Bail-ins have been sold as
the prevention of bailouts:
Germany, the dynamic expansionist power in Europe:
Back in history: “In the late 1960s Germany regained economic primacy in Europe and was at the forefront of European integration, in association with France and England. It soon came to dominate the principle decision-making institutions of the EU. So, the EU has served as Germany’s instrument for conquest by stealth.
Year by year, through aid and low interest loans, the EU has facilitated German capitalist market penetration, and financial expansion, throughout southern and central Europe. Germany set the agenda for Western Europe, gaining economic dominance while benefiting from US subversion and the encirclement of Eastern Europe, Russia and the Baltic and Balkan states.
Germany’s projection of power on a world scale would never have occurred if it had not annexed East Germany. Despite the West German claims of beneficence and aid to the East Germans, the Bonn regime secured several million skilled engineers, workers and technicians, the takeover of factories, productive farms and, most importantly, the Eastern European and Russian markets for industrial goods, worth billions of dollars.
Germany was transformed from an emerging influential EU partner, into the most dynamic expansionist power in Europe, especially in the former Warsaw Pact economies. The US and Germany want to return Russia to the vassalage status of the 1990s. They do not want normal relations. From the moment Putin moved to restore the Russian state and economy, the Western powers have engaged in a series of political and military interventions, eliminating Russian allies, trading partners and independent states.
Now, Europe’s neo-liberal media are having a collective hernia at the thought that some former Warsaw Pact countries are cozying up to Moscow, which is the case in particular in Germany. To emphasize this Merkel’s speech in Australia was full of tough criticism of Russia. However, on closer inspection, what they are accusing the Kremlin of doing, is exactly what the EU has been doing over the past 20 years.
“The EU is in serious trouble. Living standards are falling all across the union and political instability is fomenting from Dublin to Athens, from Madrid to Zagreb. Iceland u-turned on a plan to join the EU Club and, previously, resolute aspirants like Serbia and Montenegro cooled their ardour for membership.”
“Angela Merkel thinks this is Russia’s fault. That’s akin to blaming Brazil’s strikers for their 7-1 World Cup capitulation to Germany. Pure hokum. If Merkel wants to find the real culprit, she need only look in the mirror. The Berlin government, which she has led for 11 years, is sucking the continent dry. While peripheral states flounder and pivotal countries stagnate, Germany is doing just fine. This is because the entire EU system – especially the Euro currency – is propping up its largest member while choking the rest.”
EU-members, such as Ireland and Spain were flooded with cheap German credit. This was basically a form of captive loan-sharking. German banks were handing out easy money to facilitate the purchase of German-made goods, from cars to electronics. When the scheme blew-up in 2008, the German creditors didn’t accept a haircut. Instead, the penalties were passed on to Irish and Spanish taxpayers, further enslaving them by severe austerity measures to Berlin.
“Merkel seems to believe that Russia is coercing some European states into doing business. Complete nonsense. It’s rather more plausible that financially stressed governments have begun to see through Berlin’s practices and are hedging their bets. After all, it’s the duty of a sovereign to look after its own citizens, not the pampered bankers of Frankfurt or industrialists of Munich. Germany’s arrogant mistreatment of the rest of Europe is coming home to roost.”
“However, in Budapest and Bratislava, premiers Viktor Orban and Robert Fico are doing what’s right for their electorate by striking optimum deals for their countries. Merkel is deeply offended by such a practice as it reduces Germany’s omnipotent stranglehold on their commerce. Orban is also committed to pushing ahead with the South Stream pipeline, in partnership with Moscow. Why? Not to undermine Berlin, but to guarantee its energy supply because Ukraine is unreliable as a transit territory. This is entirely understandable – it’s Orban’s job to look after Hungary, not to bow down before Germany.”
“The pro-NATO, neoliberal media in Western Europe is presenting Russia’s trade deals with struggling eastern states as some kind of dastardly plan to undermine the EU. Such suggestions are hyperbolic nonsense. The leaders of Hungary, Slovakia and Serbia would gladly take bait of the hand of Merkel if she were willing to throw some German cash around. However, she’s not and Putin is.”
Consequently, these countries are doing what’s best for their current positions. There is nothing sinister about it.
What Merkel does not understand is that Germany’s own national interest lies with developing economic union with Russia and certainly not acting against Russia.
Germany has nothing to gain from the USA other than total dependency. The USA cannot offer Germany anything that it does not already have. In fact, these two are competitors in High Tech. Without Russia and its markets and resources, Germany is doomed. Russia has an outlet for commodities, and resources, but Germany does not. The USA wants to keep Germany as a vassal and as a useful stationing ground for its imperial ambitions, use its airports and bases.
So to put it in Marxist terms, Germany’s national interest of development and cooperation with Russia comes into contradiction with its NATO membership and the resulting de facto subservience to the USA.
Meanwhile a group of prominent Germans are urging their country and the West to open dialogue with Russia, added to the fact that Europe and Russia both have a joint responsibility to ensure peace and security on the continent, however this can only be achieved through, “equal security for all with all partners being respected.”
In a letter it was stated:
“The Russians’ security requirements are as legitimate and just as important as those of the Germans, the Poles, the Baltic States and the Ukraine. We should not look to push Russia out of Europe.”
Bail-ins have been sold as the prevention of bailouts:
Finally, the EU admits;
“The economic and financial crisis has impaired the ability of the financial sector to channel funds to the real economy, in particular long-term investments.”
