Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

FDIC Plots a Bank Heist Involving YOUR Accounts

Personal_Finance / Credit Crisis 2015 Apr 23, 2015 - 01:05 PM GMT

By: MoneyMetals

Personal_Finance

Guy Christopher writes: There's a new front opening up in the war on your wealth. If you haven't heard yet of the “bail-in,” you will. Even if you have, you need to know the latest…

The bail-in is another weapon in the government's arsenal of capital controls meant to reward Wall Street cronies and separate you from your money.


We've long been familiar with capital controls, such as daily limits on bank withdrawals. Add that to seven years of microscopic interest rates cannibalizing savers' nest eggs combined with planned inflation stealing your money while you sleep. But unlike the drip-drip we're used to, the bail-in will come upon you quickly, harshly, and with finality.

As the world faced a complete financial meltdown in 2008, Congress ponied up fresh taxpayer money – $800 billion for openers and trillions since – to bail-out favored banks and industries. Out-of-favor institutions were allowed to fail. Jobs, fortunes, and futures disappeared while unborn generations were saddled overnight with unpayable debt.

Congress and bankers noted the sharply disagreeable taxpayer reaction. So they recycled an old idea from the Great Depression's playbook – next time, just steal bank depositors' life savings.

That tried and true tactic took a new name: the bail-in. The easy part – the laws they needed had been in place for decades. But for added cover, they passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, a 1930's-styled, bank heist blueprint with a feel-good name.

Those laws altogether say your money in your bank account in your name is not your money. Those laws say the bank owns your deposited money, not you.

Wait...what?

Court cases have upheld for decades that putting your money in savings, a CD, or other banking products means you've become an “unsecured creditor.”

Your deposit is actually an unsecured loan to the bank with all the problems of counterparty risk! Instead of being presented with collateral, you get an IOU that pays a pittance in interest, or in many cases nothing.

A busted bank doesn't have to return your principal deposits. Unlike when YOU are the borrower and THE BANK is the lender, the bank didn’t tender you a lawyered up promissory note or offer you a lien on its assets. Legally speaking, you may as well have handed your money to a stranger in the alley.

“Unsecured creditor” means just what it says: "no security."

As banks went belly up during the Great Depression, slaughtering depositors' life savings, Congress offered reassurance that banks could be safe by creating the Federal Deposit Insurance Corporation, or FDIC. For decades thereafter, careful depositors walked the tightrope of spreading their deposits among various banks to qualify for insurance protection.

Every depositor should now be aware of the FDIC's congressional mandate to handle the next global economic meltdown. Readers can read that entire scheme here.

It's not an easy read because it was never meant to be. Here are some notes that might help…

The Scheme's Fine Print Reads: Bank Depositors Are Screwed

It's a joint plan with the Bank of England. Bankers see the next meltdown again going global. The title accurately names the sole intended survivors – “Globally Active, Systemically Important Financial Institutions.” The document reveals a future meltdown was anticipated, discussed, and coordinated years before the publication date of December 10, 2012.

The language “top of the group” refers to creditors, stock holders, and bond holders. They are first in line for slaughter (p. ii, p. iii).

“Resolution tools” and “resolution powers” are used throughout the document. “...applying resolution tools to different parts of the group” means FDIC has authority to make it up as they go (p.1, para 3). “...resolution authorities must not be constrained in exercising discretion” means FDIC decisions carry absolute legal authority (p.1, para.4).

FDIC doesn't like the word “save,” as in “save bad banks.” FDIC substitutes the word “resolve” 18 times.

And then there’s you, the “unsecured creditor.”

As it happens, “unsecured creditors”are quite important with the FDIC, appearing11 times in the 18 page document. “...unsecured creditors should thus expect that their claims would be written down to reflect any losses that shareholders did not cover” means we'll tell you how much you lost after we divvy up the take (p.6, para 12). That could also point to lowered insurance limits without notice, if any insurance is left at all.

“...it will take time for losses to be assessed for purposes of recapitalization” strongly hints at freezing any loot in accounts left behind (p.8, para 35).

Your consolation prize, if there's one at all, might be some government-issued bank stock you can't sell.

FDIC congratulates itself 9 times for not “exposing taxpayers,” never mentioning FDIC itself would be bankrupt after the first $50 billion in claims, leaving taxpayers to bail-out the very FDIC created in 1933 to shield their savings deposits. One single zombie bank could easily swallow $50 billion. Estimates of currently insured FDIC deposits exceed $6 trillion.

Bail-in Scheme Has Been Tested and Is Ready for Use

The bail-in ripoff scheme has been successfully tested. Depositors in Cyprus found their savings largely wiped out early in 2013. That infamous bail-in was a test run, leaving the U.S. government's fingerprints all over Cyprus. It is significant to note Cypriot authorities claimed, on their website, the legal authority to change rules mid-stream at any time, just as the FDIC claims.

Low withdrawal limits stopped panicked depositors' last minute bank runs. As banks stole their deposits, no citizens stormed banks with pitchforks, no guillotines were hauled into the village square. Bankers from Cyprus to New York congratulated themselves all around.

Poland quickly followed, stealing not bank accounts but private pension funds. Authorities took 50% of Polish retirement funds overnight with the click of a mouse.

Bail-in plans have been adopted by Canada, Australia, and throughout Europe for future use. The G-20, representing the twenty largest national economies, rubber stamped approval for global bail-ins late last year, as has the International Monetary Fund. Just last week, Austria suddenly dumped its version of FDIC insurance altogether.

Governments facing economic annihilation across the globe are now legally authorized to seize banking depositors' savings, either all or in part, overnight, and without notice. The bail-in is a treasure map for bankers and governments at the next hint of worldwide economic calamity.

They know the next meltdown will be your grandfather's Great Depression.

Unlike the 1930's, there will be no point standing in long lines with hat in hand to ask for your money. By the time you hear the news, your money in the bank will already be gone.

Guy Christopher

MoneyMetals.com

Money Metals columnist Guy Christopher is a veteran writer living on the Gulf Coast. A retired investigative journalist, published author, and former stockbroker, Christopher has taught college as an adjunct professor and is a veteran of the 101st Airborne in Vietnam.

© 2015 Guy Christopher - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules