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NIRP Arrives In The US: TBTF Banks Tell Customers To Move Their Cash Or Be Charged Fees
Back in June, the world was speechless when Goldman's head of the ECB, Mario Draghi, stunned the world when he took Bernanke's ZIRP and raised him one better by announcing the ECB would send deposit rates into negative territory, in the process launching the Neutron bomb known as N(egative)IRP and pushing European monetary policy into the "twilight zone", forcing savers to pay (!) for the privilege of keeping the product of their labor in the form of fiat currency instead of invested in a global ponzi scheme built on capital market so broken even the BIS can no longer contain its shocked amazement.
Well, the US economy may be "decoupling" (just as it did right before Lehman) and one pundit after another are once again (incorrectly) predicting that the Fed may raise rates, but when it comes to the true "value" of money, US banks have just shown that when it comes to spread between reality and the economic outlook, the schism has never been deeper.
Enter US NIRP.
As the WSJ reports, far from paying for the privilege of holding other people's cash (and why would they with nearly $3 trillion in positive carry excess reserves sloshing around) US banks - primarily of the TBTF variety - "are urging some of their largest customers in the U.S. to take their cash elsewhere or be slapped with fees, citing new regulations that make it onerous for them to hold certain deposits."
The banks, including J.P. Morgan Chase & Co., Citigroup Inc., HSBC Holdings PLC, Deutsche Bank AG and Bank of America Corp. , have spoken privately with clients in recent months to tell them that the new regulations are making some deposits less profitable, according to people familiar with the conversations.
In some cases, the banks have told clients, which range from large companies to hedge funds, insurers and smaller banks, that they will begin charging fees on accounts that have been free for big customers, the people said. Bank officials are also working with these firms to find alternatives for some of their deposits, they said.
The change upends one of the cornerstones of banking, in which deposits have been seen as one of the industry’s most attractive forms of funding, said more than a dozen corporate officials, consultants and bank executives interviewed by The Wall Street Journal.
One bank that is aggresively turning money away is the same bank for whom criminality is now an ordinary course of business, and has spent over $30 billion in recent years on legal charges and settlements: JPM.
J.P. Morgan told some clients of its commercial bank recently that it would begin charging monthly fees on deposit accounts from which clients can withdraw money at any time. The new charges will start Jan. 1 for U.S. accounts, according to an Oct. 21 memo reviewed by the Journal, and later for international accounts.
“New liquidity and capital requirements have changed the operating environment and increased the cost of doing business with financial institutions,” the memo read.
While ZH readers (and especially Cyprus residents) are quite familiar with the logic behind bank deposits, especially in a fractional-reserve banking system, some WSJ readers may not quite understand why this move is so profound:
Deposits have traditionally been a crucial growth engine for banks. Banks generally pay depositors one interest rate and then make loans with higher rates, often collecting fees in the process. But deposits also can be withdrawn at any time, potentially leaving a bank short of cash if too much money is removed at once.
The new rule driving the action is part of a broader effort by U.S. regulators and policy makers to make the financial system safer. But the move may inconvenience corporations that now have to pay new fees or look for alternatives to their bank.
Sal Sammartino, vice president of banking at Stewart Title, a unit of Stewart Information Services Corp. , a global title insurance company based in Houston, said he has had sleepless nights in recent weeks as he has negotiated with large banks to try to keep the firm’s deposits there. He declined to name the banks.
“Ultimately my balances aren’t as profitable for the banks, and that’s going to impact my business,” he said.
Dear Sal, if you want to complain to someone, complain to the Fed, whose trillions in bank excess reserves pumped in the system have made America's deposit base completely irrelevant on the margin, and thus give banks full liberty to do with the trillions in excess cash they have on their books as they will, even if it means chasing it out.
What is the official explanation for this dramatic monetary escalation that has so far glided under everyone's radar?
U.S. banking rules set to go into effect Jan. 1 compound the issue, especially for deposits that are viewed as less likely to stay at the bank through difficult times.
The new U.S. rules, designed to make bank balance sheets more resistant to the types of shocks that contributed to the 2008 financial crisis, will likely have little effect on retail deposits, insured up to $250,000 by federal deposit insurance. But the rules do affect larger deposits that often come from big corporations, smaller banks and big financial firms such as hedge funds. Hundreds of companies and other bank customers with deposits that exceed the insurance limits could be affected by the banks’ actions.
