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Europe Reveals How Accounts Will Be Frozen During the Next Crisis

Phoenix Capital Research's picture




 

In the last 24 months, Canada, Cyprus, New Zealand, the US, the UK, and now Germany have all implemented legislation that would allow them to first FREEZE and then SEIZE bank assets during the next crisis.

 

These moves will be sold as “for the public’s good,” when they happen. But the reality is that it’s all about stopping people from moving their capital into actual physical cash.

 

The whole template for this was set out in Cyprus in 2013. The quick timeline for what happened in Cyprus is as follows:

 

·      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.

·      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 how lies and propaganda were spread for months leading up to the collapse. Then in the space of a single weekend, the whole mess came unhinged and accounts were frozen.

 

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).

 

There were no warnings that this was coming because everyone at the top of the financial food chain are highly incentivized to keep quiet about this. Central Banks, Bank CEOs, politicians… all of these people are focused primarily on maintaining CONFIDENCE in the system, NOT on fixing the system’s problems. Indeed, they cannot even openly discuss the system’s problems because it would quickly reveal that they are a primary cause of them.

 

For that reason, you will never and I repeat NEVER see a Central banker, Bank CEO, or politician admit openly what is happening in the financial system. Even middle managers and lower level employees won’t talk about it because A) they don’t know the truth concerning their institutions or B) they could be fired for warning others.

 

Please take a few minutes to digest what I’m telling you here. You will not be warned of the risks to your wealth by anyone in a position of power in the political financial hierarchy (with the exception of folks like Ron Paul who are usually marginalized by the media).

 

Moreover, when the Crisis DOES hit, it will be much much harder to get your money out.

 

Consider the recent regulations implemented by SEC to stop withdrawals from happening should another crisis occur.

 

The regulation is called Rules Provide Structural and Operational Reform to Address Run Risks in Money Market Funds. It sounds relatively innocuous until you get to the below quote:

 

Redemption Gates – Under the rules, if a money market fund’s level of weekly liquid assets falls below 30 percent, a money market fund’s board could in its discretion temporarily suspend redemptions (gate).  To impose a gate, the board of directors would find that imposing a gate is in the money market fund’s best interests.  A money market fund that imposes a gate would be required to lift that gate within 10 business days, although the board of directors could determine to lift the gate earlier.  Money market funds would not be able to impose a gate for more than 10 business days in any 90-day period…

 

Also see…

 

Government Money Market Funds – Government money market funds would not be subject to the new fees and gates provisions.  However, under the proposed rules, these funds could voluntarily opt into them, if previously disclosed to investors.

 

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542347

 

In simple terms, if the system is ever under duress again, Money market funds can lock in capital (meaning you can’t get your money out) for up to 10 days. If the financial system was healthy and stable, there is no reason the regulators would be implementing this kind of reform.

 

This is just the start of a much larger strategy of declaring War on Cash.

 

Indeed, we've uncovered a secret document outlining how the Fed plans to incinerate savings to force investors away from cash and into riskier assets.

 

We detail this paper and outline three investment strategies you can implement

right now to protect your capital from the Fed's sinister plan in our Special Report

Survive the Fed's War on Cash.

 

We are making 1,000 copies available for FREE the general public.

 

To pick up yours, swing by….

http://www.phoenixcapitalmarketing.com/cash.html

 

Best Regards

Phoenix Capital Research

 

 

 

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Sat, 10/10/2015 - 15:23 | 6653144 Marco
Marco's picture

The money market fund connection is entirely specious. The change in money market fund rules were introduced because they "needed" to be bailed out in 2008. Government doesn't want a financial instrument where the last guy to run on it loses everything (which would happen if they broke the buck by even a millicent in the original system). In a healthy financial system the original money market funds wouldn't exist, it's penny and steamroller shit and not the secure investment it pretended to be. Runs could always occur and if you were last you could always end up with nothing, black swans happen.

What they should have done is let a lot of people lose all their money, so they would have learned the lesson. That and the resulting non existance of money market funds would have made financial markets healthier (for a couple of years, before a new generation of morons arose).

Sat, 10/10/2015 - 11:53 | 6652562 Shibumi2
Shibumi2's picture

The demise of the existing bqnking structure is a prerequisite to the implementation of the new one world digital financial system.

