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The Catastrophic Threat of Bail-Ins
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The Catastrophic Threat of Bail-Ins
Written by Jeff Nielson (CLICK FOR ORIGINAL)
It has now been more than two and a half years since the Cyprus Steal, the first “bail-in” perpetrated in the Western world, occurred. Before reviewing the history of this newest financial atrocity, it is necessary to define the terms.
The term “bail-in” describes a scenario in which a bank confiscates private property to indemnify itself for losses it has suffered. A bail-in is a totally lawless theft of assets, as there is no principle of law (of any kind) that could authorize such a seizure of private property. And in fact, there are many principles of law that demonstrate the lawlessness at work here. As with much of the financial crime jargon, “bail-in” is simply another gibberish euphemism like “quantitative easing” or “derivatives.”
As custodians of the financial assets of their clients, banks represent a form of trustee. The purpose of any trust relationship is to provide absolute security to the beneficiary of the trust (i.e., the legal owner of the property). Thus, one of the most fundamental principles of our legal system is non-encroachment regarding the property held in the custody of a trustee.
From a legal standpoint, it is like there is an invisible and impenetrable wall that surrounds the trust property. The only exceptions to this wall (ever) occur when the trust beneficiary makes a legal request for some disbursement or related transaction, when the trust itself directs some form of action (in the interests of the trust beneficiary), or when the trust allows the trustee to manage the trust assets on behalf of the beneficiary.
The idea of trustees using assets for their own benefit or (worse) claiming ownership of any trust assets represents one of the most serious forms of financial crime in Western civilization. Given this context, how did the government of Cyprus respond when its own Big Banks whined and claimed that they “needed” to confiscate deposits in order to pay off their own gambling debts? It meekly rubber-stamped the lawless theft.
How did other Western governments react to the violation of one of the most sacred legal principles in our entire financial system? They simply nodded their heads in unison, and, as a single chorus, called the Cyprus Steal “a precedent” – a template for future systemic financial crime in their own regimes.
Beyond the perfect choreography demonstrated by Western governments immediately after this act of theft, how do we know that the Cyprus Steal was a scripted event orchestrated by the Big Banks? To begin with, all of the Big Money deposit holders in Cyprus had already moved their money out of Cyprus banksbefore the Big Banks began their pillaging and plundering. The “fix” was in.
Not a single Western government raised the slightest qualm about violating one of the most sacred principles of law in our legal system. Rather, these puppet regimes went about creating their own “rules” as to how/when the Big Banks would be allowed to steal property from the accounts of their own account holders. The Harper regime entrenched “the bail-in” in Canada’s official budget, while other puppet regimes were sneakier and more circumspect when “legalizing” this crime.
Here it is necessary to back up and address the “reason” (excuse) behind this newest form of systemic bank crime. The “bail-in” is the ultra-insane culmination of the “too big to fail” doctrine. By this doctrine, any and all assets, public or private, in our financial system can and will be sacrificed (stolen by the Big Banks) to prevent any of the Big Banks from “failing” – that is, going bankrupt as a consequence of their ownreckless gambling.
The legal and economic principles violated by the concept of “too big to fail” are too numerous to list. However, they begin with the following objections:
1) The concept of “too big to fail” is contrary to numerous tenets of capitalism. In any capitalist/free market system, insolvent entities are supposed to fail in order to correct the misallocation of assets. Any entity that grows to become an existential threat to the system is simply too big to exist.
2) Banks should never be allowed to gamble. Period. There would have been no need for the $10’s of trillionsin “bail-outs” given to this crime syndicate following the Crash of ’08 if our puppet governments had not previously erased our laws that prevented such gambling.
3) “Too big to fail” is based on an overtly criminal premise called systemic blackmail: “Give us everything we demand, or we’ll blow up the financial system.” It is extortion in perpetuity: financial slavery.
Note how (2) and (3) relate directly back to (1). Why shouldn’t banks gamble with their clients’ assets? Because by doing so they not only jeopardize the property they are holding in trust but also become a threat to the financial system. Why shouldn’t financial entities be allowed to grow so big they become an existential threat to the system? Because size (as we now see) gives these Big Banks the leveragenecessary to blackmail our corrupt, limp-wristed governments, perpetually.
So what is the only possible way to put an end to this Big Bank blackmail? Well, should our corrupt governments ever decide to once again enforce our anti-trust laws , we can end the cycle by smashing these Big Banks “down to size,” or down to the largest size allowed by law . Indeed, “too big to fail” is the ultimate example of why we need anti-trust laws and why they need to be vigorously enforced.
