(Editor's Note: This is the part 6 and final installment of "How safe is your money?"
What did we learn from this housing bubble and subsequent collapse? We learned that the too-big-to-fail banks should be allowed to get much, much bigger, so that the next time they run into trouble due to their gambling habits, they will be way, way, way too big to fail. We learned that we should just ignore the derivatives bubble and let the banks continue to gamble with our money and allow this derivative bubble to grow out of control, like a metastasizing cancer, and thereby guaranteeing another catastrophic collapse, which is exactly what is going to happen.
We learned that it is perfectly OK for Wall Street, in cahoots with the Federal Reserve, to lie, cheat and steal from the people and get rewarded handsomely for it.
We learned that the federal regulators who are supposed to be overseeing these banks are nothing more than bootlicking yes men for these banks. We learned that both Bush and Obama along with 90 percent of Congress are also nothing more than bootlicking yes men and women for these big banks.
This brings up the topic of how these banks are going to cover this next guaranteed derivatives collapse. It won't be via another government bailout. It will most likely be a "bail-in."
Most people are unaware that the Frank-Dodd financial reform bill of 2010 changed the definition of a bank depositor to an "investor" with all of the subsequent associated risks of an investor. Therefore, in the event of a bank failure, the depositors, who before the Dodd-Frank bill would have been at the front of the line, are now at the end of the line in bankruptcy proceedings and will be the last to recover any funds, if at all.
I have been studying our economic/financial/monetary system during the last eight years and have been anticipating that this would happen. This system is a scam, unprecedented in human history by size, scope, immorality and sheer audacity. It is nothing more than a legalized Ponzi scheme, and as all Ponzi schemes eventually collapse under their own weight of fraud, lies, deceit and corruption, so will ours. The powers that be know this is going to happen and the predatory policies they are implementing, including the Dodd-Frank bill and the G-20 meeting in Brisbane, Australia, in November 2014, are steps in preparation for that collapse.
This is done through what is called a "bail-in" and in IMF bureaucratic speak, "is a critical feature of the internationally established regime of what is called cross-border bank resolution" developed by the IMF. The IMF is a key component of Agenda 21, along with the United Nations and World Trade Organization. Under a bail-in scenario the bank survives, the depositors do not. "Derivatives counter-parties are given preference over all other creditors and customers of the bankrupt financial institution, including FDIC-insured depositors." Not that it would matter whether a bank account was FDIC-insured because, as of this writing, the FDIC has about $30 billion on hand to insure $11 trillion in deposit.
The Dodd-Frank bill makes depositors in banking institutes the same as an investor or unsecured creditor. So, when an institution fails, your deposit will be turned into stock shares that you might be able to sell if someone wants to buy them. Share prices of failed banks are generally worth a couple of pennies on the dollar. As usual, this bill is of such gargantuan size that there is no chance that any member of Congress actually read it before voting for it, much less understood it. As it stands now, this bill is more than 10,000 pages and will, no doubt, grow as more is added to it all the time.
According to economicpolicyjournal.com, "On Nov. 16, 2014, the G-20 implemented a new policy that makes bank deposits on par with paper investments, subjecting account holders to declines that one might experience from holding a stock or other security when the next financial banking crisis occurs. Additionally, all member nations of the G-20 will immediately submit and pass legislation that will fulfill this program, creating a new paradigm where banks no longer recognize your deposits as money, but as liabilities and securitized capital owned and controlled by the bank or institution.”
Thomhartmann.com says, “The statutory bail-in power is intended to achieve a prompt recapitalization and restructuring of the distressed institution. In the case of resolving a distressed globally active, systemically important, financial institution (GSIFI), bank creditors, specifically those whose assets exceed the FDIC insurance cap, will be subject to expropriation. This is not normal bankruptcy. Accounts and assets are seized or converted to stock under the resolution authority. The institution is prevented from failing. Values of securities are not written down through sale on the open market. And this is done to guarantee the continued operation of the financial institution and the “stability” of the financial system.”
Bail-ins have already occurred in Cypress in the form of private bank account confiscations and also in Poland in the form of pension-fund confiscations. European finance ministers have agreed to make bail-ins the preferred method of "rescuing" insolvent European banks in the future. Recently a bail-in was organized for the oldest bank in Italy. New Zealand is discussing implementing bail-in procedures in the event of major financial institutional failure. Canada is considering it, as well. And, of course, the United States under the Dodd-Frank bill is already prepared to “bail in.”
The bottom line is that when the next big collapse occurs, it won’t be the government bailing out the financial institutions, it will be people like us, the depositors who will be involuntarily bailing out the banks. The term “bank robbery” will take on an entirely different meaning.
In conclusion, multiple things are going on at the same time:
• A massive acceleration of the debasement of the currency (money printing), that is making every dollar in existence worth less than the day before;
• There is a gigantic, unregulated $1.5 quadrillion derivatives bubble that is going to collapse and private bank accounts, unknown to most people, are going to be used to bailout the "too big to fail" banks from this collapse;
• China, Russia, India and Brazil, along with dozens of other countries, are working 24/7 to create a new commodity-backed currency that will replace the dollar as the world reserve currency.
I hope I have answered the question, “How Safe Is Your Money?”
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