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No Bank Collapses Before September?

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bail inThe Cyprus model of theft “bail-in” bank collapses is slowly being adopted globally as the solution to enable bankrupt sovereign nation states deal with bankrupt banks. Japan is the latest country to consider such a move, even the EU is about to adopt the policy, but all eyes will be on the G20 in September. It’s strongly suspected that the G20 will announce theft “bail-ins” as the solution to deal with bank collapses. That countries (New Zealand, EU, Canada, UK) have openly being discussing such a drastic solution shows there is expected to be a raft of banks collapsing in the near future.

I have been reporting for some time now that a number of central banks have already published policy documents detailing how bail-ins would work. The Bank of Canada, Bank of New Zealand, and the FDIC and Bank of England jointly, have all published something on the issue.

At its heart is the idea that savers are, in fact, “unsecured creditors” of the banks, and therefore come second only to shareholders should their assets need to be confiscated in order to keep a failed bank going for a little while longer.

Yesterday, Nikkei highlighted that Japan’s Financial Services Agency will enact new rules to force failed bank losses onto “investors”. 

The Japanese Parliament ratified the proposals yesterday.

Also yesterday, Sergei Storchak, a Russian Deputy Finance Minister stated that there would be a declaration by heads of state attending Septembers G20 meeting in St Petersberg which would bring an end to the policy of taxpayer bailouts. The implications of what he said was that the G20 would also be jumping on the bail-in policy instead.

The preparations for widespread confiscation of assets are nearly complete.

Source: UK Column, ZeroHedge

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Irish Finance Minister Noonan Proposes Bail In Policy

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Noonan's gesture to depositors

Noonan’s gesture to depositors

Under the presidency of the EU, the Irish finance minister Michael Noonan(2012 Bilderberg attendee) has proposed making the Cyprus theft “bail in” using deposits over €100k policy for future bank collapses. The BIS sets the banking agenda and they want depositors raped when banks collapse along with using “bail ins” to pay for bankers remuneration (big bonuses) according to a recent paper. Judging by the state of European banks, a lot of people are going to have their wealth wiped out and everyone will be at the same wealth level in the Orwellian EUSSR.

Deposits of over €100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week.

Discussions on the controversial bank resolution regime, which is likely to see savers with deposits over €100,000 “bailed in” as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesday’s meeting, which will be chaired by Minister for Finance, Michael Noonan.

“We will try to get some guidance from Ministers about the possible design of the bailout tool,” one EU official said yesterday.

Under a compromise text proposed by the Irish presidency, uninsured deposits of over €100,000 would be bailed in in the event that a bank is resolved, but depositors would rank higher than other creditors in the event of a wind-down.

In this scenario – known as “deposit preference” – depositors would rank at the very end of the process, with other creditors first absorbing losses.

However, some member states have not ruled out the possibility that insured deposits, i.e. deposits under €100,000, would be forced to bear losses in the event of a bank collapse even though these deposits would be likely to be protected by the deposit guarantee scheme.

However, the explicit exclusion of insured deposits from future “bail-ins” could in fact be included in the final text, according to some sources, with some MEPs in particular keen to include such a provision.

Significant differences still remain between states on the issue, with some countries calling for greater flexibility as regards the application of the new rules on a national basis, including the possibility that individual countries could be permitted to exempt large depositors from losses if a bank fails.

The introduction of an EU-wide bank resolution process, which would govern how banks are wound down, is a key strand of the EU’s plan for a pan-European banking union, which was endorsed by EU leaders at last June’s summit.

However, the chaotic Cyprus bailout instilled the issue with greater urgency, with EU lawmakers now keen to provide clarity around bank collapses.

Moving the burden
This year Jeroen Dijsselbloem, head of the group of 17 euro zone finance ministers, said that losses on bondholders and depositors could form part of future bank bailouts as euro zone officials seek to move the burden of bailouts away from taxpayers – as was the case in the Irish bailout – and on to private investors.

The European Commission argues that this switch from so-called “bailouts” to “bail-ins” would result in an allocation of losses that would not be worse than the losses that shareholders and creditors would have suffered in regular insolvency proceedings that apply to other private companies.

While the inclusion of large savers in future bank bailouts is now widely accepted, significant differences still remain between member states.