 

Why would bank branches be necessary in a digital economy? Who goes to the bank anymore, except for cash...which is on its way out.

 

Anyone who doesnt see whats coming isnt looking

Sat, 10/10/2015 - 07:06 | 6651980 Sudden Debt
Sudden Debt's picture

Are there any people from Cyprus on this site?

What happend to trading accounts? And the stocks on them?

Never heard of any confiscation of shares.

Sat, 10/10/2015 - 03:00 | 6651787 Trips Trading
Trips Trading's picture

Everyone that has a position of his own, is more or less biased to that side. What we do then, is search for information that confirms our view. And this is the result.

Candle Sticks say a lot about investor behavior as I believe it’s a representation of the market’s psychology. And after last week’s relentless short squeeze (so they say), I noticed a Low Energy day last Friday.

A Low Energy Candle Stick, is a candle stick that forms after a short term uptrend in which the close is at or near the open of that day. In my view, this pattern that we saw yesterday, is a sign of doubt in the market, at least for the short term. It doesn’t have to be a perfect doji

What I did was the following. I searched for similar patterns as last Friday. And I found 28 periods in which this candle stick pattern popped up since DEC 2014. Strategy to follow: enter a short right before the market closes or at the open of the next day. Set your stop loss and take profit at 1.5%.

The outcome based on 28 trades (excl transaction fee and no leverage) adds up to 15%, which is equal to more than 300 S&P500 points!

http://tripstrading.com/2015/10/10/sp500-suffering-from-low-energy/

Sat, 10/10/2015 - 23:51 | 6654412 DirkDiggler11
DirkDiggler11's picture

You still playing in the Casino against the bots ???

I would rather invest my money in ammunition and Wild Turkey

Fri, 10/09/2015 - 23:51 | 6651605 OutaTime43
OutaTime43's picture

How did the author make the jump from 7% for accounts under 100k and 9% for over 100K  to  40% and 60%?  I missed that information.

Fri, 10/09/2015 - 17:36 | 6650741 bluez
bluez's picture

In case anybody gets any ideas about taking their money out of the bank before the gates snap shut, consider this: All the bank has to do is call the cops! Really. It's called "civil asset forfeiture":

/~~~~~~~~~~~
Off The Grid News -- Police Seize $63,530 From Veteran Because He Kept It In Grocery Bags -- April 21, 2015
http://www.offthegridnews.com/current-events/police-seize-63530-from-vet...

Simply carrying a large amount of cash in a grocery sack in your car is now sufficient grounds for a police officer to seize your money, a US circuit court has ruled. A panel of the Eighth US Circuit Court of Appeals found that all a deputy has to do to seize cash from a person is say it is drug money.

The court refused to return the $63,530 that Deputy Dave Wintle seized from a disabled veteran named Mark A. Brewer during a traffic stop in 2011. Brewer was never charged with a crime or even given a traffic ticket. Yet the decorated Air Force veteran lost his savings when a drug-sniffing dog smelled marijuana on it, even though no cannabis was found in Brewer’s car or his home.

Brewer saved the money from disability payments and his Air Force pay — as documents deputies found in the car indicated. He said he was traveling to Los Angeles to visit his uncle and to use the money as a down payment for a house. He added he was hoping his uncle could help him get a job there.

“The record here does not make clear whether the seized currency constitutes property used to facilitate a drug offense or proceeds from a drug offense,” Judge Bobby E. Shepherd wrote in a March 23 opinion upholding the seizure. “For the purposes of analysis, however, we will assume that the currency facilitated a drug offense and is thus subject to [to be seized].” [....]
\~~~~~~~~~~~

The cops will just take your money, and that is that. Yes, the FBI, ATF, etc. can do this too.

Something to consider?

Sat, 10/10/2015 - 06:31 | 6651939 overqualified
overqualified's picture

yeah, consider: Bitcoin User Not Affected

Sat, 10/10/2015 - 11:09 | 6652460 Baa baa
Baa baa's picture

Well, tulips ARE pretty.

Fri, 10/09/2015 - 19:54 | 6651098 RaceToTheBottom
RaceToTheBottom's picture

If this becomes more commonplace amongst veterans, I would guess that they would begin to apply the skills the US government gave them as veterans, against criminal elements within the US government...

