Bank Bail-Ins Are Coming Your Way

Have you seen this latest report from Ellen Brown?

On the weekend of November 16th, 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.

http://www.washingtonsblog.com/2014/12/new-rules-cyprus-style-bail-ins-take-deposits-pensions.html

In simpler terms, when the banking system blows up again (and with $280 trillion in derivatives exposure in the US and $710 trillion globally it certainly will), your accounts and mine will be used to bail them out:

http://www.zerohedge.com/news/2014-09-25/5-us-banks-each-have-more-40-trillion-dollars-exposure-derivatives

Grand theft banking ... on a global scale.

Did anyone ask you or me whether this is OK? Of course not.

And when you lose everything and rise in protest, what do you think the powers that be will do?

My guess is you'll be lucky if all they do is squirt pepper spray in your face.