RON PAUL 2012

[NYBob]

The Detroit Bail-In Template: Fleecing Pensioners to Save the Banks

Posted on August 5, 2013 by Ellen Brown

The Detroit bankruptcy is looking suspiciously like the bail-in
template originated by the G20’s Financial Stability Board in
2011, which exploded on the scene in Cyprus in 2013 and is now
becoming the model globally.
In Cyprus, the depositors were “bailed in” (stripped of a
major portion of their deposits) to re-capitalize the banks.
In Detroit, it is the municipal workers who are being bailed in,
stripped of a major portion of their pensions to save the banks.

Bank of America Corp. and UBS AG have been given priority over
other bankruptcy claimants, meaning chiefly the pensioners, for
payments due on interest rate swaps they entered into with the
city.
Interest rate swaps – the exchange of interest rate payments
between counterparties – are sold by Wall Street banks as a
form of insurance, something municipal governments “should” do
to protect their loans from an unanticipated increase in rates.
Unlike ordinary insurance, however, swaps are actually just bets;
and if the municipality loses the bet, it can owe the house, and
owe big.
The swap casino is almost entirely unregulated, and it is a
rigged game that the house virtually always wins.
Interest rate swaps are based on the LIBOR rate, which has now
been proven to be manipulated by the rate-setting banks; and they
were a major contributor to Detroit's bankruptcy.

Derivative claims are considered “secured” because the players
must post collateral to play. They get not just priority but â
super-priority in bankruptcy, meaning they go first before all
others, a deal pushed through by Wall Street in the Bankruptcy
Reform Act of 2005.
Meanwhile, the municipal workers, whose pensions are
theoretically protected under the Michigan Constitution, are
classified as unsecured claimants who will get the scraps after
the secured creditors put in their claims.
The banking casino, it seems, trumps even the state constitution.
The banks win and the workers lose once again.

Systemically Dangerous Institutions Are Moved to
the Head of the Line


Continued....http://webofdebt.wordpress.com/2013/08/05/the-detroit-bail-in-template-fleecing-pensioners-to-save-the-banks/

detroit? bankruptcy? dems / progressive moving toward bankrupt cities and states.

progressive making a fast track move for immigration.

progressives move is to let immigrants move into bankrupt cities and and states.

so this reads give immigrants their own states and cities.

reminder/\ remember back ah few they / progressives were chatting

give minorities their own states?
by mick