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View Full Version : Warning: Bail-ins are just around the corner



aeondaze
12th November 2014, 10:45 PM
I've often said that one of the key architectural structures the bankers wish to implement is to formalise depositor "bail-ins" just like Cyprus in 2012.

In Brisbane this weekend all G20 Nations will sign off on what effectively becomes legal theft of depositors accounts and the Orwellian double speak they've used to frame it is telling.

The premise of this move is to prevent Tax-payer funded bail-outs of TBTF institutions, but what it effectively means is that depositors accounts will undergo a legal reinterpretation so that "bank deposits are just part of commercial banks’ capital structure"...

From zerohedge


Each country will introduce its own legislation to effect the ‘ bail-in’ agreed by the G20 this coming weekend. The consultation document from the UK’s Treasury lists the following bank creditors who will rank ABOVE depositors in a ‘failing’ financial institution:

Liabilities representing protected deposits (in the UK the government guarantee protects 100% of deposits up to the value of GBP85,000)
any liability, so far as it is secured
Liabilities that the bank has by virtue of holding client assets
Liabilities arising with an original maturity of less than 7 days owed by the banks to a credit institution or investment firm
Liabilities arising from participation in designated settlement systems
Liabilities owed to central counterparties recognized by the European Securities and Markets Authorities… on OTC derivatives, central counterparties and trade depositaries
Liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration
Liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits
Liabilities owed to creditors arising from the provision to the bank of goods or service (other than financial services) that are critical to the daily functioning of its operations

The above list makes it clear that deposits larger than GBP85,000 will rank ahead of the bond holders of banks, but they will rank above little else. Importantly, both borrowings of the banks of less than 7 days maturity from other financial institutions and sums owed by banks in their role as counterparties to OTC derivatives will rank above large deposits.

http://www.zerohedge.com/news/2014-11-12/russell-napier-declares-november-16-2014-day-money-dies?page=1

But don't take my word, or even zerohedges word for it, see these articles

Chairman Joe’s meeting confirms bail-in ‘on track’ for Brisbane G20 (http://cecaust.com.au/releases/2014_06_11_Bail_In_G20.html)

and cleverly disguised to not mention the word "bail-in", here is Murdoch's paper Sydney Morning Herald (SMH) from last Monday

G20 Brisbane: Leaders to consider new model for 'too big to fail' banks (http://www.smh.com.au/business/g20/g20-brisbane-leaders-to-consider-new-model-for-too-big-to-fail-banks-20141110-11jwzg.html)

Note that these leaders aren't going to consider anything, apparently they've already signed off on it and will basically formalise the deal this weekend.

Are you ready?

Jerrylynnb
12th November 2014, 11:06 PM
In simpleton terms (for my benefit), does this mean that deposits (like in a checking account) can be confiscated and your checks against your own balance will bounce? Surely not!

But if that is what is in store, what would happen if current depositors just started going to their banks and withdrawing whatever their current balance is, and walk out of the bank with cash (in the form of Federal Reserve notes of various denominations, stuck in their fat wallets)? What is to prevent this, should we ordinary holders of checking accounts get wind of plans to confiscate our balances?

Not that I don't believe something like this might be planned, but, it does stretch the imagination to think that anybody up their thinks they can really get away with it. After all, the money we put in our checking accounts IS OUR MONEY!!!!! We didn't *give* it to the bank, we deposited it in OUR CHECKING ACCOUNTS, entrusting the bank to hold it in safe keeping until we draw against it with checks that we sign to pay for things.

Confiscating our checking account balances amounts to highway robbery, no? Out and out THEFT! No? Or maybe it is tantamount to embezzlement.

What bank could survive after such a heinous grab? Who would ever open up a checking account ever again?

Surely not.

aeondaze
12th November 2014, 11:51 PM
Short answer, yes.

Long answer, cheques will bounce if there are insufficient funds, meaning if you have $20,000 in a chequing account and they take out half, you then make out a cheque for $12,000 then you are short a couple of grand.

Obviously it will depend on how much they decide to deduct from each account, which would depend on the degree of a institutions insolvency.

If you don't think this can happen, you missed the whole Cyprus fiasco in 2012, this stuff already has a precedent. Its not a matter of if so much as when IMO.