Overall, about $4 trillion in deposits at banks in the U.S. were uninsured, covering more than 3.5 million accounts, according to Federal Deposit Insurance Corp. data.
The rule primarily responsible involves the liquidity coverage ratio, overseen by the Federal Reserve and other banking regulators. The new measure, finalized in September, as well as some other recent global regulations, are designed to make banks safer by helping them manage sudden outflows of deposits in a crisis. The banks are required to maintain enough high-quality assets that could be converted into cash during a crisis to cover a projected flight of deposits over 30 days.
Because large, uninsured deposits would be expected to leave most quickly, the rule will now require that banks maintain reserves that they cannot use for profitable activities like making loans. That makes it much less efficient or profitable for banks to hold these deposits.
The new rules treat various types of deposits differently, based on how fast they are likely to be withdrawn. Insured deposits from retail customers are regarded as more safe and require that banks hold reserves equal to as little as 3% of the sums.
It's not just the (very rich) moms and pops that will be affected by this move: so are large institutions for whom cash on the sidelines is a key aspect of doing business:
The change affects some hedge-fund customers, rather than corporate accounts. The charges include items such as a $500 monthly account maintenance fee for demand deposits and a $25 charge per paper statement.
Larger clients with broad, long-term relationships with their banks may get a break on the new fees, according to people familiar with the situation. Banks also are likely to differentiate between clients’ operational deposits, used for things like payroll, and excess cash that can be pulled more easily, the people said.
At a National Association of Corporate Treasurers conference in October, consultant Treasury Strategies noted that the new rules “will redefine the economics and dynamics of corporate banking relationships.”
And while we have discussed the implications of NIRP previously, here are two key unintended consequences: first, "safe" assets such as Treasurys will get even more expensive, as banks rush into the safety of "high quality collateral" (a topic beaten to death last summer):
Some argue that while it is a good policy on its face, the rule potentially magnifies problems in a recession by encouraging banks to hoard high-quality assets, potentially paralyzing markets for these assets such as Treasury securities and some corporate bonds.
“This proposal, which is supposed to promote financial stability, actually does the opposite,” said Thomas Quaadman, a vice president at the U.S. Chamber of Commerce.
The second unintended, or perhaps perfectly intended, consequence is that just like with money market fund reform, the underlying driver behind NIRP and all other forced capital reallocations, is to push "money on the sidelines" away from an inert mode, and into equities (as idiotic as that sounds, since every purchase of a stock means someone cash out on the other side), in the process lifting the aggregate value of equities and pushing the world's biggest stock (and bond) bubble to unprecedented heights.
Practically speaking, it means that before all is said and done, banks will be charging usurious rates of interest on even the smallest bank deposits, in a push to get every last "saver" to reallocate their wealth away from pieces of fiat paper into pieces of paper promises (held by the DTCC no less) to be paid by increasingly more cash-flow deficient companies.
And while it assures that the next market crash will be absolutely epic with everyone having gone all-in and nobody left with any dry powder, shorts to sover or "cash on the sidelines", it also means that the S&P still has a ways to go: perhaps as high as Jeremy Grantham's peak bubble level of around 2250 or higher, befire as Grantham himself predicted, the central-planners finally lose control and it all comes crashing down.
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Still getting .5 - 3% interest here (depending upon duration/bank) on deposits in Thailand.
See http://www.bot.or.th/english/statistics/financialmarkets/interestrate/_l...
Thai Police busted a man last week for scamming millions (about $8.8M USD) out of his victims via a stock market scam, see http://www.thaivisa.com/forum/topic/782152-man-accused-of-duping-million... They seem to be more effective than the US Justice Dept.
Things are different (better?) depending upon where you live.
Eric Holder's Legacy: the Divine Right of Criminals
http://www.youtube.com/watch?v=BkQQoGUj6VY (11:24)
How Eric Holder Turned "Justice" Into a Wall Street Criminal Protection Racket
http://www.youtube.com/watch?v=KW4o2eRvzx4 (15:55)
Now you have no excuse for not buying gold.
