Confiscation of Bank Deposits, The Derivative Debt
Rather than reining in the massive and risky derivatives casino, the new rules according to Ellen Brown:
“prioritize the payment of banks’ derivatives obligations to each other,
ahead of everyone else. That includes not only depositors, public and
private, but the pension funds that are the target market for the latest
bail-in play, called “bail-inable” bonds.
“Bail in” has been sold as avoiding future government bailouts and
eliminating too big to fail (TBTF). But it actually institutionalizes
TBTF, since the big banks are kept in business by expropriating the
funds of their creditors.
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 by statute. But a bail-in could have 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 in the street or sharing food with your pets.”