While the new rules governing bank resolution were first intended to come into place in 2018, since the Cypriot bailout there have been calls from senior EU figures such as European Central Bank president Mario Draghi and EU economics affairs commissioner Olli Rehn to introduce the new regime as early as 2015.

The Irish presidency of the European Council is hoping to reach a common position by the end of next month.

Noonan demonstrate how much you will be left with under the EU plan

Noonan demonstrates how much the EU/Banks intend you will be left with under the plan

 

 

 

 

Source: Irish Times, BIS

Jim Sinclair: Elites Plan To Control The Masses

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As growth grinds to a halt Worldwide, debt levels increase  and unemployment queues continue to grow longer, someone always profits from a collapsing system but the question remains, was it by design or accident? For the US to go off the Gold Standard and dump unlimited dollars into the global financial system coupled with a massively over leveraged banking system, were we not always going collapse under he weight of fiat currency and toxic derivatives? Jim Sinclair goes even further to suggest it was no accident but a frightening plan to control the masses. It may not be too far from the truth, especially when you read Matt Taibbi’s article “Everything is rigged”.

One thing is for sure in light of the Cyprus decision to confiscate deposits and having seen a similar move in the US regarding MF Global customers, you have got to be forewarned when the inevitable collapse comes your way.

The enormous violence in the markets is obscuring a very clear message.  The message from Cyprus, that has also been written in various white papers and signed by central banks, the FDIC, Bank of England, and the BIS, is to get out of the system.

….

People have to understand that going forward large deposits by ‘non-insiders’ are no longer going to be permitted.  The goal of this pre-arranged wealth destruction is to equalize the ‘new rich’ and the ‘upper middle-class.’  Those not on the inside, with the right families and the right companies, are not going to be tolerated in the ‘New Paradigm’ of currency and metal that we are now moving into.

 So the only means of being able to protect yourself will be to understand the answer to the question, ‘What is the final end game for the most powerful families that are in fact running countries and markets?’….

“Take into consideration that the recent and violent drop in the gold price, especially if followed by an equally violent recovery, was primarily for the transfer of physical gold from financial and other entities to the families that are running the Western governments and financial world.

In my opinion that’s exactly what has just happened.  A very strong and immediate recovery, that is sustained, makes the message clear that gold is an ingredient for these wealthy families to maintain their wealth and power, not simply over a generation, but over multiple generations.

We are coming very close to a point where the manufacturing of unprecedented amounts of fiat currency has to have a global impact.  You simply can’t increase the amount of currency as violently as what been done, without having to face the consequences, one of which is the collapse of the purchasing power of those fiat currencies.

The massive and ongoing currency war the world has been witnessing may come to a head much sooner than any of us realize.  So investors must have an understanding of how the system will be preserved, and eventually reset, in order to survive the coming wealth destruction.

Maintaining significant deposits inside banks in the current financial system is setting up that portion of your wealth to be destroyed or stolen from you.  Whereas maintaining physical gold inside a private storage, outside of the banking system, is one of the ways you can survive what is coming.

Physical gold will be the primary beneficiary of the ‘Great Unwind’ that is still in front of us.  This is why the latest attempt to smash gold in the paper market was met with one of the most ferocious physical buying sprees the world has ever seen. 

 Owners of physical gold may end up being the quality non-North American gold companies, as well as individuals which move out of fiat money and into physical gold while the price is cheap.  From now on every dip you see in paper gold will be met by a corresponding move by savvy investors around the world to trade in their fiat money for physical gold.  

“The time to get out of the system is immediately in order not to be destroyed by the ‘Great Equalization’ that is about to take place”.

This phase will serve to bring humanity to its knees.  It is going to be about control of the masses, for the benefit of the few.

Derivatives will be a primary tool for the destroyers of wealth, and bank deposits all over the Western hemisphere will be invaded. So investors must get out of the system and have physical gold and gold related investments in order to survive what is still to come.”

“The price of gold is going to significant new highs, and that drive to new highs will be as a result of a continued move into physical gold.  Because the manipulative tool of the paper market has been revealed as a fraudulent determiner of price, the physical gold price will now be free to move to levels that even you and I will be surprised at, and it will be maintained at that level for generations.”

Source: King World News

Solvenian Banks Close To Collapse

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After Cyprus, next up looks to be Slovenia. Over the weekend there has been an official denial that the banks are about to collapse and we know what that means. If it does turn out to be the case, then another  “bail in” would cause panic right across the Euro area.

