Cyprus

Cyprus’ central bank sent a letter to Bank of Cyprus on Monday, publicly ‘requesting’ that the bank’s -entire- board of directors resign.
It was only 18-months ago that one of the brokest banking systems in the world became the first modern example of financial cannibalism.
I’m sure you remember how it all went down in Cyprus last year… but I’ll review it anyhow because it just never gets old.

JP MorganDespite the persistence of the recovery meme, financial markets are more fragile to risk than ever before. On top of this, witness the slow creep of policy disguised as regulation.
It comes for the low hanging fruits. The final labors of society. 

They are coming for your pensions and retirement accounts.
What lies ahead is a paper blood bath.

bankrobberyThe financial powers, in the name of government treasuries (along with the IMF) have a keen eye trained on the lowest hanging fruits of monetary assets.
What was once unthinkable is fast becoming a reality as bail-ins promise to morph into the confiscation that only precious metals investors have been known for fearing.

They are coming for your ASS(ets).

It’s been over a year since the banking system in Cyprus officially went bust. 
On Friday, March 15, 2013, practically everyone in the country went to bed thinking that everything was just fine.
Many had probably gone to the bank that very day to do business, or logged on to an Internet banking platform.
Yet the very next morning, they woke to a completely new reality: the nation’s banks were broke, and the government was in no position to rescue them.
All the promises they had been told about government guarantees and having a ‘well-regulated’, sound banking system turned out to be lies. 
The government proclaimed a bank holiday, and banks remained closed for the next several days.   Accounts were frozen and ATM withdrawals were limited to only 100 euros a day.
Eventually the plan materialized: substantial portions of deposits over 100,000 euros would be confiscated in exchange for equity in the banks.
There are two key lessons here:

open seasonIn the MUST WATCH video below, PM Fund Manager Dave Kranzler  explains the colossal size of the derivatives market and the heads-Wall Street-wins / tails-Main Street-loses nature of this painstakingly rigged casino.
Do you think derivatives are unregulated?    They are–until a series of bets goes bad and starts toppling a bank, at which point rules materialize out of nowhere and meticulously provide for the looting of your checking and savings accounts to pay off the bad bets made by your bank.
When (not if) the derivatives chain of dominoes starts to teeter, it’s going to be Open Season on your bank accounts.
Say, what interest rate is your bank paying you to take on such a huge risk, anyhow?

haircut bail-inBail-ins are coming to the EU as Germany has quietly OK’d depositor bail-ins under the cover of World Cup fever. 
Germany’s cabinet Wednesday approved plans to force creditors into propping up struggling banks beginning in 2015, one year earlier than required under European-wide plans that set rules for failing financial institutions.
The new bail-in rules are part of a package of German legislation on the European banking union–an ambitious project to centralize bank supervision in the euro zone and, when banks fail, to organize their rescue or winding-up at a European level. 
Germany plans to force creditors into propping up struggling banks beginning in 2015, one year earlier than required under European-wide plans that set rules for failing financial institutions, according to a senior German finance ministry official.

bail inConfirmation of why Europeans might be buying physical gold arises from concerns over the financial health of Portugal’s Banco Espirito Santo, which has undermined share prices of the entire Eurozone banking sector.
The ghost of the Cyprus bail-in may be returning to the financial stage. 

haircut bail-inCan the financial authorities compel private debt holders (and also regular bank account owners) to give up their rights to make claims for the full value of their asset when a default takes place?
The answer to this question has huge implications worldwide as the risk of sovereign debt default has never been higher. 
People have always assumed their bank accounts were protected at least up to the amounts that are supposed to be “guaranteed” by entities like the FDIC in the US,  but the IMF and others are attempting to stake out the position that “bail-ins” can be imposed by force in a default crisis situation.
It appears they want to be able to change the rules if they think they need to.  Even including bank depositors.
In a ground breaking case that has MAJOR potential ramifications on the legality of future bail-ins in the US,  the US Supreme Court has ruled in favor of some hedge funds that will be paid the full value of the debt they owned (Argentina debt).  
While this ruling only applies to bond holders, it might apply as a precedent to any future default situation. 

The government of Australia has seized a whopping 360 million dollars from bank accounts dormant for only 3 years!
And yes, this kind of thing is going on all over America as well.
Do you have a bank account that you don’t actively use or a safe deposit box that you have not checked on for a while? 
If so, you might want to see if the government has stolen your money. 

stormIn this interview with Paul Sandhu, exotic derivatives expert Rob Kirby explains why a complete systemic financial collapse is CERTAIN, with full-fledged bank system holidays & martial law coming!

Rob Kirby’s full interview is below:

British taxpayers risk losing their entire £45 billion stake in Royal Bank of Scotland (RBS), the parent company of Ulster Bank, which is in grave danger of failing within 10 years, according to an explosive new book.
According to The Independent on Sunday, a new study of the bank, which brought the UK to the brink of financial ruin, reveals RBS still has a £100 billion “black hole” in its finances due to “five broad areas of alleged criminality and wrongdoing”.

Caption Contest 1When asked how governments will react to the next global economic decline, legendary investor Jim Rogers warned that Western governments will loot pensions and savings:

For one, there will be more confiscation of wealth. Americans and Europeans have already made it legal to take money from private bank accounts, or at least parts of them, in order to bail out banks. They will likely help themselves to pension plans too.
Gold and silver should provide investors some protection against government confiscation.  They will probably go for bank accounts and retirement funds, because they need cash. In fact, that is already happening in Argentina and Poland. Gold and silver are no longer part of the monetary system, which they were back in the 1930s’ when they last confiscated gold and silver. From the government’s point of view, gold and silver are not ideal – it is money they need.”

Sinclair Hong KongLegendary gold expert Jim Sinclair has significantly reduced his public commentary over the past 6 months, reserving most of his advice for those willing to attend Sinclair’s financial meetings across the country- likely due to the fact that many new PM investors lam-blasted Sinclair over his incorrect short term call in 2013 that support in gold would hold at $1600. 
Sinclair, who in addition to his role as CEO of Tanzanian Royalty Exploration, is also the Executive Chairman of the new Singapore Precious Metals Exchange, was recently the Keynote Speaker at the 2014 Hong Kong Mines & Money conference. 
Sinclair discussed how to avoid the coming Western financial system bail-in, the role of gold in the coming crisis, & banking with the BRICS. 
We highly suggest that readers check their emotions and biases at the door, and view the entire MUST WATCH Keynote address below from the world’s foremost big-picture expert on gold & the financial crisis:

nuclear-bomb-KoreaThe ‘pensions time bomb’ looms: pension funds lack of diversification, and over exposure to traditional assets may cost pension holders dearly according to research we have just released. Pensions allocations to gold are very low internationally and yet gold has an important role to play over the long term in preserving and growing pension wealth.
The pension ‘time bomb’  looms closer and millions of people are at risk of having insufficient resources to fund their retirement years.