How You and Your Money Will Be Parted During the Next Banking Crisis," author John Lawrence writes, "The (Financial Stability Board's) language is a bit obscure, but here are some points to note:"
What was formerly called a "bankruptcy" is now a "resolution proceeding." The bank's insolvency is "resolved" by the neat trick of turning its liabilities into capital. Insolvent TBTF banks are to be "promptly recapitalized" with their "unsecured debt" so that they can go on with business as usual.
"Unsecured debt" includes deposits, the largest class of unsecured debt of any bank. The insolvent bank is to be made solvent by turning our money into their equity – bank stock that could become worthless on the market or be tied up for years in resolution proceedings.
The power is statutory. Cyprus-style confiscations are to become the law.
Rather than having their assets sold off and closing their doors, as happens to lesser bankrupt businesses in a capitalist economy, "zombie" banks are to be kept alive and open for business at all costs – and the costs are again to be borne by us.
The points are actually made by Ellen Brown, author of "Web of Debt" and "The Public Bank Solution."
These "laws" exist, and the public has no idea access to their deposits can be restricted or that their deposits can actually be confiscated as part of a big bank "bail-in" to try and save the bank from closing.
Oh, and don't think it's safe to put your cash in a bank safe-deposit box. A bank, under government orders, can confiscate cash in there too.
Me, I'm spending my excess cash on hard assets. Heavy stuff, like gold, that can't be "toted away" by the government or the Federal Reserve.
The fix is in. All the way in. And I'm here to tell you to think long and hard about where you have your hard-earned money.
The POWER of the Internet. Like the Six Gun in the Old West called an Equalizer.
Do your own DD, This post is my OPINION. ** TRUST, BUT VERIFY.**VERIFY
AI
