Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bail-Ins Likely In Greece and Indebted Western Nations - Question Is When?

Stock-Markets / Credit Crisis 2015 Jul 10, 2015 - 04:41 PM GMT

By: GoldCore

Stock-Markets

- Governments move toward ever greater financial repression
- Repression includes suppression of rates, capital controls, outlawing of cash and bail-ins
- Finance ministers discuss cashless society, giving banks total control over public’s money
- Bail-in legislation is at advanced stage internationally
- Bail-ins coming to indebted western nations – question is when …


- Legislation is devised to protect larger banks
- Ramifications of bail-ins have not been thought through
- Bail-ins will be destructive and may contribute to deflationary collapse
- Diversification both in asset classes and geographical diversification essential

goldcore_chart1_10-07-15
Goldcore’s Director of Research Mark O’ Byrne joined Gordon T Long of Financial Repression Authority for an in depth discussion on the deepening financial repression in the world today, with particular focus on bail-ins.

Mark identified a number of elements which he believes amount to financial repression including the suppression of interest rates using QE, capital controls, the move towards a cashless society and most importantly – bail-ins.

He points out that bail-in legislation, while under reported in the mainstream media, is actually at a very advanced stage. He quotes from the Bank of England’s former Deputy Governor, Paul Tucker, who following a meeting between the Bank of England and the Federal Deposit Insurance Corporation (FDIC) in October, 2013 said:

“U.S. authorities could do it today — and I mean today … ”  

Bail-in is the confiscation of bank deposits of savers and businesses which were formerly viewed as sacrosanct in the event of a bank failure. The deposits of “widows and orphans”  are now at risk and treated akin to bondholders.


The Fed’s Stanley Fischer has said that the U.S. was preparing such legislation – after Tucker had indicated that such legislation was in place.

The EU is also at an advanced stage in forcing countries to ratify bail-in legislation. The legislation is being devised to protect the larger banks against the interest of both depositors, taxpayers and the wider economy.

The various “state guarantees” for deposits or deposit insurance – generally a big round figure of €100,000 in most EU states and £75,000 in the UK)  is purely arbitrary and can be adjusted lower with the stroke of a pen lulling the public into a false sense of security.

The ramifications of bail-ins have not been thought through. With central banks taking unprecedented measures to fight deflation, Mark points out that bail-ins would create “deflation like you would not believe” by taking a large portion of cash out of the system and with further consequences for future spending and investment, consumer confidence, trade, commerce and all our economies.

Gordon points out the EU finance ministers in Dresden recently discussed moving quickly to a cashless society which would give the banks total control over the money of the public.

They could charge for “services” arbitrarily and the public would be unable to protect itself from bail-ins and reckless bank activity.

View Interview Here

Must Read Bail-In Guides:

From Bail-Outs To Bail-Ins: Risks And Ramifications

Protecting Your Savings In The Coming Bail-In Era

MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,162.40, EUR 1,041.20 and GBP 750.30 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,162.10, EUR 1,053.96 and GBP 755.37 per ounce.

Gold climbed $2.60 or 0.22 percent yesterday to $1,161.40 an ounce. Silver rose $0.32 or 2.11 percent to $15.46 an ounce.

Gold in USD – 1 Week

Both gold and silver are lower in major currencies for the week but have recovered tentatively from the latest bout of intense selling on the futures market on Tuesday which again led to sharp price falls despite robust physical demand.

Gold bullion in Singapore for immediate delivery was up 0.3 percent at $1,162.71 an ounce near the end of the day,  while gold in Switzerland was essentially flat.

The Greek government sent reform proposals to its eurozone creditors last evening in an effort to secure new funds to avoid bankruptcy and will seek a parliamentary vote on Friday to endorse immediate actions. European stocks have risen sharply on hopes for a resolution or at least some form of reprieve and another exercise in “extend and pretend.”

Gold in GBP – 1 Week

Chinese stocks rose again today after ministry officials try to stop the 30 percent market drop from mid-June, by banning shareholders with large stakes in listed firms from selling. Asian stocks were buoyant on Chinese gains.

The financial repression in China will not end well and may lead to an even greater bubble – followed by an even greater crash.

Other economic news has been poor with the IMF cutting global growth forecasts and U.S. jobs data poor and this has supported gold today.

The IMF cut its global economic growth forecast this year to 3.3 percent from  3.5 percent, citing recent weakness in the United States which also supported the yellow metal.

New applications for U.S. unemployment insurance benefits rose last week to their highest level since February, suggesting a slowdown in the labour market. Initial claims for state unemployment benefits rose 15,000 to a seasonally adjusted 297,000 for the week that ended July 4, the U.S. Department of Labor said on Thursday.

The U.S. and indeed global ‘recovery’ remains on tentative grounds at best.

Members of the Chinese Gold & Silver Exchange Society (CGSE) in Hong Kong began trade on the Shanghai Gold Exchange (SGE) directly on today, expanding ways to access to one of the world’s fast-growing bullion markets, China.

The CGSE members can now trade the Shanghai gold in Hong Kong through the CGSE’s membership in the Shanghai Gold Exchange, a CGSE spokeswoman said today.

Gold in EUR – 1 Week

London’s role in the benchmark gold fix will be challenged by China’s Shanghai Gold Exchange (SGE) who reported last month it will launch a yuan-denominated gold fix by the end of 2015.

China is the world’s largest producer and buyer of gold bullion, making China’s dominance of the gold market a foregone conclusion.

In late morning European trading gold is up 0.50 percent at $1,164.56 an ounce. Silver is up 0.45 percent at $15.60 an ounce, and platinum is up 1.47 percent at $1,035.00 an ounce.

This update can be found on the GoldCore blog here.

Stephen Flood
Chief Executive Officer

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2022 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