Sat, 10/10/2015 - 07:04 | 6651975 1033eruth
1033eruth's picture

A very, VERY small percentage of the people in the military were weapon handlers.  Most are support.  The reason most people can't remember this is because of the propaganda, that everyone in the military is a hero.  I was a paper pusher in the military, so was everybody else that worked in the building.

Mon, 10/12/2015 - 09:22 | 6657958 RaceToTheBottom
RaceToTheBottom's picture

Yep, agreed, but still....

Fri, 10/09/2015 - 16:51 | 6650569 ramgold2206
ramgold2206's picture

This is coming, it has been planned and expected. Own physical gold bullion and acquire it any way you can. If you don't have enough fiat to convert to bullion use the network system to earn commissions to acquire your bullion with. Give it a go there is nothing to lose and everything to gain.

www.teamramgold.com/about-us

Fri, 10/09/2015 - 23:47 | 6651601 Dwain Dibley
Dwain Dibley's picture

Yes, own physical gold bullion so you can something pretty and shinny to look at while you starve to death.....

Sat, 10/10/2015 - 12:33 | 6652664 giggler321
giggler321's picture

>>you can something pretty and shinny to look at while you starve to death.....

Seriously?  If it gets that bad - I can't see anything helping you, that includes BITCON.  At that point probably a hunting rifle and a good dog (German pointer) would help feed your family

Sat, 10/10/2015 - 11:10 | 6652464 Baa baa
Baa baa's picture

Just like my gun...

Fri, 10/09/2015 - 16:46 | 6650555 Crocodile
Crocodile's picture

Let us review; old story from 2012...Capital Controls (nothing new)...AND Phoenix Capital ...does anyone actually do business with this buffoon?

 

YES <----Remove Phoenix Capital from ZH

NO <---- Allow them on ZH

Sun, 10/11/2015 - 08:36 | 6654857 OverTheHedge
OverTheHedge's picture

I haven't read one of his articles for years, but it's the weekend, and having read everything else, I thought I would drop in on Phoenix Capital and see if anything had changed.....Nope - same old same old: we're all doomed, but especially if we don't buy his news letter. Yawn.

5 years on, same old doom-porn If in doubt, rehash the last 3 months ZH articles and claim them as your own. Sigh

 

Sun, 10/11/2015 - 12:42 | 6655403 Nostradumbass
Nostradumbass's picture

I did the same thing. Read everything else I wanted to and went back for a look... so unimpressive and repetitive.

 

Fri, 10/09/2015 - 21:46 | 6651352 Bear
Bear's picture

I don't understand ... 'ADBlock' doesn't work for Phoenix Capital?

Fri, 10/09/2015 - 17:10 | 6650581 CarpetShag
CarpetShag's picture

I fear you are wasting your time. This columnist is dug in tighter in the ZH header board than a Montana tick in a deer hide.

Fri, 10/09/2015 - 13:49 | 6649731 b a n n e d
b a n n e d's picture

Give a man a gun he will robe a bank.

Give a man a Bank he will robe the World!

Fri, 10/09/2015 - 16:26 | 6650478 CarpetShag
CarpetShag's picture

You'll have to strip all the counter clerks first...

Fri, 10/09/2015 - 14:58 | 6650096 JRobby
JRobby's picture

But what color are the robes?

Fri, 10/09/2015 - 13:55 | 6649769 ClowardPiven2016
ClowardPiven2016's picture

I think it would be cool to see a man wearing a robe rob a bank

Fri, 10/09/2015 - 14:21 | 6649896 MoHillbilly
MoHillbilly's picture

I robbed a robe from a hotel once

Fri, 10/09/2015 - 21:17 | 6651294 rex-lacrymarum
rex-lacrymarum's picture

You evil robe robber

Sat, 10/10/2015 - 07:41 | 6652017 Aaronson.Jones....
Aaronson.Jones.Rutherford's picture

Death to the robers

Fri, 10/09/2015 - 13:11 | 6649556 Bemused Observer
Bemused Observer's picture

It's one thing to pull that on a little island nation with questionable financial ties to Russian oligarchs. But I'd LOVE to see them try and pull this on a nation of over 350 million heavily armed citizens who already mistrust their leadership. And who LOATHE bankers. Many of them recently lost their shirts in 2008, and have just recovered...it would be fun to see their reaction when their accounts get hijacked.

