A major conference on the future of banking yesterday heard contributions on a European banking union which is being negotiated by Eurozone finance ministers. One of the aspects of that union will be a ‘bail-in’ of deposits when banks fail in the future. Michael Noonan, Ireland’s Minister for Finance confirmed yesterday that bail-ins or deposit confiscation will be used.

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From Goldcore:

Today’s AM fix was USD 1,219.00, EUR 898.50 and GBP 743.07 per ounce.
Yesterday’s AM fix was USD 1,237.50, EUR 913.08 and GBP 754.30 per ounce.

Gold fell $32.20 or 2.57% yesterday, closing at $1,219.00/oz. Silver slid $0.84 or 4.2% closing at $19.15/oz. Platinum dropped $20.95, or 1.5%, to $1,336.25 /oz and palladium fell $9.78, or 1.4%, to $708.72/oz.

Gold advanced from nearly a five-month low, after the biggest one-day drop since October, as investors assessed whether the U.S. economy is strong enough to warrant a move away from ultra loose monetary policies.

Gold fell despite the data yesterday being mixed. It showed that while U.S. manufacturing unexpectedly accelerated in November at the fastest pace in more than two years, retail spending fell on the weekend after Thanksgiving for the first time since 2009. The overly indebted U.S. consumer is struggling which does not bode well for the consumer dependent U.S. economy.

Gold in US Dollars, 5 Year (Bloomberg)

Bulls took solace in the fact that the price falls came on very low volumes – volume was 20% below the average for the past 100 days at this time of day, data compiled by Bloomberg showed.

Gold is down 26% year to date and many analysts agree that it is now very oversold.  The 14-day relative-strength index fell to 30 yesterday, signaling to some analysts who study charts that the price may be set to rebound.

Physical demand picked up on lower prices overnight – particularly in China and Asia. In China, now the largest buyer of gold in the world, premiums of 99.99% purity gold climbed to about $11 an ounce from $7 on Monday on the Shanghai Gold Exchange (SGE).

Bail-Ins And Deposit Confiscation Coming Noonan Confirms At ‘Future of Banking in Europe’ Conference
A major conference on the future of banking yesterday heard contributions on a European banking union which is being negotiated by Eurozone finance ministers. One of the aspects of that union will be a ‘bail-in’ of deposits when banks fail in the future. Michael Noonan, Ireland’s Minister for Finance confirmed yesterday that bail-ins or deposit confiscation will be used.

The toolkit underpinning the Single Resolution Mechanism is provided for in the bank recovery and resolution proposal (BRR) which was agreed last June in Council under the Irish Presidency. The proposal provides a common framework of rules and powers to help EU countries manage arrangements to deal with failing banks at national level as well as cross-border banks, whilst preserving essential bank operations and minimising taxpayers’ exposure to losses.

One of the main pillars to the BRR framework to facilitate a range of actions by authorities are “resolution tools”. Noonan confirmed yesterday that resolution tools include the sale of business, bridge bank and asset separation tools and also the use of bailins.

The era of bondholder bailouts is ending and that of depositor bail-ins is coming.

Preparations have been or are being put in place by the international monetary and financial authorities for bail-ins. The majority of the public are unaware of these developments, the risks and the ramifications.

It is now the case that in the event of bank failure, your deposits could be confiscated.

Let’s be crystal clear: The EU, UK, the U.S., Canada, Australia and New Zealand all have plans for bail-ins in the event of banks and other large financial institutions getting into difficulty.

Maples Sale(2)

  1. Am I surprised at ANY of this? Not in the least. Banks don’t sell banknotes, they lend them into circulation, so by basic legal construction, they retain Property Rights in them. Since those notes (and digits too) are all borrowed property, they have power to recall them at will.

    Really, think about it … if you borrow a neighbor’s lawnmower and half-way through your yard he steps up and demands it back immediately because in his opinion you’re somehow misusing it … you’re obligated to hand it over to the SOB without further question or delay. Same thing.