Anti-trust laws are anti-corruption laws. For decades, there has been almost no enforcement of our anti-corruption laws. The result is a global economy now almost totally dominated by just one of the major (and illegal) oligopolies that has emerged: the crime syndicate readers know as the One Bank.
It is this crime syndicate that engages in the systemic blackmail of “too big to fail,” supposedly to indemnify its Big Bank tentacles for the losses they incur. However, in almost every case, these “losses” are nothing but an accounting sham: paper losses owed by one Big Bank tentacle to another. No entity could ever be bankrupted by a “debt” owed to its right hand by its left.
The “losses” do not even exist, but the blackmail and fraud is all too real. Having totally depleted the public treasuries of most Western nations with its “bail-out” extortion following the Crash of ’08, the One Bank needed a new mechanism of theft by which to continue its permanent, institutionalized blackmail.
The bankers demanded that they be allowed to steal private assets (already in their custody), directly, any time they claimed to suffer a “substantial loss.” Our puppet governments, as usual, caved to the crime syndicate’s demands, and the “bail-in” was born.
What is at risk with a “bail-in?” According to the (perversely named) Financial Stability Board: any and every paper asset in the custody of the Big Banks and (potentially) any paper asset in the custody/control of our governments. The Financial Stability Board is one of the propaganda mouthpieces of the Big Bank crime syndicate, and its “guidelines” have been directly cited as authority by several of these puppet regimes, including the Canadian goverment.
How do people protect themselves from the massive bail-ins that are imminent as the Next Crashapproaches? There is only one way: get your assets (i.e., your wealth) out of all paper instruments. This includes the fraudulent paper currencies of our fiat-currency/ fractional-reserve Ponzi scheme system. Hold only enough wealth in paper instruments to satisfy current cash-flow requirements and short-term “emergencies.”
For the longer term financial Armageddon that is now inevitable, the only secure form of wealth-preservation is the oldest-and-surest tool for that task: precious metals. Rather than offering holders short- or medium-term protection for their wealth, gold and silver represent lifetime security, what people are supposed to have, and what most people still think they have when they entrust their wealth to a bank.
Once upon a time, we had strong, vigorously enforced laws that made a bank the safest place to store paper assets. That is no longer. Now banks are where your wealth is most likely to be stolen – and by the bank itself. Thanks to the bail-in, the term “bank robbery” now has an entirely different meaning.
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The Catastrophic Threat of Bail-Ins
Written by Jeff Nielson (CLICK FOR ORIGINAL)
- advertisements -
<I>Why does every heart
I trust desert me
Why must it always end the same
Fate deals the last one down and dirty
It's the hands you fold
That make you old
That's The Nature of the Game</I>
See the magic? This is exactly how they play it.
Build up trust.
Betray.
Then the police come take it all away.
They call it "equiable sharing".
Haha.
"The term bail-in describes a scenario in which a bank confiscates private property to indemnify itself for losses it has suffered."
No, it represents a wind down of a bankrupt bank's liabilities using temporary regulations outside of normal bankruptcy laws and deposit guarantuee contracts. Same as a bail out really.
Every single time there has been a bail in, depositors were better off than if it had been handled without the bail in. Cyprus's national deposit guarantuee would have failed without the simultaneous bail in and bail out, their bank depositors got a gift courtesy of the rest of Europe. Did other creditors of those banks get even bigger gifts? Sure, but to say it was the depositors who were robbed is retarded. European taxpayers outside of Cyprus were robbed.
A simple solution is to create full reserve banks as an alternative to fractional reserve ones. Entirely separate from fractional reserve banks, they would only be allowed to hold government debt matching their deposits - very short maturity for demand deposits, matching maturity for CDs. A fractional reserve bank could then offer a much higher interest rate for a depositor who'd like to take a gamble. Deposit insuance for modest sums would stay in place but perhaps reduced down to $100k or less instead of the $250k current limit...
The only way to implement that (without it taking half a century) would be for the central bank to buy all the existing loan books from banks first ...
Well, atthelake,the Oracle of Omaha, Warren Buffett, bought The Buffalo News, The Burlington Northern Santa Fe Corp., Acme Brick Company, Benjamin Moore & Co., Business Wire, See’s Candies, the Omaha World-Herald, SE Homes, The Pampered Chef, National Indemnity Co., Lubrizol, Johns Manville, International Metalworking Companies, Helzberg Diamonds, GEICO, Fruit of the Loom, FlightSafety International, Duracell, Dairy Queen, Clayton Homes, Cavalier Homes, RC Willey Home Furnishings, Jordan’s Furniture, Star Furniture, Ben Bridge Jewelers…
And the list goes on. And on, and on…
We had heard he was going to buy a Greek Island, but why would he want a Greek island when he’s in bed with DC getting fat on American taxpayer bailout money and making sweetheart deals with the entire US government? All to enrich himself and his corrupt fund, as Chris Mayer put it in The Goodfellas of Wall Street.
