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:

Source: Silver Doctors

Dutch Government On Verge of Collapse Over Austerity

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Reported earlier in the Washington Times, that the Dutch Government is on the verge of collapse after disagreeing on austerity measures. The minority government was in discussion but Geert Wilders who is anti-EU was dead set against the cuts. This is a major embarrassment for the Dutch as they pushed for austerity in Greece knowing how harsh it was on the Greek people and knowing how damaging it was to the Greek economy.


THE HAGUE, Netherlands — The ruling Dutch minority government was on the brink of collapse Saturday after anti-EU lawmaker Geert Wilders torpedoed seven weeks of austerity talks, saying he would not cave in to budget demands from “dictators in Brussels.”

New national elections that will be a referendum on the Netherlands’ relationship with Europe and its ailing single currency are now all-but-certain.

But before Prime Minister can tender his resignation — possibly as early as Monday — he must consult with allies and opposition parties on how to run a caretaker government that will have to make important economic decisions in the coming weeks and months.

“Elections are the logical next step,” Rutte said.

Opposition leader Diederik Sansom of the Labor Party joined others across the political spectrum in calling for new elections as soon as possible.

Austerity talks began in early March after the Dutch economy sank into recession and forecasts showed the 2012 budget deficit will reach 4.6 percent — well above the 3 percent limit mandated by European rules. Dutch politicians have strongly demanded that Greece and other countries meet that target.

Rutte leads the free-market Liberal Party in a minority coalition with the center-right Christian Democrats with outside support from Wilders’ Freedom Party. The outspoken Wilders is widely known for his anti-Islam and anti-EU opinions, including calls for Greece to return to the drachma and the Netherlands to leave the euro.

Rutte said negotiations had been rounded off Friday to deliver a “balanced package” of cuts, but Wilders walked out after discussing the package with his Freedom Party.

Will their credit rating take a hit from this? Already it’s under pressure.

The collapse of talks could endanger the Netherlands’ coveted AAA credit rating and drive up its borrowing costs.

The Netherlands is one of only four nations using the euro that has the top rating, though it already is under review by rating agencies. Central Bank President Klaas Knot said last week borrowing rates would rise by 1 percent if the Netherlands’ ratings are cut.

Once considered one of Europe’s strongest economies, the Netherlands is suffering from high levels of personal debt, mostly mortgage related.


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Already Dutch Can’t Meet Fiscal Compact Rules – Embarassing

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Under the new Fiscal Compact rules the every euro zone country is signing up to, even the Dutch won’t be able to meet the target next year. According to the CPB Bureau for Economic Analysis who are usually spot on, apart from not reaching the budget deficit, the debt/GDP will also be well over the 60% limit by 2015. Oh how embarassing 😉 Cheeky bastards were lecturing the Greeks recently.

The CPB, accustomed to delivering inarguable verdicts on fiscal and budgetary policy, said the Netherlands was in flagrant breach of the new eurozone rulebook and fiscal pact it has been highly instrumental in drafting.

“The government has the intention of living up to the rules, but it’s embarrassed that it can’t meet the targets now,” says Coen Teulings, director of the CPB.

On current policy, a mild recession would leave the country nursing a budget deficit of 4.5% of gross domestic product next year, 2 points higher than previously projected and 50% above the eurozone ceiling of 3%, – risking the wrath of Brussels and the imposition of automatic penalties the Dutch had been keen to devise for others.

What’s more, without a new round of austerity, the Dutch would still be above the eurozone deficit limit by 2015. National debt levels are also running in the wrong direction, from 65.4% of GDP last year to 75.8% in 2015, well above the 60% eurozone threshold.

So now the government find themselves in a bit of a jam on this one. Its the last thing it needs right now. Any austerity to try and meet the fiscal compact rules could push it over the edge.

The government’s in a fix,” says Paul Nieuwenburg, a political scientist at Leiden University. “It’s a problem of image. Having such a big mouth on Greece and seizing the moral high ground, they are now morally obliged to stick by the rules. Things have become very complicated. That’s why Rutte has withdrawn into splendid isolation and they won’t talk to the media.”

In order to meet its pledge of complying with the 3% deficit next year, it now needs to save a further €9bn in a year. That’s a very tall order. Teulings calculates that for every €3 in deficit reduction, you need to generate €5, meaning €15bn euros worth of spending cuts and tax increases are needed by next year.

“That’s so outrageous and it’s not really required by the economics,” he said. “Structurally we have to get spending down and revenue up to sustainable levels. Doing that too hastily means tax increases which are bad for the economy. Raising taxes in the middle of a recession is a bad thing. Structural reforms like raising the retirement age are preferable.”

A depressed housing market, with prices falling 8% since 2008 and likely to fall further, reduced consumption, shrinking pension funds and spending cuts which have seen disposable income curbed by 2% this year all underpin Holland’s budgetary dilemmas.

In a euro sceptic country, the sentiment is further shifting away from europe.

If the Netherlands has traditionally been a europhile country, that has changed sharply since it voted down the European constitution in 2005. Wilders’ strength on the right is currently mirrored on the hard left by the Socialist party which is riding high in the polls and is fiercely hostile to the EU. Between the two of them – Wilders’ Freedom party and the socialists – the anti-European stream musters 55% in the opinion polls.

Wilders sought to exploit the crisis by demanding a referendum on a return to the guilder, but this was dismissed by the political mainstream. An opinion poll showed 56% of the Dutch were against a referendum, but 39% were in favour. A sizeable minority, around one third, of supporters of the two governing parties wanted a vote. And while 61% were against bringing back the guilder, two thirds believed there should have been a referendum in the 1990s on joining the euro – 54% would have voted against.


The euro crisis could yet bring down another eurozone government – even in a country as prosperous and successful as the Netherlands.

And whats the solution to failing to meet the fiscal compact, yeah you guessed it AUSTERITY!!!!!!!!

Source: The Guardian

Dutch People’s Gold Stored In New York

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The Dutch Central Bank’s President Klaas Knot admitted in a tv interview that 90% of the countries gold reserves are safely stored in overseas.In the 1930’s the bulk of the gold was shipped to the US, Canada and Britain as a precaution against a German invasion but has never been returned since.

As reported by a reader of Max Keiser

yesterday the Dutch public television aired an item about the whereabouts of the Dutch gold, as a follow up of the questions asked by the Dutch socialist party, you reported about earlier.

The central bank’s president Klaas Knot is being interviewed and he finally admits that 90% of the gold is overseas (why doesn’t he just report about that in his annual report). Jim Rickards is also being interviewed.

At the end Knot, who’s acting very nervous throughout the interview, says the gold doesn’t need to be shipped back because he trusts the Americans, while earlier he says he doesn’t like much of the new legislation coming out of the US. And he says it’s useful to have the gold in trading places, should they want to sell some, although they haven’t sold in years.

Irrgang, the socialist, and Willem Middelkoop, a famous Dutch gold analyst, urge the central bank to reconsider their storage policy.

It was also reported in an article on a Dutch site Nieuwsuur, click here for translated version.

Of course Germanys gold is also stored mainly in the US. The Bundesbank’s former chief executive, Hans-Helmut Kotz, told the magazine Stern in 2004

“The biggest part of our gold reserves is held at the U.S. Federal Reserve, the Bank of England, and the Banque de France, in that order.”

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