bail-ins

Financial Crash will be Put On Little People [w/ Video]

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BrownGreg Hunter – Public banking expert Ellen Brown thinks big banks will be saved from a coming calamity at the expense of the little people. Brown explains, “I think the big banks won’t go down. They are protected by the bail-ins, which we haven’t yet seen in the U.S., but we’ve seen them in Europe starting in Italy.

They did them starting last year. There were four small banks that got bailed-in . . . they took deposit accounts where they got some interest, and they were called bond holders. So, they took the bond holders’ money. They were really just ordinary depositors that thought they were making a little interest. There was one man who committed suicide because he lost his whole 100,000 euros. He pinned a sign to his chest and blamed it on his bank.

http://youtu.be/ySvacUZcQL8

The effect of the bail-ins in Italy was, rather than stabilize the banks, it destabilized the banks. Depositors in Italy were pulling their money out. It seems to me that the way things are playing out, the banks will be kept in place by governments because of this fear of the collapse of this derivatives scheme. Who will be hurt? It will be the little people. So, we will see a crash, but it will be a crash on us. We will lose our deposits or we will have to do a bail-in. The big banks, under the current law, are pretty much safe.”

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A Crisis Worse than ISIS? Bail-Ins Begin

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banksEllen Brown – While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US.  Poverty also kills.

At the end of November, an Italian pensioner hanged himself after his entire €100,000 savings were confiscated in a bank “rescue” scheme. He left a suicide note blaming the bank, where he had been a customer for 50 years and had invested in bank-issued bonds. But he might better have blamed the EU and the G20’s Financial Stability Board, which have imposed an “Orderly Resolution” regime that keeps insolvent banks afloat by confiscating the savings of investors and depositors. Some 130,000 shareholders and junior bond holders suffered losses in the “rescue.”

The pensioner’s bank was one of four small regional banks that had been put under special administration over the past two years. The €3.6 billion ($3.83 billion) rescue plan launched by the Italian government uses a newly-formed National Resolution Fund, which is fed by the country’s healthy banks. But before the fund can be tapped, losses must be imposed on investors; and in January, EU rules will require that they also be imposed on depositors. According to a December 10th article on BBC.com:

The rescue was a “bail-in” – meaning bondholders suffered losses – unlike the hugely unpopular bank bailouts during the 2008 financial crisis, which cost ordinary EU taxpayers tens of billions of euros.

Correspondents say [Italian Prime Minister] Renzi acted quickly because in January, the EU is tightening the rules on bank rescues – they will force losses on depositors holding more than €100,000, as well as bank shareholders and bondholders.

. . . [L]etting the four banks fail under those new EU rules next year would have meant “sacrificing the money of one million savers and the jobs of nearly 6,000 people”.

That is what is predicted for 2016: massive sacrifice of savings and jobs to prop up a “systemically risky” global banking scheme. Continue reading →

NWO In Its Element: Problem, Reaction, Solution. Beware.

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Michael Noonan – Last week, we lamented how difficult it was to get a fix on so many things going on in the world, and going wrong.  It occurs to us that we are all in the midst of the New World Order going about business as usual, creating Problems, and the bigger the better, then watching reactions of the masses, even governments.  The worse possible the problems, the more horrifying the Reactions  the better.  For waiting in the wings is their planned Solution, all leading toward global takeover under a one world rule, like the UN.

One of the more fractious plans has been the destabilization of the Middle East.  Think of all the “problems” [real as they are, but planned], festering throughout that region.  The Arab/Muslim world is reacting, ISIS, US proxy plans for destabilizing Syria, Turkey now in turmoil, Libya gone [along with all its gold, the plan all along], ongoing problems in Egypt, Saudi Arabia attacking Yemen [Sunni v Shiite, keep them divisive, the plan].  Globalists want the entire region warring with each other and in a weakened state, [Problem].

