panicDeposit bail-in risks are slowly being realized in Ireland, after it emerged overnight that FBD, one of Ireland’s largest insurance companies, have been moving cash out of Irish bank deposits and into bonds.

haircut bail-inWe’ve warned that bankrupt governments will be eyeing the multi-trillions of dollars in “un-taxed” retirement funds when they get desperate enough.
Total funds currently held in private IRA and 401K accounts in the US are estimated to be in the neighborhood of $10 trillion.
As we dance on the brink of a massive collapse, the government’s already empty coffers will be even further decimated as the economy contracts massively and tax receipts plummet.
In that moment, rather than reducing expenditures and doing massive layoffs and closures of departments, like any regular business would do, politicians will nationalize retirement funds for the “good of the country”.

euro_drachmaBank bail ins in the EU are here after Austria’s financial markets regulator FMA imposed a hefty haircut on creditors in an Austrian bank.
Creditors in the bank Heta Asset Resolution will receive less than half of their money back according to the country’s financial regulator, the FMA…

bail-inOn January 1st, 2016, the new bail-in regime became law putting at risk the deposits of savers and companies in the EU.
The bail-in architecture was seen in the Cyprus bank bail-ins that were seen in 2013.  Then, deposits of over €100,000 were confiscated in “haircuts” in order to bail out banks in Cyprus.  Now the exact same principles that were used in Cyprus – which we were told was unique and a one off – are going to apply to all of Europe.

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collapse bail inBill Holter joins The Doc for an Exclusive Update on the Greek Crisis, and the Potential for a Full Derivatives CONTAGION, Discussing:

  • Greek problem is not $3 billion, its $3 TRILLION IN DERIVATIVES– Will ISDA Allow Default?
  • Greek default WAS NOT PRICED IN- Why a MASSIVE LIQUIDITY EVENT has been triggered!
  • End Game for Greek Depositors- Are the Depositor Haircuts and Bail-ins Imminent?
  • Bill Warns: Greece Is Going to Happen Here- The Credit System is Going to Collapse!
  • Gold Will Get Your Wealth into the Next System After a Reset Occurs
  • JPM Corners the Commodities Derivatives Market Adding $3 TRILLION 
  • COMEX Will Go Force Majeure Allowing JPM to Unwind Massive Short PositionBill Holter’s Full MUST LISTEN Greek Alert is Below:

The only way to prevent financial Armageddon is to declare all markets on holiday. However, the most interesting market to watch will be the re-pricing of the market for physical precious metals.  Even if they suspend the trading of fraudulent paper futures trading, an over-the-counter – or even “black” market – for physical bullion will develop. This is because, unlike futures contracts, buyers and sellers can effectuate an exchange of physical for fiat paper.
Of course, I believe that this market would open up “bid without,”  meaning buyers will stick bids out looking for offers.

There’s nothing more terrifying in the markets than trading a market that goes “bid without” when you are short.
The short position will cause heart attacks and Bill Murphy’s prediction that they will carry gold shorts out of the Comex on stretchers will come to fruition.

1498071I am of the opinion that some of the Greek banks will not open Monday and those that remain open will shut down with a day of opening or at least by June 30.  The ECB and IMF are looking at June 30 as the absolutely deadline for full on default, no concealing it any more.
The ELA must protect its position and will likely order a bank holiday and full on capital controls because the bank deposits are now less than what is owned. Collateral is going to be worth ZERO in short order as a Greek default shoots rates to 50-90% on 2 year bonds, just like the last time Greece took the haircut that avoided a full default 2 years ago.
This will precipitate a bail-in as the ELA, along with the troika, will demand full deposit theft to protect this 100 billion euro assets still within reach.  Bank holiday will give the troika and ELA provisions time to extract everything they can reach in these accounts.  If the Greek central bank does not nationalize the banks sometime between Sunday and Wednesday, the banks will fail and crash, throwing the entire system into chaos.

gold eagleA fund manager for one of the largest mutual fund and investment groups in the world, Fidelity, has warned investors and savers to have an allocation to “physical cash,” “including  precious metals” to protect against “systemic risk”.

ECB Bail-in

In April of 2013 SilverDoctors globally broke the news that the Western Central banks planned to bail-in the entire financial system during the next financial crisis, uncovering legislation buried in the US, UK, and Canada. 

Are the bank failures & bail-ins procedures put in place by the likes of the Fed and the BOE finally imminent?
The EU has given Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France, and Italy a 2 month ultimatum to adopt bail-ins or be hauled before the EU Court of Justice.
But don’t worry European depositors, DieselBOOM assured us Cyprus was NOT the template…

bailBank bail-ins (like SWIFT deletions) are the “nuclear option” in monetary matters, and the EU has already shown the “imperium” that it is a weapon they won’t hesitate to use, should their backs be against the wall.
When push came to shove, both Brussels and Berlin were all too happy to sacrifice Cypriot depositors on the EU altar:
The Cypriot bail-in was a “dagger in the back”, the ultimate betrayal, and the ultimate capital control.

ATM’s were on lock-down.
The depositors’ cash was seized.
The banks’ doors were closed.
And safety deposit boxes?  Forget about it.
Do not think for one blessed second, that the same technocrats won’t do likewise with Greece.

If governments have proven anything to us over the last seven years, it is that they will do anything to keep the banks from going down.  If just 10% of people hit their breaking points and withdrew their money in cash – there wouldn’t be enough cash in the system to support this demand.  And the banks would subsequently collapse. When a government is bankrupt, the central bank is nearly insolvent, the banking system is illiquid, and an entire population suffers from interest rates that are either negative or below the rate of inflation, capital controls are a foregone conclusion.
In fact, we expect the next round of capital controls will be designed to protect the banks… from you.

bail-in

While shocking to some, the bail-in strategy is completely legal.
Client account holders can only profess ignorance which – when it comes down to it – will not be enough to protect them. Knowingly, or unknowingly, account holders are investors and not savers.

The event in Cyprus is and will not be an isolated event.