For those of us with monthly bills requiring either A) online payment or B) a written check for payment, what should we do?
I realize it's cliche to say, "keep it in your mattress" as many here on ZH will proclaim, but seriously, what should we do?
And if you say, "credit union," my question then becomes, "how long will it be before they start charging depositors, too?"
I really need a sound solution. Advice, anyone?
buy 70- gold, silver - 30% goods which you can sold in crisis like batteries
Invest in some .22 lr and 12 guage shotgun shells. I started doing shotgun work as a side line, because a LOT of people have them. Some times, gunsmithing can pay off, some times you eat the job, but still a useful skill. I'm not saying go all in on lead, but a small quantity for non gun owners, may go a long way.
Get a return on your "service" charges.
Fuck a teller and let her do your laundry.
"... And if you say, "credit union," my question then becomes, "how long will it be before they start charging depositors, too?"
the answer is, "if that's what's stopping you, fine and well stay in your bank and wring your hands"
you could do that, or you could simply move to a credit union and worry about that question when the time comes... which, frankly, will likely be a long time if ever on the credit union side of things... because CREDIT UNION
In my younger days... 1960's - 1970's banks did charge fees for accounts. My first credit card at first had a $20 yearly fee.
Just sayin.
Now the credit card companies are begging you to sign up for no annual fee, cash-rewards cards offering 1, 2 or 3% back depending on the type of purchase. BigBankXYZ just gave an extra $100 reward just for signing up and using the card.
Figure that out.
Lin S ~ there aren't any really good solutions as we're being boxed in and looted. Between capital controls and data collection all we can do is try for least risk. There is not a risk-free solution. There are community and regional state-chartered banks that aren't members of the "feral" reserve, but do participate in FDIC (for what that might be worth). Some of these banks offer consumer accounts with as little as $100 minimum balance and no fees at present. But you have to do your research. Check the website of the bank, and of your state banking commission, then consider how long the bank's been in business, whether its balance sheet looks reasonable/credible, and if there's any direct derivatives exposure. Then roll the dice.
WB - That is some good advice. There are several ways to stay ahead of NIRP and minimize the risk. One is to pick a no fee credit card and run ALL your transactions through it. As much as possible. You can get 1 - 2 and even 3 percent back in the form of points from the CC. Don't forget to pay the balance off in full... Also try to buy stuff which you know will appreciate in cost which you use on a timely basis. Things which take up not too much space - like batteries, lighters, booze, SPAM - get the picture? If you live in the US, keep 20% of your cash in US gold eagles, 20% in the bank and the rest in a safe place which is NOT in the bank. When you need to pay bills and your bank account is running low, sell some of the gold and get the funds wire transferred into your bank account. If you can do this on a budget, you can also make monthly < $3K cash deposits back into your bank account and then use that balance to buy more gold with a wire transfer. If you really like to gamble, a small percentage may also be invested in an ETF index, like SPY .
What you are doing here is making a few percent interest on your expenses without risking all your $$ in a bank account or all your $$ in gold.
The US Eagle gold wire transfer dance can be done with no paper trail or notification to the PTB. Check with your dealer...
The classical answer is to get rid of the offending currency as quickly as possible by trading it for something of greater or more stable value.
Your monthly bill payment items don't apply, because you've already traded them for the thing that produce the bills.
However, you could establish pre-paid accounts with those companies.
You can't get 100% out of being a baning customer, because they won't let you. You will be charged with a Federal Crime "Structuring" if you put it in a matress.
You are required by law to use their toilet paper 'For All Debts, Public And Private'.
But you don't have to store one second of your labor beyond that at a bank.
The way you minimize bank fraud is to minimize use of banks.
Don't have a 401K - Buy something of enduring value instead.
Don't buy securities, they're not worth the paper they're not printed on. And more than likely you didn't actually buy anything. The broker probably just booked the transaction as though you did, and then will perform the transaction once you ask for the money. If you don't have the stock certificate, you don't own the stock, and if you do, you only *might* own the stock.
Get rid of all those things of questionable value, and trade them for things more workthy of your confidence.
