Private Attorney General Rod Dale Class Exposing The Corrupt Crooked Officials In The Judicial Court System. On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks’ capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a bank run. Each country will introduce its own legislation to effect the ‘ bail-in’ agreed by the G20 this coming weekend. Large deposits at banks are no longer money, as this legislation will formally push them down through the capital structure to a position of material capital risk in any failing institution. In our last financial crisis, deposits were de facto guaranteed by the state, but from November 16th holders of large-scale deposits will be, both de facto and de jure, just another creditor squabbling over their share of the assets of a failed bank. - Zerohedge
Posted on: Fri, 14 Nov 2014 02:54:09 +0000
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