    ‘Neither a lender nor borrower be, if you should wish to keep yourself free’ –Ben Franklin

    • V’s a bit late to the party.  John Perkin’s detailed weaponized banking years ago in his book, “Confessions of an Economic Hitman.”  Great read.  Details how the CIA as an agent of a U.S. based corporate kleptocracy used(uses) the IMF and the World Bank to force third and fourth world nations deeply into debt financing public works projects and then when they missed a payment loot their natural resources on behalf of Texaco/Chevron as one example. If the punk little dictators didn’t play ball, their plane would blow up in mid-air. 

  2. My opinion is simply this……we need to do what the bankers to with fiat, we can do with cryptocurrency. I love silver as much as the next guy and won’t sell an ounce, but I realize we need to get out of their system and I see crytocurrency being that avenue. We buy cryptocurrency and drive it up sell for real goods ie silver, then wash/rinse/repeat. Everyone says bitcoin is in a bubble….I say the whole world is a F-ing bubble. The bankers blow bubbles steal the assests and leave retail investors holding paper. I just feel I will use bitcoin, litecoin, and quarkcoin to hyperinflate my money then buy more silver. I thought the system would crumble years ago, but now realize we cannot wait and hope….so I will be proactive and follow the Chinese and Russian lead in crytocurrency and say f*** the dollar and drain all their PM’s that way instead. We have to get creative and realize the enemy of our enemy is our friend. So embrace crytocurrency ride the wave up. 

  3. “The EU, UK, the US, Canada, Australia, and NZ all have plans for bail-ins in the event of banks..getting into difficulty.”

    So what? Governments have plans for launching 1000’s of nuclear weapons in some scenarios, it doesn’t mean it’s likely outcome.

    Bail-ins are not gonna happen, it’s deflationary, it would cause social unrest, it would cause bank runs. Banks runs are the very thing the bankers DON’T want, so it makes no sense.

    • Worked for Cypress though, didn’t it?  The strangled the people to control the bank runs.  Not sure how that would work here in the good ol’ US of A though.
      Nukes are one thing – money (i.e. POWER) is completely something different.

    • Agreed Zman.  Bail-ins are highly deflationary, cause social unrest, create bank runs, and make no sense unless the plan all along is to cause maximum chaos and usher in your own solution to the problem that you created.   Personally, I think these globalist bankers are not normal people.  I believe they are an evil lot.  Not stupid, just evil.  And have a different agenda than you or I would have.

    • UglyDog
      As I understand the construction of the banknote scheme’s infinitely automatic generation of currency inflation and debt expansion, each by the other, designed under presumption that regulation of this growth rate could be achieved through raising and lowering interest rates responsive to economic growth or contraction, it makes sense that bankers are arranging for a major currency deflation now that interest rate leverage has proven to fail, even at an effective zero setting.

      To accomplish this deflation, however, it’s necessary to eliminate currency units themselves. Mere negation of their value component still leaves the total volume of banknote credits, whatever their value might be, accruing interest that’s already come to far exceed productive capacity to sustain and, worse still, evoking general determination to avoid any further debt obligation (Debt Saturation), in turn seizing up Interest Service Funds creation, guaranteeing cascading defaults.

      The quandary for the bankers is to engineer this massive deflation in a way that consequently increases the value component of their currency holdings and those of their sycophant ‘elites’. Some fraction of the currency MUST ‘disappear’ entirely, but no one will voluntarily destroy their banknotes in any ‘altruistic bonfire’, thus the population ‘chosen’ to ‘sacrifice’ their currency to oblivion are the ‘hoi-poloi’, through widespread ‘bail-ins’ and instigated pension program collapses, the real assets from which we already surmise are to be ‘supplanted’ with stipend bond interest ‘income’. The added real asset substantiation under-girding the reduced volume of currency will keep the banknote scheme viable AND still result in tremendous ‘profits’ to those left holding the remaining currency as increased interest rates will again be accommodated.

      So, this ‘bail-in’ program is not to ‘steal’ the currency, but to utterly erase it from the calculus, thereby plugging a lower data figure into the function to radically alter the result of the math.


    • @patfields   Agreed…A bail-in will reduce the currency units supported by a bank’s vault cash, thus the math changes and the bank’s reserve ratio improves.  The goal is to re-liquify the banks.  Bonus for the banksters is the chaos this will create.  However, I don’t believe this will increase the value component of their currency holdings because leverage works both ways.  Do I have this right?

