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Bail-Ins And Deposit Confiscation Confirmed At ‘Future of Banking in Europe’ Conference
Gold fell $32.20 or 2.57% yesterday, closing at $1,219.00/oz. Silver slid $0.84 or 4.2% closing at $19.15/oz. Platinum dropped $20.95, or 1.5%, to $1,336.25 /oz and palladium fell $9.78, or 1.4%, to $708.72/oz.
Gold advanced from nearly a five-month low, after the biggest one-day drop since October, as investors assessed whether the U.S. economy is strong enough to warrant a move away from ultra loose monetary policies.
Gold fell despite the data yesterday being mixed. It showed that while U.S. manufacturing unexpectedly accelerated in November at the fastest pace in more than two years, retail spending fell on the weekend after Thanksgiving for the first time since 2009. The overly indebted U.S. consumer is struggling which does not bode well for the consumer dependent U.S. economy.
Gold in US Dollars, 5 Year (Bloomberg)
Bulls took solace in the fact that the price falls came on very low volumes - volume was 20% below the average for the past 100 days at this time of day, data compiled by Bloomberg showed.
Gold is down 26% year to date and many analysts agree that it is now very oversold. The 14-day relative-strength index fell to 30 yesterday, signaling to some analysts who study charts that the price may be set to rebound.
Physical demand picked up on lower prices overnight - particularly in China and Asia. In China, now the largest buyer of gold in the world, premiums of 99.99% purity gold climbed to about $11 an ounce from $7 on Monday on the Shanghai Gold Exchange (SGE).
Bail-Ins And Deposit Confiscation Coming Noonan Confirms At ‘Future of Banking in Europe’ Conference
A major conference on the future of banking yesterday heard contributions on a European banking union which is being negotiated by Eurozone finance ministers. One of the aspects of that union will be a 'bail-in' of deposits when banks fail in the future. Michael Noonan, Ireland’s Minister for Finance confirmed yesterday that bail-ins or deposit confiscation will be used.
The toolkit underpinning the Single Resolution Mechanism is provided for in the bank recovery and resolution proposal (BRR) which was agreed last June in Council under the Irish Presidency. The proposal provides a common framework of rules and powers to help EU countries manage arrangements to deal with failing banks at national level as well as cross-border banks, whilst preserving essential bank operations and minimising taxpayers' exposure to losses.
One of the main pillars to the BRR framework to facilitate a range of actions by authorities are “resolution tools”. Noonan confirmed yesterday that resolution tools include the sale of business, bridge bank and asset separation tools and also the use of bailins.
The era of bondholder bailouts is ending and that of depositor bail-ins is coming.
Preparations have been or are being put in place by the international monetary and financial authorities for bail-ins. The majority of the public are unaware of these developments, the risks and the ramifications.
It is now the case that in the event of bank failure, your deposits could be confiscated.
Let's be crystal clear: The EU, UK, the U.S., Canada, Australia and New Zealand all have plans for bail-ins in the event of banks and other large financial institutions getting into difficulty.
Download our Bail-In Guide: Protecting your Savings In The Coming Bail-In Era (11 pages)
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Is that like the law that says if you counterfeit USD you'll go to jail? Or if you use customer segregated funds for your own devices you'll go to jail?
Where is GreenBenYellin? Where is Jon Corzine?
DoddFrank bill says no tax payer bailouts only depositor bail ins, and I don't believe they are protected by FDIC because that would be the same thing as a tax payer bail out.
Generally in these schemes the insured limits stay the same, the money above the limits is just used to recapitalize the banks without bankruptcy. The money of people below the limits is just as "safe". Of course all the fat contracts for the bank's upper management and board is safe too, those can only be broken up in bankruptcy ...
So you want me to put my money into a bank robber's hands and not give me enough interest on it that even keeps up with inflation?
Bank of Mattress is the safest bank compared to the bwanksters
Granny was right afterall, don't forget to feed the birds, God Bless.
Except in the event of fire or a total-trashing vandalistic robbery.
except for gold & silver which don't go away in fire. Even if they melt you can melt it again back into a desired shape.
You can buy fireproof envelops on the internet, you know.
that's encouraging. oh look! Darth Vader! Let's go say hello!
Damn good point I'd better stop storing my cash in my wood burner, maybe buy a safe?
make the matress full of copper pennies, either way it's worth something.
And what evidence is there that the US bail-ins will not be what it has been for so long, anything above the FDIC guarantee.
If there were US bail-ins, would assets held directly in US Treasuries also take a haircut?
FDIC guarantee?
Pull the other one, its got bells on.
Don't bail me in, bro!
It's silly to think the FDIC guarantuees would be fucked with, much easier to just print the dollars and pay them ... the dollars might not be worth much but the guarantuees will stand IMO.
Which is why I ask, even the Cypruss bail-in ended up to be above the guarantee limit. If there is a case or talk about bailing in below the guarantee then it's time for a boat full of gold to sink in Lake Pontracian.
that limit is arbitrary - it could be set lower then bail-ins would be above the limit.
Bail-ins and deopsit confiscations cure bank problems, not consumers problems. But how can anyone possbily be depressed the day after Iceland told the IMF to f*ck OFF once again.
Iceland is going to write off 24,000 euros of EVERY household mortgage. Yeah, this has been all over the mainstream media, hasn't it?
The purpose isn't to give mortgage holders a freebie, it's to stick foreign bankers with the 24K/mortgage of worthlessness they wrung out of the Icelanders.
http://www.thejournal.ie/iceland-goes-against-international-concern-writes-off-debt-1203320-Dec2013/
Icelanders are fantastically insane. The plan is far from perfect, but it's beautiful in it's simplicity:
it is designed solely to take a hunk of meat out of f*king foreign bankers right now no matter what the consequences.
Increase consumer spending? Hah - good cover story. Who cares if it has that improbable effect. Icelanders are going to feel the pain no matter what. Bravo for bitch-slapping the banks on the way down rather than going out on your knees sniffling for their mercy.
5% of your portfolio in Bitcoin is the only way to go.
Bail-in threats? Bitcoin user not affected!