{"id":71410,"date":"2015-04-22T11:10:08","date_gmt":"2015-04-22T15:10:08","guid":{"rendered":"http:\/\/countingpips.com\/?p=71410"},"modified":"2015-04-22T12:40:11","modified_gmt":"2015-04-22T16:40:11","slug":"fdic-plots-a-bank-heist-involving-your-accounts","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/04\/fdic-plots-a-bank-heist-involving-your-accounts\/","title":{"rendered":"FDIC Plots a Bank Heist Involving YOUR Accounts"},"content":{"rendered":"
April 22, 2015<\/div>
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By\u00a0Guy Christopher<\/strong><\/p>\n

There\u2019s a new front opening up in the war on your wealth.\u00a0 If you haven\u2019t heard yet of the \u201cbail-in,\u201d you will. Even if you\u00a0 have,\u00a0 you need to know the latest\u2026<\/p>\n

The\u00a0bail-in<\/strong>\u00a0is another weapon in the government\u2019s arsenal of capital controls meant to reward Wall Street cronies and separate you from your money.<\/p>\n

We\u2019ve long been familiar with capital controls<\/a>, such as\u00a0daily limits on bank withdrawals. Add that to seven years of microscopic interest rates cannibalizing savers\u2019 nest eggs combined with planned inflation stealing your money while you sleep.\u00a0 But unlike the drip-drip we\u2019re used to, the bail-in will come upon you quickly, harshly, and with finality.<\/p>\n

As the world faced a complete financial meltdown in 2008, Congress ponied up fresh taxpayer money \u2013 $800 billion for openers and trillions since \u2013 to\u00a0bail-out <\/strong>favored banks and industries.\u00a0 Out-of-favor institutions were allowed to fail.\u00a0 Jobs, fortunes, and futures disappeared while unborn generations were saddled overnight with unpayable debt.<\/p>\n

Congress and bankers noted the sharply disagreeable taxpayer reaction.\u00a0 So they recycled an old idea from the Great Depression\u2019s playbook \u2013 next time, just steal bank depositors\u2019 life savings<\/span>.
\n\"Bank\"
\nThe Scheme\u2019s Fine Print Reads:<\/strong>That tried and true tactic took a new name:\u00a0 the bail-in.\u00a0 The easy part \u2013 the laws they needed had been in place for decades.\u00a0 But for added cover, they passed the\u00a0Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010,<\/em>\u00a0a 1930\u2019s-styled, bank heist blueprint with a feel-good name.
\nThose laws altogether say your money in your bank account in your name is not your money.\u00a0 Those laws say the bank owns your deposited money, not you.<\/strong><\/p>

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Wait\u2026what?<\/p>\n

Court cases have upheld for decades that putting your money in savings, a CD, or other banking products means you\u2019ve become an\u00a0\u201cunsecured creditor.\u201d\u00a0<\/strong><\/p>\n

Your deposit is actually an unsecured loan to the bank with all the problems of counterparty risk!\u00a0 Instead of being presented with collateral, you get an IOU that pays a pittance in interest, or in many cases nothing.<\/p>\n

A busted bank doesn\u2019t have to return your principal deposits.\u00a0\u00a0 Unlike when YOU are the borrower and THE BANK is the lender, the bank didn\u2019t tender you a lawyered up promissory note or offer you a lien on its assets.\u00a0 Legally speaking, you may as well have handed your money to a stranger in the alley.<\/p>\n

\u201cUnsecured creditor\u201d means just what it says:\u00a0 \u201cno security.\u201d<\/strong><\/p>\n

As banks went belly up during the Great Depression, slaughtering depositors\u2019 life savings, Congress offered reassurance that banks could be safe by creating the Federal Deposit Insurance Corporation, or FDIC.\u00a0 For decades thereafter, careful depositors walked the tightrope of spreading their deposits among various banks to qualify for insurance protection.<\/p>\n

Every depositor should now be aware of the FDIC\u2019s congressional mandate to handle the next global economic meltdown.\u00a0 Readers can read that entire scheme\u00a0here<\/a>.<\/p>\n

It\u2019s not an easy read because it was never meant to be.\u00a0 Here are some notes that might help\u2026<\/p>\n

Bank Depositors Are Screwed<\/strong><\/p>\n

It\u2019s a joint plan with the Bank of England.\u00a0 Bankers see the next meltdown again going global.\u00a0 The title accurately names the sole intended survivors \u2013 \u201cGlobally Active, Systemically Important Financial Institutions.\u201d\u00a0 The document reveals a future meltdown was anticipated, discussed, and coordinated years before the publication date of December 10, 2012.<\/p>\n

The language \u201ctop of the group\u201d refers to creditors, stock holders, and bond holders. They are first in line for slaughter (p. ii, p. iii).<\/p>\n