    • UglyDog … “I don’t believe this will increase the value component of their currency holdings”
      Inflation depreciates a currency. So, the converse is true. Dis-inflation raises the value of the ‘surviving’ currency in the float. If the ‘fortunate’ holders of that ‘surviving’ float, just happen to be a select ‘class’ in a society, their ‘position’ is secured. If the goal is to wipe out a quarter to a half of the currency float, that would set the inflation clock back to the 1970’s.

      Doesn’t there seem to be a hint of ‘tactical maneuvering’ to the fact that the ‘developed’ countries are setting up for widespread ‘bail-in’ exclusively as a group? With a significantly reduced float of currency, goods pricing and wages will fall across the board, even further enhancing the purchase power of the ‘surviving’ float. Most critically … the debt service that had been accruing on the destroyed currency, would cease to be an impediment to investment toward production and attendant employment.

      Now, for stackers, this means that even if PMs are kept suppressed … because of generally falling goods prices, their relative purchasing power will also be enhanced, but, of course the ‘surviving’ float of currency will STILL be ‘maintained’ sufficiently above them to dissuade their use as ‘popular’ or ‘alternative’ money. In other words, their expectation would be to ‘kill two birds with one stone’.

      So, yes ‘leverage works both ways’ and they appear to be setting up a huge de-leveraging on the backs of ordinary folks. At least from my perch it does.

  4. While the bank notes may be theirs that logic presents a problem; how is one to be paid (whether it be Craigslist, paycheck, etc) if we want to do away with bank notes?  So we’re paid with a borrowed ‘asset’?  Then simply don’t put the bank notes in the bank, right?  They can’t take what they can’t see.
    At some point if you follow the bank note is theirs logic why are you working?  You’re getting paid with something borrowed?  What happens on payday if the bank says it wants all of ‘its’ notes back, i.e. YOUR PAYCHECK.  How is one to be paid for anything?  Not going to be gold or silver or salt.  Currently, it must be bank notes.
    Not poking at PF but if we want to fight/starve the beast then an alternative to bank notes must be found, no – gold and silver coins are not it.
    I guess in the end if you don’t want your (the banks) bank notes involuntarily removed from your account then the Bank of Sealy is about your only option.

    • PoorMansGold

      Seems you missed my article from last week ….

    • An alternative to bank notes?
      My grandfather was a dentist.  During the Great Depression – when many, many people had no cash – my grandfather accepted other forms of payment, including chickens.
      But that that can not happen in America today, can it?
      Can it?
      Can it…?

