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Think Your Bank Deposits Will Always Be 100 Percent Guaranteed by the FDIC? Think Again.

Think Your Bank Deposits Will Always Be 100 Percent Guaranteed by the FDIC? Think Again.

Wednesday, 03 April 2013 09:34 By Gaius Publius, America Blog | Op-Ed

Legal Tender.(Photo: mccmicb / Flickr)I think this is a huge story, and it takes very little to tell it. These are the basics on deposit confiscation and how we got there:

■ You know that the EU-forced solution to the failure of banks in Cyprus is to require the Cypriot government to confiscate (tax) deposits. That news is everywhere you look; its not in dispute or doubt. The latest has depositor losses at 60% due to the bailout-related one-time tax.

■ Confiscating deposits is exactly the opposite of insuring deposits, which is what is required in the EU, and also offered by the FDIC (as the ads say, your deposits are insured up to $250,000″).

■ The next monster taxpayer-financed bank bailout could spark a revolution. Find me anyone who isnt a friend of Big Money who doesnt hate the Bush-Obama bailout. Dem, Republican, Libertarian, frog-on-a-rock no one liked the bailout.

■ This takes a taxpayer-financed bailout off the table as the next way to make bankers whole when they stumble.

■ But bankers are going to stumble soon, and big. The derivatives market is huge, and theyre aggressively reversing the tepid Dodd-Frank derivatives regulations as we speak. Of course, friends-of-big-banks in Congress are helping (thats you, Ann Kuster).

■ So the next big bailout (which is coming) will have to come from somewhere else.

Guess where that somewhere else is? Deposits.

Nations have already started to institute rules that enable deposit confiscation

Theres an international move by national governments to write regulations that permit deposit confiscation in the case of bank failure. This is exactly the Cyprus model, and if the news stories are correct, confiscating deposits was being considered or enabled prior to Cyprus bank-failures.

New Zealand (h/t a very alert reader last week; my emphasis and paragraphing):

National [Government] planning Cyprus-style solution for New Zealand

The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill Englishs favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the banks bail out.

Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand a solution that will see small depositors lose some of their savings to fund big bank bailouts, said Green Party Co-leader Dr Russel Norman. The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.

Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.

Heres what the New Zealand government says about Open Bank Resolution (my emphasis):

What is an OBR?

The Open Bank Resolution policy is a tool for responding to a bank failure. It allows the bank to be open for full-scale or limited business on the next business day after being placed under statutory management (as a result of, for example, an insolvency event). This means that customers will be able to gain full or partial access to their accounts and other bank services, whilst an appropriate long-term solution to the banks failure is identified.

Why should depositors bail-out banks?

The OBR policy is designed to ensure that first losses are borne by the banks existing shareholders. In addition, a portion of depositors and other unsecured creditors funds will be frozen to bear any remaining losses. To the extent that these funds are not required to cover losses as more detailed assessment of the position of the bank is completed, these funds will be released to depositors. At a high level, this outcome replicates the outcome that would apply in the event that a failed bank was liquidated. The primary advantage of the OBR scheme, however, is that depositors would have access to a large proportion of their balances throughout the process. This contrasts with what would happen under a normal liquidation, where depositors might not have access to any of their funds for a significant period.

Why arent deposits guaranteed?

During the recent global financial crisis the government took the decision to put in place a temporary guarantee on retail deposits. On 11 March 2011 the Minister of Finance announced that further guarantees would not be provided following the expiry of the existing scheme. Furthermore, the Minister ruled out the possibility of introducing a compulsory deposit insurance scheme.

Read the rest if you like. Thats a government of New Zealand publication.

Deposit confiscation is being planned in the U.S. and the U.K.

Just as the New Zealand plan has been in process for a while, so is a similar plan in the U.S. and the U.K. This piece is making the rounds and making waves. It should (again, my emphasis; h/t a must-read DownWithTyranny piece):

It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors

Posted on March 28, 2013 by Ellen Brown

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone troika officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

Although few depositors realize it, legally the bank owns the depositors funds as soon as they are put in the bank. Our money becomes the banks, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into bank equity. The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

The 15-page FDIC-BOE document is called Resolving Globally Active, Systemically Important, Financial Institutions. It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain financial stability. Evidently [the writers anticipate] that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite

No exception is indicated for insured deposits in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive.

December 10, 2012 was pre-Cyprus. Deposit-confiscation wasnt something cooked up on the fly. Its been in the works for a while, by all the international Bigs. Note that the source of the negotiations is the G20 Financial Stability Board in Basel, Switzerland. This is indeed international.

Bottom line

This proves three things, I think:

  1. Major governments exist, in part, to make sure no banker takes a loss anywhere in the world, regardless of risky behavior on the part of the banks. The world and its governments serve the bankers.
  2. The next banking crisis is anticipated to dwarf the last one, and the Bigs have been making plans to bail it out with depositor funds, not taxpayer funds. Cyprus is just the first implementation.
  3. Loss of deposit insurance is coming to the U.S.