As the  Middle East, and the rest of the world, reacts, [Reaction], the Globalists will step in with a solution to stop all the fighting, being peace, to a certain degree, and have the factions somehow come under a Globalist’s “unified” umbrella where they are now in control, [Solution, their solution].

This Problem, Reaction, Solution blueprint happened in Cyprus, now Greece, setting the stage for bail-ins throughout the Western world, in order to save the banks that created all the financial mayhem from the beginning.  Guess what plan is waiting in the wings for the masses now? Continue reading →

The War On Cash: Officially Sanctioned Theft

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interestCharles Hugh Smith – You’ve probably read that there is a war on cash being waged on various fronts around the world. What exactly does a war on cash mean?

It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash.

These limits are broadly called capital controls.

The War On Cash: Why Now?

Why are governments suddenly acting as if cash money is a bad thing that must be severely limited or eliminated?

Before we get to that, let’s distinguish between physical cash—currency and coins in your possession—and digital cash in the bank. The difference is self-evident: cash in hand cannot be confiscated by a “bail-in” (i.e. officially sanctioned theft) in which the government or bank expropriates a percentage of cash deposited in the bank. Cash in hand cannot be chipped away by negative interest rates or fees like cash held in a bank.

Cash in the bank cannot be withdrawn in a financial emergency that shutters the banks, i.e. a bank holiday.

When pundits suggest cash is “obsolete,” they mean physical paper money and coins, not cash in a bank. Cash in the bank is perfectly fine with the government and its well-paid yes-men (paging Mr. Rogoff and Mr. Buiter) because this cash can be expropriated by either “bail-ins” or by negative interest rates.

Mr. Buiter, for example, recently opined that the spot of bother in 2008-09 (the Global Financial Meltdown) could have been avoided if banks had only charged a 6% negative interest rate on cash: in effect, taking 6% of the depositor’s cash to force everyone to spend what cash they might have.

Both cash in hand and cash in the bank are subject to one favored method of expropriation, inflation. Inflation—the single most cherished goal of every central bank—steals purchasing power from physical cash and digital cash alike. Inflation punishes holders of cash and benefits those with debt, as debt becomes cheaper to service. Continue reading →

Cashless Society Needed For Negative Rates [Video]

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cashless societyGreg Hunter – Macroeconomist Gordon Long says elite bankers want and need negative interest rates.  How do they get them?  Long says, “We need a cashless society in order to get negative interest rates.  We have had negative real interest rates for some time.  That’s the whole premise of paying down the government debt by effectively debasing it.  But we have run up against a wall, and we have run up against that wall.  Clearly, quantitative easing isn’t working.”

Long says the bankers are not through distorting the system, and a cashless society is the next step.  Long explains, “We are still early in the second or third innings of what’s to come.  We are trapped in a globalization trap.  With quantitative easing . . . we are bringing demand forward.  Debt is nothing but future demand.  So, we are really pushing at demand, but we can’t bring anymore forward.  In fact, real disposable income is falling.  People don’t have money to spend, and jobs are not there.  The issue now is not demand. . . .The issue is oversupply.  Cheap money doesn’t just allow you to buy something, it also allows producers to produce.”

[youtube=https://youtu.be/3vseg6-5ldI]

So, will a cashless society put off the next crash?  Long says, “We have run out of runway, but never underestimate the ingenuity of a trapped politician and central bankers to come out with new policies and new ways to extend this.  We are going to see some pretty violent volatility and corrections.  We are going to be in there guaranteeing collateral because our issue is . . . there is a shortage of collateral.  The Fed sucked all of the bonds out of the market.  There is a shortage of them.  So, we have a major liquidity problem.  That’s the runway we are running out of, and flows are starting to slow dramatically.  Now, that says it’s getting unstable, but that doesn’t mean the world is coming to an end.  It does mean we are going to do something else, and one of those things is negative nominal rates and cashless society.  That’s the reason why we are going to have a cashless society.  You are going to see this (cashless society idea) accelerate in the next six months.”  Continue reading →