we learn Jack Sh*t from history” or something like that…

History offers 2 lessons:

  1. Never, ever, ever, trust a government with paper money, for they WILL ALWAYS over-print it as a form of tax, every single time, without exception, ever, forever and always.


  1. Never, ever, admit where inflation comes from, claim you have “policies” to “tackle” inflation, lie through your teeth about actual inflation rates, dumb the kids down at school to the point they think they’re smart because they can perform meaningless math equations and draw “economic” graphs, and make out like bandits while the going is good - because it will take anywhere from 5 to 100 years or so before the sheer destruction of paper money really sinks in and people actually react to the ongoing theft.

Crazy thing is, even if you force someone into a chair, chain them down and force them to learn and understand the evils of paper money backed by nothing and prove, beyond any doubt, that it is nothing more than a tax - most people will just shrug and go “Ahh, tax. That’s alright then, cos government sez so.”



I doing business through Paypal in years and I don’t hear any negatives about paypal, so I think paypal is a good company.

There’s a whole bunch of negatives right here on this thread, including a link to but you hear nothing?

I rest my case.


Go to this link in PayPal. You may have to be log into your PayPal account. Or see the PayPal footer link “Information about FDIC pass-through insurance” after you have logged in.

As I understand it… Although PayPal is not a bank, it keeps its money in a bank. If that bank collapses, that money is FDIC insured up to 100,000. But if PayPal goes out of business, then not. And if you elect to put your money into PayPal Money Market Fund, then it is not FDIC insured.

with the state of play at the moment, i wouldn’t even keep a penny there!
has anyone else started picking up every coin they spot on the streets? lol

I have dealt with paypal for years and i would say never leave big amounts of money sitting in there.

Paypal are fine when everythings going ok but when you hit a problem you realise how bad they are.

Support is very bad. transfer your funds. i always just leave a float. Be safe not sorry.

I agree do not trust Paypal with your funds it is no bank although i wouldn’t trust a bank either but i trust Paypal less. I actually have a level myself which i set and when it gets to that i withdraw the funds. I have heard Paypal have actually suspended accounts if they get high amounts of money fast which is understandable due to fraud however think of it this way Paypal also give the buyer the benefit of the doubt if the buyer decided to make a dispute so you can send them the product and then end up with no product or money so with that in mind no its not safe.

In my book the money is better in my hands than in Paypal’s. Do you also think the insurance would pay up in today’s financial climate and you don’t pay Paypal for insurance purposes.

In some countries in Europe like Germany and Britain I think paypal has to operate as a bank and abide by the financial services authorities. It is also included in the federal deposit insurance schemes in these countries. I know that for sure with regards to Germany but am not 100% confident about Britain but think they are FSA licensed and insured.

Don’t forget PayPal is just a part of parent company eBay, so the whole corporation would have to go down for PayPal to go bankrupt.

From Paypals website:

If you do hold a balance, you can do so in two ways: (1) PayPal, as your agent, will place your funds in a pooled account at an unaffiliated FDIC-insured bank or savings institution, which is eligible for pass-through FDIC insurance coverage; or (2) you can elect to earn a return on your funds by enrolling to invest all funds that you receive into the PayPal Money Market Fund. The PayPal Money Market Fund is not FDIC insured, not guaranteed by any bank and may lose value. PayPal keeps a record of the amount of your balances, which you can check by logging in to your account through the PayPal Web site at any time. Balances held in currencies other than U.S. Dollars are not FDIC-insured.

Source: Paypal


Paypal can decide over your money and confiscate to make a payments to others is they decide it, I lost lots of money with them but I cancell the account. I sale couple things (over 400.00) people copy and return the merchandise and later complaint with paypal, and paypal take the funds from my money and returned to the people again.