  5. Pat Fields  thanks for a concise explanation of what a bank considers its property.
    Anything that come into or  out of the front door of a bank, or it’s computer systems is, IMO, their property.  My accounts are considered property of the bank.  I keep well under $5,000 in the bank.  10 times that in FIAT and thousand time that amount in silver and gold. Frig the bank.  Three cheers for Precious metals.  And in case anyone wants to know—everything about this pisses me off 24/7.   Thus I rant.
    If the bank fails or requires bail-in, such as the Cypriot Banks and a couple in Ireland, those depositors become creditors to the bank and way down the line in order of priority.  Something like last, dead last.   FDIC will be of no help
    ZMAN  this is for you.  I dont care who you are but if you believe your statements,  even if you are a paid government troll (even more reason to get your head going in the right direction) I’ll have no sympathy for you when the goverment takes your assets.  If you came to my door, starving, and I knew you were,  Zman, my door would close in your face. You would die in the snow accumulating in front of my home.  My own responsibility to you would be putting you in a construction grade trash bag and pitching you in a nearby dumpster, thus avoiding the attention of our local bear population.
      That is how strongly I feel about this.  You will be road kill if you really think that these things won’t happen.
    I do not wish these things to happen because the hardships on my family and friends, for whom I have prepared well,  deep stacked with 3 years of food, will cause great suffering nonetheless.
     But the likes of the sheeple, unwitting, misinformed  and true believers, wll find no succor at my door step.  Get yourself right with the currents of time.  As generous as I am, and the hundreds of hours I’ve spent here, talking, hectoring and ranting about these coming events, are a great drain on my business time and patience with you  and your ilk  That costs me,  but these messages are more important by a huge margin.
      I have said this to you before but it fell on deaf ears. This is my last warning to you and your ilk.
    Please do just a bit of research.  Bail-ins are the laws of the land, even into Japan and some in China.  Bail-ins are the way of the future.  That is the largest honey pot to bail in these criminals banksters.  Pension plans are in that same queue
    If you have any signficant amount of currency in your bank you are at risk
    By the way, my local banker concurs with me.  He made a very specific statement regarding this subject.  He just left the bank.  Huh?  I guess he knows something.  The head teller just left to, pursuing other things. He is traveling to other countries. Hmmm?
      The powers that be are telling us loud and clear that bail-ins are coming.  When your enemy tells you his field of battle, shows you his battle plans and then tells you his time line for attack, well gee, it’s a pretty good chance they will exercise that. 
    Look up the causes of WWI in Europe. This is how they operate.
    If there is a bank holiday, and my banker said that is entirely possible, then the holiday will last 3 weeks.  Your safe deposit bank, ATM, bank debit card and bank accounts will be unaccessible.  It is that simple.  Changing the electronic and physical locks on the banks are simple too.   The ringfencing much noted by JPM when they said they would not accept cash deposits over $50,000 starting by the end of this year as well as refusing wires out of the country, and that includes foreign bank accounts which are ring fenced (according to my banker) then it is game over. 
    This is why I constantly harp on having silver and gold as an alternate currency.  It was either Hungary or Poland that expropriated 28 billion euros to balance its budget a few months ago.
    Spain has taken 100% of the private social security pension funds to buy up BBB- Spanish bonds.
    Our Treasury ‘borrowed’ over $100 billion from the Fed Thrift 401K employee funds. Those funds were replaced after a new $400 billion in debt used to replaced the money taken from that and other  honey pots.  The Social Security funds we all pay into the system was stripped mined by Johnson, Reagan and Clinton to pay for many things, not least of which was wars.
    I do not care about silver and gold prices today. Not a bit.  What I do care about is predatory governments on the prowl, seeking to steal the substance from those least able to protect themselves from the predations of the government they elected to represent them
    Politicians will always do one thing.  They will disappoint you
    They will lie cheat and steal. It is those traits and qualities that got them to office. The higher the office, the more lying cheating and stealing.  The longer they remain in office,  the more they steal. They are like festering oozing puss-filled boils on the ass of the body politic and require of their minions and servants that the minions scrape the nasty mess off their backsides daily.
    Then there are the bankers, the enablers of this foulness on the land.  I can’t say enough to communicate how little I trust the bankers.  They are desperate men trying to steal what they can as the ship sinks.
    Zman—are you on this ship?   Crew or passenger? 
    If either, I recommend that you disembark.
    I hold no animus towards you.
    You don’t seem like a bad person—just grossly misinformed. 
    Flee while you can or suffer the consequences.
    The reason pension thefts will occur, the reason bail-ins will occur, are being played out right NOW IN DETROIT.
    The derivative holders have super priority over the $18 billion in funds held in the pension and health care plans.  These funds are destined for the bowels of the banksters who aided and abetted the destruction of Detroit, once a great city.  Two whole generations of politicians played their foolish little corruto-crat crony games, playing right into the hands of the lenders and creditors. 
    It’s like the evil banker in Its a Wonderful Life.  He went out to buy up any deposit or mortgage he could.  These Detroit banksters are feeding on the bodies of those trampled by the awesomely bad political leadership of that City-State.  San Jose is next in line for bankruptcy. Puerto Rico soon to follow.  The State of Illinois has only just scraped by with some political jiggering of the numbers in ther pension plans that threatened to collapse the state
    Jimmy Steward is dead. No rescue in sight.  Tens of thousands of  Detroit pensioneers will be left without a sou or insurance in their golden years.
    More like Zinc  years if you ask me.  See if that spends at the local grocery store.

    • I love it.  Nice piece AGX!  Gots to go get me some more ‘junk’ from…..  BTW; has anyone noticed that ‘junk’ is now starting to sell a bit cheaper lately?  Maybe it’s the holiday’s and folks need money but I’ve been doing OK with it lately; no taxes and little to no shipping.  The best way I can go Galt right now.
      Keep stackin’ and stackin’ and stackin’ and stackin!!!