“It makes you want to throw up, then, when Buffett’s vice chairman, Charlie Munger, said of struggling Americans during the housing bust (those taxpayers, you know) that they should ‘suck it in and cope.’ Yeah."
https://en.wikipedia.org/wiki/List_of_assets_owned_by_Berkshire_Hathaway
http://dailyreckoning.com/the-goodfellas-of-wall-street/
I stopped listening to that cherry coke infested dickhead when he went from Silver gatherer to PM badmouther.
The old fart has sold out to make a pact with the devil. I hope the fart dies and someone vandalizes his grave...
You don't buy candy, insurance, real estate and ice cream companies when you think America is becoming a third world company. I hope he's right. Diamond companies, maybe.
Not that I do but, if you had $100,000,000, where would you put it? I don't know of anything that's safe.
You could do what I am doing. Use their own money against them. There are grants and zero interest loans. I am protecting family and friends.
It is not a walk in the park, but it is possible, come and see how. http://fontebispo.com/investment.html
You can do what I am doing if you are that worried.
Last time I posted ths somebody said it was spam - perhaps, but it is a serious suggestion and you can see it if you want.
If you have €2M to protect by doing your own project like mine, come and see me - no charge!
PH
4-star accommodations, restaurant, banquet hall, spa?
Some PMs -too late to buy big, but a little will go a long way.
Farmland -it will depreciate, but later climb. Hassle free rent income at all times.
Alternate energy research -in secret. Make cold fusion systems on a small scale and don't tell the patent office how.
Great. But... we have been reading such articles since 2010 or so in one form or another. And they always stop short, with the suggestion to stack physical PMs.
Yes. Do stack. But PMs are just part of a complete breakfast, since they can be taken from you by a government fulfilling the only certain thing about the future; its intervention into the lives of its citizens. For those who don't comply with the confiscation order, they are subject to the black market / barter penalties, which include extra food coupons for those who rat out their neighbors trying to make a trade.
The best defense I know of is total self-sufficiency. And of course even that is not bullet proof. And I'm speaking both metaphorically and literally.
There was a lot of dirty Russian money going through the Cyprus banks, luckily the Moscow branches stayed open specially for their larger customers while the Cyprus branches took a little holiday. Bullion dealers will shut their doors in a falling market so neither can be trusted.
Under capitalism these banks would go under. Hence, they cannot afford to use capitalism as their economic model; it would knock them out of the ballpark. The TBTFs need government on their side, control of labor, prices and corporations. IE, monopoly. So for their economic program they selected commodities whereby through commodity control they could control the State and the State would control everything else.
So now we come to 2016. And it’s breaking. Just as Lenin and Trotsky and Stalin couldn’t make socialism and tyranny work, they can’t make it work either. There’s only one way they can make it work and that’s to steal from the people. Total control meant they had to destroy—with support of the government-- the small businessmen, the kulaks, that were competing with them..
But the main problem they’ve faced in the West is the West’s middle class. Every successful country has a large middle class – a place where the lower class can move into, or a place where the upper class can be knocked down into when it begins to make mistakes or engages in corruption. The middle class is the up and down ladder; it is the main opponent of the bankers, of the international bankers, of the One Bank. So the One Bank has systematically been attempting to destroy it.
Sovereignty, national borders, tariffs: all are bad news for the bankers. And the biggest threat of all is Christianity which provides for equality under the law, the opposite of oligarchy.
Each generation of America’s middle class expected a better life for themselves and for their children if they worked harder and were free to innovate under freedom with a right to their property.
America’s Founders put together a meticulous system of checks and balances to protect freedom--encompassed in a written document that provided that the governed would be protected from tyranny. The Constitution built all these into law. Freedom cannot be protected without law and a shared agreement to follow a system of laws. That’s not happening anymore.
America’s middle class is on the edge of revolt; it is tired of socialism, of fascism. A collapse in the economy will defeat the bankers—who are at the center of the collapse.
A "bail in" is very much a capitalist solution to insolvency of banks.
If the bank goes under, the depositors lose every penny over the insured limit and even some of those under the limit if the insurer doesn't have the capability to cover all the deposits up to the limit.
In a "bail in", which is essentially restructuring, the existing shreholders are wiped out and the creditors, including the depositors, get shares of the bank in exchange for the claims (debt or deposits) that will no longer be honoured. Depositors retain all their deposits at least up to the insured limit and get shares of the bank for whatever deposits are shaved off.
