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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

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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

Spain Is Printing Its Own Euros

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When the SHTF, central banks always resort to money printing. Thats all they know. Just before Ireland was forced into requested a bailout, the Irish Central Bank had to provide ELA to Irish banks to keep the system from collapsing. Reports from WSJ are that the Spanish Central Bank has had to resort to printing money ELA because of the dire situation in Spain. Meanwhile the bank jog/run continues.

As we described in detail yesterday, things are going from worse to worserer as the problems in Spain – more specifically in its banking sector – are deepening as deposit flight accelerates. As the WSJ notes PIMCOs’ comment: “A bank ‘jog’ is happening in Spain – the private sector is leaving the banking system.” But the Bank of Spain isn’t leaving anything to chance. The WSJ disconcertingly highlights that last month the central bank appears for the first time to have activated an emergency lending program that will enable its banks to borrow from the Bank of Spain directly, bypassing the ECB’s relatively tough collateral demands.

The so-called Emergency Liquidity Assistance program is shrouded in secrecy, and the Bank of Spain won’t confirm that it has been used. The Bank of Spain appears to have doled out about EUR400mm under the program, based on publicly available data. That would make Spain at least the fourth euro-zone country – following Greece, Ireland and Portugal – to use the ELA, which generally is reserved for situations when banks have exhausted all other financing options.

As we pointed out yesterday, this would appear to confirm a “full-blown bailout” is imminent, as the collateral problems mount.

 and The Bank of Spain was quick to respond to this reality (with a denial):

Bank of Spain comments in e-mailed statement on WSJ report that central bank provided ELA to lenders:

Sept. 5 (Bloomberg) — Bank of Spain says “liquidity provision to banks other than ordinary monetary policy operations represents an insignificant fraction of total lending by the Bank of Spain to financial system.”

Measures adopted to lift restrictions on interest rates on deposits is not aimed at helping banks attract deposits, central bank says

 

Source: ZeroHedge

UK Customers Moving Accounts From The Big Banks

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Its enevitable that pissed off customers are going to move their accounts when you take into consideration the level of scandals and technical glitches that we have experienced in the UK over the last month. In fact the banking system takes for granted its customers loyalty, but thats a two way street and depends on the banks upholding their end of the bargain. Quite clearly they have been failing miserably to provide stability and honestly which is the cornerstone.

Angry bank customers have been voting with their wallets and bombarding co-ops, building societies and credit unions with applications for current accounts over the past week, after the NatWest computer meltdown and the Barclays rate-rigging scandal.

Data compiled by the campaign group Move Your Money UK shows an explosion in requests to switch from large high street banks to smaller alternatives that consumers hope will take a more ethical approach. Charity Bank, which lends its savers’ money to charities, has seen a 200% increase in depositors; the Ecology Bank has had a 266% jump in applications; and Triodos, a Bristol-based “sustainable bank”, a 51% increase.

Credit unions, which are often small institutions investing people’s savings in their local economy, have seen week-on-week increases of at least 20%, some of them up to 300%. Evidence of the growing number of switchovers comes as Ed Balls, the shadow chancellor, on Sunday calls on the government to make it easier for consumers to switch to another bank or building society.

Its not hard to see why customers are moving, but this has being going on from the start of the year and will most likely increase rather than decrease after the revelations over the past month.

Consumers have been looking for alternatives to the mainstream banks to protest about the revelation that Barclays traders conspired to fix a key interest rate over a number of years; and the IT chaos that left millions of RBS customers unable to access their accounts.

Since the start of this year, Move Your Money UK estimates that an average of 80,000 savers a month have been leaving the crisis-prone banking giants – a total of almost half a million since the start of 2012. The Co-operative Bank, which has seen a 25% rise in applications over the past week, hopes to capitalise on the public’s frustration by trebling its number of branches to 1,000, if it can clinch a deal to buy 632 from Lloyds Banking Group.

Lloyds, which was bailed out by the taxpayer during the financial crisis, was ordered by Brussels to sell the branches when it took over the troubled HBOS.

……..

Adam Scorer, director of external affairs at the advocacy group Consumer Focus, said: “Consumers have decided to mete out their punishment by moving away from banks who have been tarnished by recent events and revelations. RBS have failed on the basics of managing their customer accounts. Barclays have failed on the basics of behaving with honesty and integrity. These might be very different issues, but they both degrade the reputation of banks in the eyes of their customers.” Many British banks shifted from being “mutuals” – owned by their customers – to shareholder-owned public companies in the 1980s and 1990s, in a wave of “demutualisations”, seen as making them more successful. But as bankers’ pay has exploded, and profits flowed to shareholders rather than savers, a growing number of people have begun to warm to the idea of old-fashioned mutuals, including building societies.

Source: Guardian

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