Commodity Trade Mantra

Posts Tagged ‘Bail-Ins’

The War On Cash: Officially Sanctioned Theft

Why are governments suddenly declaring war on cash, the oldest officially issued form of money? Governments say – Physical cash has the potential to evade both taxes. The real Reason: Physical cash can evade officially sanctioned theft via bail-ins and negative interest rates. In short, physical cash is extremely difficult for governments to steal.

Bail-Ins Coming – EU Gives 11 Countries 2 Months To Adopt Rules

This bail-in legislation which is being driven by the BIS through the Bank of England, ECB, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) appears designed to protect banks by allowing them to confiscate deposits to prop them up rather than the noble stated objective – “to shield taxpayers”.

Gold and the Ghost of Bail-Ins Past

Last week Germany reminded us that large deposits are going to be subject to bail-ins if a bank fails. The ghost of the Cyprus bail-in may be returning to the financial stage. Europeans might be buying physical gold from concerns over the financial health of Portugal’s Banco Espirito Santo.

Bail-Ins Approved By EU Yesterday - Deposits Over €100,000 Vulnerable

“Bail-ins” enshrined in the 2 laws, means bank’s owners – shareholders, creditors – bondholders & depositors, will be first in line to absorb losses banks will incur, before outside sources of finance may be called upon. Laws also require banks to finance reserve funds to cover further losses, only after bail-ins have been used.

The 9 Key Considerations To Protect Deposits From Bail-Ins

There is an assumption and not a guarantee that in the event of bail-in, only bank deposits of over some arbitrary figures would be vulnerable. It may opt to protect deposits over a lower amount – It is also important that those diversifying deposits do not jump out of the frying pan and into the fire.

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