Bitcoin loves NIRP
https://twitter.com/sharkybit/status/541961420813107200/photo/1
the USA is obviously collapsing. It seems the only plan for economic recovery is for Gov-co to simply start killing people - and to build prisons for the 300 million Americans who can't prove the've committed securities fraud :(
https://www.youtube.com/watch?v=CVmyMKtmwU4
And therein lies the bggest problem with fiat money. The banks do not eed deposits because when they need more money they just create more money out of thin ar.
I agree that holding productive and valuable assets is the key to not being lobbered by the banks. However, the banks anticipated that and have inflated the cost of many assets, including gold, silver and farmland wayyyyy above their value to the average person. The only ones who truly benefit from purchasing the massively inflated prices of the productive and valuable assets ar those who can either create money or have so much excess fiat that pris not matter.
... and I love seeing them pay ridiculous amounts for art and useless trash.
Keep the great global bubble going at any cost. The recession of 2018 will be an epic one.
We NIRP'ed some folks
Get the picture? The TBTF banks are no longer really banks at all.
There are tons of great banks that are smaller and more regional/local. These banks run a more traditional business. They'd be happy to hold your money for you. Look for strict risk managment, like Silicon Valley Bank, or many other similar banks. But expect them to take a long look at you before they say yes.
Financial repression.... even as a goldbug, I'm seeing no way out of this. They're so few of us, that they will have no problem banning it and putting guns to our heads if need be.
No one gets out of life alive.
No one (but one) ever did.
So, who wants to 'get out of it'?
I just want to improve the world with my time and effort on earth.
I just want to make the world a better place by taking more than one of the bastards with me.
It is an alternate way to make life a positive investment of time and effort.
It is an alternate way to leave the planet better than you found it.
First, we have a replay from 2008. Banksters do not trust to keep their money in their own banks, cause their own CEO might, God forbid, steal it, so they keep them at FEDs or other CBs and in turn they pumping SExs all over and bonuses are rolling. So why would they want to keep somebody else money virtually for free and get on the hook of public opinion or hear whining of DOJ when bank of cards collapses.
Second, $500 fee is nothing, just a message get the money somewhere, to China or Russia when they detach from dollar shitnet, or anywhere else because dollar soon be no more GRC.
But for all of us punks, as they lovingly call us, they will preach it as new stimulus by means of forcing oligarchs to take their fat billions from banks and do something with it, like maybe hire people and pay them descent salaries. None of it will, of course, happen though, unless hell freezes over and just after that they put controls on their stolen capital we punks need.
Welcome to the new age of (central) banking. Central bank and commercial banks credit each other on their balance sheet. Human depositors are kicked out or fined with a fee.
There's still no fee for storing my own silver, however it does make my boat sit significantly lower in the water.
Their job is to rig markets, take over nations, kill Arabs., run drugs and fund military, CIA, DHS with Printed money. That's Loyd. That's Loyd doing God's work.
We have not had a banking system in anything but name since 2008. They are just slowly letting you in on the secret.
bankster cabal and crimes against humanity....this shit can't go on forever, something has to crack.
http://kitcogoldprice.blogspot.com/
Employers have always preferred the married with children to the single because of the dependancy (aka stability) it creates, so what could be better than a society forced to live "paycheck to paycheck"?
Funny you should say that. My former employer used to love applicants who had >3 kids and deep in debt...he said, "They'll never leave and beg for overtime."
Very sick nowadays....very...
That's pretty rich. The TBTF banks not only receive unearned interest on funds gifted to them by the FED but also now get paid interest on customer funds, as well.
It's good to be king. But it's better to be a banker.
There's a very clear message here, no smart money, only sheep money.
I hear the shears warming up.
Let the bank runs begin/continue!!!!
DEATH TO THE BANKS !
Things are really screwed up when deposits aren't wanted at the bank.
The framework for NIRP has been in place since Dec 2012. Found at fdic website with identical document at Bank of England website. Note "unsecured creditor" mentioned at least 11 times in 18 pages. YOU are the unsecured creditor, which means every nickel in the bank in your name in your account is not legally your money, no matter how many accounts you have it spread over or how many names or account titles you used.
https://www.fdic.gov/about/srac/2012/gsifi.pdf
This document was quietly published in Dec 2012, as a joint paper with the Bank of England. That means (1) they were studying this and had it under consideration long before publication in 2012, and (2) The U-S FDIC and the Bank of England recognized at least 3 years ago the next meltdown is going to be both catastrophic and global.
