New Laws That Allow The Government to Seize Savings Deposits During a Crisis
Behind the veneer of “all is well” being promoted by both world Governments and the Mainstream Media, the political elite have begun implementing legislation that will permit them to freeze accounts and use your savings to prop up insolvent banks.
This is not conspiracy theory or some kind of doom and gloom. It’s basic fact.
When a Cyprus bank went bust in 2013, the Government SEIZED 40% of ALL SAVINGS DEPOSITS OVER €100,000.
Here’s the timeline:
· 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.
The initial stage of this took over six months to develop. But once things got hairy, the seizure took place over the course of ONE WEEKEND.
· 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 the speed of these events once things hit the fan. Cypriot banks formally requested a bailout back in June 2012. The bailout talks took months to perform. And then the entire system came unhinged in one weekend.
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).
Cyprus is not some freak occurrence that could never happen anywhere else. The IMF has suggested to Governments around the world that they do the same (meaning STEAL deposits).
Again, this is not conspiracy theory. Germany just passed legislation that would permit PRECISELY this.
BERLIN--Germany's cabinet Wednesday approved plans to force creditors into propping up struggling banks beginning in 2015, one year earlier than required under European-wide plans that set rules for failing financial institutions.
The new bail-in rules are part of a package of German legislation on the European banking union--an ambitious project to centralize bank supervision in the euro zone and, when banks fail, to organize their rescue or winding-up at a European level.
Germany "leads the way" in Europe by implementing European rules quickly and "creates instruments that allow the winding-down of big systemically relevant institutions without putting the financial stability at risk," the country's finance ministry said in its draft bill seen by The Wall Street Journal.
So… Germany is “leading the way” in promoting plans to do a “bail-in.” What is a “bail-in”? A “bail-in” is when bank accounts are frozen and then seized in order to prop up the bank… a “bail-in” is what happened in Cyprus. It is when savings are STOLEN.
The explanation given to those with money in the bank?
In common speak, “you can either give us 40% of your savings to keep the bank afloat or the bank collapses and you’re left with NOTHING.”
We also want to point out that the above article indicates Germany moved to implement this a year early in 2015 instead of waiting until 2016.
Why would Germany want to rush in legislation that would allow it to freeze bank accounts and seize assets to prop up bankrupt financial institutions? Is it because everything is fine in Europe?
If you think this couldn’t happen elsewhere you are wrong. Canada, New Zealand and even the UK and US have proposed similar measures. The next time stuff hits the fan, savings will be on the hook, not the Central Banks.
This concludes this article. If you’re looking for the means of protecting your portfolio from the coming collapse, you can pick up a FREE investment report titled Protect Your Portfolio at http://gainspainscapital.com
This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.
Phoenix Capital Research
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