A "bail in" is a better deal for the depositors and creditors of the bank than its liquidation.
Nice post.
So what you're saying it ---> buy physical, GTFO out bankers and fake markets (all of them) and load up on ammo?
Thanks, OzFan. That's it! in a nutshell. :-)
The central banks coordinating with the Fed, are bringing us down. Growth of the West was based on freedom, capitalism, a contract society, property rights and limited government. In order to grab control of developing countries, and now the US, they decided to use socialism because they could control the head -- the State. Our 50 states are powerless because all the decisions now are made from one cenrral location. What is the state of Oregon, say, going to do about Lois Lerner? They have zero power because of the setup of central government. Without high risk and government support to bail them in and out, the Fed and its TBTFs would be long gone. In their place there would be economic growth.
Unfortunately for them, Americans have tasted freedom and won't give it up without a fight. I see big changes afoot in 2016, helped along by the Zero Hedges and writers like Nielson whose intelligent interpretations inform us of what is happening - he's one of the best in the field, IMO.
This kind of theft has happened all over again in recent History. The only difference is that it was usually performed via devaluation of currency. The hard stance of the European Central Bank on interest rates at that time, has only made more evident what has been commonplace in most countries around the world.
They gotta find mine first.... bail that in bitchez mmwaahhhhhaaaaaaaahahahahah
Precious metals? Those have been confiscated from people for thousands of years. They also suffer from the existence of false paperization, fractional reserve tactics, etc. How about an asset that is impossible to steal, impossible to counterfeit, is more scarce than gold, and will end up becoming the financial backbone of every online transaction in 5 - 10 years? How about people buy Bitcoin? Use the currency the State has NO EXPERIENCE in regulating or destroying; stop these failed attempts at resurrecting coins and bullion.
I can see gold coins, they are shiny and heavy unlike invisible bitcoins, it adds credibility.
Bitcoins aren't invisible, I can track them on the only open and globally auditable ledger in the world: the blockchain.
Or do you also have moments where you disbelieve Word documents exist because you can't hold them?
Really?
ButCoin can be outlawed just as easily, so you can only "trade" illegal stuff with it.
Drugs are also outlawed, as I understand, and yet they are everywhere. How could this be?
Hey shiny-shit hype-monger and peddler, if the gubmint bails-in bank deposits for the first time, then they will for sure bail-in everyone's shiny-shit - AS THEY ALREADY DID IN THE 1930's.
Shiny shit will not protect you !
Than they have to find the shiny shit first (three meters under the earth in some forrest or lake somewhere)
The banksters are itching to steal from their prey... I mean "customers". And almost certainly they will in the USSA within 2016.
What's absolutely hilarious (and totally sicko), but no article I've read has mentioned, is the following.
The banksters can grant themselves any size bonuses they wish. They can literally grant themselves a bonus so huge that the company then needs to "bail-in" their account holders.
From what I can tell, this is now 100% legal in the USSA.
It is rather amazing that nearly zero individuals removed their funds from banks after bail-ins were made legal and standard operating procedure.
Or maybe not. Clearly almost all humans are that stupid. Clearly at least 99% of humans never learn, no matter how egregiously they are abused.
well thank God for the 1% like U Ann, who don't get fooled and who stay cool in never-never land.
Why worry about the "stupid" they'll get Corzined and they "deserve" it.
I don't know y people get hot under the colla about subhumans; the 99%.
Those banksters are no different, they have understood what Ann understands : dumb goes to dumber and Jamie D plays tennis in his living room as strong goes to stronger, singing : Happy New 2016 to all his uber-clients.
I think they like it, most people love to bitch and no doubt they will.
Duck or grouse.
You don't bitch when your belly is empty...you hunt. 72hours friends, that's how long it takes Homo Sapiens to go feral. Microseconds friends, that's how long it takes for electricity to disappear...and certain untoward individuals know that.
The Sword of Damocles hangs over our heads on the North American Continent in the form of a very fragile electric grid. Give me a hundred fighters and a van full of RPGs, and I can take us down for the count.
See earlier post about Mad Max...
Spoctor Din
Which one is more important?
Bail ins = 1929-31 when there was no deposit insurance.
Devastating effect.
If you do not have assets in your own personal possession, you don't own them.
If you gave all your shit to banks, YOU OUGHTA GET BITCH SLAPPED INTO THE MIDDLE OF NEXT WEEK.
Welcome to the new normal. Same as the old normal.
Banksters are for kids, silly wabbits.
"Who's the bunny?"
--- Mel Gibson in Mad Max Beyond Thunderdome