gunDriller
28th August 2014, 06:29 AM
Israeli Jew Fischer proposes 'bail-inable long term debt' ... i.e. Seizure of Customer Accounts.
Maybe surprising at first. But then, not so surprising.
"Though Fischer doesn’t detail exactly what “bail-inable long term debt” actually is, one only needs to look to Europe, namely Cyprus, to understand what he means.
When the Cypriot banking system collapsed because of an inability to service its debt in 2013, the government forced bank depositors to cover the debts. This led to banks forcibly seizing funds from depositor accounts in order to pay their debts.
According to the Fed Vice Chairman, the U.S. government is now proposing similar rules, following in the footsteps of Europe and Japan, who have already prepared such measures.
The bottom line is that financial, economic and monetary policymakers in the United States are fearful that another crisis, perhaps even worse than what we saw in 2008, is going to be playing out in the very near future. Otherwise, why would they find it necessary to take the drastic step of forcing bank depositors to act as a backstop for their financial institutions?
But this time around, it won’t be the government that bails them out directly. Instead, if you have an account with the bank, you are an unsecured creditor for that institution, just like the people of Cyprus were for their banks. And when that bank inevitably comes under pressure because of an inability to cover their debts, it is you who will become the bailout mechanism.
It’s not hard to imagine how this scenario might play out the next time around.
At the first hint of another crisis we’re going to see panic that will make 2008 look like a picnic. First, stock markets will sell off en masse across the world as a scramble to not be the last one out takes hold of investors. This, in turn, will lead to liquidity problems at major financial institution across the country. As banks run out of cash to cover the tens of billions of dollars they need to service their existing debt, they will turn to the new policies described by Stanley Fischer.
What this means is that one morning you could wake up and see ten or twenty percent of your funds transferred out of your account and exchanged for long-term debt (like a bond) with the promise that the bank will pay it back to you at a later date.
The immediate result, as you might expect, will be widespread bank runs, just as we saw in Europe when Cypriot depositors got hit. But, there will be no cash to be had save a few hundred dollars here and there, as banks will limit ATM withdrawals and will likely shut their doors to customers.
This, of course, would have an effect similar to what we recently saw in Ferguson, except riots and looting will be taking place in every major city across the country.
And though it may seem like an impossible scenario to envision in today’s peaceful and stable America, the U.S. military and Department of Homeland Security doesn’t think so. For the last several years they have been war-gaming and simulating widespread economic collapse scenarios and they’ve been stockpiling everything from armored vehicles to riot gear in over 8,000 counties across the United States in preparation for the civil unrest that would explode from coast to coast."
Yeah. People don't like their money stolen by Jews, or anybody else for that matter.
The many $Trillions of dollars that were made in credit derivatives from the mid-90's to today ... apparently not available to help shore up balance sheets ?
http://www.shtfplan.com/headline-news/fed-vice-chairman-warns-your-bank-may-seize-your-money-to-recapitalize-itself_08272014
Maybe surprising at first. But then, not so surprising.
"Though Fischer doesn’t detail exactly what “bail-inable long term debt” actually is, one only needs to look to Europe, namely Cyprus, to understand what he means.
When the Cypriot banking system collapsed because of an inability to service its debt in 2013, the government forced bank depositors to cover the debts. This led to banks forcibly seizing funds from depositor accounts in order to pay their debts.
According to the Fed Vice Chairman, the U.S. government is now proposing similar rules, following in the footsteps of Europe and Japan, who have already prepared such measures.
The bottom line is that financial, economic and monetary policymakers in the United States are fearful that another crisis, perhaps even worse than what we saw in 2008, is going to be playing out in the very near future. Otherwise, why would they find it necessary to take the drastic step of forcing bank depositors to act as a backstop for their financial institutions?
But this time around, it won’t be the government that bails them out directly. Instead, if you have an account with the bank, you are an unsecured creditor for that institution, just like the people of Cyprus were for their banks. And when that bank inevitably comes under pressure because of an inability to cover their debts, it is you who will become the bailout mechanism.
It’s not hard to imagine how this scenario might play out the next time around.
At the first hint of another crisis we’re going to see panic that will make 2008 look like a picnic. First, stock markets will sell off en masse across the world as a scramble to not be the last one out takes hold of investors. This, in turn, will lead to liquidity problems at major financial institution across the country. As banks run out of cash to cover the tens of billions of dollars they need to service their existing debt, they will turn to the new policies described by Stanley Fischer.
What this means is that one morning you could wake up and see ten or twenty percent of your funds transferred out of your account and exchanged for long-term debt (like a bond) with the promise that the bank will pay it back to you at a later date.
The immediate result, as you might expect, will be widespread bank runs, just as we saw in Europe when Cypriot depositors got hit. But, there will be no cash to be had save a few hundred dollars here and there, as banks will limit ATM withdrawals and will likely shut their doors to customers.
This, of course, would have an effect similar to what we recently saw in Ferguson, except riots and looting will be taking place in every major city across the country.
And though it may seem like an impossible scenario to envision in today’s peaceful and stable America, the U.S. military and Department of Homeland Security doesn’t think so. For the last several years they have been war-gaming and simulating widespread economic collapse scenarios and they’ve been stockpiling everything from armored vehicles to riot gear in over 8,000 counties across the United States in preparation for the civil unrest that would explode from coast to coast."
Yeah. People don't like their money stolen by Jews, or anybody else for that matter.
The many $Trillions of dollars that were made in credit derivatives from the mid-90's to today ... apparently not available to help shore up balance sheets ?
http://www.shtfplan.com/headline-news/fed-vice-chairman-warns-your-bank-may-seize-your-money-to-recapitalize-itself_08272014