First It Was Bail-Ins And Now EU Sees “Personal Pension Savings” As “Plug” For Banks

GoldCore's picture

Today’s AM fix was USD 1,290.25, EUR 943.65 and GBP 774.93 per ounce.
Yesterday’s AM fix was USD 1,286.50, EUR 942.84 and GBP 778.47 per ounce.   

Gold climbed $1.00 or 0.08% yesterday to $1,290.90/oz. Silver was unchanged at $20.20/oz.

Gold is marginally higher in dollars after the dollar fell versus other major currencies. It remains near a three month high. It is looking well technically and from a momentum perspective and appears capable of breaking above the $1,300 level. This should lead to gold rising sharply to test the next level of resistance at $1,365/oz.

Asian and European stock markets have resumed their downward slide today which should support gold. In Asia, this ends a five-session winning streak for stocks which had been built on relief that the U.S. Federal Reserve would maintain its ultra loose monetary policies.

Gold in US Dollars, (Monthly) 20 Years - (Bloomberg)

The “personal pensions savings” of the European Union's 500 million citizens could be used to fund “long-term investments” to “boost the economy” and help plug the gap left by banks since the financial crisis, Reuters has reported (see News) after seeing an EU document on the matter.

The EU is looking for ways to wean the 28 country bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other unspecified investment.

"The economic and financial crisis has impaired the ability of the banking and financial sector to channel funds to the real economy, in particular long-term investment," said the document. The Commission will ask the bloc's insurance watchdog in the second half of this year for advice on a possible draft law "to mobilize more personal pension savings for long-term financing."

An objective stress test of the euro zone's biggest banks could reveal a capital shortfall of a whopping  770 billion euros (more than $1 trillion), a study by an advisor to the EU's financial risk watchdog and a Berlin academic has found.

Another crisis seems likely given the poor financial state of many banks and this is likely to trigger depositor  bail-ins rather than bank bail outs.

This study and others published ahead of the EU stress tests, whose results are due in November, are important because they set the expectations against which markets will judge the credibility of the ECB's attempt to prove its banks can withstand another crisis without taxpayer help.

Download our Bail-In Guide: Protecting your Savings In The Coming Bail-In Era (11 pages)

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NOZZLE's picture

Translation: my brother owns the local assfault plant and needs to sell 1, 000, 000 tons of road material, we gonna take your measly pension, which by itself aint gonna do nothing for you, and invest it and 1, 000'$ of others in a new road that his dope adict kids can cruise their new Roll$ on.

CuriousPasserby's picture

I don't understand. If people have lots of pension money, it's not under their mattresses waiting to be called in, it's in stocks or bonds or pension funds fully invested. If the goverments "call it in" it will just be pulled out of one investment and put into another. WHat will that accomplish? It will crash whatever it was pulled out of.

Global Observer's picture

I don't think the suggestion is to pull the money from the existing pension funds and divert it to the new investment fund. Pension funds constantly receive inflows from those working and saving for retirement. The suggestion is for where to invest the inflows. It is actually not a bad idea, where investment in productive avenues comes from savings rather than the current paradigm where savings go into fuelling speculation and investment into productive avenues comes from bank credit expansion. That was effectively how businesses were financed before fractional reserve banking and expanding money supply, every unit a business received in investment/loan was a unit saved and not spent by someone else. That is a paradigm that implicitly acknowledges that they are expecting no economic growth, pretty courageous acknowledgment. 

logicalman's picture

The desperation is starting to show, I think.

It should be obvious to anyone with more than half a brain..........

Wyle E - over the cliff and just about to look down.

Doctor of Reality's picture

I sold my SEP in 2007 and bought assets I can touch. I've warned my friends, family and patients about what's coming. Soooo many are waking up, even the teenagers... which gives me hope. The "MyRA" won't buy them much time. I think this is the year. I hope I'm wrong. 

Duc888's picture

Nonsense.  You have choices.  Exercise them!


Here's one.  This is Bankster approved.

For you more adventurous types... here's another one.     Currently out of stock, but it's worth the wait, I'm sure.

Remember, you do business with these banks, so you CONSENT to getting the big schlong up the poop chute!

If you're a little timid...and want to get double donged by your local bankster...I recommend this one...








disabledvet's picture

catastrophic failure actually.

I think if you follow the panic buying of Swiss francs and "everything Switzerland period" vis a vis Europe's "liquidity position" that that charts the price of gold very well (gold doesn't get crushed until's outright confiscation is on the table...something that hasn't happened on this level since the Third Reich mind you) then guess what folks...the ability to drive that price of gold higher gets a LOT lower.

Those are very valuable euro's...worth turning all the gold over into it would appear while needless keeping energy prices sky high.

It will be interesting to see what the Netherlands does.

Boris Alatovkrap's picture

Fool me twice shame is me!

Cypriot bankster is tell client, "oh, no, you are safe money in bank!" and one week later is fully curtail withdrawal (= capital control). Depositor is then find 6% shave from balance. Of course, this is not lawful. Is no appropriation other than "if you are have money, we are take money".

Now, whiff of "Bail In", is European sheeple leave money in bank!? Maybe after cypriot get robbed, other European idiot is wake up? You maybe would think...