The Rich vs. the Rest. “All your money are belong to us” indeed. The outcome has bloodshed written all over it.

[Update: Title slightly modified to reflect that outside of Cyprus,
these are just plans, at least so far.]

Gaius Publius

Gaius Publius is a professional writer living on the West Coast of the United States. Click here for more. Follow him on Twitter @Gaius_Publius and Facebook.

http://www.truth-out.org/opinion/item/15500-think-your-bank-deposits-will-always-be-100-percent-guaranteed-by-the-fdic-think-again


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NEIL KEENAN UPDATE: GLOBAL FINANCIAL ALERT – RACE AGAINST TIME TO PREVENT BANKSTERS’ PLAN TO TRIGGER MELTDO WN – FEAR OF KEENAN DRIVING CABAL PANIC

Link to story and video: http://jhaines6.wordpress.com/2013/04/06/neil-keenan-update-global-financial-alert-race-against-time-to-prevent-banksters-plan-to-trigger-meltdown-fear-of-keenan-driving-cabal-panic/

Posted on April 6, 2013

by Jean

· Central bankers secretly stockpiling gold through third parties in anticipation of euro collapse

· Greek assets – even whole islands – being secretly sold off to pay troika

· Check for $300 million signed by CEO of major bank is used to defraud global gold reserves

· United Bank of Switzerland selling US dollars at 20% discount in preparation for collapse, while UBS bonds are discounted more than 30% in global trade, as banksters try to dump fast for cash now

· Cyprus theft of savings accounts was test run, coming soon to a bank near you

· How Neil Keenan and the Alliance intend to prevent oligarchy’s plan for financial chaos

by Michael Henry Dunn

JAKARTA, April 5, 2013: Word has reached Neil Keenan here that the banking cabal’s fear and desperation are now moving into what may be a final phase. They tried triggering World War III and that didn’t work. They thought they could depopulate the planet through designer diseases, and that didn’t work. They thought they could escape to vast underground cities, and (thanks to off-planet allies) that can no longer work. Facing exposure, humiliation, and prison (if they are lucky) they are now down to their last desperate throw: to create financial chaos by collapsing world currencies and pulling off a vast Cyprus-style theft of middle-class savings in the U.S. As global forces line up behind Neil Keenan, the Alliance, the Qing Dynasty, and the imminent “Changing of the Guard”to reclaim control over the Global Collateral Accounts, the oligarchs are desperately stockpiling gold in the hope that they can once more dominate an impoverished humanity by surviving the chaos that they themselves plan to trigger.

Not going to happen – they made the mistake of stealing from Neil Keenan.

Clearly, there’s more to it than that, and this fight for freedom has been secretly waged by thousands of men and women for decades. But it may well be that historians will look back at the moment when the hapless Daniele Del Bosco absconded with $144.4 billion in bonds entrusted to Keenan by the Dragon Family as the turning point that set the final wheels in motion to bring down Financial Tyranny. As Del Bosco attempted to launder the bonds through the Italian government, the U.N., the World Economic Forum, and the so-called Office of International Treasury Control, Keenan relentlessly pursued the unfolding evidence that led to the Trillion-Dollar Lawsuit and the creation of the Monaco Accords, which are now supported by more than 160 nations. Information continues to flow into Keenan on a daily basis from multiple sources, as witnessed first-hand by this writer.

Forces are now in motion to prevent this final dark plan from succeeding. The cabal’s desperation is palpable. It’s every man for himself, as the once monolithic Illuminati becomes merely a pack of vicious thieves – which is all they ever were in fact – fleeing from the justice they thought they would never face. Meanwhile, the pressure on them increases daily as the avenues of escape are closed off one by one. And military, militia, and intelligence cooperation is poised to make the long-awaited final sweep of the cabal power structure.

The cabal’s strategy down through the ages has always been the same: “out of chaos, order.” They create the chaos, and then impose an ever more oppressive “order,” in order to degrade free human beings into debt slaves. They lived by their twisted version of The Golden Rule: ”he who has the gold makes the rules.” They amassed the gold reserves now known as The Global Collateral Accounts on the pretext of removing the cause of war (while slaughtering millions in a series of gold-theft wars). In a century-long struggle, they succeeded in subverting their greatest enemy – a free American republic – into the bankster-controlled U.S.A., Inc., via their secret ownership of the Federal Reserve System. They triggered the Great Depression so they could buy America for a song while outlawing private ownership of gold. The final phase of their grand strategy called for their rulership over a post-Armageddon remnant of mankind. These plans have now fallen apart, and their grand goal of ultimate dominion has been reduced to a desperate struggle for survival.

