This came across the transom a couple of days ago, and SHTFplan.com has covered it here, but this REALLY needs to be pushed and publicized. You’ve GOT to get your wealth out of banks – most especially the big ones. This is truly sinister, and straight from the mouth of the Vice Chairsatan of the Fed, Stanley Fischer, and a speech given on August 11th at “The Great Recession–Moving Ahead,” a Conference Sponsored by the Swedish Ministry of Finance, in Stockholm, Sweden, as posted on the Federal Reserve Bank’s official website.
Additional steps have been taken in some countries. For example, in the United States, capital ratios and liquidity buffers at the largest banks are up considerably, and their reliance on short-term wholesale funding has declined considerably. Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry–though less advanced than the work on capital and liquidity ratios–holds the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer. As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding–this cushion is known as a “gone concern” buffer.
“Bailing-in” is what happened in Cyprus last year. Remember that? Probably not, because it was more than 36 hours ago. Customers’ bank deposits were swept in order to “recapitalize” the Cypriot banks, hence the phrase above “recapitalize themselves”. Customers were issued, in exchange for their cash which had been stone-cold stolen from them, long-term debt in the banks, bonds which were worth less than the e-paper they were written on. That is what the “long-term debt” referenced above is.
Isn’t it interesting how these people think that stealing OTHER PEOPLE’S MONEY held in SACROSANCT CUSTODIAL ACCOUNTS constitutes banks “recapitalizing THEMSELVES”? I know it is still hard for some people to comprehend how totally the Rule of Law has been reduced to a veneer mere atoms in thickness in western civilization, but when you deposit money in a bank, these people view that money as THEIR property, because stupid peasants like you exist simply to subsidize them.
But hey, at least they won’t have to call on “government assistance” after seizing all of their customer seg funds (exactly like MFGlobal) and mollifying you, the great unwashed, with their junk bonds.
The term “gone concern” is defined as “a defunct firm or one in the process of being wound up. Debts of such firms become due immediately in full, their market value is determined on the basis of auction or liquidation value of their tangible assets, and their goodwill counts for nothing.”
So yes, the Vice Chairsatan of the Fed is talking about “systemically important”, read BIG, banks as “gone concerns”, because that is exactly what they are, and further calling on these banks to establish a plan RIGHT NOW for seizing their customer deposits to “recapitalize”, or “bail themselves in” while cravenly maintaining the political line of “not taking government money”.
As I said in the spring or ARSH 2013 when it happened, Cyprus was a test run for the big show in the U.S. and western Europe, as was MFGlobal 18 months before. The people there rolled over and took it, and to be perfectly frank, I believe that right now there is no more flaccid, impotent, submissive culture on this planet than in the former United States of America. You might say, well, what about Ferguson? What does Ferguson have to do with it? Pookie, Tyrell and Shemeequa DON’T HAVE ANY MONEY IN CHASE, BANK OF AMERICA or CITI. They live on gubmint EBT cards. Jose and Hose B, coming out of Old Mexico, are FAR to savvy to ever deal in anything except cash money and Tide detergent, homes. No, those trillions in deposits, they belong to the most enfeebled and non-threatening creatures ever seen in all of human history: the post-Christian post-American caucasian.
Not only will no one do anything AFTER it happens, even when warned and shown explicit, clear language openly declaring what is intended to be done, the post-American caucasian is so thoroughly whipped that he can’t even summon the courage to act to protect himself BEFORE IT HAPPENS – so weak that as he sees Mike Tyson bounding out of the opposite corner towards him he can’t even raise his arms to protect himself. All he can do roll his eyes contemptuously at the “loon” in his corner begging him to fight, while his urine puddles beneath him.
For the love of God, at least raise your arms.