And just in case anyone thinks that too many Americans are part of the Free Shit Army to care, let me tell you something about that Free Shit Army...Yeah, they're lazy and passive as long as the EBT cards work. And TPTB will probably arrange things so that continues while they rape YOUR accounts. But the FSA 'infantry' hate the system even more than you do, they just opt for the path of least resistance. But there is no loyalty there, and those little soldiers will scatter like buckshot when TSHTF...you surely don't think they'll form human shields around JP Morgan's corporate offices, do you? They aren't grateful to be on welfare, it's an assault on their pride when it's a pay-off for not upsetting the status quo. NO ONE wants to depend on others for everything, and the receivers quickly become resentful if that is the only path left open. They HATE the system, which is why they destroy their own neighborhoods, and why they'll torch businesses and loot. They just need an excuse to let the anger out.

When hard working taxpayers start rocking this boat, the FSA will be on their side, adding plenty of 'flash' to that grenade. When Mr. and Mrs. Payroll-Serf with their 401k's and pension funds take to the streets, the FSA ghettos will EXPLODE all at once, instead of the occasional Ferguson's.

It doesn't work the other way around...when ghettos explode middle America just goes, "Mmm, mmm," in disapproval, but they never join them, even if they agree with them. The unrest remains a local phenomenon, and burns out in place.

But watch how different it will be should the next 'Ferguson' be in a nice, solid, middle-America kinda place. There would be a lot of "sympathy riots", all over the country, and all at the same time.

There's a LOT of anger out here, and it won't take much to get things rolling. I certainly hope someone is paying attention to the facts on the ground when deciding strategy and tactics.

Sat, 10/10/2015 - 11:14 | 6652476 Baa baa
Baa baa's picture

"Two minutes now. Things are starting to get interesting..."

Fri, 10/09/2015 - 18:47 | 6650938 Pal
Pal's picture

Sorry Dude you don't know shit!  The additions to Dodd-Frank in 2013 give the same authority to the USA gooberment.  They can sieze anything they want now 'for the stability of the banking system'.   It's same legislation that put the backstop to the banks on their derivatives portfolio...like $777 trillion worth or some stupendous number, the USA sheeple are now on the hook for JP Morgan, BOA, Goldman Sacks etc. derivatives. Hahahha! It's hilarious!  Within two years the sheeple will be on the hook for all the federal employees pension funds when the 'market', like that exist any longer, collapses onto itself and the politicos can't afford to loose those votes of the gooberment employees... general public has no money, they just think they do, same folks who think they own a house when they have a mortgage...same people who think they have rights in the USA. Hahaha the laughing never stops on this subject.

Sat, 10/10/2015 - 12:16 | 6652627 Hope Copy
Hope Copy's picture

Frank - Dodd views the derivatives as 'illegal', thus the banks will only win and will not have to payout.  Don't bet against the banks.  It is a loosing proposition.

Fri, 10/09/2015 - 14:59 | 6650097 Hongcha
Hongcha's picture

If we are at that point communities will organize along racial lines; count on that.  It's in the genes.

The blacks (the FSA) will be useless, absolutely useless if we ever get to that point.  They are useless now, what makes you think they will become foot soldiers?  It's not even in the realm of consideration.  They can't be organized.  Malcolm X was the last man capable of that and he was assassinated over 50 years ago.

The black FSA will be useful for the president, whomever it may be, to declare Martial Law.  They will be allowed to run wild up to a certain point.  They may be 'let loose' on a white community as a test case or to incite a reason for further lockdown, disarmament, et cetera.

The Mexican FSA will duck and cover; the best of them will take care of their own.  Your guess is as good as mine.  They are a less degenerated community. 

Sat, 10/10/2015 - 11:16 | 6652487 Baa baa
Baa baa's picture

That would be so very sad for they would all be massacred.

