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In the coming months, another banking crisis will hit. When it does, bank
accounts will be frozen and deposits will be used to “bail-in” the banks.
Most people will read that sentence and laugh. But the reality is that the
legislation has already been implemented.
In the last 24 months, Canada, New Zealand, the US, the UK, and now
Germany have all implemented legislation that would allow them to first
FREEZE and then SEIZE bank assets during the next crisis.
The whole template for this was set out in Cyprus in 2013. The quick
timeline for what happened in Cyprus is as follows:
· June 25, 2012: Cyprus formally requests a
bailout from the EU.
· November 24, 2012: Cyprus announces it has
reached an agreement with the EU the bailout process once Cyprus banks are
examined by EU officials (ballpark estimate of capital needed is €17.5
billion).
· February 25, 2013: Democratic Rally
candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an
anti-austerity Communist.
· March 16 2013: Cyprus announces the terms
of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for
accounts larger than €100,000… a bank holiday is announced.
· March 17 2013: emergency session of
Parliament to vote on bailout/bail-in is postponed.
· March 18 2013: Bank holiday extended until
March 21 2013.
· March 19 2013: Cyprus parliament rejects
bail-in bill.
· March 20 2013: Bank holiday extended until
March 26 2013.
· March 24 2013: Cash limits of €100 in
withdrawals begin for largest banks in Cyprus.
· March 25 2013: Bail-in deal agreed upon.
Those depositors with over €100,000 either lose 40% of their money (Bank of
Cyprus) or lose 60% (Laiki).
The most important thing I want you to focus on is how lies and
propaganda were spread for months leading up to the collapse. Then in the
space of a single weekend, the whole mess came unhinged and accounts were frozen.
One weekend. The process was not gradual. It was sudden and it was total:
once it began in earnest, the banks were closed and you couldn’t get your
money out (more on this in a moment).
There were no warnings that this was coming because everyone at the top of
the financial food chain are highly incentivized to keep quiet about this.
Central Banks, Bank CEOs, politicians… all of these people are focused
primarily on maintaining CONFIDENCE in the system, NOT on fixing the system’s
problems. Indeed, they cannot even openly discuss the system’s problems
because it would quickly reveal that they are a primary cause of them.
For that reason, you will never and I repeat NEVER see a Central banker,
Bank CEO, or politician admit openly what is happening in the financial
system. Even middle managers and lower level employees won’t talk about it
because A) they don’t know the truth concerning their institutions or B) they
could be fired for warning others.
Please take a few minutes to digest what I’m telling you here. You will
not be warned of the risks to your wealth by anyone in a position of
power in the political financial hierarchy (with the exception of folks like
Ron Paul who are usually marginalized by the media).
Moreover, when the Crisis DOES hit, it will be much,
much harder to get your money out.
Consider the recent regulations implemented by SEC to stop
withdrawals from happening should another crisis occur.
The regulation is called Rules Provide Structural and
Operational Reform to Address Run Risks in Money Market Funds. It
sounds relatively innocuous until you get to the below quote:
Redemption Gates – Under the rules, if a money market fund’s level of
weekly liquid assets falls below 30 percent, a money market fund’s board
could in its discretion temporarily suspend redemptions (gate). To
impose a gate, the board of directors would find that imposing a gate is in
the money market fund’s best interests. A money
market fund that imposes a gate would be required to lift that gate within 10
business days, although the board of directors could determine to lift the
gate earlier. Money market funds would not be able to impose a gate for
more than 10 business days in any 90-day period…
Also see…
Government Money Market Funds – Government money market funds
would not be subject to the new fees and gates provisions. However,
under the proposed rules, these funds could voluntarily opt into them, if
previously disclosed to investors.
http://www.sec.gov/News/PressRelease/Detail/P...ease/1370542347
In simple terms, if the system is ever under duress again, Money
market funds can lock in capital (meaning you can’t get your money out) for
up to 10 days. If the financial system was healthy and stable, there
is no reason the regulators would be implementing this kind of reform.
This is just the start of a much larger strategy of declaring War on Cash.
The Powers That Be don’t want you to have the ability to get your money out
of your investments or bank accounts…. They want that capital around to be
converted into bank equity during “bail-ins.”
Indeed, we've uncovered a secret document outlining how the Fed plans to
incinerate savings to force investors away from cash and into riskier assets.
We detail this paper and outline three investment strategies you
can implement
right now to protect your capital from the Fed's sinister plan in our
Special Report
Survive the Fed's War on Cash.
We are making 1,000 copies available for FREE the general public.
To pick up yours, swing by….
http://www.phoenixcapitalmarketing.com/cash.html
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