The document runs about 18 pages. it outlines actions the FDIC and BofE will take to save the banks. There's a lot of wonkspeak, but you can get past that to see the number one resource they will use to save their buddy banks IS YOUR MONEY in the bank in YOUR ACCOUNT in YOUR NAME. That money will be confiscated and you'll be told only after it's gone, if the FDIC chooses to handle it that way.
The nasty little surprise there for all bank customers is that your money in your bank IS NOT YOUR MONEY. It's their money, by longtime, settled law. That's what 'unsecured creditor' means, so note that when you see in the report who they are attacking first.
Not related to banking exclusively, but to the businesses and citizens that use them as part of their economic life process. Is it the police power to kill at will??? Instead of police being held to a higher standard in law enforcement, they are allowed to be held to a "lower" standard, it has left the citizenary in confusion as "who can you trust" and a needed revolution to the standards and training of those that carry WMD, like the police.
SOLUTION: A Christmas spending reduction of about 20% - 25%, can do wonders, it will make headlines when Xmas sales plumment due to citizens expressing their contempt for the system as presently defined. Reduced spending will affect businesses who have a huge control on legislators and the business putting less money in their accounts will mean less interest to be earned and less money spent by credit card will mean the banks lose another fee source. The benificiary is the US public, who in speaking with their pocketbooks, of their anger, have made a BIG impression on the financial community and saved themselves a lot of money and debt due to the Xmas shopping mania. Withholding spending to the last minute, we will benefit brick and mortar stores who are a part of our community, and pressure the internet stores and large businesses to reduce prices to try to maintain market share. MY Opinion is that this a win-win for "we the people", and maybe only a smidgen by the children of parents, with high santa claus expectations. that should be tempered.
Well this will help the "American Dream" narrative when the FED makes everyone a millionaire because its so cool and trendy to carry a lot of cash for milk... This country and world is gone into a burning basket with very low possibility of being put out like those apartments in LA.
No sympathy for anyone stupid enough to use the banks as a means to save money. Its a fools game. Use the banks to pay monthly bills. Keep cash savings elsewhere. As for me, I look for sales and stock up on the necessities. Great way to preserve value of your labor (property) as you will eventually need stuff a few months down the road anyway. Why purchase with devalued cash?
I just want to know what’s behind it. I think it is desperation. I think when they crash the economy, the TBTBs don’t intend to go down with it nor take the blame. It’s a sign that something big is coming. If you watch Draghi he just goes deeper and deeper into the hole; he can’t climb out, he just digs Europe deeper and deeper into debt .
If their plan is to force everybody into a money slavery, I think it’s going to fail. People won’t accept it. Small business is going to scream, and they’re going to scream at the politicians. This isn’t Cyprus.
"Freely flowing, private commerce without government interference is the lifeblood of humanity." -
Bill Butler, Property Rights Attorney
“Since money is the lifeblood of commerce and is for the benefit of all citizens, the big question is, who should have the right to create it? We live in a democracy in this country, and the majority of our citizens would agree that the right to create money should be in the hands of all the people, that is, the government should have this right. Since it is too cumbersome for each citizen to create his own money, the process of creating money should rest in the hands of the people who are elected to serve the citizens, the Congress. Checks and balances can be lawfully enacted to prevent Congressional abuse in the money creation process…
“Why should the public object to the government creating money? The greatest majority of the American citizenry already believes that the government creates our money.”
-- Debt Virus: A Compelling Solution to the World’s Debt Problems, Jacques S. Jaikaran
http://books.google.com/books?id=Ghyg3xqZdYkC&pg=PA165&lpg=PA165&dq=money+is+the+lifeblood+of+commerce&source=bl&o
Let GOVERNMENT create money????
You mean people like Obama, Pelosi, Boehner, McConell, Reid, Putin, Nixon, Hollande, etc?
Let THEM create money????
Abandon all hope ye who enter into this cursed realm.