Fri, 10/09/2015 - 20:04 | 6651132 Bemused Observer
Bemused Observer's picture

The current system will not be defeated with coordinated assault. TPTB can easily fend off any organized domestic opposition. The idea is to force them to squander limited personnel and resources on many diffuse fronts. You don't use a high-powered rifle approach, you want a messy blast from a shotgun that goes everywhere. The FSA doesn't HAVE to be skilled 'foot soldiers', they simply need an excuse to release their inner rebel, in any of the multiple and myriad destructive and incendiary ways that bored, frustrated people DO when they get pissed off in large groups.

It's their NUMBERS that will make the difference, keeping TPTB busy so those WITH an actual plan can get a little breathing room to operate instead of having to be on red alert all the time.

They are your little helpers, use them wisely should the time come. Take advantage of the opportunities their amusing antics will provide.

Fri, 10/09/2015 - 16:56 | 6650587 Crocodile
Crocodile's picture

People align themselves based on CULTURAL lines or values, not racial.  Goes to show just how effective the propaganda actually is; you are a poster-child.  Not your fault, the propaganda is relenting.  It is why the ones who cry racism or race-bait are ALWAYS the racist.

Fri, 10/09/2015 - 14:48 | 6650041 unplugged
unplugged's picture

DC & wall street criminal enterprise - their days are numbered - and they know it - will these sociopaths, in their downfall, take down everyone else with them?  50/50 chance

Fri, 10/09/2015 - 16:48 | 6650124 JRobby
JRobby's picture

Bob, a mid sized business owner who has a $12k/mo nut to deal with because he is a debt slave sheep, walks over to his neighbor Investment Banker Bill's house. (Bill is actually a mid level guy at the bank but he likes to shoot his fucking mouth off like a sociopath would)

Bob produces a handgun that he bought at the gun show last weekend and says: "Bill, I have never liked you or your kind" and empties the entire magazine into Bill's face.

Sat, 10/10/2015 - 11:34 | 6652525 Baa baa
Baa baa's picture

What a stupid comment!!!

Sat, 10/10/2015 - 21:06 | 6654045 JRobby
JRobby's picture

Story for the future chaos

Fri, 10/09/2015 - 16:59 | 6650594 Crocodile
Crocodile's picture

Pretty pathetic and is part of the overall problem with people; total lack of moral values or character.

Fri, 10/09/2015 - 12:09 | 6649231 Likedeeler
Likedeeler's picture

What new legislation in Germany and UK exactrly is meant?

Never heard of that.

Fri, 10/09/2015 - 12:08 | 6649226 MrSteve
Fri, 10/09/2015 - 11:49 | 6649141 Neil Patrick Harris
Neil Patrick Harris's picture

This. This is the reason I invest in bitcoin & litecoin. Capital controls are going to happen.

Fri, 10/09/2015 - 13:45 | 6649724 SpanishGoop
SpanishGoop's picture

And internet restrictions not you think ?

Live happely ever after.

 

Fri, 10/09/2015 - 14:57 | 6650095 JRobby
JRobby's picture

He did not think that one through.........oh where are my bitcoins?????

Fri, 10/09/2015 - 17:00 | 6650600 Crocodile
Crocodile's picture

They disappeared in another virtual casino.

Fri, 10/09/2015 - 11:15 | 6648959 aleph0
aleph0's picture

I wish they'd stop insulting everyone's intelligence  with this  "1000 copies free" thing.
Geezus.

Fri, 10/09/2015 - 11:00 | 6648888 Dr_Snooz
Dr_Snooz's picture

"we've uncovered a secret document outlining how the Fed plans to incinerate savings to force investors away from cash and into riskier assets."

Well, lowering interest rates is supposed to force investors out of cash and into riskier assets, so this may or may not be saying anything.

Fri, 10/09/2015 - 10:27 | 6648751 Albertarocks
Albertarocks's picture

Serious question:  If there were to be a banking holiday declared in Canada (which I doubt but admit 'could' happen because one would have to assume that they passed that law for a reason), surely they wouldn't have plans to seize the working capital of corporations?  This would obviously put most corporations out of business.  So how do they determine which accounts to rob and which ones to leave whole... just so they don't collapse the entire business system?

And more importantly, once the robbery has taken place how does the Canadian public determine which bankers to hang first?  There must be a proper protocol for hanging bankers one would assume.  Afterall, theft in Canada is illegal.  And we hang bank robbers in this country.  Or at least... we will.

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