“The Commission will ask the bloc’s insurance watchdog… for advice on a possible draft law “to mobilise more personal pension savings for long-term financing“, it was stated in the document.
Mobilise, which is a more acceptable word than, confiscate.
“the savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis.” an EU document says.
What is left unsaid, is that the “usage” will be on a purely involuntary basis, at the discretion of the “union”, and can thus best be described as confiscation. More precisely: Cyprus-style confiscations that meanwhile have become law.
Rather than reining in the massive and risky derivatives casino, the new rules prioritise the payment of banks’ derivatives obligations to each other, before everyone else. That includes depositors, public and private, but also the pension funds that are the target market for the latest bail-in play, called “bail-in able” bonds.
“Bail-ins” have been sold as the avoidance of future government bailouts and the elimination of the too big to fail banks (TBTF). But it actually institutionalises TBTF, since the big banks are kept in business by expropriating the funds of their creditors – clients.
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 through statute. But a bail-in could have far 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 on the streets or sharing food with your pets.
And if you have a loan or mortgage from a bank, they could, under the act of emergency, call in the loan, and if not fully compensated with your own savings, they could then confiscate the asset, as is stipulated in the small print at the bottom of the loan agreement.
Rather than having the bank’s assets sold off and having their doors closed, as is the case with other bankrupt businesses in a capitalist economy, “zombie” banks are kept alive and open for business at all costs, and these costs are once again borne by us.
In the latest version of bail-in schemes, TBTF banks are required to keep a buffer equal to 16-20% of their risk-weighted assets in the form of equity or bonds convertible to equity in the event of insolvency. They most likely won’t be able to meet that condition. But who cares? The taxpayer will be the victim anyhow.
These bonds, termed “bail-in bonds,” are securities in which it is stated in the fine print that the bondholders agree contractually – rather than being forced statutorily – that if certain conditions occur i.e.: the bank’s insolvency, the lender’s money will be turned into bank capital. However, even 20% of risk-weighted assets may not prove sufficient to prop up a megabank in a major derivatives collapse. And we the people are still the target market for these bonds, this time through our pension funds.
Other than the pension funds and insurance companies that are long-term bondholders, it is not clear what market there will be for bail-in bonds. Currently, most holders of contingent capital bonds are investors focused on short-term gains, which are liable to bolt at the first sign of a crisis. Investors who held similar bonds in 2008 took heavy losses.
In a Reuters held sampling of potential investors, many said they would not take that risk again. While banks and “shadow” banks are specifically excluded as buyers of bail-in bonds, due to the “fear of contagion”: if they hold each other’s bonds, they could all go down together.
Whether the pension funds go down is apparently not of concern.
American banks have over $280 trillion in derivatives on their books; at EU banks the amount won’t be much different. They earn some of their biggest profits from trading in them, profits that could turn into their biggest losses when the derivatives bubble collapses. Thus, as we learned from Cyprus, keeping your money in the bank isn’t the safest place, better to convert most of it into precious metals, stored privately, if you want to protect your hard-earned savings.
Protect your savings through non-compliance:
As probably most readers already know, the EU is owned by the Rothschild network, which won’t refrain from stripping every citizen bare. They are after your savings, and even your pension funds. There is no other protection than to pull your money out of the banking system and try to live off the grid, by forming small communities, where food can be grown and bartered without money. We must undergo a mind-shift; the Illuminati are seeking to enslave all of us. Their worst nightmare is our non-compliance – the refusal to accept their lunacy to which the world has steadily descended, refusing to pay taxes, or leaving homes when banks foreclose on them; plainly refuse to comply with your own enslavement in any form whatsoever.
The US Khazarian government is bent on world hegemony (NWO) for which Russia stands in its way:
The US has already turned Europe, Canada, Australia and Japan into vassal states. The latest resolutions like sanctions, and consulate closures against Russia are simply tools to achieve their goal – world hegemony, said Paul Craig Roberts, former Assistant Secretary to the US Treasury on RT.
Russia needs to understand that the United States has an ideology of world hegemony and does not accept any prospect of any country being sovereign or acting on its own. You have to be an American vassal state. Just as the United States has turned all of Europe, Canada, Australia and Japan into vassal states, those are the only terms by which the United States can accept Russia and China. It will not accept them as sovereign, independent countries, following their own interests.
The demonisation of Russia and its leader will continue.
The situation will become more and more hostile. It’s not going to go away, because the United States is guided by the neoconservative ideology of American world hegemony and that includes hegemony over Russia and China. If the Russian government relies on facts, it’s going to be greatly surprised, because Washington has no interest whatsoever in facts. Did Saddam Hussein have weapons of mass destruction? Did Assad of Syria use Chemical weapons against his own people? Did Iran have nuclear weapons? Of course not, and of course Washington DC lied purposely about these matters on each occasion.
They act identically to Adolf Hitler when he announced,
“Last night Polish troops crossed the frontier and attacked Germany”
There’s no difference. The United States overthrew the government of Ukraine and then accused Russia of invading the country. This is not even worth highlighting, as it is blatant, obvious propaganda, designed to make a demon out of Russia. That’s the only purpose of this. It’s not going to go away. Watch this video interview:
Controlled Collapse: Rothschild Just Sold Massive Amounts of U.S. Assets: