TOM HARTMAN NEW BOOK: “WHY THE CRASH OF 2016 WILL HAPPEN” (SEE ATTACHED VIDEO) This book is an important prediction from the LEFT, since right wing financial newsletters, right wing libertarians, and the corporate elite, also have been making this prediction in many forums, which they call “THE GREAT LEVELING”, as they gloat about the coming destruction of pensions, social security, people’s money in bank counts, and abolition of all gains made in the “New Deal”. THIS IS MY TAKE ON THE COMING ECONOMIC CRASH: OUR BANK ACCOUNTS, PENSIONS PARKED IN BIG BANKS , COULD BE EXPROPRIATED IN A BAIL-IN IN NEXT 2008-LIKE FINANCIAL CRISIS AS A RESULT OF LAME DUCK CONGRESSIONAL PACKAGE PRESIDENT OBAMA LOBBIED DEMOCRATS TO ACCEPT In the SNEAK ATTACK Lame Duck Congress Package a bipartisan Republican /Democrat Committee made a deal to make it even easier for mega-banks to co-mingle trillions of $$$ in derivatives with our bank deposits and pension accounts in those banks, so the trillions of $$$ in derivatives protected by FDIC will wipe out the FDIC insurance that protects deposits & pensions parked in those banks, leaving NO PROTECTION for our savings & pensions in the next derivative crisis, and economic crash, as happened in 2008. The big money (TRILLIONS $$$ in derivatives, etc.,) are protected FIRST, before our savings/checking accounts/pensions. Elizabeth Warren and a small number of Democrats have taken a principled stance on this, despite President Obama and the White House lobbying Democrats to pass a deal , which was passed in the House & Senate, that allows the big banks to gamble with TRILLIONS of $$$ in derivatives which as a result of this deal is protected by FDIC in a bank crash which will liquidate all FDIC $$$ before the average depositor gets access to that insurance. The politicians, and mainstream press, are pretending they dont know about bail-ins, that FDIC has already agreed to, where depositor $$$ will be expropriated in the next 2008-like crisis (we are considered unsecured creditors), and we get only SHARES in the bank in lieu of our deposited money worth only a small fraction of our deposits. This is really what the militarized police, Orwellian Surveillance State, Presidential executive orders for Martial Law in the event of an anticipated major economic crash, and major civil unrest, is all about. The trigger for totalitarian emergency rule government, martial law, will be seizure of peoples money in TBTF banks, and the protection of the big money interests (e.g.., Trillions $$$ in derivatives). _____________________________ NEW G20 RULES: CYPRUS-STYLE BAIL-INS TO HIT DEPOSITORS AND PENSIONERS On the weekend of November 16th, 2014, the G20 leaders whisked into Brisbane, posed for their photo ops, approved some proposals, made a show of roundly disapproving of Russian President Vladimir Putin, and whisked out again. It was all so fast, they may not have known what they were endorsing when they rubber-stamped the Financial Stability Board’s “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” which completely changes the rules of banking. Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong. Rather than reining in the massive and risky derivatives casino, the new rules prioritize the payment of banks’ derivatives obligations to each other, ahead of everyone else. That includes not only depositors, public and private, but the pension funds that are the target market for the latest bail-in play, called “bail-inable” bonds. “Bail in” has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors, i.e.., unsecured creditors our money deposited the Too Big to Fail Bank, and our Pensions parked in TBTF banks. It is a neat solution for bankers and politicians, who don’t want to have to deal with another messy banking crisis and are happy to see it disposed of by statute. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets. In theory, US deposits under $250,000 are protected by federal deposit insurance; but deposit insurance funds in both the US and Europe are woefully underfunded, particularly when derivative claims are factored in. The FDIC , Bank of England, etc., has already agree to bail-ins replacing bail-outs in the next 2008-like financial crisis.
Posted on: Sat, 20 Dec 2014 05:44:01 +0000
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