The Doc: Gov’t Planning CYPRUS-Style BAIL-INS!

bail-inOver the past 18 months we’ve seen nearly all of the Western nations move to prepare for bail-ins for the next financial crisis. 
They’re not doing that for no reason- they’re preparing the legislation because they know its coming and they know that bail-outs are no longer an option, so their last ditch effort now is to bail-in and steal money from the depositors to forestall the next banking system collapse.  
The Doc joins Finance & Liberty’s Elijah Johnson for an exclusive interview discussing The Doc’s views on where gold & silver are headed for the second half of 2014 and beyond, the issue of counterfeit precious metals, and the liklihood that Western governments will bail-in depositors and retirement accounts during the next financial crisis.  [Read more...]

Gold and bail-ins

Blythe Masters Jamie DimonI am often asked whether or not western governments are likely to confiscate gold, and my answer has invariably been on the lines of “unlikely at the moment, because so few people own gold”.
However, given low stock levels in western vaults and that bail-ins are on the agenda, the answer to the question should be reconsidered. [Read more...]

Ukraine Proposes Depositor Bail-in On Deposits Over 100,000 Hryvnia

haircut bail-inThe 2013 Cyprus depositor bail-in should have proved a stark warning to the Russian people over the risk of holding paper assets in any bank with ties to the West and the IMF.  Those in Ukraine who failed to heed the warning are likely regretting the fact now, as Ukrainian officials have reportedly proposed a new tax plan, bailing in depositors with assets exceeding 100,000 hryvnia, and banning (read fully confiscating) any foreign currency deposits.  
DIESELBOOM strikes again.  [Read more...]

Gerald Celente: Ukraine Bank Runs Could Soon Be Seen In EU And U.S.

bankrunIn the excellent interview below, Gerald Celente addresses concerns about terrorism, a World War, financial meltdown, & the risks of bank runs and bail-ins in Europe and the U.S. in the coming months.
He pointed out how Cypriot depositors lost savings in bail-ins and that in the Ukraine today “massive bank withdrawals are going on.
Celente said that the 9/11 attack and subsequent restrictions on access to bank deposits in New York , when Wall Street was closed down for a few days, may be seen again. He warned of the risk that “ATM machines are not working anymore” and the authorities are “putting restrictions on what you can draw out.”
He advised owning physical gold and silver in your possession and said that the precious metals are like a “cash cow when you have the real deal”.
If you have gold or silver, you are in a golden position,”

[Read more...]

Bankers Will Steal Your Cash But Can’t Touch Your Gold/Silver!

bankrobberyBankers can and will steal your cash, but there is no way they can take your personally owned and personally held gold and silver The ongoing plan for 2014 is to buy and hold even more gold and silver and reduce your exposure to cash held in any bank.  Just keep enough to cover week by week expenses, and keep the rest of your cash at home, under the mattress, in a safe, buried in the backyard, anywhere but in a bank.
ANYONE who keeps money in any banking system in the Western world is sending an RSVP to bankers to access your funds, and they will not disappoint.  The confiscation of Cyprus banking accounts was bandied about as a template for other countries.  “No, that would never happen,” was a constant refrain.  Well, it was just the beginning.
If there is one thing about which you can be certain, concerning cash held on deposit, the government, has plans to steal it.  The bankers new motto:  “What’s yours is ours.”
You think Cyprus was a single event?  It was an elite trial balloon.  The blow-back from it? Not much, really.  Financial shock and awe, to be sure, especially for Cypriots, but just like every other banker-created scam, there are no real consequences.  The elites carefully monitored world response and learned one thing:  more of the same, in some fashion or similar form will work, and we [the bankers] will get away with it. [Read more...]

Will America Follow Europe Towards Deposit Confiscation?

EUSSR Flag - Photo by Finn Skovgaard

The savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.

Becoming more like Europe is not a good thing.  But that is the path that we are currently on.  For the most part, Europeans live in a socialist “Big Brother” system in which the government completely dominates your life from the cradle to the grave.
In Europe, government is god, and everyone and everything belongs to the government.
Apparently, that even includes the life savings of their own citizens.
[Read more...]

Germany Demands Broke PIIGS Bail-in Rich Citizens!

Germany BundesbankThe Bundesbank has dropped a DIESELBOOM on the European markets Monday morning, calling on Eurozone nations about to go bankrupt (ie Greece, Italy, Portugal, & Spain) to initiate a one-off capital levy bail-in on their wealthiest citizens prior to asking other nations (read Germany) for bail-out help.
Yes, you read that correctly, the most powerful Central Bank in the Eurozone has just openly called for Eurozone wide bail-ins. 
[Read more...]

Presenting the Stories That Shaped the Markets & Metals in 2013- The Top SD Posts of the Past Year!

best2013 saw Cyprus and the West’s first depositor bail-in (and SD uncovering Canada, The FDIC, and the Bank of England’s plans to also bail-in depositors during the next banking crisis), gold and silver hammered to start the summer and again to close out the year, the collapse of the US’ 2nd largest silver mine, QE tapering finally begun, and China consuming nearly every gram of gold mined globally.
It was quite a year for the markets and the metals, and once again, we recap the year that was 2013 with the Top SilverDoctors’ Posts of 2013: [Read more...]