Spectrism
13th November 2014, 06:08 AM
They are ruling that bank depositors are "creditors" to the banks. As such, they are "at risk" with their "investments". If a bank goes into default, the creditors' accounts are tapped to make the bank whole. They could take everything. This is a last resort in a reset situation because all confidence will be broken. At the switch point they won't care if people are panicked, pissed or passive.

chad
13th November 2014, 06:21 AM
go try to take out 7 or 8k. they already have bail-ins. takes days to get it back. i had to wait 4 days for 7k awhile back. they don't have the $

Buddha
13th November 2014, 10:14 AM
Good thing I don't have a checking account, or anything in a bank.

crimethink
13th November 2014, 11:44 AM
Pull it out now, or risk never seeing it again.

woodman
13th November 2014, 01:15 PM
Pull it out now, or risk never seeing it again.

Yeah, but what the hell do you do with it? Under the mattress? In a box buried perhaps. The problem is, you don't even know if cash will work once things go to hell. I suppose it is better to have cash than not but still, it is a hell of a quandary. I don't even trust the cash any more because it can be counterfitted.

I feel we are at a crux right now. There could be another deflation like in '08 but can silver and gold realistically go any lower? Things are even more skewed now than they were in '08. What to do with cash you don't trust? Certainly not the bank because they can't be trusted even with untrusty money. It almost makes sense to spend the stuff on hard assets like farmland and a tractor.

It is a damn shame to be living under a corporate (read criminal) government that cannot be trusted with one of the main justifications of government. That is making sure a sound money supply is available so it's citizens may engage in commerce.

Twisted Titan
13th November 2014, 02:14 PM
Cash will work for a good while
Because the majority wont grasp the magnitude of what just happened

Cash will be king.

Twisted Titan
13th November 2014, 02:18 PM
They are ruling that bank depositors are "creditors" to the banks. As such, they are "at risk" with their "investments". If a bank goes into default, the creditors' accounts are tapped to make the bank whole. They could take everything. This is a last resort in a reset situation because all confidence will be broken. At the switch point they won't care if people are panicked, pissed or passive.


This is why EVERY PAYDAY I am up at 3am purchasing tangible items off amazon while fools are still willing to trade real goods and services and ship it to me for free or very little and all i have to give them a bunch of digits on a computer screen that they are duped into believing is real wealth

crimethink
13th November 2014, 05:58 PM
Yeah, but what the hell do you do with it? Under the mattress? In a box buried perhaps. The problem is, you don't even know if cash will work once things go to hell. I suppose it is better to have cash than not but still, it is a hell of a quandary. I don't even trust the cash any more because it can be counterfitted.

I feel we are at a crux right now. There could be another deflation like in '08 but can silver and gold realistically go any lower? Things are even more skewed now than they were in '08. What to do with cash you don't trust? Certainly not the bank because they can't be trusted even with untrusty money. It almost makes sense to spend the stuff on hard assets like farmland and a tractor.

It is a damn shame to be living under a corporate (read criminal) government that cannot be trusted with one of the main justifications of government. That is making sure a sound money supply is available so it's citizens may engage in commerce.

Diversification is the answer:

Cash - paper & coins - in various currencies (FRN, RMB, Euro, etc.)
Gold
Silver
PGM
Food
Fuels
Guns
Ammunition
Vice products (booze & tobacco, if you're into that)

Anything that people want & need and are willing to "break the law," if necessary, to get them in times of crisis. Barter is the earliest form of trade, and will never go away.

Of course, I've been predicting that "they" will use a major "public health crisis" to attack cash and usher in the Mark of the Beast in the foreseeable future. At that point, no one will want cash because it will be "dangerous," literally...at least in their minds.

General of Darkness
13th November 2014, 06:19 PM
Fuck me. Once the Euro drops like a fucking stone I'll be buying property in Europe.

Spectrism
14th November 2014, 03:34 AM
Fuck me. Once the Euro drops like a fucking stone I'll be buying property in Europe.

Is this a colloquialism or will you be wearing a dress?

mick silver
14th November 2014, 05:42 AM
buy silver hide it are just buy a farm you will not go wrong with land , they are not making land no more
I just wish I had heard those words about 35 years ago . I did