Greece Unleashes ‘Soft’ Cash Ban

The spread of global cash bans continues with Greece unveiling their so-called ‘soft’ approach by which taxpayers will only be granted tax-allowances or deductions when payments are made via credit or debit cards. As KeepTalkingGreeece reports, the new guidelines refer to employees, pensioners, farmers, and also the unemployed. Continue reading

US banks not prepared for another financial crisis, say federal regulators

We also shouldn’t forget that the FDIC is helpless and broke itself, which compounds the problem and shows a double standard on their part. They FDIC will ironically be the one raiding the banks during the next crisis but like to heap burden on them because passing blame is the game today.

 

https://i.guim.co.uk/img/media/460c615a951fcc88b937f12d8f31d3c4e9c60796/254_40_3112_1868/master/3112.jpg?w=1920&q=55&auto=format&usm=12&fit=max&s=663f03d698ec2251936e2da66b2b2a08

Five out of eight of the biggest US banks do not have credible plans for winding down operations during a crisis without the help of public money, federal regulators said on Wednesday. Photograph: Mike Blake/Reuters

 

Some of the US’s biggest banks still lack a proper plan for bankruptcy, in the event of another major financial crisis, US regulators said on Wednesday.

In the wake of the great recession banks were required to come up with “living wills” to prove they had a credible plan for bankruptcy that would not require another bailout from the taxpayers.

Continue reading

Here We Go Again: Obama Pushes Banks To Lower Home Loan Standards

Right out of the Clinton 90’s playbook that brought you the 2008 financial crisis:

 

Recently, White House Press Secretary Josh Earnest said the following: “One of the key legacy achievements of this presidency will be the important reforms of Wall Street. Those reforms have led to a financial system that is more stable and ensures that taxpayers are not on the hook for bailing out financial institutions that make risky bets.” Continue reading

Corruption in Greece (I)

ATHENS/BERLIN (Own report) – The Greek government does not exclude the eventuality of indictments of German companies on charges of corruption, according to recent reports, on a contingency plan Athens has prepared for the event that Berlin forces it into state bankruptcy (“Grexit”). According to this plan, Athens would try to bring German companies to court – who have not or have only partially been subject of bribery investigations – to have them pay at least part of the restitution for damages caused by the alleged corruption, officially estimated in the billions. Siemens is the most famous example. A Greek parliamentary investigating committee estimated that, through systematic bribery, this Munich-based company has caused damages of two billion Euros in Greece. However, Siemens got off cheap in an out-of-court settlement and had to pay only 270 million Euros – hardly one fifth of its current quarterly profit. A court in Munich gave a Siemens manager a suspended sentence – significantly less than what he could have expected from a trial in Athens. Already in the fall of 2014, new legal proceedings had been opened in Athens to comprehensively investigate this systematic corruption.

Continue reading

Why is Alexis Tsipras signing up to worse austerity measures for Greece?

As said before, Greece isn’t going anywhere — and apparently Greece would rather capitulate and be placed under German and Troika command than bow out and face imminent total collapse within days or weeks. It would lead to a violent overthrow of the Tsipras government whereas Alexis would likely still be soon replaced for defying the Greek “No” referendum vote, or, the will of the people. Capitulation will still lead to a draining of the Greek taxpayer bank accounts as per bailout requirements.

 

Why have the Greeks signed up to harsher austerity?

Prime Minister Alexis Tsipras is banking on securing an agreement with his creditors to keep the country in the euro. By agreeing to carry out many of the tough reforms and spending cuts he has so far resisted, he hopes to get a big concession on relieving part of the country’s debt.

Is this worse than the deal voters rejected in the referendum?

Yes and no. On the one hand the VAT hikes and pensions reforms are exactly what creditors have wanted over the last month.

Continue reading

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

goldcore_chart3_18-05-15

 

– 11 countries face legal action if bail-in rules are not enacted within two months
– Bail-in legislation aims at removing state responsibility when banks collapse
– Rules place burden on creditors – among whom depositors are counted
– Austria abolished bank deposit guarantee in April
– “Bail-in regimes” coming globally


The European Commission has ordered 11 EU countries to enact the Bank Recovery and Resolution Directive (BRRD) within two months or be hauled before the EU Court of Justice, according to a report from Reuters on Friday.

The news was not covered in other media despite the important risks and ramifications for depositors and savers throughout the EU and indeed internationally.

The article “EU regulators tell 11 countries to adopt bank bail-in rules” reported how 11 countries are under pressure from the EC and had yet “to fall in line”. The countries were Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France and Italy. Continue reading

The War on Cash Is Going Completely Nuts in Europe

Austria is where the Sovereign Debt Crisis began with a bank failure in 1931. Today, Austria continues to have a raging controversy over the abolition of bank secrecy. Just look at how far they are going against the citizens because of bank mismanagement, once again, and it is scaring the hell out of a lot of people behind the curtain. The government is monitoring taxpayers in a manner that will lead to the elimination of all private rights in the future. They are now introducing new laws, which forces all taxpayers to submit their fingerprints, as well as their IP e-mail addresses, to the tax office so that the government can track every piece of loose change. Continue reading

Are They About To Confiscate Money From Bank Accounts In Greece Just Like They Did In Cyprus?

Do you remember what happened when Cyprus decided to defy the EU?  In the end, the entire banking system of the nation collapsed and money was confiscated from private bank accounts.  Well, the nation of Greece is now approaching a similar endgame.  At this point, the Greek government has not received any money from the EU or the IMF since August 2014.  As you can imagine, that means that Greek government accounts are just about bone dry.  The new Greek government continues to insist that it will never “violate its anti-austerity mandate”, but the screws are tightening.  Right now the unemployment rate in Greece is over 25 percent and the banking system is on the verge of collapse.  It isn’t going to take much to set off a panic, and when it does happen there are already rumors that the EU plans to confiscate money from private bank accounts just like they did in Cyprus.