New EU Bail-In Agreement Yesterday – What Bail-Ins Would Look Like

economic collapseThe EU agreed new rules yesterday for bank bailouts or “bail-ins.”
The new system will take effect from 2016 but emergency resolutions can be brought forward in the event of banks failing in the interim period. The “bail-in” will require that shareholders, bondholders and importantly now depositors will all suffer ‘haircuts’ or be burnt if a financial institution is in trouble.
The European parliament confirmed in a statement overnight that depositors with more than 100,000 euros ($137,000) would be bailed in after shareholders and bondholders. It is important to note that the 100,000 figure is an arbitrary figure and there is a possibility that this figure could be reduced by an insolvent government faced with an imploding banking system. [Read more...]

How Likely Are Bail-Ins? Bank of England Says U.S. “Could Do Today”

BOE Says U.S. “Could Do Today” And U.S Authorities Doing Simulation Exercises.
The U.S. already has in place plans for bail-ins in the event of banks failing. Indeed, the U.S. has conducted simulation exercises with the U.K. in recent weeks and will do so again in 2014.
On October 12, Art Murton, the FDIC official in charge of planning for resolutions, and the Bank of England’s Deputy Governor Paul Tucker, both confirmed that the U.S. system is ready to handle a big-bank collapse.
The Bank of England’s
Tucker, who has worked with U.S. regulators on the cross-border hurdles to taking down an international firm said that “U.S. authorities could do it today — and I mean today.” [Read more...]

Bail-In Regimes – The Key Attributes and Who Is Driving?

Fed monkeyWho Is Driving The Bail-In Regime?
It is revealing to examine the genesis and evolution of the centrally planned bail-in regime as discussed by central banks and international policymakers, since it highlights that the planning and preparation for a global bank “Bail-In Regime” has been on-going internationally at a high level for a number of years now, primarily under the auspices of the Financial Stability Board (FSB).

According to the FSB report, the implementation of the bail-ins should be undertaken by a resolution authority in each country with statutory resolution powers to enforce bail-ins.
Following on from the release of the FSB Key Attributes report in 2011, it became apparent that national monetary authorities and regulators had been actively working for some time on national bail-in preparedness and their own versions of the Key Attributes.

[Read more...]

Economists Warn Depositors May Be Burnt In Bail-Ins (Part III)

jump into fireGiven that the euro area is moving toward a pro-forma inclusion of the depositors bail-ins in the standard toolbox for dealing with the financially distressed national banking systems, the case for gradual cost-minimising increase in long term share of these instruments in individual investors portfolios is being made not only by the market forces, but also by regulatory changes.
Contrary to the short-term signals in the spot markets, gold and other precious metals role in delivering long-term risk management opportunities and tail risks hedging is becoming more important as the immediate volatility and short-term risks recede.
[Read more...]

Will Paper Gold be Subject to Bail-ins?

paper goldPreparations have been or are being put in place by the international monetary and financial authorities for bail-ins of both banks but also other financial institutions. The majority of the public are unaware of these developments, the risks and the ramifications.
The important shift from bail-out to bail-in had not been signalled in a very public way prior to Cyprus. The market’s expectation was therefore confounded when Eurozone finance ministers imposed bail-ins on Cyprus. This forced bondholders to convert into shareholders, and critically, imposed an element of bank deposit confiscation and the forced conversion of these deposits into bank equity.
Never before in the public’s perception had bank deposits been countenanced as potential financing sources for the rescue of insolvent banks. The public was shocked by the freezing and confiscation of deposits and the use of them in a desperate attempt to prevent banks from failing.
The coming bail-ins regimes will pose real challenges and risks to investors and of course depositors – both household and corporate. Return of capital, rather than return on capital will assume far greater importance.
Evaluating counter-party risk and only using the safest banks, investment providers and financial institutions will become essential in order to protect and grow capital and wealth.
It is important that one owns physical gold and not paper or electronic gold which could be subject to bail-ins. [Read more...]

The Era Of Depositor Bail-In Cometh

haircut bail-inThe era of bondholder bailouts is ending and that of depositor bail-in is coming.
The changing financial landscape post crisis poses challenges to savers and investors globally. It is important we consider how savings and investments can be protected.
Bail-ins are a risk in the coming years and yet there is a lack of appreciation of this risk as there was a lack of appreciation of the risks posed by property bubbles and the global debt crisis.
It will take a number of years for the final configuration of the new financial order to become clear. This means that there are difficulties inherent in selecting appropriate investments when the ultimate outcome is unclear. Apart from that, what we do know at present is that there are straws in the wind that should concern savers. [Read more...]

Bail-Ins And Deposit Confiscation Confirmed 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. [Read more...]