In a piece last week http://www.globalmagnacarta.org/wp-admin/post.php?post=622&action=edit
I am concerned I may have unintentionally created an ambiguity about our supposed protection from another banking collapse and so I offer further observations.
To remind you these are the words I am referring to:
“When the bad debts, like the Greek bubble finally bursts (because the value of their debt is way in excess of their worth as a country), the domino effect upon other similar situations and countries will crash the banks. Hence the unprecedented brutal pressure on Greece by Brussels and the Troika to keep playing, because they know what is at risk! When it happens, however, they will simply close their doors and lock in all of the cash they are holding.
The wages you have earned, or the money you have saved, or the pension you have contributed to will become an ‘asset’ of the bank into which they have been paid. As an ‘asset’ the bank can then use it to cover its indebtedness. Not only will they lock the doors and switch off the ATM’s but hold a piece of paper at the window, from our politicians, telling us that what they are doing is quite legal and to go away and annoy someone else.
A directive has come out from the European Commission that all EU countries must comply with so-called bank and resolution recovery directives (BRRD), mandating that all the money banks are holding become part of their capital structure and no longer money belonging to savers!
“But that’s theft” I hear you say. NO . . . it’s legalised theft, like the taxpayer bail-out, because it comes with the full collusion of our politicians!
To add insult to injury in the UK, the Financial Services Compensation Scheme is reducing the amount of compensation from £85,000 to £75,000 when a bank goes bust, instead of increasing it. (Does Osborne know something, do you think?!)
Between them the banks and politicians screwed us as ‘taxpayers’ last time and will screw us again this time as ‘account holders and savers’ with a bail-in instead of a bail-out!”
As 2008 played out it is important to remember that only one bank actually went bust . . . Lehman Bros! The rest were insolvent and should have gone bust but for our taxpayer money, which bailed them out because they were ‘too big to fail’.
Given no bank went bust we had no call upon any Government compensation scheme . . . and there isn’t one that covers the theft of our ‘tax’ money. This time around I believe a similar type of theft will occur and it will be even more financially intolerable.
Once the banks close their doors and entrap our money they will become solvent again (with a bit of financial jiggery pokery). Although they have stolen our savings we will have no claim upon the Government compensation scheme because they haven’t gone bust!
With a ‘bail in’, our savings and current account moneys cannot be returned to us because if this happened the banks would go bust again! And as they have not gone bust we cannot claim under the compensation scheme . . . What an odious but perfect “Catch 22”.
The global financial system is now so corrupt that if it was not so seriously threatening and contemptuous of our wellbeing it would be a joke. Banks declare that at the very core of their business model is trust and without it they could not look after the money en-“trusted” to them.
If this is the case, why do we need a government backed ‘compensation’ scheme? And here is the ultimate joke. This compensation scheme uses our money, which we pay in taxes, to compensate us when the money we deposit in banks is stolen by those banks! The precedent has already been created, because 2008 saw that same tax money stolen by the very banks we are being protected from!!!
(I suppose the banks would argue that in stealing our taxes they are saving us from having to make a claim for compensation . . . but at this point my brain is beginning to hurt!)
Not only that, there is no authority within this shambolic bureaucracy that we can turn to for any justice, with financial crimes that are now regularly being perpetrated upon us. Not even the late and great Agatha Christie could have come up with a plot as devious or corrupt as this. I mean, am I missing something or has it all become quite farcical now?
Well, that’s it. I feel I have cleared up any ambiguity I may have been guilty of and will wait for the coming implosion which, I think, will see the end of any remaining credibility our current financial system is tenaciously hanging on to.
Until the next time.
Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes