Friday, March 29, 2013

It Can Happen Here: The Confiscation Scheme Planned
for US and UK Depositors


Some interesting data. I have to disagree on nationalization of banks, its really no cure, as these nations are in reality corporations owned by banks. Nationalization simply consolidates the banking empire into more centralized control. -AK

http://webofdebt.wordpress.com/2013/03/28/it-can-happen-here-the-confiscation-scheme-planned-for-us-and-uk-depositors/

Posted on March 28, 2013 by Ellen Brown

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

New Zealand has a similar directive, discussed in my last article here, indicating that this isn’t just an emergency measure for troubled Eurozone countries. New Zealand’s Voxy reported on March 19th:

The National Government [is] pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts . . . .

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

Can They Do That?

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.” It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:

Removing the Shackles Blog has a need....

I am going to do something here she'd never do herself.  D. from the Removing the Shackles blog has a laptop that is barely working.  She needs a new PC or Mac laptop.

D. and I started working together when we began publishing the Daniel papers.  She's a fearless, ferociously courageous blogger seeking only the truth.  I've come to really trust her, frankly she feels like my long lost sister.  We post each others articles and found ourselves contacted by the OPPT nearly at the same time.

You guys were fantastically generous when I needed new hardware and what you helped me with enabled me to take the American Kabuki blog to new levels and add videos.   I don't need anymore hardware right now but D. sure does.  Her laptop is barely functioning and with 5 kids she really doesn't have the funds to buy a a new laptop.

If you like to help out, there's a donation button on the right side of this blog, I'll give her 100% of anything that comes in for the next week.  She needs to buy it in Canada, and mailing her one doesn't work so well as Canada post charges horrendous import duty and is frankly the slowest mail service on earth.  She needs the cash to go buy one.

If you feel you might want to help out, consider donating $5 or more and we can make sure she continues her fine work.  You can also donate directly to her blog at:
http://removingtheshackles.blogspot.ca
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