    • AGXIIK … “thanks for a concise explanation of what a bank considers its property.”
      Ag, this is a big part of what I’ve been trying to get across to folks … it isn’t simply a matter of what bankers ‘consider’; it’s a fact of construction. Much in the same way that builders don’t ‘consider’ which items are bricks or timbers, nor what purposes they’re put to.

      A ‘dollar’ is merely a word comprising an ‘Intellectual Property’ of what’s come to be the DC city-state municipal government. That Property was leased to the bankers, which they applied to THEIR Intellectual Property … banknote credits. In turn, the DC city-state decreed the hybrid as ‘Legal Tender’. Nevertheless. in the real material world, those Properties are wholly intangible concepts alone. Whatever they’re applied to is the Right of their respective owners to decide at their whim. And, what’s even more critical to comprehend … whatever others apply those Properties to!

      Put more plainly … to AGREE that one’s possessions are ascertained through the facilities of those Properties, exclusively owned by governments and bankers, assumes the taint of their usage. It’s as though one has a wagon and mounts someone else’s wheels to it. Use of those wheels constructively obligates recompense to their owner!

      In the exact same way, to ‘mount the wheels’ of ‘dollars’ beneath one’s gold, silver, or ANYTHING ELSE, invokes obligation. On the other hand, to rather ascertain things purely by their naturally intrinsic, self-defined, pre-existing Properties of weight, fineness and such, incurs no resultant NEXUS. So, a ‘dollar’ has NEVER been the same as 371.25 Troy ounces of fine silver … it’s ALWAYS been merely a proprietary word applied to formulate a LAWFULLY COMPLIANT obligation derived from the USE of the word.

      “Talis non est eadem, nam nullum simile est idem.” What is like is not the same, for nothing similar is the same. –4 Coke 18

    • @AGXIIK   “If you came to my door, starving, and I knew you were, Zman, my door would close in your face.”
      AGXIIK, you are under no moral or civil obligation to feed or care for strangers during a social breakdown.  Your (and mine) number one priority should be ourselves and loved ones.
      I do appreciate your passion on the subject matter (bail-ins), I do not agree that it is likely to happen, or at least anytime soon . With that being said, it does NOT mean that we won’t experience a financial and social breakdown,  so preparations are still a very good idea.
      In my opinion, bankers don’t want to be the “bad guys” when the SHTF, that is why bail-ins will not happen, there will be other less obvious ways of stealing wealth without bail-ins.    A bail-in would destroy confidence in the banking system for decades, it’s not worth it.

  6. Pat Fields.
    Thanks again for the refined definition of banknotes and the role of banks and DC in these schemes. 
    It makes me want to take a shower after I leave said financial institution.   It also explains why  big city skylines are peppered with the names of the big banks.
    Every one  except Las Vegas.  Banks can’t handle the competition of those who are masters of shearing the sheep.
    In Las Vegas, the casino owners operate on the same principal as bankers;   quick, quiet effective action that separates the weak minded sheeple, bad at math,  from their hard earned currency.  The difference between banks and casinos?
    Free drinks and cute waitresses.   In the casinos, that is
    I recall   a good aphorism 
      ‘Never make financial decisions in rooms with chandeliers’.

  7. Yes,  Charlie,  Zman is a human being and I have a very strong compulsion/desire/ethic to help my fellow human beings. 
    Thus I stack. 
    My purpose of making such a strong statement against a regular poster, the harshest yet by a large margin, is to shake him up.  Whether he’s just folks like us,  a troll or something in between, my belief is he needs a wake up call.  Rest asssured, I have received many on this channel that changed my entire belief system to a completely alternate POV.  Maybe I can accomplish the same with Zman
    That’s my message. 
    Along with Keep stackin’
    My FRNs fled the bank a while ago.  The SDB gathers dust, a false front to the real vault.
    The puny accounts now kept at the local bank are little  more than way stations for commissions and Social Security payments, moved quickly to alternate storage systems or bill payments.

    • Heck I don’t care what he or she thinks or say’s, I listen to people that have the same insights I have and I ignore the rest and Keep Stacking we will need it.

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