The G-20 met recently in Australia
to make new banking rules for the next financial calamity. Financial
reform advocate Ellen Brown says these new rules will allow banks to take money
from depositors and pensioners globally. Brown explains, “It became rules
we agreed to actually implement. There was no treaty, and Congress didn’t
agree to all this. They use words so that it’s not obvious to tell what
they have done, but what they did was say, basically, that we, the governments,
are no longer going to be responsible for bailing out the big banks.
These are about 30 international banks. So, you are going to have to save yourselves, and the way you are going
to have to do it is by bailing in the money of your creditors. The
largest class of creditors of any bank is the depositors.”
It gets worse, as Brown goes on to
say, “Theoretically, we are protected by deposit insurance up to $250,000 in
the U.S. and 100,000 euros in Europe. The FDIC fund has $46 billion, the
last time I looked, to cover $4.5 trillion worth of deposits. There is
also $280 trillion worth of derivatives that the five biggest banks in the U.S.
are exposed to, and under the bankruptcy reform act of 2005, derivatives go
first. So, they are basically exempt from these new rules. They
just snatch the collateral. So, if you had a big derivatives bust that
brought down JP Morgan or Bank of America, there is no way there is going to be
collateral left for the FDIC or for the secured depositors. This would
include state and local governments. They all put their money in these
big banks. So, even though we are protected by the FDIC, the FDIC is not
going to have the money. . . . This
makes it legal for these big 30 banks to take our money when they become
insolvent. They are too-big-to-fail. This was supposed to avoid
too-big-to-fail, but what it does is institutionalizes too-big-to-fail.
They are not going to go down. They are going to take our money
instead.”
Part of the coming financial
calamity will involve hundreds of trillions of dollars in un-backed
derivatives. Brown contends, “If the derivative bubble pops, nobody knows
what is going to happen, and it’s obvious it has to pop. It can’t just
keep growing. Depending on who you read, some people say it is up to two
quadrillion dollars. It’s virtual money, and it cannot keep going on.”
When a financial crash does happen, you
can forget about getting immediate access to your money. Brown says, “The
banks will say, well, we don’t have it. All the money goes into one big
pool since Glass Steagall was repealed. They are allowed to gamble with that
money and that’s what they do. I think maybe Bank of America is the most
vulnerable because of Merrill Lynch. Everybody is concerned, and they do
very risky deals and they are on the edge. I think they have over $50
trillion in derivatives and over $1 trillion in deposits. . . The Dodd-Frank
Act says we, the people, are no longer going to be responsible for the big
banks when they collapse. It is not clear the FDIC will even be able to
borrow from the Treasury, but even if they could, who is going to pay that
money back? Let’s say they borrowed $1 trillion. Who is going to
pay that $1 trillion back? It will bankrupt all the small banks that had
to contribute to this premium. They will say we’re raising your premium
to everything you got, basically. Little banks will go out of business,
and who is going to survive–the big banks. . . . What we’re going to have left
is five big banks, and everybody else is going to be bankrupt.”
Join Greg Hunter as he goes One-on-One
with Ellen Brown from the Web of Debt Blog. (There is much more in the video
interview.) https://www.youtube.com/watch?time_continue=3&v=Ey20x-VlDYQ
http://usawatchdog.com/big-banks-will-take-depositors-money-in-next-crash-ellen-brown/
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