Posted on 07/12/2015 10:13:43 AM PDT by E. Pluribus Unum
Over the past few days Sera Wilson and I have discussed the dangers of what is happening in Greece and how it could also happen here. Of course, most of our readers already know the U.S. economy is teetering on so much debt that a crisis is, in many ways, inevitable. That said, there is a common belief that thanks to FDIC depositor insurance, all cash held in banks (Under certain amounts covered by FDIC) is safe.
Not so fast.
Not have the FDIC and big banks been working on a way that enables them to circumvent the safeguard, they already have a full plan for it. The plan is downright evil. It essentially allows the banks to “convert” your money, no matter the amount, into stocks. This avoids the banks having to give you access to your cash and it lets the FDIC step away without having to cover the cash.
Let me explain.
The FDIC and big banks have collaborated together to initiate U.S. banking law that basically equates cash deposited as a liability. Meaning, depositors are actually treated as creditors.
ZH explains how it would work.
So… if a large bank fails in the US, your deposits at this bank would either be “written-down” (read: disappear) or converted into equity or stock shares in the company. And once they are converted to equity you are a shareholder not a depositor… so you are no longer insured by the FDIC.
So if the bank then fails (meaning its shares fall)… so does your deposit.
Let’s run through this.
Let’s say ABC bank fails in the US. ABC bank is too big for the FDIC to make hold. So…
1) The FDIC takes over the bank.
2) The bank’s managers are forced out.
3) The bank’s debts and liabilities are converted into equity or the bank’s stock. And yes, your deposits are considered a “liability” for the bank.
4) Whatever happens to the bank’s stock, affects your wealth. If the bank’s stock falls at this point because everyone has figured out the bank is in major trouble… your wealth falls too.
This is precisely what has happened in Spain during the 2012 banking crisis over there. And it is perfectly legal in the US courtesy of a clause in the Dodd-Frank bill.
This is just the start of a much larger strategy of declaring War on Cash. The goal is to stop people from being able to move their money into physical cash and to keep their wealth in the financial system at all costs.
So basically, they can still legally claim your “deposit” legitimately exists, but it was converted into shares within the new reorganized structure of the bank. Yes, even if your account only had $5,000. But instead of having $5,000 in your savings account, you now have $5,000 worth of shares in an FDIC controlled bank that will likely never profit again (Because it failed).
As far as the FDIC or bank is concerned, at that point it doesn’t really matter whether your “shares” ever make money or become worthless. Because the entire point was to write down debt and avoid paying out cash held in deposit accounts. The FDIC wins, the corporate fat cats win, and you lose.
Don’t believe it’s a plan already in place? Of it is. The FDIC published the proposal back in 2012.
This paper focuses on the application of “top-down” resolution strategies that involve a single resolution authority applying its powers to the top of a financial group, that is, at the parent company level. The paper discusses how such a top-down strategy could beimplemented for a U.S. or a U.K. financial group in a cross-border context…
These strategies have been designed to enable large and complex cross- border firms to be resolved without threatening financial stability and without putting public funds at risk…
An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company into equity. In the U.S., the new equity would become capital in one or more newly formed operating entities. …
…Insured depositors themselves would remain unaffected. Uninsured deposits would be treated in line with other similarly ranked liabilities in the resolution process, with the expectation that they might be written down.
So in essence, they wouldn’t need a vote of Congress or an Executive Order. All they need to do is declare an emergency and they can legally convert all deposits into something else to write down their liabilities.
They just passed a law making you ahare-holder in your bank.
The value of shares changes.
Oh My God!. It’s the Illuminati and the Bittlebergers coming for our money again!
To Arms! To Arms! The ____(fill in the blank____) Are Coming!
Run while you can!!!!!
/ :)
Next week we are taking my Mom to get a safe and Mr. GG2 is going to bolt it to the floor so we can clean out her safe deposit box. Sooner rather than later we are going to see the haircut/bail in come to the US.
Very smart move.
The FDIC has always been a fraud. Even though your funds are insured, there was never enough to pay the loses. That’s why, under the law they have up to 100 years to give you your money.
How come we are just now hearing about Spain? Oh, yea, our media deamed it a non story.
The national banking system in this country is just as reliable as the public education system.
Depending on what you are going to put in it, of course, but we’re I to install a safe the first thing I would do would be pour about a two ton cube of concrete with 304 stainless anchor bolts to attach it. A safe so mounted ain’t going anywhere. A safe bolted to the floor can be gone in ten minutes with a tow truck and a chainsaw.
They will probably track people who withdraw and if you take too much they will no know raid your house on suspicion of “Your money” being involved in the drug trade and they will take your money away by force...
When you are forced into direct deposit for retirement and SS, you are really screwed.
Well, now you are really going to cause a panic!
I don't know what's secure in a crisis. One thing I'm doing: If it looks like you can weather a crisis where you live, it might make sense to get all repairs and purchases done now, rather than keep that money in the bank.
Silver is intriguing. Last week, the gov stopped the sale of Silver Eagles because the demand for them has become so great.
Nut-job Conspiracy Theory Ping!
To get onto The Nut-job Conspiracy Theory Ping List you must threaten to report me to the Mods if I don't add you to the list...
Steal the live savings of millions of Americans, and there will be little mystery in the sudden and violent demise of any number of bankers.
And what is wrong when you go the next day and withdraw the cash?
Oh I forgot! The banks won’t have any cash!
Seriously? What dirtbag has those 2 items at their disposal. If we are in a Mad-Max world and bands of roaming thieves are doing this, then we have far bigger problems....
I stopped reading when he said that there had been a collaboration to treat all deposits as liabilities.
Deposits have been considered liabilities on the balance sheet since there have been banks and balance sheets.
FDIC insurance, as any insurance does, falls apart when the losses cannot be spread across a wide range of risk.
Take a few minutes to understand how stuff works and you will see that these guys do not understand the basics of money and banking. I think it was a junior level undergrad course. There are plenty of ways we will all get screwed. These just are not among them.
...”Sooner rather than later we are going to see the haircut/bail in come to the US”....
Yes, but there will be some who will make a lot of money on it’s way down.
I’ve suggested the same to mine.
You are correct.
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