National planning Cyprus-style
solution for New Zealand …The National Government are pushing a
Cyprus-style solution to bank failure in New Zealand which will see
small depositors lose some of their savings to fund big bank bailouts,
the Green Party said today. Open Bank Resolution (OBR) is Finance
Minister Bill English’s favoured option dealing with a major bank
failure. If a bank fails under OBR, all depositors will have their
savings reduced overnight to fund the bank’s bail out. “Bill English is
proposing a Cyprus-style solution for managing bank failure here in New
Zealand – a solution that will see small depositors lose some of their
savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel
Norman. – Scoop
Dominant Social Theme: It’s all ours now.
Free-Market Analysis: First Cyprus and now New Zealand. Is it coincidence or something more?
Globalists that are trying to create an
international monetary solution often implement programs in various
countries at once. The question arises as to whether Money Power itself –
the banking entities and those behind them that control a good deal of
the world’s wealth – have decided to “send a message” about the
relationship between citizens and their banks.
We’ve certainly noticed that the advent
of the Internet and ever-rising level of information sharing has sparked
additional assertiveness from Western governments. The US in
particular, with its expanding wars in Africa and assertion that US
officials are to collect taxes anywhere in the world, is becoming
extraordinarily aggressive.
But even US officials have not yet
suggested that in the case of banking failures, citizens would be liable
for a significant haircut or even lose their entire life-savings.
Cyprus and New Zealand are well down this road.
Is a message being sent to savers? Is this going to become the new normal in the West?
We’re all for risk taking, by the way.
But the banking system today administers government monopoly money. And
the dollar reserve system itself is propped up by Saudi willingness to
accept dollars for oil in preference to any other currency.
Thus, the banking system is nothing near
a free-market one. In this artificial construct, asking savers to take
risks is not merely unfair; it is a recipe for increasing social
dissent.
Interestingly, the Green Party in New Zealand seems to recognize this. Here’s more from their press release, excerpted above:
“The Reserve Bank is in the final
stages of implementing a system of managing bank failure called Open
Bank Resolution. The scheme will put all bank depositors on the hook for
bailing out their bank.
“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.
“While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.
“Bill English is wrong to assume
everyday people are able to judge the soundness of their bank. Not even
sophisticated investors like Merrill Lynch saw the global financial crisis coming.
“If he insists on pushing through
this unfair scheme, small depositors can be protected ahead of time with
a notified savings threshold below which their savings will be safe
from any interference.”
Investors, of course, are not able to
judge the soundness of banks because banks are part of a
larger fiat-money system that is foundering. There is only one sure
thing about current economic systems worldwide – and that is that they
will undergo regular crises as money printing becomes overwhelming and
economic instability results.
The press release goes on to point out
that New Zealand ought to promote a deposit insurance scheme rather than
an open-bank resolution scheme that includes deposit confiscation.
But the release leaves unanswered the
larger question, which is one that has to do with the sudden occurrence
of such approaches. One is left with the uneasy feeling that top Western
bankers somehow DO want to send a message to citizens that the banking
system itself is the master not the servant.
If so, people will trust banks even less
than they do now, and the result will be, generally, a financial system
increasingly prone to failure.
Conclusion: Out of chaos … what?
Source:
www.thedailybell.com