How about you let GOD create the money, and restrict POLITICIANS to stamping their faces on it, and claiming the credit, as is their practice?
BUY GOLD.
Harry Reid’s government owes its allegiance to the Federal Reserve which buys and sells people like him every day. Without the Fed, there would be no Harry Reids or Pelosis or Boehners, and issuing the currency would not be the danger of which you speak.
This practice is already wider spread than this article indicates. We just got a notice from a local bank withno national presence for an account with less than $5k in it that we will now be charged a monthly fee unless the account becomes "active".
Element: Nirpium (200 electrons)
exists in nature in ionic form only, such that its electrons are always missing. Some scientists suggest it is the main element of dark matter.
Many investors will buy hard assets to preserve the value of their money. That means commodities! Food and energy inflation are coming!
Looks like moar failed policies.
Look at all the security the banks provide for your money.
That's not free.
You didn't guard that.
Hello ? ever heard of Fractional reserve banking !!! Idiot
if you knew what that was ... then you'd understand how absurd your statement is ... !! WOW
yes fdic is a joke, they cant cover that bet.
Edit: sorry yes they can, but at a hugely deflated payout and i get your joke, as in you didnt earn it in the first place ,kind of obama bullshit
When you withdraw $10,000 cash, that's $100,000 in loans that they can't cover.
Go try to withdraw $10,000 cash of your own money.
They are sooooooo concerned about your safety.
Then they want to know who you work for, what you need the cash for, can they give (sell) you a money order or certified check?
You obviously don't understand that they think it's THEIR money.
Nor do you understand sarcasm. Idiot. WOW!!
Having a hundred in cash raises eyebrows these days. Five hundred? Whoa dude, what are you on your way to buy? A thousand? Shit man you shouldn't be carrying that. Five thousand or more? Prepare to have your cavities searched and your obvious drug money "civil forfeited."
It all ties in to the rule of law. There is no such thing, so nothing is "yours" unless you can manage to keep it. Prepare and act accordingly.
ETA: And it's sad you had to add a "sarc" disclaimer to your last post. What the hell has happened to this place??
1. Remove FDIC insurance from the Federal Reserve Banking System.
2. Restore the United States Postal Savings Bank and only extend FDIC insurance to balances of 100K or less at the USPSB.
3. The Government provides basic services to the Citizenry. The Private-For-Profit Banks compete to provide services to corporations.
Throxx: "1. Remove FDIC insurance from the Federal Reserve Banking System."
Ummm, no, they're doing the opposite. The taxpayer will be on the hook to bail out derivatives.
Got a spare 170T kicking around?
https://www.govtrack.us/congress/votes/113-2013/h569
money can be printed
what do you need savings for ?
Exactly. Why bother with the hassle keeping electronic records of people's e-fiat.
Or taxes for that matter.
This article gives even more evidence that the big U.S. banks serve no earthly purpose for the public. In essence, the banks are parasites feeding off a host -- the country.
feeding off The World !
So then it is "offical".
2015 is the "crash and burn" year.
Idiots but hey should be fun.
For every dollar turn it to cash like get a cheque from your employer. THe cash is REMOVED FROM THE SYSTEM INSTANTLY and not there to be leveraged at 20:1. With all the electronic and online banking the banks maintain leverage if you remove it they lose it and thsat = A DEFLATIONARY SYSTEM if you never put it back in.
"Pay us for the privileged of stealing your deposits, and then stealing the rest via our counterfeiting"
Guillotine the Fed! And the rest.
An American, not US subject.
Long Chubb, Burton and Phoenix.
I may be wrong but I bet with enough help we could hang every banker in the world in under a month. Just saying.
After learning about shadow banking and collateral debt obligations one could be forgiven for not understanding the depth of the deceit that is the finance industry.
After learning about MERS the ownership of the Federal Reserve Banks, how the Fed creates money, and how the primary dealers profit from this structure, one should have held a healthy suspicion of the finance industry.
