FDIC Plots a
Bank Heist Involving YOUR Accounts Money Metals News Service, 4/15/15
There's a new front opening up in
the war on your wealth. If you haven't heard yet of the “bail-in,” you will.
Even if you have, you need to know the latest…The bail-in is another weapon in the
government's arsenal of capital controls meant to reward Wall Street cronies
and separate you from your money.
We've long been familiar with capital controls, such as daily limits on bank withdrawals. Add that to
seven years of microscopic interest rates cannibalizing savers' nest eggs
combined with planned inflation stealing your money while you sleep. But unlike
the drip-drip we're used to, the bail-in will come upon you quickly, harshly,
and with finality.
As the world faced a complete
financial meltdown in 2008, Congress ponied up fresh taxpayer money – $800
billion for openers and trillions since – to bail-out favored banks and
industries. Out-of-favor institutions were allowed to fail. Jobs, fortunes, and
futures disappeared while unborn generations were saddled overnight with
unpayable debt.
Congress and bankers noted the sharply
disagreeable taxpayer reaction. So they recycled an old idea from the Great
Depression's playbook – next time, just steal bank depositors' life savings.
That tried and true tactic took a
new name: the bail-in. The easy part – the laws they needed had been in place
for decades. But for added cover, they passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, a
1930's-styled, bank heist blueprint with a feel-good name.
Those laws
altogether say your money in your bank account in your name is not your money.
Those laws say the bank owns your deposited money, not you.
Wait...what?
Court cases have upheld for decades
that putting your money in savings, a CD, or other banking products means
you've become an “unsecured
creditor.”
Your deposit is actually an
unsecured loan to the bank with all the problems of counter-party risk!
Instead of being presented with collateral, you get an IOU that pays a pittance
in interest, or in many cases nothing.
A busted bank doesn't have to return
your principal deposits. Unlike when YOU are the borrower and THE BANK is the
lender, the bank didn’t tender you a lawyered up promissory note or offer you a
lien on its assets. Legally speaking, you may as well have handed your money to
a stranger in the alley.
“Unsecured
creditor” means just what it says: "no security." As banks went belly up during the
Great Depression, slaughtering depositors' life savings, Congress offered
reassurance that banks could be safe by creating the Federal Deposit Insurance
Corporation, or FDIC. For decades thereafter, careful depositors walked the
tightrope of spreading their deposits among various banks to qualify for
insurance protection.
Every depositor should now be aware
of the FDIC's congressional mandate to handle the next global economic
meltdown. Readers can read that entire scheme here. It's not an easy read because it was
never meant to be. Here are some notes that might help…
The
Scheme's Fine Print Reads: Bank Depositors Are Screwed. It's a joint plan with the Bank of England. Bankers see the
next meltdown again going global. The title accurately names the sole intended
survivors – “Globally Active, Systemically Important Financial Institutions.”
The document reveals a future meltdown was anticipated, discussed, and
coordinated years before the publication date of December 10, 2012.
The language “top of the group”
refers to creditors, stock holders, and bond holders. They are first in line
for slaughter (p. ii, p. iii). “Resolution tools” and “resolution powers” are
used throughout the document. “...applying resolution tools to different parts
of the group” means FDIC has authority to make it up as they go (p.1, para 3).
“...resolution authorities must not be constrained in exercising discretion”
means FDIC decisions carry absolute legal authority (p.1, para.4). FDIC doesn't like the word “save,”
as in “save bad banks.” FDIC substitutes the word “resolve” 18 times. And then
there’s you, the “unsecured creditor.”
As it happens, “unsecured creditors”
are quite important with the FDIC, appearing 11 times in the 18 page document.
“...unsecured creditors should thus expect that their claims would be written
down to reflect any losses that shareholders did not cover” means we'll tell
you how much you lost after we divvy up the take (p.6, para 12). That could
also point to lowered insurance limits without notice, if any insurance is left
at all. “...it will take time for losses to be assessed for purposes of
recapitalization” strongly hints at freezing any loot in accounts left behind
(p.8, para 35).
Your consolation prize, if there's
one at all, might be some government-issued bank stock you can't sell. FDIC congratulates itself 9 times
for not “exposing taxpayers,” never mentioning FDIC itself would be bankrupt
after the first $50 billion in claims, leaving taxpayers to bail-out the very
FDIC created in 1933 to shield their savings deposits. One single zombie bank
could easily swallow $50 billion. Estimates of currently insured FDIC deposits
exceed $6 trillion.
Bail-in
Scheme Has Been Tested and Is Ready for Use The bail-in rip-off scheme has been
successfully tested. Depositors in Cyprus found their savings largely wiped out
early in 2013. That infamous bail-in was a test run, leaving the U.S.
government's fingerprints all over Cyprus. It is significant to note Cypriot
authorities claimed, on their website, the legal authority to change rules
mid-stream at any time, just as the FDIC claims.
Low withdrawal limits stopped
panicked depositors' last minute bank runs. As banks stole their deposits, no
citizens stormed banks with pitchforks, no guillotines were hauled into the
village square. Bankers from Cyprus to New York congratulated themselves all
around.
Poland quickly followed, stealing
not bank accounts but private pension funds. Authorities took 50% of Polish
retirement funds overnight with the click of a mouse. Bail-in plans have been adopted by
Canada, Australia, and throughout Europe for future use. The G-20, representing
the twenty largest national economies, rubber stamped approval for global
bail-ins late last year, as has the International Monetary Fund. Just last
week, Austria suddenly dumped its version of FDIC insurance altogether.
Governments facing economic
annihilation across the globe are now legally authorized to seize banking
depositors' savings, either all or in part, overnight, and without notice. The
bail-in is a treasure map for bankers and governments at the next hint of
worldwide economic calamity. They know
the next meltdown will be your
grandfather's Great Depression.
Unlike the 1930's, there will be no
point standing in long lines with hat in hand to ask for your money. By the
time you hear the news, your money in the bank will already be gone.
Comments
This
started at the G-20 meeting and has been used in Cyprus and Poland. We need to
confirm that our accounts are not protected and demand that bank regulations
are changed to prohibit deposit account seizures.
Norb
Leahy, Dunwoody GA Tea Party Leader
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