\u201cResolution tools\u201d and \u201cresolution powers\u201d are used throughout the document.\u00a0 \u00a0\u201c\u2026applying resolution tools to different parts of the group\u201d means FDIC has authority to make it up as they go (p.1, para 3).\u00a0\u00a0\u00a0 \u201c\u2026resolution authorities must not be constrained in exercising discretion\u201d means FDIC decisions carry absolute legal authority (p.1, para.4).
\n\"Piggy
\nAnd then there\u2019s you, the \u201cunsecured creditor.\u201dFDIC doesn\u2019t like the word \u201csave,\u201d as in \u201csave bad banks.\u201d\u00a0 FDIC substitutes the word \u201cresolve\u201d 18 times.<\/p>\n

As it happens, \u201cunsecured creditors\u201d\u00a0<\/strong>are quite important with the FDIC, appearing11 times in the 18 page document.\u00a0\u00a0 \u201c\u2026unsecured creditors should thus expect that their claims would be written down to reflect any losses that shareholders did not cover\u201d means we\u2019ll tell you how much you lost after we divvy up the take (p.6, para 12).\u00a0 That could also point to lowered insurance limits without notice, if any insurance is left at all.<\/p>\n

\u201c\u2026it will take time for losses to be assessed for purposes of recapitalization\u201d strongly hints at freezing any loot in accounts left behind (p.8, para 35).<\/p>\n

Your consolation prize, if there\u2019s one at all, might be some government-issued bank stock you can\u2019t sell.<\/p>\n

FDIC congratulates itself 9 times for not \u201cexposing taxpayers,\u201d never mentioning FDIC itself would be bankrupt after the first $50 billion in claims, leaving taxpayers to bail-out the very FDIC created in 1933 to shield their savings deposits.\u00a0 One single zombie bank could easily swallow $50 billion.\u00a0 Estimates of currently insured FDIC deposits exceed $6 trillion.<\/p>\n

Bail-in Scheme Has Been Tested
\nand Is Ready for Use<\/strong><\/p>\n

The bail-in ripoff scheme has been successfully tested.\u00a0 Depositors in Cyprus found their savings largely wiped out early in 2013.\u00a0 That infamous bail-in was a test run, leaving the U.S. government\u2019s fingerprints all over Cyprus.\u00a0 It is significant to note Cypriot authorities claimed, on their website, the legal authority to change rules mid-stream at any time, just as the FDIC claims.<\/p>\n

Low withdrawal limits stopped panicked depositors\u2019 last minute bank runs.\u00a0 As banks stole their deposits, no citizens stormed banks with pitchforks, no guillotines were hauled into the village square.\u00a0 Bankers from Cyprus to New York congratulated themselves all around.<\/p>\n

Poland quickly followed, stealing not bank accounts but private pension funds. Authorities took 50% of Polish retirement funds overnight with the click of a mouse.
\n\"FDIC\"
\nBail-in plans have been adopted by Canada, Australia, and throughout Europe for future use. The G-20, representing the twenty largest national economies, rubber stamped approval for global bail-ins late last year, as has the International Monetary Fund.\u00a0 Just last week, Austria suddenly dumped its version of FDIC insurance altogether.<\/p>\n

Governments facing economic annihilation across the globe are now legally authorized to seize banking depositors\u2019 savings, either all or in part, overnight, and without notice.\u00a0 The bail-in is a treasure map for bankers and governments at the next hint of worldwide economic calamity.<\/p>\n

They know the next meltdown\u00a0will be\u00a0<\/em>your grandfather\u2019s Great Depression.<\/strong><\/p>\n

Unlike the 1930\u2019s, there will be no point standing in long lines with hat in hand to ask for your money.\u00a0 By the time you hear the news, your money in the bank will already be gone.<\/p>\n

\u2014<\/p>\n

\"GuyMoneyMetals.com columnist Guy Christopher is a seasoned writer living on the Gulf Coast. A retired investigative journalist, published author, and former stockbroker, Christopher has taught college as an adjunct professor and is a veteran of the 101st Airborne in Vietnam.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By\u00a0Guy Christopher There\u2019s a new front opening up in the war on your wealth.\u00a0 If you haven\u2019t heard yet of the \u201cbail-in,\u201d you will. Even if you\u00a0 have,\u00a0 you need to know the latest\u2026 The\u00a0bail-in\u00a0is another weapon in the government\u2019s arsenal of capital controls meant to reward Wall Street cronies and separate you from your […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-71410","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/71410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=71410"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/71410\/revisions"}],"predecessor-version":[{"id":71419,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/71410\/revisions\/71419"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=71410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=71410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=71410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}