Dave from Golden Truth has let me know of an interesting quote from
an article by Eric Sprott titled Caveat Depositor which *could* explain why countries like New Zealand and Canada are
quietly tilting towards seizing bank deposits to recapitalize failed banks.
"If there is a risk in a bank, our first
question should be: ‘Ok, what are you the bank going to do about that? What
can you do to recapitalise yourself?’ If the bank
can’t do it, then we’ll talk to the shareholders and the bondholders. We’ll
ask them to contribute in recapitalising the bank. And
if necessary the uninsured deposit holders: ‘What can you do in order to save
your own banks?’”
Jeroen Dijsselbloem, March 26, 2013
Apparently this template has already been
agreed to by the G20 according to Dave.
"Because the use of taxpayer-funded bailouts
would likely no longer be tolerated by the public, a new bank rescue plan was
needed. As it turns out, this new "bail-in" model is based on an
agreement that was the result of a bank bail-out model that was drafted by a
sub-committee of the BIS (Bank for International Settlement) and endorsed at
a G20 summit in 2011.
For those of you who don't know, the BIS is the
global "Central Bank" of Central Banks. As such it is the world's
most powerful financial institution. I sourced a copy of this Agreement
here: LINK...
...the agreement references specifically avoiding more taxpayer bailouts. It
also refers to bank deposits in excess of Government insured amounts as
"uninsured creditors." This is essentially the standard legal
bankruptcy model which uses creditor hierarchy (secured lenders, unsecured
lenders, preferred equity, equity) and applies to
the rescuing of banks.
This is very important to know about and understand because what is commonly
referred to as a "bail-in" in Cyprus is actually a global bank
rescue model that was derived and ratified nearly two years ago. It also
means that bank deposits in excess of Government insured amounts in any bank
in any country will be treated like unsecured debt if the bank goes belly-up
and is restructured in some form.
Because this is a legal Central Banking agreement that will be applied
globally, it also means that U.S. bank depositors will not be immune to this
rescue mechanism. It means that no one should keep any amount in any bank
that exceeds the FDIC guarantee. In fact, I would recommend only keeping
enough money in the bank to fund your monthly or quarterly bill paying
requirements. Any amount in excess of FDIC deposit insurance will be exposed
to the risk bankruptcy."
You
may read the entire article at Dave's blog Golden Truth.
I would assume that if Dave's reading of this document is correct, unless
there is a specific and unequivocal denial by your local government Administration,
then this is the operative plan for another series of bank failures in
the G20 countries, including the US, Germany, France, Italy, and the
UK. This would explain how these stealthy depositor seizure plans have
been bubbling up from diverse countries.
I would not be satisfied if there was merely a dismissal of the possibility,
that Cyprus was somehow a 'special case' because of the way in which their
banks were capitalized, and so heavy with deposits. In the event of a
global derivatives meltdown, no capital structure will stand, and no bank can
maintain a so-called 'fortress balance sheet' while they are gambling wildly
with speculative leverage on the side.
I do not wish to seem to be an alarmist, but this additional information and some
of the other events which are occurring has created a rather significant
shift in my thinking. Cash is not cash and deposits are no longer
deposits as we once thought of them in this non-transparent, post-Glass Steagall financial world of ours.
Congratulations. You may now be an unsecured
creditor of your local TBTF bank if your and
yours have any money on deposit there, either directly or indirectly.
You say you have money in a pension fund and an IRA at XYZ
bank? Oops, it is really on deposit in you-know-who's
bank. You say you have money in a brokerage account? Oops, it is
really being held overnight in their TBTF bank. Remember MF
Global?
Who can say how far the entanglements go? The current financial system
and market structure is crazy with hidden risk, insider dealings, control
frauds, and subtle dangers. Jim Chanos says
that the cheating is so widespread and
unpunished that it becomes almost a fiduciary responsibility to break the
rules. No wonder people are so edgy. I think the plutocrats have
gone too far, but are so detached and out of touch that they have not
figured it out yet. And when the awaking comes, it will be quite a
surprise to many.
To my correspondents who say they have spoken to their elected
representatives about this and received assurances, I would not assume that
they are aware of this international agreement which the US has presumably
signed. I was not.
And if you think they will stand up against any plans to take your deposits
during a banking emergency, against a vociferous and overwhelming flood
of objections from their constituents, remember how quickly the Congress
caved on TARP and Cyprus' Parliament gave way to the EU and ECB.
Welcome to the abyss.
