Bail-ins saves the banks but who saves us?
By Muhammad Ali
We all remember the financial crises of 2008 and the Bail-outs that occurred. So no need to go down that path, instead we'll continue from there.
So the Governments will not Bail-out the banks again, then it means the banks will need to go somewhere else to help themselves out. Where do you think they will go? Yes, that's right the deposit holders.
If you think that Bail-ins are just some fantasy concoction of mine, why don't you tell that to this The 68-year-old man who hung himself at his home in Civitavecchia, a port town near Rome, after the so-called “save the banks” plan wiped out €100,000 in savings held at Banca Etruria. But wait, he's already dead, so you cannot. This was during the time when certain banks were testing the new system. Unfortunately, their tests cause the life of this man. Here's the full article for your reference, in case you think that I am making this up.
I remember when this article first came out in 2015; I shared it with my group in Malaysia. While the world has probably forgotten about him by now, I have not and I believe the best way we can honour the memory of this man is by not doing what he did and understanding the bail-in system. One of my Currency Exchange Planner software customers, lives in Toronto, Canada but is from Ottawa, same as myself. His name is Gary, and after RV, he wants to build a 1965 Cobra Factory 5 sports car, really awesome car. I hope to take a ride with him when he's done. Now, the reason I am bringing up Gary is because he is 68 years old, same age as the man from Italy. So, it makes me wonder if the Bail-ins were to affect Gary's bank accounts, what Gary would do.
I will share some very interesting things with you guys about the Bail-in system and clarify things with you that probably you've never heard about before, so that none of us need to end up the same fate as the man from Italy.
First things first, let's talk about this Bail-in system and see how it will affect us.
Most countries have some sort of bank insurance deposit scheme, in Malaysia it is called PIDM, in North America it's known as FDIC. Sounds familiar? So what's it for? Basically, your deposits are insured up to $250,000, so then the first question that should pop into your mind is; what about the amounts over that amount? Technically, there is no insurance coverage thru the bank for over that amount. You may have to look into 3rd party insurance coverage, something to discuss with your private bankers and lawyers.
But for now, let's assume you had $1,000,000 in your account, that means $250,000 is insured, and $750,000 is not, so this is how the Bail-in will factor in. The banks may 'appropriate' the $750,000 leaving you with $250,000. Suppose you had $10 Million in your account? I bet you're starting to worry now aren't you?
So you can see that the banks will not fail ever again. Right?
So should we be worried? Or is that a stupid question to ask? Well maybe I know something that you don't but don't worry, I'll share everything I know on this subject and at the end of this article, you won't be so worried, then I'll give you my opinion on whether we should be worried or not and some things you can do about it.
First of all, let me, put you out of some misery and let's settle this 'appropriated' $750,000.
The bank does not 'appropriate' or keep your money, as if they've just stolen your funds. Your account actually gets converted to equity (stock) in the bank. Your money is not gone, just converted, but when you check your bank balance it would not show your $750,000 because it is no longer cash in your account. Then next logical step would be that to recover your funds you'll need to sell off your equity stocks back to cash. Something else that may happen is the bank may just take your full $1,000,000, and since your account has been converted to equity (stock) from cash, the FDIC is no longer responsible for your account and is not required to give you cash. Why? Because the FDIC only insures cash accounts not equity accounts, so now your entire bank account has been emptied!
Isn't this pretty clever of the banks to do this? For the common folks, like the Italian 68 year old man who doesn't understand the intricacies of the banking system will think that their life savings was just wiped out and may turn to drastic measures, such as in taking their lives. Do you think the bankers will care if you did that?
So I want to educate you all, so you do not do the same thing! So now you know what the bank has just done, your money is not gone, it's just transferred into Bank stock. It will be the customer’s responsibility to get that share of stock converted to cash, what that means is you'll need some help from your Team Lawyer to liquidate these stocks and turn them back into cash, once the Bank is stable. If you turn the stocks back into cash right away, the bank may just take it again, so this is where your Plan B will come in handy. While you're waiting for the bank to become stable again, some of your gold and silver may need to be liquidated to cash to help maintain your cash flow until you can liquidate the bank stocks. Remember your Private Banker works for the bank so he may not be the best person to get help from, your lawyer on the other hand works for you. Another possible scenario, it may be difficult to sell the shares, much less get remuneration equal to the cash lost when the bank failed and bail-in was executed, so you need to prepare for this. So now do you see why I added the Gold and Silver tab in my Currency Exchange Planner? Planning, Planning, Planning.
And something else, the article I posted above occurred in Italy. That tells me the bail-in system is not just USA based but globally, I believe every country has it implemented by now.
I have provided a link to a PDF document that is 28 pages on the entire history of the Bail-in system from when they first started planning it in 1999. The man that did all this research his name is Randy Langel, I do not know him personally, but I commend him for his research and sharing it to the world. It is probably the most extensive research on this subject, in simple layman terminology that you'll find. As it is now, it paves the road for us and we know exactly what to do, if and when the time calls for it. The document also gives solutions, both short term and long term. I highly recommend everyone to download it, print it out so you can refer to it and incorporate some of the ideas that Randy recommends into your planning. Here's the link:
Now, I am not done yet, I wanted to share my personal thoughts on the bail-in system and its current status. I have always said to my group that the Elite, in one hand will give us millions of dollars, while in their other hand they have the plan to take it all back, and that's thru the bail-ins.
From the latest reads of the Elite, it certainly seems that their hold on mankind is diminishing day by day. Something that's also really interesting is the number of protests that have been going on around the world. The citizens demanding that their governments treat them fairly and stop stealing their funds, thru corruption and wicked ways. In Malaysia, for example the ruling party, had been in power for 40 years and thru that time, the politicians lived lavish lifestyles where the people on the street suffered from a dwindling Ringgit Malaysia currency. Then in the last election, I, myself, even though I am not Malaysian, took a pro-active role and thru social media and viral messages a great change occurred, the ruling party was defeated and became the minority government. So change can occur and I believe that maybe waiting all these years for the RV to occur was in fact a good thing for us. If we did RV back in 2012, most likely the Elite would have already seized our bank accounts and the majority would be none the wiser on how to get the money back. What I think now, the banks and this entire bail-in system may have been shelved, in lieu of the new QFS system and if all of the world's currencies are moving back to a true gold-asset backed system, then it may mean that our money will be safe. I would really, really love it, that we can leave our money in the banks and not have to worry about these buggers trying to rip us off from our exchange funds.
So these are things that you really need to start thinking about, do I want to exchange all of my currencies at the beginning? Should I do it in stages over the years? Or should I exchange a bit at the get go and then watch as the markets crash and correct themselves and the banks stabilized themselves and when the time is right, then exchange my remaining notes? It's one thing to get higher rates or contract rates, but it's another thing if the money is taken from you. So these are all important decisions that I hope I have brought to your attention thru this article. I, myself, I’m on a wait and see approach and will exchange a few notes at a time and see the markets and current banking situation.
That's why I always say, get your plans out of your head and get it down on paper. That's the only way you'll be able to play with it.
Thank you and I wish you all the success in your currency exchange.
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