Please sign petition at http://www.avaaz.org/en/petition/Reform_the_banking_system_so_that_no_more_bailouts_are_ever_needed/?cHHSRcb
Readers may be aware of an effort by the New Zealand’s government to re-jig the Reserve Bank’s Open Banking Resolution to permit failing banks to confiscate a portion of their customer’s accounts to repay bank debt – as the government of Cyprus has just done. Unlike Cyprus, New Zealand isn’t an offshore tax haven. The issue isn’t the Russian Mafia or other foreign investors. We’re talking ordinary New Zealanders who naively assumed that banks were safer than putting their money under the mattress. A really bad call, so it seems.
Our petition demands the House initiate a Parliamentary Enquiry to ensure that NZ registered banks never need to be bailed out by their customers or NZ taxpayers. Both Kiwis and non-New Zealanders need to sign. Residents of the southern EU countries (Spain, Italy, Portugal and Greece) already know they are next in line. It seems the European Central Bank (ECB) and IMF have a very different attitude towards deposit insurance than most bank customers. The initial ECB and IMF demand was for the government of Cyprus to confiscate insured and uninsured accounts alike. Thanks to massive rioting in the street, the Cypriot parliament vetoed this option and it was discarded. The ultimate agreement reached with the ECB and IMF was to only seize uninsured savings (in accounts exceeding the maximum insured limit of 100,000 euros). These account holders now face having 40% of their uninsured funds confiscated.
American, British and Canadian Banks are Next
American, British and Canadian bank customers who think deposit insurance will keep their bank accounts safe from being looted need to think again. It turns out all three countries are in the process of introducing a statutory framework similar to New Zealand’s Open Banking Resolution. Ellen Brown, writing in Counterpunch http://www.counterpunch.org/2013/03/28/the-confiscation-scheme-planned-for-us-and-uk-depositors/ quotes from a joint FDIC/Bank of England document issued in December 2012 about “bail-in” legislation being introduced in both countries to allow failing banks to convert “non-secured” liabilities (i.e. your bank account) into stock in the bank. Here Brown quotes the FDIC/Bank of England document:
An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.
As Brown notes, “No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive.”
Canadians will be thrilled to learn the Canadian government has also inserted a similar “bail-in” paragraph into the government’s 2013 Economic Action Plan. The goal of the “bail-in” would be to reduce risks for taxpayers through the rapid conversion of “certain bank liabilities” (i.e. customers’ deposits) into “regulatory capital” (i.e. shares in the bank). You can read it for yourself at http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf (page 144-145).
Please Help Us Stop this Insanity
It seems the global elite isn’t satisfied with the obscene transfer of wealth over the last three decades from the poor to the rich over the last three decades. They now want everything we own, including our bank accounts. Our petition includes the demand that the NZ Parliament investigate The Chicago Plan outlined by IMF economists Jaromir Benes and Michael Kumhof on the IMF website. This proposal would strip banks of their power to create money (out of thin air), which we believe is the only way to restore democratic processes in western democracies, where real power resides with Goldman Sachs, J.P. Morgan, Bank of America, HSBC and the other major investment banks. Please sign our petition to stop this insanity in its tracks: http://www.avaaz.org/en/petition/Reform_the_banking_system_so_that_no_more_bailouts_are_ever_needed/?cHHSRcb
photo credit: epicharmus via photopin cc
Reposted from Daily Censored