After learning about Fractional Reserve Banking, hypothecation, and the methods by which commodities dealers and securities market makers can claim ownership of assets that EXPLICITLY do not belong to them, raiding customer accounts - MF Global - booking customer asset transactions while not executing the booked trades, and instead using the customer's own funds to establish positions ESPECIALLY DESIGNED to front-run and manipulate the customer transaction (which never actually occured) into a loss (JP Morgan, Goldman Sachs), after learning about institutionalized naked shorting, and High Frequency Trading to enable all the previously listed fraud.... one would be an idiot to trust the finance industry with ONE IOTA more wealth than is absolutely necessary under the law to pay bills using the mandatory legal-tender fiat-fraud currency.
Next to that, demanding a percentage in return for keeping your money out of the Bank Of Sealy (BOS) seems reasonable.
Of course, after all of that, it ought to be clear that no matter how bad your neighborhood your money is considerably safer stashed in various BOS's than at a financial institution...
Pity they will charge you for 'structuring' if you don't give the bankers your money.
Of course, much more of this and it will be an even bet whether it is the defendant or the court that ends up on the gallows.
why bankers like to have butt sex with sheep is beyond me..
Dear moron CFOs in captive USSA corporations. Take all your deposits and convert to physical gold, silver and platinum. To say, "you won't be sorry", will soon become one of the greatest understatements ever.
On second thought, you all deserve to go broke for supporting the predators-that-be. So go ahead and double-down on fiat. We'll be glad you did.
You're suppose to be paid interest for "loaning money" to the banks. It's like the banks don't even want the people's fiat anymore.
cash is king so frack the banks
Max Keiser was right a long time ago when he said Banks would no longer need depositors, and governments would no longer need taxpayers. The trillions in liquidity bankers have been given to play the spread with, and the trillions in printed money via monetization of the federal budget with the Fed and frineds buying up the dbt issuances. The days of capital formation via work and productivity producing wealth that tranferred into profits are over. The days of working taxpayers paying for government out of real wage packages are over.
I can't see all that is going on behind the curtain of Governments and Central Banks. But what really makes me thin the game is coming to it's close is the mad rush to war by the USA and EU. Not even during the worst of the cold war with teh Soviet Empire was there any rush to war, but now, a rump capitalist Russia is being rpesent as the Soviet Union + Nazi Germany + the Mongol hord of Genghis Khan level threat.
Given the mass nuclear defense the Russian Federation can mount against a NATO attack, one wonders why all caution is thrown to the winds and Washington insists on a War against Russia, when just a couple years ago, nobody on earth saw the least reason to talk about war. The NATO attack on Georgia seemed to be a well planned provocation using proxy forces after beening trained and armed by NATO. Followed by the Washington take over in Kiev using Nazi militants to storm the capital's government. War is only rational if Washington knows it can't print anymore and the world will soon say NO to printed greem paper slips as payment for Energy, all sorts of industrial equipment, food, consumer goods, electronics etc. There is no industry in America, because it is cheaper to print green paper and give that to factories and companies abroad to supply all Americans needs. If that blows up, only a world war can save the Washington Power Click.
Max Keiser was right a long time ago when he said Banks would no longer need depositors, and governments would no longer need taxpayers. The trillions in liquidity bankers have been given to play the spread with, and the trillions in printed money via monetization of the federal budget with the Fed and friends buying up the debt issuances. The days of capital formation via work and productivity, producing wealth that transferred into profits, are over. The days of working taxpayers paying for government out of real wage packages are over.
I can't see all that is going on behind the curtain of Governments and Central Banks. But what really makes me think the game is coming to it's close, is the mad rush to war by the USA and EU. Not even during the worst of the cold war with the Soviet Empire was there any rush to war, but now, a rump capitalist Russia is being rpesent as the Soviet Union + Nazi Germany + the Mongol hord of Genghis Khan level threat.
Given the mass nuclear defense the Russian Federation can mount against a NATO attack, one wonders why all caution is thrown to the winds and Washington insists on a War against Russia, when just a couple years ago, nobody on earth saw the least reason to talk about war. The NATO attack on South Ossetia seemed to be a well planned provocation using proxy forces after beening trained and armed by NATO. Followed by the Washington take over in Kiev using Nazi militants to storm the capital's government. War is only rational if Washington knows it can't print anymore and the world will soon say NO to printed green paper slips as payment for Energy, all sorts of industrial equipment, food, consumer goods, electronics etc. There is no industry in America, because it is cheaper to print green paper and give that to factories and companies abroad to supply all Americans needs. If that blows up, only a world war can save the Washington Power Click.
