“Open for Monkey Business” Libs to bring GFC to Australia! Ooh. The shit is about to hit the financial fan. If youre interested in how the Australian Government is really going to stick it to us, then this is the post for you. Note: This isnt my post - its from Rebecca Zuesse and I have no idea who she is. But shes nailed it! ++++++++++++++++++++++++++++++++ They want to keep financial deregulation secret: Yesterday Wikileaks released leaked shocking text of the secret Trade in Services agreement that the govt is working on approving by September. It will commit Australia financially to an agreement that is to kept SECRET for 4 years after it comes into effect, and will bind us to the same failed model that caused the GFC. The services that the agreement covers include, alarmingly, financial services including insurance and derivatives. It seeks to open our market by international financial products and services and do away with regulation and controls. Another recent shock has been that the regulator Standard and Poor has been sued successfully by local Australian councils for millions, as it was paid for AAA ratings on poor products which failed and lost millions. This legal precedent has proven that what we thought was reliable about the regulations regarding finances in Australia is actually corrupt. We already know that the govt has no qualms about taking “inactive accounts” from depositors, stealing 360 million from “dormant” accounts in 2013. Targets pensions, super, the govt makes access easier: Alarmingly, the TiSA agreement also targets State monopolies on Insurance, i.e. pension funds, and wants to “level the playing field” on that, and remove obstructions.....read make it easier to rip us off! This is obviously the plan as the new Future of Financial Services FoFS act that has just been approved by the govt is eager to do away with basic clauses like the Advisor “Must act in the best interests of the client and inform them of charges, etc (remove existing opt-out clause). Australian super funds have long been the envy of the world, with 18 trillion put away for Aussie retirements, and this has attracted predatory capitalism to our shores. It estimated up to 500 million is to be made out of duping customers with this FoFA act alone. What is being planned with the new TiSA permission is sure to be extremely destructive of Australian’s funds set aside for retirement. The sacrosanct nature of pensions have suffered dangerous precedence’s in other countries as bankruptcies have gouged them in the US as much as 50%, for example in Detroit. Promotes tricky rip-off financial products: But worst of all is the provision to allow Credit default swaps (CDS), which were one of the “innovative “products at the core of the GFC crisis. Swaps operate as a form of insurance: the buyer of the swap accepts the risk that a borrower might default and pays up if they do, in return for receiving income payments; they were basically betting on whether insured assets owned by someone else would fail. Around $60 trillion was tied up in CDSs in 2008.18 AIG, a key instigator of the financial services rules, held $440 billion exposure to CDSs when the bubble burst, and was bailed out by US taxpayers. And according to the Citizens Electorate Council, the danger that we are facing is that when these “Too big to Fail” banks go bust as a result of these predatory speculative practices, they will be “Bailed out” with a “Bail-in”, in other words, their ordinary bank account holders will have their banked money taken away. This has happened in Greece. It is part of the skimming off-of money that predatory international banking is really all about. And Jockey has signed up for this process in the latest Financial system Inquiry headed by Hockey. Joe Hockey, is the current chairman of the G20 Finance Ministers, and is therefore in charge of the G20 achieving its bail-in regime, by the November G20 summit in Brisbane. One of the stated goals of the g-20 is to remove obstacles to global trade and protectionism. Groundwork laid from Day 1L Remember in September last year, right after they got in, Hockey gave the Reserve Bank 8.8 billion dollars? This was a huge amount and bigger than the expected percentage. “We need all the ammunition in the guns for whats before us,” Mr Hockey said. “Our institutions must be at their absolute strongest to deal with the challenges in the days, the weeks and the months ahead.” What was the reason given? Hockey cited the GFC and the “volatile” US market. The bank itself refused to respond to Crikey, who filed a FOI. It is not listed on the RB FOI documents. On the same day the the ABC news reported that the RBA faced rates headaches amid concerns on the housing bubble. Is the bubble due to burst? Housing prices in Australia are among the highest in the world, as investors pour money into property due to the financial market volatility. Or was this money planned for the when inevitable crisis hits Australia and the Reserve Bank has to bail out the too big to fail banks? One can only assume that this secret agreement, the deregulation of the financial markets and opening up of our finances to the penetration of international capital is an attempt to bring the GFC here to Australia in the worst sort of venal capitalism. Australia is “open for business”; we are open for what is going to be a nationwide financial rape. Links: The Wikileaks release was covered in an Age article yesterday at: theage.au/federal-politics/political-news/secret-deal-bank-freeforall-20140619-3ah2w.html There is a good breakdown of this leak on the Wikileaks site as well as the original leaked texts at: https://wikileaks.org/tisa-financial/analysis.html, and a pdf which goes into more in-depth analysis at: https://wikileaks.org/tisa-financial/Analysis-of-secret-tisa-financial-annex.pdf 500 million to be made out of duping Super customers with new laws abc.net.au/news/2014-06-20/super-funds-warn-that-fofa-changes-will-see-commissions-return/5539326 No opt in option for super charges now abc.net.au/news/2014-06-20/government-pushes-ahead-with-wind-back-of-financial-advice-laws/5537504 huge profits to be made through deception smh.au/business/matter-of-trust-oh-and-18-trillion-20140617-3abjs.html FOFA future of Financial advice bill guts financial protections and is defended and passed by govt crikey.au/2014/06/17/government-committee-insists-nothing-to-see-here-on-gutting-of-fofa/ Pension cut precedence; america.aljazeera/opinions/2014/5/detroit-pensionsretirementeconomy.html Standard and Poor sued for faud: theaustralian.au/business/councils-seal-legal-win-over-ratings-agency-standard-poors/story-e6frg8zx-1226945465421#mm-premium dormant accounts seized: theeconomiccollapseblog/archives/australia-seizes-360m-from-dormant-bank-accounts-and-all-50-u-s-states-are-doing-this-too yourlifechoices.au/news/government-grab-for-inactive-bank-accounts Citizen’s Electoral Council: cecaust.au/releases/2014_06_19_Treasury_Bail_In.html
Posted on: Sat, 28 Jun 2014 09:19:30 +0000