 

SloveniaTYE2012Are Slovenian depositors about to get Cyprus’d with a wealth/deposit confiscation?  If the intensity of the denials by Slovenian officials are any indication, a bank crisis is imminent for the tiny balkan nation. 
New Prime Minister Alenka Bratusek attempted to calm Slovenians over the weekend stating: We are absolutely no Cyprus. We don’t need help. All we need is time.
If and when the 2nd bail-in episode in the EU is attempted, expect all hell to break loose across the European banking system as depositors in Greece, Italy, Spain, Portugal, and even France realize that as DISELBOOM openly admitted, Cyprus really was the template for bank failures going forward.

As the AP reports, the official denial is in:


Slovenian officials have a message for the world: Don’t panic — we won’t be the next to fall.
The tiny European Union member is trying to convince its people and foreign investors that it won’t be the next in line for a banking system collapse and a messy international bailout.
“We are absolutely no Cyprus,” says new Slovenian Prime Minister Alenka Bratusek. “We don’t need help. All we need is time.”

Contrary to PM Bratusek’s claims, a recent report by the Organization for Economic Cooperation claims that the equity in Slovenian state banks has been “virtually wiped out.”:

The Alpine country’s banks have been on a lending spree for years, loaning money to unprofitable state companies or privileged officials who used the cash to buy the firms they ran, using the state assets as collateral.
Many such businesses have now collapsed or have huge debts. A recent report by the Organization for Economic Cooperation says that the equity of the state banks has been “virtually wiped out.” As much as 15 percent of all loans are now non-performing, the third-highest ratio in the eurozone, the Paris-based group said.

Which brings us to the important question: Exactly how much gold does Slovenia supposedly own as its reserves that are about to be confiscated by the ECB?  3.20 tons according to Slovenia’s latest report…all likely stored in London and already rehypothecated and leased to bullion banks 1,000 times over.

Que the MSM reports that Slovenia’s 3.2 tons of gold will need to be liquidated.

Source: SilverDoctors

Canada Plans To Use Cyprus Model For Broken Banks – Rob The Depositors

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Looks like the Cypriot model of using depositors money to bailout insolvent banks is being adopted by Canada. New Zealand has similar plans and if you listen to the Dutch Finance Minister, eurozone countries willsimilarly being robbing your money when banks are finally allowed to announance they are bust.

SD has been alerted to an alarming provision that has been buried deep inside the official 2013 Canadian Budget that will result in depositor haircut bail-ins jumping to this side of the pond during the next bank crisis!
Titled ECONOMIC ACTION PLAN 2013 and tabled in the House of Commons by Minster of Finance James Flaherty on March 21st, the official 2013 Canadian budget contains an explicit provision that Canada will pursue the bail-in model for systemically important banks for future bank failures!

Depositor haircuts have just jumped to this side of the pond, effective the next bank crisis/ failure:
From Page 144:

“The Government also recognizes the need to manage the risks associated with systemically important banks—those banks whose distress or failure
could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of
options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.”

Translated, Without the use of taxpayer funds means via depositor funds.

And the meat of the provision, from Page 145:

The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada.
Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants…

Confiscating wealth from depositors will reduce risks for taxpayers???  Only those with 100% of their assets in physical gold and silver, or those Canadian depositors who are somehow not also taxpayers perhaps!
The bail-in provision in Canada’s 2013 budget can be found on pages 144,145:
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

Source: Silver Doctors

How Russia Could Take Revenege Over Cyprus Deal

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Europe has already had a taste of what Russia can do in 2009, due to the dispute with Ukraine over an unpaid gas bill. That winter the tap was turned off and maybe that was point, to remind Europe not to cross Russia in future. Steve Keen in this CNBC article takes a look at the possible way in which an angry Russia can hit back.

putinGermany might be telling the world not to blame it for Cyprus’ bailout plan, but one analyst told CNBC that Russia could avenge the loss of billions of dollars it has invested and deposited on the island by cutting Germany’s energy supply.

As the Cypriot parliament prepares to vote on a controversial and unprecedented proposal to levy a tax on bank accounts held on the island, the deal has been described as a covert move by Germany and its euro zone partners to tackle what they perceive as Russian money laundering in Cyprus.