Continue reading

The Next Round of the Great Crisis is at Our Doorstep

The next round of the financial crisis is at our doorstep.

Central Bankers bet the financial system that their academic theories would work, despite the countless real-world examples showing that printing money does not generate growth. Continue reading

Bank Deposits No Longer Guaranteed By Austrian Government

If you’re not already familiar with one of the more recent invented economic terms of the last few years, “bail-in”, it essentially means your respective government has given the banks the green light to legally take your deposits to cover their obligations should there be another crisis. Instead of the corrupt government bailing ‘out’ the banks, you, the depositor, are bailing them ‘in’. This is also an indication of an anticipated crisis.

In 2013, the United States reportedly missed one by a hair’s length.

https://i0.wp.com/www.goldcore.com/ie/wp-content/uploads/sites/19/2015/04/goldcore_chart1_9-04-15.png

 

– Austria will remove state guarantee of bank deposits
– Austrian deposit plan given go ahead by the EU
– Banks to pay into a deposit insurance fund over 10 years
– Fund will then be valued at a grossly inadequate €1.5 billion
– New bail-in legislation agreed by EU two years ago
– Depositors need to realise increasing risks and act accordingly
– “Bail-ins are now the rule” and ‘Bail-in regime’ coming

Bank deposits in Austria will no longer enjoy state protection and a state guarantee in the event of bank runs and a bank collapse when legislation is enacted in July. The plan to ensure that the state is no longer responsible for insuring deposits has been readied by the Austrian government in conjunction with the EU two years ago according to Die Presse. Continue reading

One Last Look At The Real Economy Before It Implodes – Part 2

You can read Part one here:

One Last Look At The Real Economy Before It Implodes – Part 1

 

Consumer spending in the U.S. accounts for approximately 70 percent of gross domestic product, though it is important to note that the manner in which “official” GDP is calculated is highly inaccurate. For example, all government money used within the Medicare coverage system to pay for “consumer health demands,” as well as the now flailing Obamacare socialized welfare program, are counted toward GDP, despite the fact that such capital is created from thin air by the Federal Reserve and also generates debt for the average taxpayer. Government debt creation does not beget successful domestic production. If that was a reality, then all socialist and communist countries (same thing) would be wildly enriched today. This is simply not the case. Continue reading

The Greek Bank Runs Have Begun: Two Greek Banks Request Emergency Liquidity Assistance

The first time the phrase Emergency Liquidity Assistance, or ELA, was used in the context of Greece was in August 2011, when Greece was imploding, when its banking sector was on (and past) the verge of collapse, and just before the ECB had to unleash a global coordinated bailout with other central banks including global central bank liquidity swap and unleash the LTRO to preserve the Eurozone.

As a reminder, this is what happened back then: “In a move described as the “last stand for Greek banks”, the embattled country’s central bank activated Emergency Liquidity Assistance (ELA) for the first time on Wednesday night.”

“Although it was done discreetly, news that Athens had opened the fund filtered out and was one of the factors that rattled markets across Europe. At one point Germany’s Dax was down 4pc before it recovered. The ELA was designed under European rules to allow national central banks to provide liquidity for their own lenders when they run out of collateral of a quality that can be used to trade with the ECB. It is an obscure tool that is supposed to be temporary and one of the last resorts for indebted banks.” Continue reading

Sayonara Global Economy

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”Ludwig von Mises

The surreal nature of this world as we enter 2015 feels like being trapped in a Fellini movie. The .1% party like it’s 1999, central bankers not only don’t take away the punch bowl – they spike it with 200% grain alcohol, the purveyors of propaganda in the mainstream media encourage the party to reach Caligula orgy levels, the captured political class and their government apparatchiks propagate manipulated and massaged economic data to convince the masses their standard of living isn’t really deteriorating, and the entire façade is supposedly validated by all-time highs in the stock market. It’s nothing but mass delusion perpetuated by the issuance of prodigious amounts of debt by central bankers around the globe. And nowhere has the obliteration of a currency through money printing been more flagrant than in the land of the setting sun – Japan. The leaders of this former economic juggernaut have chosen to commit hari-kari on behalf of the Japanese people, while enriching the elite, insiders, bankers, and their global banking co-conspirators. Continue reading

Congress to Cut Key U.S. Missile Defense System

Funding cut comes as Chinese, Iranian, Russian cruise missile threat grows

Congress is poised to significantly cut funding for a key U.S. missile defense system that is slated to be deployed against threats in the Washington, D.C., area, prompting outrage from former military leaders and defense industry insiders.

Congress is seeking to slash $25 million from JLENS, or the Joint Land Attack Cruise Missile Defense Elevated Netted Sensor, an advanced missile detection radar system capable of finding and intercepting missiles, drones, and planes far before they reach the homeland.

Major cuts to the system are coming down the pike just as JLENS is to be deployed in the nation’s capital and integrated into the region’s air defense system. Continue reading

Deutsche Bank to slash U.S.-based assets by $100 billion: FT

(Reuters) – Deutsche Bank has laid out plans to reduce its U.S. balance sheet as the U.S. Federal Reserve adopts new rules to shield the country’s taxpayers from costly bailouts, the Financial Times reported on Sunday.

The lender is expected to reduce its $400 billion balance sheet in the United States to around $300 billion in part by reassigning operations such as its Mexican arm and its Frankfurt and Tokyo-based repo businesses that are currently part of its U.S. business elsewhere, the FT reported. Continue reading