Ping
Ignore the troll.
He's back under a new name.
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.
Ping
Ignore the troll.
He's back under a new name.
Oh, I know that. Of late, I’ve been relegated to finding most of my PMs detecting...
A friend just scored two barber 1/2s, 2 Morgan’s and a $20 a few weeks back, I need one of those days :-)
Yes, and when they finally get that safe open a day later in their hideout, ,, I’ll open that fake half used jar of mayo still in the back of the refrigerator, ,,, and smile.
precisely why the rule 308 is being attacked here
Do you have non-perishable food and ammo?
Yes and Oh, yes.
Do you have skills to use to (basically) homestead?
Oh, hell yes.
Convincing the ever so lovely Mrs. B.S. Roberts that conversion of paper into tangibles is the best course at the moment is an ongoing Project.
But the IT, Building Services and Security Departments are making good headway with the Secretary of The Exchequer in that regard.
Yes, this true. As long as we are the reserve currency.
There are plans being talked about throughout the financial web that the IMF is considering an alternative “basket” of currencies as the new reserve. Or the new BRIC Bank.
If the dollar is taken out as a reserve currency, we can no longer print ourselves out of debt. Our FDIC insurance would be in real trouble should there be losses too large to spread out.
Yup, 100% the reason.
The blatant illogic of anti gun arguements is one of the big tells in that, and how R’s and some high up NRA folks always are found to be weaseling “compromises” behind the scenes...
I am also accumulating some crypto currency but plan to collect soon. It will have to be physical but tied to the private key holding the value.
It can't go on forever, can it? Silver in the US is less per ounce than it costs to mine and mint it, and now there's a shortage. How does that play out if panic sets in?
Thanks.
It's for the children.
That’s the spirit!
The world has survived without money before and it can again.
But you can’t eat it.
I have the same problem with mr. mm.
Doesn’t make sense, does it?
And, if you limit your withdrawals to avoid suspicion, that’s a “structured transaction” that is per se evidence that your money is criminal. That’s what they got Gov. Spitzer on. It’s also the way the IRS can harass small merchants when they want (smallish deposits rather than withdrawals, though.)
Tell Obama I said FU. That goes you you too.
>> That goes you you too <<
That goes for you too...I should learn to proof read. You should learn to STFU
Nope. FDIC is the resolution authority.
I have no more confidence in FDIC than I did in the FSLIC, which went broke, but I wouldn’t deposit at a bank that was not a member. Mainly because, if they aren’t a member, there’s probably something amiss.
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