Jack,
For what it is worth:
The Pentagon said years ago that the biggest threat to America's existence was its unwieldy debit. In other words, continuous credit creation by the banks would destroy America - not some foreign power.
The Royal Family in Saudia Arabia would take no action which would threaten them personally - they need the assurances and muscle of the Pentagon to remain in power.
Could it not be that the Pentagon is waging a war against the banks by having SA drive the price of crude into the toilet. It is not the Russians who feel long term pain - it is the bankers who financed shale oil and other junk bond subjects. Those businesses will be bankrupted. Their bondholders will be badly damaged. The real assault here is against the formation of garbage debit. Investors and banks will have to sell assets to cover. Credit default insurers will have to pony up. The Russians can put up with this for years. The banks - without new free money - how long can they hold out.
May you live in interesting times. - Chinese curse
May you live in negative interest times. - Cental Bank curse
Dumb money will cover the Smart money's exit
For the guy on the street it doesn't matter as he/she got fooled into thinking 'convenience' is worth every penny he or she pays.
Cash used to be king and should still be. People should pay less for products with cash rather than supporting the credit card and debit card users. Businesses get paid on the spot, there may be less debt out there meaning fewer slaves to the system and .gov would have to cut war and stock market spending.
I went to cash a check at the Royal Bank of Canada a few years ago. The account of the person who wrote me the check was at the branch I went to cash it. They charged me a few for cashing the check. If I would have known that, I would have charged the customer more to cover the fee.
Banks have been robbing for years now that they really aren't banks anymore. Best is to get a safe and keep the fiat in there.
Just an opinion from an old guy on the street.
So that means your deposits have a negative value to banks.
After all, why would they need your money, when the federal reserve / govt lets them counterfeit as much as they want?
What more evidence do you need to have to see that they are clearly intentionally trying to create a crisis?
Just in time to make sure that they (banks) are under funded again then failing the new stress test because they made more money on the last bailouts? Why not free money instead of having peoples deposits to gain bonuses.
Is that it?
I guess these corporations can stuff the cash under their mattresses...
Negative interest rates. WTF?
Interest rates have been negative for a while now even at the supposed 2% inflation rate with the banks paying .25% interest on a savings account.
Shadow banking = perfectly safe.
Deposits = risky proposition.
Velocity of money in the commode. nuff said.
Negative interest rates are just a symptom of what's coming. I think the argument over whether inflation or deflation is the world's worst enemy is being won by the deflationists...
http://www.globaldeflationnews.com/inflation-vs-deflation-part-1which-on...
it's a debt bubble of uhge proportion... popping
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
May I put forth the other side of the argument! For a while I was one of the people concerned we would see the world tumble into a massive deflationary cycle as debts went unpaided and credit collapsed. Now I have come to think inflation is getting closer every day.
This would mean the "major deflationary period" is mostly behind us and it has not been disinflation as much as inflation being kept in check because of several factors, including where the money flowed, weak demand, dropping velocity of money, and the onetime benefit of lower interest rates. Before you discount the possibility that we will move directly from where we are into stagflation then hyperinflation please consider that hyperinflation paves the way for governments and those in power to make a transition to a replacement currency and a reset of the whole system.
http://brucewilds.blogspot.com/2014/11/deflation-i-think-not.html
When an economy is growing rapidly, there is generally an abundance of profitable investment opportunities and businesses are happy to borrow at high real rates. In a sense, then, the level of real interest rates sets a hurdle by which profitable projects should be judged.
If the rate is held at an artificially low level for too long, a big danger is that capital may be misallocated and flow into speculative investments. A recent report from the Bank for International Settlements points to a number of other problems that negative real rates can cause such as tempting borrowers into ignoring their balance-sheet problems. The article below delves into the dark-side of lower interest rates.
http://brucewilds.blogspot.com/2013/03/low-interest-rates-and-their-cost.html
Strange that some post that even this action is a plot against Russia.
I think there's a word for that. I just can't bring it to mind.
What do you call it when someone sees every world event as a plot against one single entity?