Twenty percent of total deposits of the Cypriot banking system are held by Russians and many Russian businesses are registered in Cyprus, making any plan to levy a 15.6 percent tax on deposits over 100,000 a moot point for Russia. The country has also given Cyprus a $3.3 billion loan that Cyprus wishes to extend.

Russia’s leaders have already condemned the European bank levy proposal, with President Vladimir Putin calling it “unfair, unprofessional and dangerous” on Monday. On Tuesday, Russian Prime Minister Dimitry Medvedev added to the growing Russian frustration over the move. “Quite strange and controversial decisions [are] being made by some EU member states. I mean Cyprus. Frankly speaking, this looks like the confiscation of other people’s money,” Medvedev said on Monday.

Steve Keen, professor of Economics & Finance at the University of Western Sydney, told CNBC that Russia could retaliate against the perceived proxy attack on its citizens, and their money.

“If you try to target the Russians, and there’s President Putin acting under the image of the ‘strong man’ of Russia, why would he not then decide to shut down gas supplies to Germany until that was righted?

“If you’re going to attack money laundering then attack it directly, don’t make Cypriot peasants and small businessmen collateral in your campaign against Russian oligarchs. Declare the campaign rather than doing it under the carpet like this too,” he added.

“Russia has been willing to play that card before,” Keen said, alluding to when Russia’s largest state-owned gas and oil supplier Gazprom reduced gas supplies to Europe in 2009 during a dispute with an Ukrainian energy company.

With 36 percent of Europe relying on Russia for its gas supply, the threat or act of limiting supplies gives Russia a powerful card to play should it wish to push home a political point against Germany.

“It is an explosive political situation,” Nick Spiro, head of Spiro Sovereign Strategy, told CNBC. “This is a rubicon which should have never been crossed…This bailout agreement has Germany’s political fingerprints all over it,” Spiro told CNBC Europe’s “Squawk Box.”

“If Germany’s aim was that the larger deposit holders, the Russian ones, were going to bear the brunt of this, then obviously it’s backfired,” he added.

Steve Keen told CNBC that the proposal was tantamount to “blowing the brains out of capitalism” and such a proposal would destroy the euro and the idea of a monetary system.

“It’s mind-boggling that German bureaucrats and politicians can think that this is a sensible way to share the pain,” Keen said. “If you destroy the trust that depositors have in their bank accounts, you fundamentally destroy the oil of capitalism.”

“This is an absurd decision which has to be blocked somehow. If the Russians block it or the Cypriots block, somebody has to block it,” he said, ahead of a crucial debate in the Cypriot parliament over whether to ratify the plan.

Approving the plan is central to Cyprus receiving a 10 billion euro bailout from the European Union and International Monetary Fund (IMF) but as yet, the outcome of the vote is uncertain.

The Cypriot President Nicos Anastasiades reportedly told German Chancellor Angela Merkel and the European Union’s economics affairs commissioner Olli Rehn on Monday that he would stand by what was agreed at a euro zone finance ministers’ meeting last week but “insisted that EU partners offer some additional help,” a state spokesman, Christos Stylianides, told state radio on Tuesday.

(Read More: Cyprus President Is a ‘Fool:’ Gartman)

Stylianides added that President Anastasiades is also likely to talk to the Russian President, Vladimir Putin, on Tuesday.

Against a backdrop of protests in Cyprus and sharp declines in global equity markets on Monday, the German finance minister attempted to deflect blame from his country, saying the solution had not been a German idea and that he was open to it being changed.

“The levy on deposits below 100,000 euros was not the creation of the German government,” Wolfgang Schuble told reporters in Berlin on Monday. “If one reached another solution we would not have the slightest problem,” he added. On Tuesday, however, Schuble said that Germany pressed for a “bail-in” of Cypriot depositors to protect European taxpayers.

Source: CNBC

Swiss Referendum To Repatriate Gold?