Agency sources confirmed to Keenan in a face-to-face meeting in Jakarta this week that the bankster sect is planning a counter-attack in the coming weeks, hoping to get their last moves in before Keenan and the Alliance take control of the Global Accounts. The disarray in their ranks is evident from the following reports that high-level financial contacts have provided to Keenan in conversations witnessed by this writer in recent days:

· Josef Ackerman of Deutschebank, and other European central bankers, have reportedly supervised secret stockpiling of gold through vast purchases through third and fourth party front men. These purchases of precious metals are paid for with euros that will soon be worthless. Ackerman’s gold buyers are authorized to purchase as much as 10,000 metric tons per month – a staggering amount.

· So-called “bail-outs” will be offered to struggling European nations – bail-outs comprised of the same baseless euros – charging usurious rates of eighteen to twenty percent. The struggling nations will ultimately be unable to pay, and the bankers will come calling to claim national assets and sovereignty for a pittance. This is already happening, of course, in Greece, where parts of Greece itself are being sold off to foreign buyers, such as a large section of the idyllic Greek island of Corfu. Our source stated that if the Greek people knew what was really going on, “there would be a revolution tomorrow.” The Emir of Qatar has been making regular buying trips to Greece for the last three months. It remains to be seen if there will be anything left of Greece for the Greeks.

· The euro itself is doomed: as noted here before, the gold reserves backing the euro have been leased with counterfeit notes issued by Mario Draghi’s European Central Bank. Neil Keenan has massive documentation of this fraud, and will be coming after the ECB and Draghi in short order.

· Sources report that United Bank of Switzerland is now selling US dollars at 20% discount in preparation for collapse, while UBS bonds are discounted more than 30% in global trade, as banksters try to dump fast for quick cash.

· Attempts to defraud the Global Accounts are becoming ever more brazen, as a $300 million dollar bank draft bearing the signature of the CEO of one of the world’s largest banks was reportedly used in an attempt to persuade banks to bypass the usual four to six week waiting period for verification of such funds, so that funds supposedly based in Global Account gold assets could be withdrawn within five days of deposit. By the time the fraud would be revealed (our source stated), the funds – and the fraudsters – would be gone. This is but one instance, we are told, of multiple such attempts to raid the global candy store before the new sheriff shuts down the racket.

· Multiple high-level sources have told Neil Keenan: “everyone knows you’re coming – you’ve got them running scared.”

As recently reported by Drake Bailey, the U.S. Department of Homeland Security is implementing Cyprus-style plans to seize bank accounts, and contents of safety deposit boxes, if any such are judged to be “of a contraband nature,” in the opinion of the agent. This danger to ordinary Americans’ savings was confirmed to Neil Keenan in person this week by an intelligence community contact, who stated that DHS is planning to use mercenary forces comprised of foreign nationals to back this brazen destruction of the American middle class. Pentagon and agency forces are lined up to defeat any such move, and it is expected that the vast American militia movement would immediately swing into action as well. DHS is apparently one of the last lairs of cabal operatives, and should be a target of Alliance efforts in the coming days. We hope and intend that violence will be avoided, but it may well be that the end game will be tough going.

The reason the control of the Global Accounts is so crucial at this critical turning point is simple: it is the cabal’s last available source of actual (as opposed to fiat) money. Mercenaries don’t work for free. Once the final agreements are signed, and Mr. Keenan and the Alliance take over management of the Accounts, the final framework for global financial reform will be in place. This event is imminent. Hard on the heels of the agreements, Keenan’s trillion-dollar lawsuit will be re-filed with final damning evidence in place, and the liens on the central banks will be re-imposed. With this legal basis firmly established, other long-planned moves against the cabal will swiftly follow.

As the dust from this momentous Changing of the Guard settles, plans call for rapid implementation of emergency funds, eradication of phony debt, and careful development of humanitarian programs for the nations of the world. These funds will not be distributed to governments or banks, but to foundations that serve the people, that stimulate national economies, rebuild infrastructure, implement free energy technologies (yes, they exist!), restore the environment, or provide health care and education.

It may well be asked by reasonable persons how it could possibly be that one man, Neil Keenan, could be so formidable and dangerous to the survival of a ruthless and murderous cabal, and avoid being killed by them. Keenan has avoided mention of this topic in past posts, but I think it important that all those praying for his success should know that he has survived four such attempts in the last three years. The protection around him has increased with each successive attempt, and Mr. Keenan himself inflicted heavy punishment on one assailant in Europe (the would-be assassin ended up in the hospital, while Keenan escaped with a scratch). Attribute it to the luck of the Irish (though the Irish say that if it weren’t for bad luck, we’d have no luck at all), or to the prayers of millions, or to the guardianship of intelligence community allies, or to the protective devas invoked for him in Indonesian ceremony, but the fact is that Neil Keenan now laughs at the thought of danger, and is confident of success.

Of course, Keenan pretty much laughs at danger in any case…or even relishes it. This reporter witnessed Keenan’s blithe response to an apparent attack by a black-clad female assassin in a Jakarta shopping mall only days ago: (see link at top of email for the brief video).