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.
This is one way to finish the process of eliminating the smaller banks and CUs. The smaller institutions will fail and depositors/creditors will lose. Meanwhile, the big banks will be the only ones left and centralization will march on. It’s always easier for the government to control, monitor a few big institutions and ultimately eliminate cash.
I don’t think that it’s the plan to have the big banks fail and depositors lose their money because this would cause a greater demand for cash, PMs, barter which could create a competing system. If we look at Greece, we see real consternation from the EU masterminds, and instead of accepting another loan shark deal, the Greeks says no. Now, Greeks won’t trust any bank and are growing their own food, bartering, using cash and PMs. We are dealing with Fabians and incrementalists; the idea is for the people to slowly become habituated and to accept serfdom without waking up uniting and revolting against the uber elites.
Same thing is happening with health care. We probably will have only two or three companies left. Meanwhile, the small health insurance companies are done. Then we can have real rationing.
If this plan is implemented, all you have the next day is worthless shares in a borke bank.
1 - Have any gov’t checks go to a bank.
2 - Keep your real money in a Credit Union
(yes, I know they’re “Federal”, but the rules are different)
Finally, there is an upside to being broke.
Breaking.....you sound paranoid and in desperate need for meds!
Of course. That's the nature of banking.
Would there be any protection in having $$$ in state banks rather than national banks?
That is theft. Period.
Taking funds that do not belong to you to purchase what you desire is plain old, garden variety theft.
If they want riots in the streets and dead bankers found in their beds then let them try.
“A safe bolted to the floor can be gone in ten minutes with a tow truck and a chainsaw.”
“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.... “
How do you think those idiots are stealing ATM machines?
I looked into that myself. I think Nebraska is the only state with one that might be safe.
QE proves that they can print money faster than it can be spent, which is no small feat.
Well, I don’t consider myself a dirtbag, but...
We've come a LONG way, havn't we...
Folks,
It’s all funny money anyway. With today’s currency the Fed’s have the power to make any paper bills worthless with the touch of a button. The only real money has a commodity value. Like gold and silver.
You really thought it was about healthcare??
Safe place for my money is in my Bra. =)
Hmmm...Checked....no...Not enough room
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