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Germany has ratcheted up the pressure on other countries to repatriate their gold reserves. The latest country to press  its Central Bank over gold reserves, is Switzerland. Of course they are unique in that they have true democracy unlike the corrupt Dumb-ocracy version the rest of us have. In Switzerland they can force a referendum  if they can get over 100,000 petition signatures. In this instance its the Swiss National Bank that the people are unhappy with and have 3 demands. Now thats real democracy 🙂

With last week’s announcement by the Bundesbank of the repatriation of 674 tons of German gold from Paris and NY over the next 7 years, we predicted that an avalanche of gold repatriation requests would soon be made to the BOE and the NYFed. 
It appears that Switzerland may be next to the game, much to the dismay of the SNB.  The Swiss gold initiative, an initiative to Secure the Swiss National Bank’s Gold Reserves, launched in March 2012 by four members of the Swiss parliament, has grown to 90,000 supporters. 
Once 100,000 supporters are achieved, the Swiss Parliament must take up the referendum. 

The initiative asserts that the Swiss people should have a right to vote on 3 things, none of which will please the banking cartel:

1. To keep Swiss gold physically in Switzerland (ie repatriate Switzerland’s gold)
2. Preventing/forbidding the SNB from selling any more of its gold reserves
3.  Requiring the SNB to massively increase their gold holdings to a minimum of 20% of its reserves within 5 years, held within Switzerland.

Not surprisingly, the Swiss National Bank doesn’t wish to disclose where it’s physical gold is held, but it may soon be forced to once the initiative achieves 100,000 supporters. 

674 tons repatriated here, 1040 tons repatriated there, pretty soon we’re talking real money!

Checkout google translate of article from Post Finance

Gold initiative prepares the SNB headache
by Lukas Hässig – home to Switzerland must get their gold from abroad? The SVP initiative calling for the missing, only 10,000 signatures. The SNB could get into trouble.

“Already in March 2013 is the deadline for the submission of Gold initiative,” wrote the St. Gallen SVP National and co-founder Lukas ReimannAlthough it was with some 90,000 signatures on its way. “But to crack the necessary 100’000, now the use of all is needed.”

Where are the 1,040 tonnes of gold the Swiss National Bank? The question is now being seriously discussed with us. The response of the SNB remains nebulous. Most of it is here, but some lie abroad, said the central bank.We do not want to be precise,” says SNB spokeswoman Silvia Oppliger. “Maybe we will express more precisely, should the gold initiative come about.”

German gold repatriation provides in USA for red heads

The German Bundesbank initially thought that she needed to accept the emotional issue any further. But so are a growing number of applied citizens and politicians were not satisfied. They put the central bank so long under pressure until it gave way recently. Now bring the Germans back 674 tonnes of gold from the U.S. and from France to England. This corresponds to a value of 27 billion euros currently.

The large gold repatriation of our northern neighbor provides worldwide headlines. «Germany Moving Its Gold Back Home To Satisfy The Paranoid”, headlines the U.S. Internet newspaper Huffington Post; pure populism to appease a population that is seeing ghosts. In Germany, had previously taken hold doubt the actual existence of the gold that is stored in the gold vaults of the Americans. The bars may indeed be covered with a thin layer of gold and otherwise consist of inexpensive iron was feared.

SNB would have to buy up to 100 billion gold

Interestingly, Switzerland has been a long time before the Germans and taken without public vertebral the topic. Circles from the People’s Party launched 16 months ago, the gold initiative. Because the project in parliament remained chance would just started as the last remaining means an initiative, the initiators said then. By referendum, they want to force the SNB to store all the gold in Switzerland and sell no single ton more. In addition to the SNB within 5 years after voting to increase their gold holdings massively so that it accounts for a fifth of the minimum in the whole balance.

At current prices, the rest would go into the money. Currently, the share of gold in all the assets of the National Bank is only at 10 percent. If the SNB reduced its balance sheet is not strong, then it remains a possible adoption of the initiative no other choice than double its gold reserves to 2000 tonnes.

A ton of gold currently costs about $ 55 million. Now can be expected: 2000 tons came to 110 billion dollars, equivalent to about 100 billion francs. By comparison, the SNB now has a capital of 62 billion francs. This does not include higher gold prices that could arise due to the demand of the SNB.

Headache at the guardian of the currency

Where did all that money to come for gold purchases is not clear. It would be nice to reduce the mountain of about 170 billion euros in order to buy gold bars. Only it would take for the many Euros first buyer, and the single currency would yet remain so stable that billion-sales of the SNB would not immediately strengthen the franc against the euro again. This consideration alone makes it clear that the gold initiative although many Swiss arrives, but whose implementation the responsible persons would cause big headaches.

Source: Silver Doctors, Post Finance

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