FDIC

Negative interest rates in the US? Just ask the FDIC.

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fdicSimon Black – Last week the FDIC released its annual financial statements, giving the public a glimpse into the financial condition of the organization responsible for backing up the entire US banking system.

The numbers are pretty incredible.

The FDIC maintains the Deposit Insurance Fund (DIF), which is the emergency stash for nearly all bank deposits in the Land of the Free.

DIF financial statements show an incredible 54% drop in cash equivalents since last year.

This means the DIF’s immediate liquidity is now just 1.2% of its total assets. In other words, nearly 99% of the insurance fund is tied up in various investments that may lose substantial value in the very financial crises that they’re meant to insure.

The FDIC has stuffed much of the DIF funds in an expanding bond portfolio. Yet by its own admission, this portfolio is down $10 billion, or roughly 14%.

Plus, a good chunk of that bond portfolio has been invested in securities that earn negative interest.

It’s incredible; the organization insuring the US banking system has actually purchased bonds that yield negative interest!

Now, including the losses, the fair market value of the DIF is about $62 billion.

That might sound like a lot of money. But total bank deposits in the US exceeds $13 trillion, according to the Federal Reserve.

This means that the DIF has net assets available to cover less than 0.5% of all bank deposits.

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The Global Banking Game Is Rigged, And The FDIC Is Suing

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GlobalResearch  April 13 2014

Ellen Brown
Ellen Brown

Taxpayers are paying billions of dollars for a swindle pulled off by the world’s biggest banks, using a form of derivative called interest-rate swaps; and the Federal Deposit Insurance Corporation has now joined a chorus of litigants suing over it. According to an SEIU report:

Derivatives . . . have turned into a windfall for banks and a nightmare for taxpayers. . . . While banks are still collecting fixed rates of 3 to 6 percent, they are now regularly paying public entities as little as a tenth of one percent on the outstanding bonds, with rates expected to remain low in the future. Over the life of the deals, banks are now projected to collect billions more than they pay state and local governments – an outcome which amounts to a second bailout for banks, this one paid directly out of state and local budgets.

It is not just that local governments, universities and pension funds made a bad bet on these swaps. The game itself was rigged, as explained below. The FDIC is now suing in civil court for damages and punitive damages, a lead that other injured local governments and agencies would be well-advised to follow. But they need to hurry, because time on the statute of limitations is running out.

The Largest Cartel in World History

On March 14, 2014, the FDIC filed suit for LIBOR-rigging against sixteen of the world’s largest banks – including the three largest USbanks (JPMorgan Chase, Bank of America, and Citigroup), the three largest UKbanks, the largest German bank, the largest Japanese bank, and several of the largest Swiss banks. Bill Black, professor of law and economics and a former bank fraud investigator, calls them “the largest cartel in world history, by at least three and probably four orders of magnitude.”

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Natural News ~ Five Ways to Help Stop the Plundering of Our World

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Mike Adams (Natural News) | RS_News
December 7 2011

The economic plundering of our world is well under way, with the Goldman Sachs “white shoe boyz” taking over entire national economies as they confiscate the wealth of the working class. They aren’t the only evildoers wreaking havoc across the world, of course: A cabal of powerful and criminally-insane corporations are destroying the future of food, plotting to keep citizens suffering from disease, and even perpetuating war so they can earn obscene profits from selling more bullets, bombs and missiles.

You can help resist this economic imperialism by taking simple actions that protect your wealth and pull it out of the hands of the globalists who are actively destroying our world. Here are five of the most powerful action steps to take that can turn the tables and restore economic sovereignty at every level – household, community, state, nation and the entire globe.

#1) Shop at local farmers’ markets, food co-ops and local grocers

Stop buying Tyson chicken. Stop buying Monsanto-engineered GMO foods at the grocery store. Stop giving your money to food industry globalists such as ADM, Cargill and PepsiCo. Every time you buy a can of brand-name soda, a carton of genetically modified soy milk, or a bag of popular snack chips, you are financially supporting a system of global agricultural poverty and food domination that destroys life and liberty.

If you shop based solely on price and not ethics, you are take part in the economic destruction of our world. Shop local, buy organic and avoid all the corporate food giants and their deceptive, dishonest packaged foods.

Remember: If the food you eat comes in a box, your family and friends will eventually find YOU in a box, too.

#2) Pull your money out of the big banks and put it in local credit unions

When you deposit $1,000 in a globalist bank, they can turn around and, through a series of fractional reserve banking transactions, turn that into $9,000 in loans that earn them interest. Inversely, by pulling $1,000 out of a globalist bank (JPMorgan Chase, Citibank, Bank of America, etc.), you denythem the ability to make $9,000 in loans, thus shrinking their profits by a significant factor.

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